How Are You Supposed to Daytrade This?

Discussion in 'Forex Trading' started by Corso482, Jun 23, 2003.

  1. How can you daytrade FX off, say, a 1 minute chart with spreads so large?

    At 20:1 leverage, a 2 pip spread on the EUR/USD is a .35% loss on every trade.

    At OandA the EUR/USD bid/ask quote is 1.1548/50. The spread is 2 pips which is the lowest in the industry, I think.

    A good sized move is about 8 pips. How can you profit with that kind of handicap???
     
  2. I just close my eyes and tap the keys. It works for Ray Charles.
     
  3. I always laugh when people complain about the spreads in forex. Who cares about 2 pips when the rewards in this market are so huge? A good size move is not 8 pips. A good size move is more like 80 pips. I find that many emini traders do not understand how to trade this market because they are used to scalping for 10-20+ trades a day. Forget the 1 min charts. The lowest time frame I ever look at is 5 min, and I mostly focus on 15 min charts. Trade 3-5 trades per day instead, and try to set your targets higher.
     
  4. I have to agree...with the Forex markets you are in a much stronger position if you try to capture multi-day moves. Trade lighter but longer is my motto.
     
  5. Ok guys, be more specific : what is a classical risk/reward strategy on say EURUSD or USDYEN?

    example : 20 pips stop for 40 pips target?

    What kind of strategy do you play ? Breakouts ? Trends? what pair do you prefer ?
     
  6. marketsurfer

    marketsurfer Sponsor

    as a novice forex trader, it's a long slow grind compared to index futures, et al . however, gauranteed stops, no gaps, and extreme trends make it an ideal market. paitence is the key, look at daily charts and base your entries on 5 minute chart-- this is what i do.

    best,

    surfer:cool:
     
  7. I would like to add to this : How much is one cent move in USD worth? What is usual daily range in USD ?
    Thanks.
    Walter
     
  8. Surf-
    r u using fxcm for true trades now? I'm using their demo acct..but it looks like Oana offers much better spreads .and overall better features.
    Any thoughts?

    Happy Trading.
    uptik
     
  9. marketsurfer

    marketsurfer Sponsor


    yes. i like the mini contract for now. does oanda offer a mini ??

    surf
     
  10. #10     Jun 24, 2003