Ed Ponsi is recognized worldwide for his work as a trader and educator. Managing Director of Barchetta Capital Management and President of FXEducator, Ponsi has been part of FXStreet since 2006 as one of our Premium speakers.
In this interview, he explains us a bit more about himself and his Webinar about his new book called “Technical Analysis and Chart Interpretations”. Remember, watch Ed Ponsi‘s Stop losing money with technical analysis Open Webinar on October 4 at 13:00 GMT.
Tell us a bit more about yourself… When did you start trading currencies and how did it happen?
I was a stock trader for a Wall Street trading firm, literally on Wall Street in New York City. Other traders began to tell me about the currency market, they said my style of trading was perfectly suited to it. At first, it was a difficult transition, but when I realized the advantages of Forex – very little slippage, no partial fills, tremendous liquidity – I was hooked for life. It’s the best trading market for me.
Do you remember how your relationship started with FXStreet?
Yes, I was introduced to Francesc back in 2004 by Drew Niv, who is one of the founders of FXCM. I’ll always be indebted to Mr. Niv for introducing me to FXStreet!
How many hours do you trade in your daily routine?
I don’t think of trading as something you sit down and do; it’s an endless process. Every day, when it’s convenient, I look at charts, sometimes several times per day. I start with longer time frames and work my way down. But I’m always planning. Even if I’m standing in line at a store, I’m planning my next move. You could say it’s a constant, never ending process.
You exposed several chart interpretations in your book that could be applied to strategies, but coming from your book, what is your favorite trading strategy and why?
Great question. There is no strategy that works all the time, so you need multiple strategies. That way you can handle any situation. I’m a big fan trend trading, I’d have to say that’s my favorite strategy.
What do you enjoy the most about trading?
Freedom. For example, many people take weeks or maybe even months off from work when they become a parent. When I became a dad, I basically traded from home for the next five years. Not many people have the freedom to make that choice. I was very fortunate to become a trader.
Can you explain to us what is your “Technical Analysis and Chart Interpretations” book about?
I recently became a Chartered Market Technician. To accomplish this, you have to pass a series of tests and read all of the classic books on technical analysis. What I realized is that many of those books are out of date. They feature charts of companies that haven’t existed for decades. I decided to take the challenge of bringing technical analysis into the 21st century.
I came to realize that most people know just enough about technical analysis to hurt themselves. They know that a pattern is bullish or bearish, but they don’t understand when it is significant. They use patterns and indicators incorrectly every day, and they lose money because of it. I can help by explaining the fine points of technical analysis that most people miss.
You are a prolific writer, what makes your new book different from the others that you previously wrote?
My first book, “Forex Patterns and Probabilities”, consists mostly of Forex trading strategies. My second book, “The Ed Ponsi Forex Playbook”, is about Forex fundamental analysis, and it is also meant to be inspirational and uplifting.
My new book, Technical Analysis and Chart Interpretation, isn’t just about Forex, it can be applied to every type of trading. I don’t just repeat what others have written before me; I actually challenge many of the accepted ideas of technical analysis. Not every technical pattern or technique makes sense, and it’s important that someone point that out. We shouldn’t just accept what we are told.
How is the life of an independent trader in New York? Is it like the Wolf of Wall Street or something different like Buffet in Omaha?
Thanks to technology, I spend very little time in New York these days. As little time as possible really. Everyone should live there for a year or two, it’s the most amazing place to spend time. But the more time you spend there, the more tiresome some aspects of New York become.
What are your future projects?
The future is wide open. I don’t have any major commitments. If I have something important to say, I may write another book someday. But for now I’m just enjoying myself and everything that trading has given to me, and for that I am very grateful.