Day forex trading

Questions and Answers

Does anyone have tips on using Vantage Point software for trading the forex market? Have u found it useful?Ta!

Q) I find the short term moving average more predictable to base the trends for the following day or two. What I find unnerving is that it is not as simple as "buy" when the blue line crosses the "black line" as advertised on their website! Especially if the market is quite choppy, this could lead to many whipsaws. I also do not find the neurl index very useful, as at times the market goes in the opposite direction to the neural index. What I do find useful, although this was not suggested by the marketing department, was the use of the short term predictive average crossing the medium term moving average and or the 10 day sma; these proved better as a predictive trend for day trading. I fould the predictive ranges for the next day very misleading and certainly very unreliabe for placing stop losses or take profit levels. Does anybody have any good experience with this software? Your response will be much appreciated! Thank you!

A) I have Vantage Point and look at the Short Term Predictive relative to the Medium Term Predictive. First, you're using Vantage Point to day trade, but they will tell you that Vantage Point is for position trading. Yes, they're predicted high/low is very accurate (granted, major moves can be outside the range, but how often do you have a huge 1 day move?), but it only tells you the possible high/low, now what the trading pattern for the day will be. One thing I could suggest is this: Use the Short Term/Medium Term Predictive averages (the pink and light blue lines, I have mine set on the bottom part of the chart) to get an idea of when prices could be changing direction. Also, when you switch from the 10 day or 5 day average to the predicted high/low, you'll notice that the short/medium predictive lines will be different that from the 10/5 day chart. What I do is when the short predictive (light blue) line crosses the medium (pink) line on both the 5/10 day and predicted high/low chart, is when I get an indication markets will turn (and it's very accurate). When that happens, since you day trade, use your technicals on whatever time frame chart you're using to take trade only in the direction of the crossover. For example, say you're watching the S&P 500, the market is trending up and you notice that on the 5 or 10 day chart that the short term predictive has crossed below the medium term, and when you switch to the predicted high/low chart that the short has not crossed below the medium predictive, but is about to, wait till the short crosses below the medium predictive on the predicted high/low chart (that is short has crossed below medium on both 5/10 and predicted high/low chart). When that happens, use your technicals to time short entries, don't go long. In other words, say you're using a 5 minute chart. If the market is trending up, and you're technicals give you a signal for a short, then take the short trade. When the signals show the 5 minute chart starting to turn back up again, close your short, but do not go long, only enter again when you get a sell signal. Trade in the direction of the larger trend. You should get less whipsaws and will be trading in the direction of the larger trend. When the short crosses above the medium predictive on both the 5/10 and predicted high/low chart, the only take long trades. Hope that helps.

Any advice on forex trading ?

Q) Is it better to buy foreign currency on your own like a bank draft and a few day's later cancell it for gains in mind. Or is it better to trust your money to a "forex expert"?

A) Currency Trading is done every day, If you want to take advantage of the fluctuations; you can do it physically. There is also a broker house where you can trade to take advantage of the daily fluctuations, however you need to have a bigger capital to do this. Trusting your money to somebody is a risk in itself, how well do you know the person? "for-ex expert" if there be any, is still a person, How well do you know the person? I suggest you learn the trade first, observe and decide for yourself if you can afford the risk involved in Currency Trading. Like in any business that you want to invest your money in. Learn the trade before you invest.

Can I realistically make £100 a week on FOREX trading or is it pie in the sky?

Q) I think if I was trying to make £1000's each week it would be very hard, but would £20.00 a day (£100 per week) be easier to achieve, I have done a bit of research but have not found a definitive answer yet. If there is an expert out there who will answer my question and point me in the right direction I would be very grateful. thanks in advance

A) pazzamex, I trade forex and I would not say that is unrealistic. Im not sure what research you've done but the answer lies in your ability to read and predict price movement, which takes time, sometimes years. But again id say with a $2500-5000 account balance, risking 2% of account each trade.. you can achieve $40(20pounds) a day with a profitable strategy. How to find a profitable strategy? Study technical analysis and learn charts, dont get caught up on anyones system or magical indicator. Get addicted to your pair and learn how it moves. Then you will find that your consistency becomes quite routine and easy. Check out www.trading-strategies.info. It costs but for a reason (free trial offered). Fxstreet.com is also a good site.

Is forex day trading legit? And if so how profitable is it?

A) The currency trading (FOREX) market is the biggest and the fastest growing market on earth. Its daily turnover is more than 2.5 trillion dollars, which is 100 times greater than the NASDAQ daily turnover.Markets are places to trade goods. The same goes with FOREX. The Forex goods (or merchandise) are the currencies of various countries. You buy Euro, paying with USdollars, or you sell Japanese Yens for Canadian dollars. That's all. How does one profit in Forex? Very simple and obvious: buy cheap and sell for more! The profit is generated from the fluctuations (changes) in the currency exchange market. The nice thing about the FOREX market, is that regular daily fluctuations, say - around 1%, are multiplied by 100! (in general, Easy-Forex™ offers trading ratios from 1:50 to 1:200). If, for example, the exchange rate of "your" pair of currencies increased by 0.6% in the last 4 hours, your profit will be 60% on your investment! Such can happen in one business day, or in a few hours, even minutes. This paragraph of the article just shows how profitable it is. VERY profitable. But this ain't the way to 'get rich overnight.' It requires A LOT of hard work in figuring out your own strategies and how to deal with possible losses. Forex trading is legit. But a warning that there are a lot of forex scammers out there. Check out the links below, especially the articles in the forex resources section. Its very helpful.

is forex day trading legal or are thay scaming people?

