Currency Trading

Articles and Information about Currency Trading

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Trading Timeframes


Long Term

Long term traders will work from end of day data and look to hold trades for a few weeks up to many months. Usually trend trading.

Advantages

No need to watch the markets intraday.

Fewer transactions means lower commission costs.

Cost of equipment and data is minimal.

Disadvantages

Large equity swings on single positions with large stops.

Usually only 1 or 2 exceptional trades a year so patience is essential.

Bigger capitalization required to ride longer term swings.

Frequent losing months.

Short Term

Working from intraday data and looking to hold for a day up to a week. Usually swing trading.

Advantages

More opportunities for trades.

Less chance of losing months.

Less reliance on one or two trades a year to make money.

Disadvantages

Transaction costs will be higher.

Intraday data adds to costs.

Overnight risk becomes a factor.

Day Trading

Working from intraday data the day trader will attempt to take small profits from intraday swings. All positions will be exited at the market close.

Advantages

Many trading opportunities in a day.

Much lower chance of losing months.

No overnight risk.

Reduced margin requirements due to no overnight risk.

Disadvantages

Transaction costs will be high.

Psychologically more difficult due to frequency of trading.

Profits are limited by needing to exit at the end of the day.

Data costs are high as real time data is essential.

Tim Wreford runs Online Futures Trading, a website that provides information and resources for traders. Tim also provides a free day trading system, the results of which are updated daily on the site.


MORE RESOURCES:

Top Currency Trading Ideas for the Week of May 12, 2008
Daily FX, NY - May 12, 2008
The current psychology (news headlines and COT data) is suggestive of a short term bottom in the EURUSD. Recent newspaper headlines include “Steady Dollar ...


Emerging Markets Lead 40% Currency Trading Jump, Euromoney Says
Bloomberg - Apr 30, 2008
By Ron Harui April 30 (Bloomberg) -- Emerging markets led a 40 percent gain in currency trading to $175 trillion last year as banks relied on foreign ...


SEC Stops Multi-Million Dollar Fictitious Currency Trading Program
Media Newswire (press release), NY - May 8, 2008
The SEC charged Las Vegas-based Gold-Quest International and its three principals for the alleged misuse of investor funds in a scheme that promised ...


Top Currency Trading Ideas for the Week of May 5, 2008
Daily FX, NY - May 5, 2008
The EURUSD bias is bearish as long as price is below 1.5643. Potential trendline resistance is near 1.55 and short term resistance extends to 1.5650. ...


Fortex Passes $5 Billion in Daily FX Trading
Earthtimes (press release), UK - 16 hours ago
A highly intuitive interface supports the most sophisticated currency trading strategies and enables traders to bypass traditional published pricing and ...


Top Currency Trading Ideas for the Week of April 28, 2008
Daily FX, NY - Apr 28, 2008
Both the EURUSD and AUDUSD declines from thie respective highs are in 5 waves, confirming that a significant top is in place. The USDCAD rally is about to ...


Getting Started in Currency Trading
FXstreet.com The Foreign Exchange Market, Spain - Apr 22, 2008
He has authored six FOREX books for John Wiley & Sons – Getting Started in Currency Trading (2005), The Forex Chartist Companion (2006), Trading the Major ...


Currency News

Euro Falls Against Dollar, Yen on Decline in Crude Oil Prices
Bloomberg - 8 hours ago
``The economy is stagnant,'' said Brian Dolan, chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, ...
Yield Implosion Muddies Currency Waters Seeking Alpha
Yen Trades Near One-Week Low Against Euro as Stocks Advance Bloomberg
all 358 news articles


Tradeview forex augments foreign currency trading system with ...
Trading Markets (press release), CA - Apr 22, 2008
Apr 23, 2008 (Al-Bawaba via COMTEX) -- -- Tradeview forex augments foreign currency trading system with addition of two new liquidity providers on the ...


May 16 - Open: Dollar rebounds from four-month low
Stuff.co.nz, New Zealand - 7 hours ago
In major currency trading, the yen rose as investors reduced demand for riskier assets such as stocks after a series of weak US economic data added to ...

Currency-Trading - Google News

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