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Hi Rtrs,
I wouldn't say that fundamentals and news are useless in the forex market,
but as you say they can be traded on technical analysis only. Other orders
such as limit (a stop below the market to go long etc) and O.C.O can be placed.
Options are not usually done in the forex market by small traders, as there
are no set strike prices etc. Large positions are usually taken also. (I
think that the average option deal size done by banks is about 20 - 50 million)
There is a generally accepted opening and closing time in the forex market.
The market opens in New Zealand followed soon by Sydney and Japan and the
rest of Asia. The close is the close of New York which also happens coincide
with the opening in New Zealand. Hence the close of one day, and the opening
of the next will be basically the same. The market trades 24 hours, but you
need not consider this a disadvantage if you only want to trade during your
business hours. You can simpy plot the data for this time frame and ignore
the fact that it trades 24 hours if you wish(which is really what happens in
currency futures).
Different companies allow for the interest rate differential differently.
Some will simply debit or credit the amount to your account. Others 'roll'
the position over effectively changing your entry price. In some cases the
broker will vary how frequently this is done depending on how long the trade
is expected to last.
I have done both medium term trading and short term trading. By medium term
I mean from a day to perhaps a week. By short term I mean intraday trading.
Because I can trade frequently with no commisions, I am spending a lot more
time day trading. The forex market is sufficiently volatile that good
profits can be made in intraday trading.
Regards,
Simon Trevor
>Hi Rtrs,Jeff,Ray and rest,
> thanks for all your
>posting- regarding the fact that you find fundamental /news mostly useless
>for currency position trading- that is good news because I trade
>technically and I have been fairly successful. Fundamental info are hard
>to trade.I have never used fibonacci although I studied it. What are time
>clusters?
> About type
>of order allowed in forex, I know market order and stop loss are normally
>used, I did not come across market if touched, limit order, or O.C.O,
>perhaps Jeff or Ray will enlighten us on this.
>
> I did come across a forex trader who trade on news, fundamental along
>with support and resistance. I believe he trades short term 3-5 days.
> Position trading: Jeff what
>kind of period are you refering to as a position trade. Also you probably
>use stop to have a good night sleep. Are there options on Forex and do you
>use it similar to options on futures, expiration period etc.
> About interest rate differential It is
>either credited or debited to your account every 24 or 48 hrs depending on
>your trade from the postings on the web.
>
> Internet connection: probably suitable for
>small investor and short-term trading because of free realtime quotes and
>easy access. Jeff you probably have access to banks for forex trading and
>paid real-time forex quotes so you don't need internet.
>
> I did trade C$ and
>Aussie futures profitably in the beginning of the year. I decided to stay
>away from Aussie because it had several very sharp movement in range of
>80-100 pts overnight and reduced the sizeable profit I had to a couple of
>hundred dollars. Yen and Bpound have good volatility generating sizeable
>winners and losers.
> Some
>traders use options on futures to protect against adverse overnight
>currency movement, others use forex. I find options represent an additional
>cost .
> Are there any forex traders who
>daytrades or trade very short-term.
> Happy Trading, Ashif
>
>
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