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Why day-trade currencies?

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Yuri57 View Post
It's a simple question and I give a few reasons not to try day-trading them. If you are successful doing so please feel free to prove me wrong. So here it goes:

Why trading currencies is so complex?

1) I never read it but I know from experience that pairs support each other. That's right cross pairs also have significant volume and they all play significant role in changing the price for 1 currency. But since everything is related with something else, you would need a VERY complex system to measure all these bearish and bullish forces.

2) Volatility very inconsistent. Once it is small, than it gets very volatile. That's a disaster for risk management. You could only take advantage of volatility when it is very small and you know it will be a lot bigger but usually that's impossible to tell. (Or scalp counter-trend when volatility is high)

3) News come out way too often and they ruin the original picture of price action. You can't trade the news because of slippage.


I understand that currencies offer some good opportunities too. I like to trade the London open because that's the only time I can play volatility with good expectancy on my side.
There are also good fundamental stories to back certain trades...

My point is: trading the ES or Bund seems like a piece of cake compared to trading currencies. So why bother day-trading them?


If thought of this way I believe every instrument is 'complex'.

I am a firm believer that 'they' who know and who are capable of significantly moving the markets usually know what they are doing (though sometimes they may be wrong too), and what we are actually trading in a market are other traders and not the underlying.

So instead of analyzing the fundamentals as you are attempting to, why not those who are better equipped financially and technologically do that and why not simply analyze to recognize their footprints and act in tandem with them rather than against them?

Would this not be a better method?

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