FX Spot Traders everywhere

Hello members,

I am hoping to start a thread that brings together a small group of FX Spot Traders to this site, to chat about whats happening with the FX Market, the latest Tools of the Trade, FX predictions etc.

I also wish to assist any new people who may be interested in this fascinating market.

Please be warned In my opinion FX Trading is higher risk than Equties because of the high gearing offered (to anybody) e.g. $5000 can get you $500,000 of trading capital, this can either make you $50 per point or lose you $50 point!!

Lack of knowledge has meant that there is a high drop out rate in FX trading, but FX sites are now realizing that they need clients long term and are moving their services towards offering some basic training and education, this together with their demo accounts will help the new trader before they risk ANY of there own capital

Mini FX accounts can be opened with as little as $1000 and allow the 'junior' FX Trader to make small $10,000 trades risking just $1.00 per point gain/loss.

Under no circumstances must anybody NEW to trading open and use a live FX account.

I look forward to hearing from any FX people out there or those who are interested in some short replies with regards FX.

Re: FX trading strategy

Adam ,



I have seen plenty of information on the net regarding stocks but very little about FX. So I am glad you brought up the issue of FX as I have a question:-

Do you know of any mechanical stratagy with which one can trade FX and if so would you be kind enough to post it?




Happy new Year

being a student and interested in world affairs and international finance, i have been left with a choice, stock or forex trading?

ive chosen FOReign currency EXchange(FOREX):

• 24 hour market
• No Limit up / limit down

im currently doing financial betting just to build up my capital i only started with £20. ive had a ROI 18% daily for 6months.

FX vs Equities

Hi folks,

Like adamdhsmith I am also a proponent of FX dealing - and would like to ask people to consider FX dealing as an alternative to equities.

It is a very different kind of beast - nowadays equity markets get infested by a malaise by bad news which stops us interpreting a real picture of the market.

Being an economist by trade, I was happy to see that market principles were still applicable in FX markets, when in Equities the herd mentality took over!

I was introduced in FX trading by means of an 'fx game' (paper trading) which aroused my suspicion when my imaginary profits shot through the roof!

This , coupled with the facility of per second interest payment (or receipt) on all open positions, made me try it for real, ONLY after I familiarised myself with the game.

All I will say is that it is by far the most profitable activity I have ever undertaken!

I use OANDA (fxgame.oanda.com) and cannot recommend them enough - the spread is one pip fatter either side, but hasnt affected my to make profits, and they have no minimum size (a bit like 1p a move you get at finspreads) and pay interest every day...
Note that I have deliberately not supplied the link to the 'live; account, as you should ONLY use the fxgame first to suss out what the markets are doing...

As for the daily interest payment it is more enticing than having my money in the bank...IMHO

Adam, great you got the ball rolling on FX discussions - have a few ideas and thoughts which I would be happy to share with interested folks...


Have a great week!
s33

Trading Forex

For anyone interested in trading Forex check this link www.grharrison.com Claims of 33% ROA in January and 8% ROA to date in February trading the Forex markets

This guy claims to use a system called MBP which all markets in any timeframe conform to. If you look further down the homepage there are claims of using this system on the S&P with phenomenal returns using 5 minute charts.

I thought it may be of interest



Paul

I would similarly welcome an area in which to discuss FX. I believe that there are great opportunities around the dollar's demise over the coming couple of years, and the ability to discuss and realise resistance points and other technicals/ issues would be great. I mainly look at US indicies but have been following the main dollar rates for some time.

One of my main concerns has been the lack of information in terms of charting analysis and comments on these markets that I've been able to easily source, so would definitely participate in a fx board here

regs
P

Forex Trading Strategy

Has anyone used any strategies for trading the Forex markets and if so what strategy was used and what timeframe ?


Paul

I think GNI and Saxobank provide daily FX analysis, might even be free.

I'm thinking spreadbetting with FX is a good deal - in comparison to SB with indices, indeed the D4F SB rates are inside those offered by Saxo, a dedicated FX broker, by 1pt.

Just from looking at the daily FX charts, the FX and bullion markets do appear to trend well. Which suggest to me some sort of trend following system might be good. Perhaps not much more complex than an MA based system with a few simple pullback or hi/lo breakout rules for entry and exits on trailing stops.

Additionally I've been researching the use of CCI for intraday scalps on the ES e-mini, and am quite impressed so far. CCI was originally conceived in the commodities world so I would imagine its quite a good oscillator there also. I would be particularly keen on a finding good oscillator for the daily timescale with FX.

