Hey guys i am student that has been studying and reading FOREX for the past 3 years. My main problem is that since i have a lot of college and coursework to do ect i tend to only be able to get on FOREX when it goes all quite.
I live in the UK and come back home at around 5:30 GMT so i basically miss all the london session… I was wondering what you guys would recommend?
Should i look at higher time frames like the 4H / Daily but then this would require a lot of patient and the stops would generally be larger (100pips) and on my $100 live account i would be trading around 0.05 cent lots as opposed to larger lots on smaller time frames which i think would affect my profitability.
When i look at the charts when i come back from college mostly all the volume and volatility has gone so there is hardly any action on the EUR/USD… maybe i should try a different currency pair that has more movement when i am at home?
Or finally maybe i should learn to trade on the go using an iphone or laptop? so i can get all the good signal while i am at college?
You trade the timeframe you can consistently expect to be able to trade. My guess is that trading during the school day won’t be consistent given change schedules and demands on your time. You’re best dealing in a more swing or position oriented timeframe.
If you’re worried about becoming impatient, then most definitely trade the longer timeframes! It will help you get over that. An impatient trader is a reckless one.
As for the larger pip risks, yup. That’s the reality of things, but that doesn’t mean lower return prospects or higher risk. The larger pip risk goes both ways, after all, and you simply scale down to take appropriate risk. There are brokers, like Oanda, that will let you trade whatever size position you need to trade to match you risk management rules - no matter how small.
I am currently challenging this philosophy myself. I’m just a n00b but trying to look at things differently than I have in the past. This is one of those “common sense” things everyone seems to accept as a golden rule.
What I have found though is somewhat contrary. In my case, I’ve tried to swing trade (and longer term also) only to be frustrated because I couldn’t access the charts when I really “needed to”. For example, I do analysis and find a good setup… then program some SMS alerts where I can manage the trade as it unfolds. Frequently this would be in the middle of the night, or the middle of the day. Working fulltime, it is not always possible to drop everything and switch to trading. And when those prime setups happen, sometimes you literally have only moments to address the situation.
I am currently studying the idea of scalping on a very short timeframe. A primary goal of mine was to be able to completely eliminate all trading obligations during my non-trading time. So far it has been working very well – trading starts and stops for me on a schedule, which is what I needed desperately. Family life is always hectic as well, and I think they also appreciate that I am there to give them 100% without being pulled back to the charts.
for Lenry:if swingtrading works for you, and still find profit, then think in profit % vs just amount, of course, the larger lots will bring larger thrill on shorter timeframes, but simple dont expect too much from a 100$ account, it wont make or break your living either way, i am sure.
if you find you dont have the time you needed, then wait till you will, forex will be there after graduduation, or during the holidays too.
I tried swing trading a few times with medicore results but like you life keeps getting in the way short term.I also think swing can be more difficult with a method of trading.A example is the four people who have blogs on the home page all had negative year end results(albeit small).
I think you open yourself up to all sorts of geo-political things that go on during the week.Also in swing trading keep in mind you have to look in yearly terms to get a good picture so dont get down when you have losing spells that might last a couple months.The one think i like about swing or position trading it takes a lot of the emotional part out of your trading.(set it and forget it)Either way i wish you good luck on your forex adventure.
My thought is rather than contradicting what I said, as it seems you intended, you’ve just confirmed it. You couldn’t consistently operate in the swing timeframe - though I’d argue that swing trading covers a broad swath of strategies, not all of which create a “get to the screens” requirement at random times as yours seems to have done - and now you are looking to operate on a consistent schedule. That’s exactly what I recommended.