Why day-trade currencies? - Currency Futures | futures io social day trading
futures io futures trading


Why day-trade currencies?
Updated: Views / Replies:2,327 / 18
Created: by Yuri57 Attachments:3

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 3  
 
Thread Tools Search this Thread
 

Why day-trade currencies?

  #1 (permalink)
Elite Member
Budapest, Hungary
 
Futures Experience: Advanced
Platform: Windows 95
Favorite Futures: GC, CL, 6E
 
Yuri57's Avatar
 
Posts: 278 since Feb 2013
Thanks: 71 given, 103 received

Why day-trade currencies?

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?

Reply With Quote
 
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

 
  #3 (permalink)
Elite Member
Mumbai, India
 
Futures Experience: Advanced
Platform: ChartNexus
Favorite Futures: Stocks, Commodities, Futures
 
iqgod's Avatar
 
Posts: 1,659 since Feb 2012
Thanks: 3,312 given, 2,719 received



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?

Reply With Quote
The following 2 users say Thank You to iqgod for this post:
 
  #4 (permalink)
Elite Member
Budapest, Hungary
 
Futures Experience: Advanced
Platform: Windows 95
Favorite Futures: GC, CL, 6E
 
Yuri57's Avatar
 
Posts: 278 since Feb 2013
Thanks: 71 given, 103 received


iqgod View Post
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?

What proves your theory is valid?

How do you trade it?

Reply With Quote
 
  #5 (permalink)
Elite Member
Mumbai, India
 
Futures Experience: Advanced
Platform: ChartNexus
Favorite Futures: Stocks, Commodities, Futures
 
iqgod's Avatar
 
Posts: 1,659 since Feb 2012
Thanks: 3,312 given, 2,719 received


Yuri57 View Post
What proves your theory is valid?

How do you trade it?

I trade using the Al Brooks method then some.

That is the right question to ask of a trader.

What proves my theory is valid?

That is the wrong question to ask of a trader. Valid theories can be traded to pauperdom and invalid theories can be traded to riches. Ultimately the answer to the question has to be phrased in the form of the first question you asked - 'How do you trade it?'

Reply With Quote
The following user says Thank You to iqgod for this post:
 
  #6 (permalink)
Elite Member
NC, USA
 
Futures Experience: None
Platform: None Yet
Favorite Futures: Guitar
 
MrYou's Avatar
 
Posts: 403 since Jun 2011
Thanks: 618 given, 193 received

I am not live trading but I am developing an automated trading system against multiple spot forex instruments.

I do understand there is some correlation between multiple pairs, but my current strategy is not based on correlation. Each pair is traded independently.

Why am I interested in day/weekly swing [automated] trading spot forex?
  • Backtesting and market replay data is available for free.
  • For the most part the pairs do not behave the same providing multiple market "behaviors"/variability.
  • When I do begin to trade with live money in order to test the profitability of the strategy my relative money at risk is very low.

Because of these reasons I believe if the strategy is profitable across multiple pairs then it should be robust and profitable for index and commodity futures and I can scale it up/in based on the size of my trading account.

Reply With Quote
The following user says Thank You to MrYou for this post:
 
  #7 (permalink)
Elite Member
Australia
 
Futures Experience: Advanced
Platform: NinjaTrader, Multicharts
Favorite Futures: Spot Forex, Gold, Silver
 
Posts: 176 since Oct 2010
Thanks: 114 given, 114 received


Yuri57 View Post

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


I think that is a very subjective opinion. I enjoy trading spot forex. I see very clear price action and support/resistance on forex charts. Just look at the current 4hour EURUSD chart. The price action and levels could not be more obvious.

Compare with the 4 hour ES chart (5pm EST 28Feb), the price has whipped around way more than the EURUSD.

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).

Reply With Quote
The following 2 users say Thank You to Traderji for this post:
 
  #8 (permalink)
 Vendor: www.indicatorx.com 
Bridgwater, UK
 
Futures Experience: Beginner
Platform: Ninjatrader
Broker/Data: MB Trading
Favorite Futures: Forex
 
mokodo's Avatar
 
Posts: 384 since Jun 2011
Thanks: 525 given, 344 received

I've been developing my skills in forex for 3 years and the no.1 reason is that I can trade microlots (MB Trading via NT). So I can pay pennies for an amazing education. My goal is to step up to futures when I've the confidence to do so.

My belief is once you have progressed to a certain point, you can trade pretty much any instrument after a few months familiarity, so why not hone those skills with skin in the game (i.e. not SIM) with as little risk as possible?

The specific issues you raise about correlations, volatility and news are all part and parcel of the game. After 3 years I have pretty good handle on the those factors.

That said, many stories of the most successful forex traders trading off 4hrly charts and playing for decent swings. S&R levels on that time series are key and should be on your radar whatever your trading time frame.

know thyself
Reply With Quote
 
  #9 (permalink)
Elite Member
new york NY USA
 
Futures Experience: Advanced
Platform: NT
Favorite Futures: CL
 
Posts: 56 since Jan 2013
Thanks: 102 given, 20 received


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?


Hello Yuri,

I am not expert in this but my simple thinking is: Trade what ever you have studied, practiced and feel comfortable with.

Currencies are no more unpredictable than any thing else. ES shows more whipsaws, oil is even worse. News always affects a certain instrument. look at bonds the last few days. They are supposed to be the most stable instrument but last few days they have been in wide trading range. 3. If you are trained with currencies, stick to currencies if Es stick to ES.

In my experience currencies do have smoother charts than many other things.

You are right, currencies are all related and are affected by each other. The king currency is still US dollar. So, every thing revolves around the US dollar. To make is easier and simpler, pick one pair with USD in it. When fundamentals affect dollar every currency paired with USD will move. So, pick just one pair with USD and other major like EUR or GBP, get good at it. No derivative pair like CHF.JPY.

The attraction for currency trading for beginners with not enough money: Brokers will allow you to open an account with as small as 50 dollars and ask you to trade "microcontracts". Good for practice but you can never make enough money with those. The spreads will eat you up, they have specially high 2.5 to 3.5 pips spread on those.

For those who have money, attraction is the leverage. For non US residents, there are brokers who will allow you 500:1 leverage. You cannot do that in futures.

Reply With Quote
 
  #10 (permalink)
Elite Member
Kingsport, TN
 
Futures Experience: Beginner
Platform: Thinkorswim
Favorite Futures: Stock Indexes
 
eric73's Avatar
 
Posts: 42 since Feb 2013
Thanks: 16 given, 25 received

Why Day Trade Currencies...?


There are ways of trading currencies that aren't immediately obvious.


Yuri57
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?

Just because you may not know what they are...doesn't mean that it hasn't been happening profitably for a very long time.
Please register on futures.io to view futures trading content such as post attachment(s), image(s), and screenshot(s).



Regards, Eric.

Reply With Quote

Reply



futures io > > > > Why day-trade currencies?

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Why Day Trade instead of Swing Trade? Big Mike Traders Hideout 39 September 12th, 2014 11:05 AM
Paper Trade of the Day CHowell Trading Journals 1 December 26th, 2012 11:07 PM
1 Day 1 trade Mafaliva NinjaTrader Programming 6 May 24th, 2012 05:03 PM
Emini's Swing trade v day trade kctpac Emini Index Futures Trading 0 March 1st, 2011 10:32 AM
Would this count as a day-trade? Lumpet Traders Hideout 8 April 29th, 2010 01:11 AM


All times are GMT -4. The time now is 12:41 AM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-16 in 0.16 seconds with 20 queries on phoenix via your IP 54.226.113.250