EUR/USD for next year ...

[nico3725]

Don't you think eur/usd will be toppish around 1.0500 for the beginning of next year and then he can come back around 1.0000 ??????

[gregh285]

nico,
toppish around 1.0500/50 wont be far away IMHO, retracement to 1.0100/50 at a guess. It has been a huge upmove, RSI over 90 on daily. Selling around this level, stops over 10550.

g'day

[moneytrader]

I too trade the now, to many if's in the future to guess, there are major support and resistance area's, but just know where they are, watch for it to react near these levels but dont try to outguess the markets.
I trade off a 10 min chart, looking at a 1 hour, but as in today's trade of 130 ish I would not have got that if I did not look for it on a shorter time frame....but to each his own
chow

[Mike L.]

Hi All!
I am just starting out in trading FOREX and am trying to find my trading style via a demo acct. My initial strategy was to intra-day trade moment to moment using 5min and 10 sec charts after reviewing overall trends for the day on hourly charts. I have to say that it has not been too effective for me. I find that the market moves too fast to try and capture the small (10-20 pips) up and downs, at least for me at this early time in my education. Also, the volatility seems to often stop me out. I decided to trade a more daily style (actually overnight has worked well for me) and Ive actually gotten all my losses back. I agree that being able to catch the intraday ups and downs could be very profitable but I dont yet have the technique to do this. For example EUR/USD went up-down-up aprox. 60 pips today (for a total of 180 pips) but I got about 40 pips out of it with one day trade. If any of you could shed a little light on how to profitably trade in this style I'd (and others) would greatly appreciate it. I hope this is not too broad a request, any tips would be greatly appreciated.

Thanks to all for their great posts and to all great tradesin the new year !

[BigMacDollar]

The answer to this is very simple really - From a technical point of view it depends highly on your trading methodology and which market cycle that methodology fits in. You would normally choose your market cycle according to your porfolio size. The smaller you portfolio the smaller/shorter your time-frame and the smaller your market cycle.

Fundamental traders would normally opt for a longer time frame, but then obviously have to have the capital to back this approach.

I normally find it is good to have an eye on the larger time frames and fundamentals and position yourself in the shorter time frames with that in mind.

[daanacker]

Hi there guys, may you all have a prosperous 2003.

Like Mike L I also just started day trading FOREX and am trying to find my feet. In the process I joined this forum to see what experienced traders think and feel about trading. I opted for trading using 5 and 15 min charts after establishing overall trends on hourly charts.

As TC says (and as I experienced over the last month or so just studying the markets) there is so much movements during a week or even a day with the ups and downs why worry about where a currency is going in the longer term if you could make money now. The "trade in the now" method seems good for me also.

My question to TC however: all the so-called "trainers" tell you to just trade in the direction of the trend. Do you stick to this rule or do you really "ride the waves" as it comes? What strategy do you and other members follow to profitably trade in this way? Could you provide us (guys like me and Mike L and I believe many other) with some basic indicators to use in following such a strategy, because it seems to me that this is the way to make your money and build your equity.

Like Mike L. I really need some assistance in this regard. Another last question TC, I see that you have posted some trades in the past, when will you start posting trades again?

[gregh285]

longer term trading enables you to add to open profitable positions with the rally. Turlte trading is the proper name i think.

[doc]

To answer the original question:

You can actually trade both long term and short term. The solution is to separate accounts and a long term trading stategy for the long term and a short term stategy for day trading.

Develope your trading stategies and do both. Yes trading long term requires a little more equity and bravery as you see your profits wanning during a retracement. However, if you have an exit/stop-reverse stategy that works you will be okay. (The sentiment for the USD since April 02 has been sell it...simple choice for position trading right now until the equiites markets and the middle/far east political problems are solved...sell the USD, the only problem is finding the correct entry point at the top of a retracement then jump into the position and ride the wave)

Intrady trading will definately make you more profitable, much quicker, however, there is much more volitility, so you need to be ontop of your game.

You can have a 7 plus figure margin account within 1.5 years with relatively small profits of 50 pips per week if you re-invest the profits and increase the amount of lots as your margin account allows trading as a day trader.

Also DO NOT, I repeat DO NOT look at small time frames to day trade....You will be handed your head on a platter very quickly. If you are day trading, establish the long term trend on larger time scales and look for your entry and exit on smaller time scales...It's that simple.

Educate yourself, test your trading stategies, and demo trade for months before jumping in with your hard earned cash.

Good Luck and Have Fun Riding Those Forex Waves

PS Daanacker...Trading against the trend is all relative...what looks like a down trend on a 5 minute chart is really a short term reversal on a 15 minute chart, which is really on a 30 minute chart just side ways movement, which on an hourly chart is a slight retacement, which on a 4 hour chart is the continuation of a trend , which on a daily chart is a sideways movement, which on a weekly is a sllight retracement, which on a monthly chart is a continution of a trend....pick your poison...establish which time frames in the longer term you think give the overall picture and trade in that direction with your entry on the smaller time frame in that direction...If you trade against the trend you will lose your hard earned cash for sure.

Like i said open 2 accounts if you are brave. Posiotion trade one and day trade the other. Pick your poison and ride the waves.....If you wipe out get back on your board and catch another wave.

See Ya