When trading Forex which is it best to do as a swing trader...take a position based upon projections for a few days or for a few hours? The reason I ask is I read this and your other journals, downloaded the MG Financial Demo and placed a long trade (1 unit) in the GBP/USD @ a limit of 1.7597 and it was exectuted at 3:00 am on 09.30.05 I followed the trade and a few hours after that it was up around $1300.00 and has now fallen back to under $400.00...my exit trade is set for 1.7883 which I am thinking should be triggered in a few days. Hindsight says I should have exited and reentered for more profit, but I am not knowledgeable about trading in the Forex markets. Any insights you care to share?
my definition of swing trading as I trade means take a position for a few days up to two weeks. What I saw in this first demo trade I would have considered it scalping or day trading if I had exited and re entered..
Oh, I see. Well, then, "swing trading" could also be known as "position trading"...? You get in on the basis of the price swinging up or down (in your direction). Scalping, as I understand it, is when you make 2 to 4 points per trade. Maybe as many as 10 points. But beyond that you simply start low range position trading, where you go after trying to make 15 points, 20 points and more. Low, medium and large range position trading. Anyway, regarding this, here again is your question: When trading Forex which is it best to do as a swing trader...take a position based upon projections for a few days or for a few hours? Basing your trade "on a projection" is the essense of your question. The other part only involves opening and closing a trade. Anytime you consider if anything is "best" or not, remember that it is highly trader-specific. What is best for one may not be best for another. There are really too many variables for me to frame "swing trading forex" as being the best way to trade currencies. When you open a trade, based on a "projection," you're opening yourself up to many other factors that come into play when trading pairs. You cannot open a position simply based on a single item such as "swing trading" and expect to be successful. Trading money successfully is more than that. A good trading system will also address and include money management, risk management, probability evaluations, judgment consideration, fundamental, and in some cases, technical analysis. Even luck. My particular trading systems are built upon over 100 principles including my own designed TA indicators that are specific to my systems. So, simplying forex is good, but oversimplying it to the point of trading like a simpleton isn't. sKaLpZ
I am still letting the GBP/USD trade run and just noticed something odd...the trade had a drawdown over these past two days but has recovered to the initial trade entry price...but it shows a positive $16.50...I assume this is "interest" earned on the trade thus far...if I am correct...how often is interest calculated? How is it calculated?
hello, Da-net. you earned $16.50?? you did better than most! What are you going to do with your newfound wealth? not sure which broker you're using, or margin rate, or direction you're trading so I cannot really tell you how the $16.50 got there. fx