Think I prefer FXCM

A lot of equity traders I know use spot fx as a bonus in addition to their regular income from equity trading (you will find it difficult to trade both fx and equities intraday, particularly if adopting anything above a playschool equity strategy). Essentially fx is left alone apart from on certain occasions such as key economic data releases/interest rate announcements. For example, the shock interest rate cut by the BoE did little for the FTSE be it after 1 minute or one day, but cable began to significantly drop off after approximately 12.10pm on that same day, eventually falling around 100 pips within a day. On these occasions, where the equity situation is blurred, but the fx picture is clear (pricing in of interest rate differential), spot fx can be used as a cash injection. The key is however to limit your trading only to times when there will be a certain move. Another example would be release of US non-farm payrolls - a 20-30 pip move on the euro can easily be had within a minute or two, should the data comes sufficiently outside of forecasts.

new to forex

hey ive just started to research forex, am very interested how you return 18 %roi each day and if you are still doing it. im in london and would love to have a chat.. cheers aussieundefined

julesrules said:

being a student and interested in world affairs and international finance, i have been left with a choice, stock or forex trading?

ive chosen FOReign currency EXchange(FOREX):

• 24 hour market
• No Limit up / limit down

im currently doing financial betting just to build up my capital i only started with £20. ive had a ROI 18% daily for 6months.

Click to expand...

Trader333 said:

For anyone interested in trading Forex check this link www.grharrison.com

Click to expand...

Also, not that it necessarily negates anything, see this link: http://www.cftc.gov/opa/enf03/opa4866-03.htm

Ave

I use this strategy:

Identify risin ADX above 30 and buy /sell on the 20 day Exp Moving average.

Trader333 said:

Has anyone used any strategies for trading the Forex markets and if so what strategy was used and what timeframe ?


Paul

Click to expand...

CME FX as an alternative

I trade CME FX future contracts. I see it as a cleaner alternative to the many varying rules and conditions among FX dealers. E.g Kathy Lien at FXCM says they will put a FX trader who is scalping on "manual execution" - effectively sabotaging any trading for the client.

Globex offers very high leverage on the big contracts - e.g EuroFX EURUSD contract worth € 125 000 and a normal US RTH margin requirement of around $ 1300. Some brokers even have a low $ 500 margin requirement, even though it would be very reckless to trade a lightly funded account with such a big contract.

I do use the spot charts and crosses to decide on trading actions though, and also enjoy when there are some seemingly Interbank/EBS divergences between other FX dealers. The dealers don't particularly enjoy when someone employs this trading edge - called "picking" - and will put traders on manual execution.

Today, 11:27 AM * #15
Gringinho
Newbie
*

*
Join Date: Dec 2004
Location: Europe
Posts: 1


CME FX as an alternative
------------------------------------------------------------------------
I trade CME FX future contracts. I see it as a cleaner alternative to the many varying rules and conditions among FX dealers. E.g Kathy Lien at FXCM says they will put a FX trader who is scalping on "manual execution" - effectively sabotaging any trading for the client.

Globex offers very high leverage on the big contracts - e.g EuroFX EURUSD contract worth € 125 000 and a normal US RTH margin requirement of around $ 1300. Some brokers even have a low $ 500 margin requirement, even though it would be very reckless to trade a lightly funded account with such a big contract.

I do use the spot charts and crosses to decide on trading actions though, and also enjoy when there are some seemingly Interbank/EBS divergences between other FX dealers. The dealers don't particularly enjoy when someone employs this trading edge - called "picking" - and will put traders on manual execution.

Click to expand...

Gringinho,

Thanks for those intriguing insights. As a know-nothing newbie (despite my handle) I'm rather concerned by this idea of "manual execution" -- do I understand you to mean that market makers will arbitrarily take their clients' money off the table if they are scalping? This sounds more like expropriation than regulation to me. If that's what is going on, how widespread is it?

Thanks in advance for any insights.

Hi,

How long have you traded this method and how successful is it? Do you enter and exit purely on price moving through the EMA? What period ADX setting do you use?

Thanks.

josbarr said:

I use this strategy:

Identify risin ADX above 30 and buy /sell on the 20 day Exp Moving average.

Click to expand...

looks like a raschke grail trade ?

someone correct me if im wrong?

..ah interesting, you've been digesting her pearls recently - anything else useful i should read up on while i'm there?

Cheers FC,


Based upon strategies from "Street Smarts", copyright M. Gordon Publishing.

The Holy Grail - A 14-period ADX must initially be greater than 30 and rising. A retracement in price to 20-period exponential moving average accompanied usually by a turn down in ADX. When price touches the 20 day buy at above the high of the previous bar."

FetteredChinos said:

looks like a raschke grail trade ?

someone correct me if im wrong?

Click to expand...

Hi

Could a FOREX trader explain to me what is best to trade for position trading `I understand you can trade the CME march EUR/USD or Spot EUR/USD.

What do the big boys trade is it the spot eur/usd or future eur/usd

Also which is more volatile to trade between the spot or CME future.EUR.USD.and my last question does in move more 8.00am to 8.am UK time,

Thanks

Sun