I don't get where the pound has been "strong." When I was in school which wasn't that long ago, the rule of thumb was $2 per pound, now we are at $1.62. I don't call that strength.
If you believe currency is going up over the long time frame, you could have a week or month trade open instead of scalping. If scalping with larger amounts of money, I would suggest currency futures are better since brokers can not play games like trading against you and using fake data feeds.
why does everyone trade equities haha good point foreign exchange is the biggest market in the world as another trader pointed out Stick to the x rays doc...
we try not to bash ppl here but when you come out saying foreign exchange is a scam for reasons being that the big guys control everything then of course were going to reply like this and to say things like Why does everyone trade equities then. realyy?!! Hey name me the top three most liquid/traded markets off the top of your head..dont worry i'll wait. The point is you think that alot of foreign exchange traders/hedgers are idiots who are failed "real" traders drawn to the high leverage and the 24/5 day market in hopes of gambling for a big score when in fact the fixed income and money market guys are among the smartest quant likei nvestors on and off of wall street. If the foreign exchange market were a scam then tell the corporations who hedge their currency risk overseas that their idots who are in a scam game PS. dont be fooled yes they use the forward, swaps, and futures market but companys also use the spot market as much as the other options avaliable to them.. Go back to the "smart" guys in equities who get their tips from cramer and suzie orman and let me know how that turns out. Because its a fact the fixed income and money market guys always have a greater understand ofing whats going on in the market's and know when panics are shaping up its the equity guys who are the last to realize the market is oversold or overbough because they still have a boner for appl and goog and fail to realize when the money flows have shifted to other countrys I await your responce on why EVERYONE trades stocks hahah JP.
let me just respond real quick what your going to say so you wont have to waste your time (your welcome) " alot of ppl who are new to trading and want to get into the markets find forex to be a great opening because they have to put up little money and they like the gambling idea of 24hours and then they get blown out becuse they have know idea what their doing oh and their going up against the govt's so their at a disadvantage"" this might be the case for some new traders looking to start trading but they dont last long the REAL smart traders in the fixed income dept and the foreign exchange dept at institutions please doc tell me what schools they attend??? im curious if you think the equity guys are smarter than the vast majority of the fixed income and money market guys.. I thought about it and your right those idiots at the IMF and the various central banks are so dumb i mean god they dont even know how to price an option..IDIOTS i agree with you doc. this tread goes to the doctor..1-0
Hmmm I see, yes that's a problem......you have to travel round the world to spend all the different currencies you've made. (Geez, and they wonder why 95% lose!)
Forex is not a scam, it's a market and a very important one. Some online forex brokers are scams, I agree to that from own experience. It is hard to make money as a retail forex trader because the leverage and the volatility demand to take very small risks as a percent of your trading capital so that you comply with basic risk and money management rules. But many do not understand this and think they can quickly make money by risking a lot in a highly leveraged and volatile market. Well, keep in mind that forex trading is populated by extremely competent and well-informed traders. As a result, the only thing you can make in the longer term is a return on your capital by financing the activities of commercials (providing liquidity, counterparty to hedgers, etc.) You cannot make a killing in forex. Banks with their huge resources can only make 20% to 40%. You should expect about 15% as a retail trader with prudent risk and money management. Specifically you should trade a mini lot ($10,000, which usually requires posting a $100 margin) for every $5,000 you got in the account. In this way you are x2 leveraged overall. Any leverage above x2 increases significantly the probability of losing a good portion of your account. The above to start with. It takes much much more to win money from forex trading activities.