Intraday?
- Thread starter 50 cent
- Start date
I think that focusing on the leverage is misleading: we should trade FX because it fits our trading style, not because it is higly leveraged.
Also, margin doesn't add to costs: Oanda pays interest on your account.
Besides, one should have on their account a lot more $$$ than the broker/exchange requires him to have to trade a give instrument. Otherwise, you're overtradeing.
Also, margin doesn't add to costs: Oanda pays interest on your account.
Besides, one should have on their account a lot more $$$ than the broker/exchange requires him to have to trade a give instrument. Otherwise, you're overtradeing.
Well, I started this thread so to discuss exactly that, trading style. For some reason, not surprisingly, it changed direction to brokers, 1:3000 leverage, and oanda 1 pips spreads.
This is what I suspected about forex. It seems so "perfect" to trade, that it's untradeable. 90% of moves are preceded by out-of-proportion rinses to every possible direction. The bars overlap so bad that only the 120min chart starts to look managable. And I used to think that the nq and es are giving trouble these days..
Someone that makes money intraday with forex... please share with us some hints about your ** trading style ** ..
Cheers
50
I would say that spread's size matters, instead, because it adds to your costs. Try playing FX with 5 pips, or 2 pips and see the difference!
Overlapping bars might just depend on your datafeed: third party (i.e. non brokers) providers quote "interbank" that is they report quotes from different sources, different places and (probably)different transaction sizes...
Try a broker's platform, and see how their actual quotes can be charted.
Even overlapping bars are more an opportunity than a nuisance, as they offer more opportuinties to enter on a support... On the other hand, they are certainly a nuisance if you plan to enter on a breakout.
Another point is that you have several liquid FX pairs, or crosses: EUR USD JPY combined make 3 different, but try adding CHF GBP AUD and CAD... You'll seldom find a cross that is not clearly trending on a given time frame.
The time frame is a function of your attitude, but also of the market itself. If you trade with a wide spread, you can't trade 1 minute bars...
EUR/USD with a 2 pips spread can be traded on a 5 min chart. But expect several trades along the day.
All in all: try some of the many brokers and platforms available. You'll see for yourself what works and what doesn't.
Overlapping bars might just depend on your datafeed: third party (i.e. non brokers) providers quote "interbank" that is they report quotes from different sources, different places and (probably)different transaction sizes...
Try a broker's platform, and see how their actual quotes can be charted.
Even overlapping bars are more an opportunity than a nuisance, as they offer more opportuinties to enter on a support... On the other hand, they are certainly a nuisance if you plan to enter on a breakout.
Another point is that you have several liquid FX pairs, or crosses: EUR USD JPY combined make 3 different, but try adding CHF GBP AUD and CAD... You'll seldom find a cross that is not clearly trending on a given time frame.
The time frame is a function of your attitude, but also of the market itself. If you trade with a wide spread, you can't trade 1 minute bars...
EUR/USD with a 2 pips spread can be traded on a 5 min chart. But expect several trades along the day.
All in all: try some of the many brokers and platforms available. You'll see for yourself what works and what doesn't.
50:
When I first started trading spot I did it exclusively intraday. Here are a few signals which work well and should help.
1. Trade the breakout of yesterday's high/low or better yet the breakout of congestion just prior to Y H/L
2. A typical week will see the mkt trade in congestion for 3 days and trend the other two. So watch for those congestion days which are frustrating to trade(for me not worth it) but the breakouts are good trades. Trending days for the E/$ will move on average 100 PIPs. The breakouts will happen during Europe or NY.
3. If your looking for a scalp trade take the breakout of the tight congestion which will form during Asia. This usually happens on the European open.
I don't use technical indicators other than a 20MA on the 5 minute chart for trailing stops. I still trade intraday but try as much as possible to hold for a few days provided it meets my criteria. Lastly, when I first started I found that the European session was an easier time to trade and stayed out of the mkt during the NY open. Good luck.
When I first started trading spot I did it exclusively intraday. Here are a few signals which work well and should help.
1. Trade the breakout of yesterday's high/low or better yet the breakout of congestion just prior to Y H/L
2. A typical week will see the mkt trade in congestion for 3 days and trend the other two. So watch for those congestion days which are frustrating to trade(for me not worth it) but the breakouts are good trades. Trending days for the E/$ will move on average 100 PIPs. The breakouts will happen during Europe or NY.
3. If your looking for a scalp trade take the breakout of the tight congestion which will form during Asia. This usually happens on the European open.
I don't use technical indicators other than a 20MA on the 5 minute chart for trailing stops. I still trade intraday but try as much as possible to hold for a few days provided it meets my criteria. Lastly, when I first started I found that the European session was an easier time to trade and stayed out of the mkt during the NY open. Good luck.