Hi,
I am using a data provider who offers free eod data for 47 major pairs. They offer 120 pairs full access for EUR 265 for three months. Do you think it’s worth it for the 120 pairs? Would I be missing out on a lot of opportunities or is the majority of the action happening on the majors?
Any thoughts/ideas welcome.
Thanks
I don’t know of a single guy that talked about how much he made shorting the peso/rupee.
47 is plenty. As a matter of fact, I wouldn’t even say there are 47 different major pairs. It’s more like a half a dozen, if that.
And my recommendation would be to stick to around 4 pairs and master them well.
mastergunner
you could have had SO much fun with the answer !
as he says ---- oodles and oodles of money to be made on just a few of the majors — WHY bother, especially if it costs extra ?
mp
The thought of a peso/rupee pair gave me a decent chuckle.
LOL, check out the price action on that Peso!!
I can’t imagine the spread would be very tight on the peso/rupee.
Thanks for the replies.
I don’t have access to charts at work so am checking EOD, and also with the style of trading I do (looking for confluence of price action/support/resistance/fibs/EMA’s) , just following 4 pairs would mean very few opportunities at all, but I see where you are coming from.
The reason I asked, if I see a certain setup on a pair, it seems to be replicated across a few pairs at the same time, so maybe it’s not worth following 120+ pairs.
I used to trade (well paper trade) equities, but way to choppy, so experimenting with FX where trends seem to last far longer.
Thanks again
P.S. peso/rupee is not included in the 120 ; )
Jim
u might also take note of the spread on some of the “exotics” which can be horrendus ins some situations.
your observation of how a number of currency pairs trade the same trend is correct ---- now take that one step further and think what trading two currencies, moving in OPPOSITE directions, will do to cover your margin in the event of drawdowns — pure financial hedging but not because of ignorance !
mp
I�ve always found that dabbling with more than one pair got me into way too much trouble. As a matter of fact, just one pair has given me more sleepless nights than you can imagine. My advice would be to start and master just one pair, be sure the spread is nice and tight. Oh�one more big issue. If you�re going to make it a long-term thing, be sure the volatility of the pair matches your personality and temperament, very important issue for long-term rewards! As time passes you might get tired and bored with your major pair. If you feel like you�re missing out on a lot of action then maybe you could quietly start playing around with some of the other majors. If you get lucky maybe even a few of the exotics! Good luck!
thanks dudes
understood, but the info was given for a “time in the future” although nothing beats a winning pair !
its an advanced concept based on the fact that one currency is long and the other short, and therefore the margin is “nuetralized” ---- as one goes up the other goes down, and the margin remains “nuetral”. It simply allows one to go much larger on their lot size without actually altering risk/reward ratios – very important for the accountants and actuarials out there !
its pretty much a standard situation as youve set tp points for each currency based on the same timeframe, so each comes home to roost at or about the same time ---- ive actually seen it come to within minutes !
but NOTHING in the trading world should be done if it causes one to have to intake copius quantities of alcohol or drugs, or even milk of magnesia – over time, the stomach lining becomes immune to the dips and flips of the world we inhabit, and it becomes yet another night of pure comfort — just takes a while to get there !
enjoy
mp