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Hello Ashif
I also share your interest and questions, in the Forex. Looks interesting.
Dave Breeze
Cincinnati, Oh
-----Original Message-----
From: ASHLEYJUM@xxxxxxxxxxxxxxxx <ASHLEYJUM@xxxxxxxxxxxxxxxx>
To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
Date: Friday, December 05, 1997 1:57 PM
Subject: forex trading site
>Hi Rtrs, Regarding forex trading, from my initial research , I find the
>following(correct me if I am wrong)
>Advantages: 1. very liquid 2. no or very little slippage 3. no commission
>because you go to market maker directly. 4. execution of trade in seconds
>5. bid-ask spread of 5 pip 6. Ability to trade from anywhere in the
>world with a laptop,cellular and reliable internet connection - ideal for
>countries where you can't trade futures 7. 24-hrs market -ability to react
>to events anywhere in the world. 8.Margin 2% for daytrading - 4% for
>overnight - just an example -it varies. 9. Interest at Libor rate on excess
>equity. 10. Free real-time quotes. 11. Can trade in different sizes 12.
>Hedging: You can go long and short in the same currency to hedge completely
>or partially for example you can go long $200,000 worth DM and go short the
>same or less and have both sides open unlike futures.
>
> Disadvantages. 1. Individual trader
>cannot keep awake 24 hrs. 2.Since margin is less, trader with poor risk
>management can get wiped out quickly. 3. Ray Barros said that you have to
>pay interest rate differential - I don't understand this clearly but paying
>it may take away most of the advantages. 4. Other costs charged by trading
>houses 5. Safety of the money in the account. 6. Adaptation of technical
>analysis required. How do you chart the open,close,high,low for bar chart
>or candlestick when there is no open or close. I use mostly candlestick
>charting and require the open and close.
>
> A forex trader would require 1) good reliable internet
>connection 2) live real-time quotes preferably free from the market-maker
>3)a cheap or free source of real-time news that could move the currency
>markets - also most important good judgement. Any
>input would be welcome. For forex traders - anybody using news and/or
>technical analysis for trading and your views on it. About trading on
>fundamental or news, any recommendation on sources ,books for learning
>about how to use news to trade profitably would be welcome.
>
> Does anybody out there make a living trading mostly
>on forex give us views on size of account, frequency of trading, working
>hours required.
>Happy trading, Ashif
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