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Sharing Thoughts on Forex
- Thread starter Corso482
- Start date
If you are going to trade FX you should definitely use a broker who is regulated by the FCM and CFTC.
I looked at the Oanda site and did not find that they are.
Also, some FX brokers are offering a mini contract which has a $1
pip....this could be a good way to learn and would allow for larger
stops with minimal risk.
One site is http://www.fxcm.com/
I am in no way associated with FXCM....this is the broker my friend clears through....and he has never had a problem.
Hope this helps.
Mike
I looked at the Oanda site and did not find that they are.
Also, some FX brokers are offering a mini contract which has a $1
pip....this could be a good way to learn and would allow for larger
stops with minimal risk.
One site is http://www.fxcm.com/
I am in no way associated with FXCM....this is the broker my friend clears through....and he has never had a problem.
Hope this helps.
Mike
i agree with all of the posters stating that FX trading should be only done on a long-term basis. One of the main problems, touched on earlier, is lack of transparency of volume. Whereas on your Level 2 you see GSCO on the bid all day. An FX deal can go between bankers and you end up chasing your own tail trying to follow or outsmart the big guys. Longer-term you can see trends much clearer.
i intend to hold for 1-3 days. I think their is enough volatility and volume for this type of trading.
i finally found a good source for forex charts.
http://www.geneva-guide.ch/finance/live_forex_charts.asp
lots of sites use this applet, but these guys have the parameters right so that the fib tool works good.
one complaint I have with Forex is that it's not liquid 24 hours a day. I think this will change as more banks and institutions go online.
the other problem with brokers that don't charge commissions but only charge the spread is that whenever there low liquidity, the spread widens, thus the 'commission' is more.
the good thing with the spread being the cost of the trade is that the cost is the same whether you trade $1 or $10,000,000
i'm currently using 30:1 leverage with Oanda. I think that is all they offer. But I've seen sites that advertise 400:1 leverage. Is that insane or what? How can one manage that type of risk? Seems like one bad trade would wipe you out.
What are YOU using?
i finally found a good source for forex charts.
http://www.geneva-guide.ch/finance/live_forex_charts.asp
lots of sites use this applet, but these guys have the parameters right so that the fib tool works good.
one complaint I have with Forex is that it's not liquid 24 hours a day. I think this will change as more banks and institutions go online.
the other problem with brokers that don't charge commissions but only charge the spread is that whenever there low liquidity, the spread widens, thus the 'commission' is more.
the good thing with the spread being the cost of the trade is that the cost is the same whether you trade $1 or $10,000,000
i'm currently using 30:1 leverage with Oanda. I think that is all they offer. But I've seen sites that advertise 400:1 leverage. Is that insane or what? How can one manage that type of risk? Seems like one bad trade would wipe you out.
What are YOU using?
Quote from canuck:
i agree with all of the posters stating that FX trading should be only done on a long-term basis. One of the main problems, touched on earlier, is lack of transparency of volume. Whereas on your Level 2 you see GSCO on the bid all day. An FX deal can go between bankers and you end up chasing your own tail trying to follow or outsmart the big guys. Longer-term you can see trends much clearer.
You have no idea what you are talking about.
i don't agree or disagree with canuck.
i don't really have any idea about whether its possible to daytrade forex or not.
can you please share your knowledge with us OffshoreTrader?
I do know that I was able to do some daytrading on the 23rd, and I made 1% gain. I don't know if that's possible everyday.
i don't really have any idea about whether its possible to daytrade forex or not.
can you please share your knowledge with us OffshoreTrader?
I do know that I was able to do some daytrading on the 23rd, and I made 1% gain. I don't know if that's possible everyday.
Quote from Snosur4:
The volume dies after about 3pm EST then picks up again, especially in the JPY, when Tokyo opens about 6pm EST.
It then gets very active when the European markets open.
Now that it is somewhat regulated it is much better....in the old days of the "bucket shops" the dealer could quote you almost any price he wanted and would often move 10 pips away from the market just to take out your stop!
I moved from trading the floor traded Swissie and in those days the Dmark because it was nearly impossible to day trade against the floor traders and make any money unless you are position trading with wide stops.
I have never traded the emini currencies so I don't know about them.
You have to trade the currencies differently. Scalping doesn't work for a retail trader....it is definitely a trend following game.
Breakouts from consolidations work well. Then trail with a wide stop and you could be amazed how long a move can last ..days..weeks...even months. You have to keep the big picture in mind when trading currencies.
Mike
Thank you Mike.
Banker
Quote from Corso482:
I know that Oanda offers 50:1 leverage on fxgame by request. I don't know if they have the increased leverage option for the real thing.
No, with FXTrade you can have 20:1 or 30:1 only. In the past, you have to email them to get 30:1. Now it is self-serve by using an online form.