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Hi Ashley
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> From: ASHLEYJUM@xxxxxxxxxxxxxxxx
> To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> Subject: forex trading site
> Date: Saturday, December 06, 1997 5:30 AM
> 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.
RB: Just to ensure there is no misunderstanding - what I said was there
were
OCCASIONS when you had to pay the interest differential; these were
the times when the currency you have bought has a lower interest
rate than the currency you have sold. It only becomes a problem
when you are trading a currency with a relative low interest rate
(e.g. JPY) against a currency with a high interest rate (e.g. USD).
Also the interest rate diff can work in your favour.
> 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.
Ultimately success in FX trading is no different to trading the futures
mkts.
You need a trading plan with an edge, effective money management and
wining psychology.
So far as news is concerned, I am not a great believer inn using it as a
trading tool except as a general guide to the bullishness/bearishness
of the mkt. If the mkt reacts bearishly to bullish news that gives me a
clue about the underlying weakness of the mkt etc.
So far as books are concerned, I'd recommend Gallacher's chapter on
money management, [Winner Take All] (though I disagree with parts of it:
see my article on the RT site) and on psychology Robert McCall's "The Way
of the Warrior Trader".
regards
ray
R Barros
101/25 Market Street
Sydney NSW 2000
Australia
e-mail: ramon@xxxxxxxxx
tel: 61 2 92673470
fax: 61 2 92673478
> 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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