Sunday, October 01, 2006
Learn Online Forex Trading - Forex day Trading - What is it?
Learn Online Forex Trading - What is forex day trading?
Hello Everyone..I am sure you might have run into terms such as forex day trading, swing trading etc..And at the same time, would have imagined what are these forex trading styles and what factors to consider when trading in these styles?
This message is to educate more on these 2 trading styles -
1. Forex day trading - forex day trading or also known as currency day trading is style of traders who open the forex trade and close it on the same trading day which means the trade is open only for few hours. This forex trader is looking to trade the fundamental news such as nfp (Non farm payroll) or other fundamental news or is looking for taking advantage of small currency moves on the basis of technical anaylysis. Few characterstics -
a. General forex trading targets - General targets are 15-25 pips depending on the currency pair traded. Such as USD/CHF trades will yield more profit as against AUD/USD pair. Remember, the more the volatility, the higher will be stop loss.
b. Trading charts used - Generally the forex trades are placed after referring to 5 min or 15 min. charts.
c. General trade cycle - The general duration for which a typical forex currency day trade is open is 2 to 5 hrs afcter which it is closed.
d. General trading times - Between 2 AM EST to 12PM EST.
2. Forex Swing trading - A forex trading style where the trade is open from few hours to few days. A lot of focus is given on technical analysis to place trade like these. Since the trades are open overnight, due consideration is given to overnight interest rates also. Few characterstics -
a. General forex trading targets - General targets are 100-150 pips. The more volatile the currency pair is more profit it will yield. EUR/USD and GBP/USD are used a lot for swing trading.
b. Trading charts used - Generally the forex trades are placed after referring to 1 hour or 4 hr charts.
c. General trade cycle - The general duration for which a typical forex currency swing trade is open is from 8 hrs to 4 to 5 days after which it is closed. I generally don't keep the trades open for the weekend.
d. General trading times - Can be between any time of the day since the focus is on technical analysis and not much on fundamental analysis.
I generally trade both forex day trading and currency swing trading depending on what technical analysis is saying. When doing day trading, focus on the pips spread also on the curency pair you are trading since in day trading the profit margin is small and the pip spread is significant part of the overall profit.
Thats all in this session..please keep visiting this site to learn more on online forex currency trading.
All of you who have a website, please feel free to link to this site. It will be advantageous to you as well as me since this is a very high ranking site on google (search nfp forex on google to see..:-)..It ranks 3..:-)), linking to this site will increase your site's ranking. To me, it will bring more visitors to my site.
Visit again to learn more on online forex currency trading.
Hello Everyone..I am sure you might have run into terms such as forex day trading, swing trading etc..And at the same time, would have imagined what are these forex trading styles and what factors to consider when trading in these styles?
This message is to educate more on these 2 trading styles -
1. Forex day trading - forex day trading or also known as currency day trading is style of traders who open the forex trade and close it on the same trading day which means the trade is open only for few hours. This forex trader is looking to trade the fundamental news such as nfp (Non farm payroll) or other fundamental news or is looking for taking advantage of small currency moves on the basis of technical anaylysis. Few characterstics -
a. General forex trading targets - General targets are 15-25 pips depending on the currency pair traded. Such as USD/CHF trades will yield more profit as against AUD/USD pair. Remember, the more the volatility, the higher will be stop loss.
b. Trading charts used - Generally the forex trades are placed after referring to 5 min or 15 min. charts.
c. General trade cycle - The general duration for which a typical forex currency day trade is open is 2 to 5 hrs afcter which it is closed.
d. General trading times - Between 2 AM EST to 12PM EST.
2. Forex Swing trading - A forex trading style where the trade is open from few hours to few days. A lot of focus is given on technical analysis to place trade like these. Since the trades are open overnight, due consideration is given to overnight interest rates also. Few characterstics -
a. General forex trading targets - General targets are 100-150 pips. The more volatile the currency pair is more profit it will yield. EUR/USD and GBP/USD are used a lot for swing trading.
b. Trading charts used - Generally the forex trades are placed after referring to 1 hour or 4 hr charts.
c. General trade cycle - The general duration for which a typical forex currency swing trade is open is from 8 hrs to 4 to 5 days after which it is closed. I generally don't keep the trades open for the weekend.
d. General trading times - Can be between any time of the day since the focus is on technical analysis and not much on fundamental analysis.
I generally trade both forex day trading and currency swing trading depending on what technical analysis is saying. When doing day trading, focus on the pips spread also on the curency pair you are trading since in day trading the profit margin is small and the pip spread is significant part of the overall profit.
Thats all in this session..please keep visiting this site to learn more on online forex currency trading.
All of you who have a website, please feel free to link to this site. It will be advantageous to you as well as me since this is a very high ranking site on google (search nfp forex on google to see..:-)..It ranks 3..:-)), linking to this site will increase your site's ranking. To me, it will bring more visitors to my site.
Visit again to learn more on online forex currency trading.
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Good day trading article. You can find more infomation about forex in my forex guide at: http://forexinfoguide.com
Thanks,
forexinfoguide.com
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Thanks,
forexinfoguide.com
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