A) Day trading the Forex market is just like day trading the equities market, in fact it is probably better because the liquidity is better an the volatility is better therefore you have a greater chance of making profits

What's the chance of making a large amount of money in forex day trading?

A) Your chances are good if you; Take 6 months to a year reading, learning and paper trading. You fully understand the fundemental and technical aspects &(just as important) use very exact money management techniques. Ignoring the above will put you with the 95% of people that blow their FX accounts (usually very very very quickly). Consider yourself warned! This is a great market for those that take the time and make the effort. All others lose big.

For forex trading which currecy pairs are normally very active , their active timings for day trading?

Q) i am a stock market player. i want to enter currency market. kindly guide me which currency pairs are normally very active and the timings (from what time to what time if I am ready to concentrate on all the 24 hours)generally very active for day trading. Also request to mention the differnce between currency trading and stock trading in various angles

A) By far and away the most active currency pairs are GBP/USD, EUR/USD, USD/CHF and USD/JPY.

When day trading the Forex, do you recommend using trailing stops? If so how many pips do you trail?

A) Trailing stop is useful if you cannot wtch trade the whole time. Also, the value of trailing stops depends the time frame you are trailing in. Visit - http://the-forex-trading.blogspot.com

Hi Members Is forex trading for the day or swing trade because there are few longer term trends?

Q) I have been studying forex trading with some help from the FORUM members and find that currencies (GBP/USD) keep on oscillating in a narrow range. this means yoiu can only swing trade. No posibility of Position trading. Your helpful cpmments please Gaminig

A) Let me give you a little advice. There is definetely long term trends in Forex. Take a look at the daily and monthly charts. It is important to know the long term trend before you enter into any short term trades. I teach my clients to use Fibonacci studies on the daily charts to identify key support and resistance levels. Although a currency pair may range for a number of days what you are really looking for is the point at which you can capture a breakout. The bulk of my client's use a Forex hedging tactic as part of a long term investment strategy. Good luck in your ventures.

best technical indicator for day trading in forex?

A) Almost all technical analysis systems I have read on are not based on careful mathematical or scientific evaluation. Many experts, such as Warren Buffett and Peter Lynch consider technical analysis do be a worthless method of analysis. Many technical analysis writers can sound good to newbies, but they usually based on unsound theories.

When trading Forex, are the resistance and support values the same for day trading, and for weekly and.monthly

Q) are they the same for daily, weekly and monthly frames? if not how do they differ.

A) No. You will have to redraw trendlines, support, resistance lines for different time frames. Different time frames have different technical implications. You will know what I mean if you take a look at say a 4hrly chart, a daily chart, and a monthly chart. Find the support or resistance for each. You will find they yield different figures. If you are not using any charting software or system, use FXCM free charts. They are pretty good. For more info on Forex visit : http://www.geocities.com/lcming/ForexForex or http://www.geocities.com/lcming/Forexbooks Technical Signals : http://www.geocities.com/lcming/Forexsignals

I want to learn day trading,free online trading course,trading lessons online $$?

Q) I WANT TO START DAY TRADING. I MEAN I WANT TO LEARN DAY TRADING STOCKS, LIKE AMEX, NYSE, NASDAQ ONLINE THAT TOO REAL TIME. I FOUND SO MANY ONLINE TRADING COURSES. HOW BENEFICIAL IS THIS LINK: http://lansing.craigslist.org/fns/172121865.html ANY IDEA: http://lansing.craigslist.org/fns/172121865.html Girish: my keywords: Also learn forex trading online, personal day trader, personal day trading mentor, free trading personalised mentorship, personalized mentor, free forex lessons, learn technical analysis for free online, learn trading with NO fees, free option trading, free options trading demo software , online futures trading, Stocks, learn Day Trading online for free, free trading resources, daytrading teacher coach, free intra day trading teacher online , Trading and Investing basics and fundamentals for Beginners, free online trading Courses, Videos Courses, free real time demo trading Software for begginers & beginers. Learn real-time online stock trading for free -------------------------------------------------------- http://lansing.craigslist.org/fns/172121865.html HOW IS THIS LINK WHEN IT COMES TO LEARNING OR LEARN DAY TRADING STOCKS ONLINE? http://lansing.craigslist.org/fns/172121865.html --------------------------------------------------------

A) Be aware that 90% of day-traders lose money. The odds are way against you. I recommend trying swing-trading (a few days to a few months time frame) first. The pressure is less and the timing not so quick. The exact same principles that apply to swing trading will prepare you for trading on shorter time frames. Or ... you might decide you were making enough money in swing trading to stick with it. As for sources, check with your brokerage. Many of them make learning tools available to their clients. Best of success.

is forex trading a good idea?

Q) im 23yrs old and ive been day trading for a little over a year now i really enjoy what i do. and hopefully can become a porfessional one day. but ive been hearing alot of stuff on forex trading and wanted to know if its a good idea to learn how and do it. and if the risks are greater than trading stocks

A) Forex is a highly liquid market, yes. It is also a very fast-moving market that is conducive to day-trading. However, it's a pretty complicated market to understand, there are a lot of crooks out there, and trading is often done on leverage, which means that a few mistakes can cause you to lose much more than you wagered originally even if you use stops. I've heard you can make good money in forex, but I would strongly suggest getting very educated about it before getting involved.