Sunday, November 15, 2009
Moving On…
Hi guys.
So it seems that my work and study life is catching up on me again. I will still be trading Forex but will not be updating this site too frequently, if not at all.
There are several Forex trading styles but all have their disadvantages. For long-term trading, stability is there, but then it is often quite hard to find the right time to take profit, fearing that the market will go faster our way, and if we were to hold on to the trade, we would have obtained even more. Short-term trading like swings or scalping will let us take out the cash that we profit but then these types of trades are more vulnerable to random market noise compared to long-term position trading.
With that said, I still think that I have not found my optimum trading style and I need to finish up work and college. So I will not be updating this Forex Journal much. But for now, you guys can enjoy the ajax forex charts:
Thursday, May 28, 2009
Forex Day Trading
There are basically 3 major ways that a forex player can use to play in the forex market. A very enjoyable way of trading is day trading. There are thousands to millions of day traders around the world, trading on multiple currency pairs.
What is day trading, you may wonder. Basically, in day trading, a trade is opened and will be closed on the same day. Day trades can last from less than an hour to around 2 days maximum. Some traders leave their day trades overnight and check to see if they won or lost when they wake up.
From my experience, day trading holds the most risk. This is particularly true when trading highly volatile pairs like EURUSD, as it is hard to predict what will happen right after you open a trade and you may never know whether the market will do a sharp U-turn against your direction. However, day trading requires less of your daily time to monitor the charts.
Some say that day trading needs a lot of luck. I am not sure if this is entirely true, but I tend to agree. You see, you might have done a really careful analysis and you found out that a currency pair will be going down, 80% probability. So you Sell, but then after 5 hours you found that the market moved sharply up, breaking your careful analysis, causing you to lose. All the studying for nothing. So they say, you need to have luck to ensure that you do not meet with this kind of misfortune.
However, some traders say that they have the proper systems and tools to enjoy a high success rate in day trading and most of them want to keep their weapons secret…