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Originally Posted by Phory
What is your brokerage and how big is your stake?
I know really big speculators like Soros, Buffet, and the big hedge funds trade in the forex markets because they get the best bid-ask spread of any market, and it is the only market big enough to handle the amount of money those types of people want to trade. The problem is that individual investors don't get to trade with the same counter-parties as those types of big traders do. There are a lot of unscrupulous brokers so small-time traders are very likely to get ripped off with a too-large bid-ask spread., so it is crucial to have a good brokerage I think. I don't trade forex because I'm too worried that my ignorance of these markets will allow me to get ripped off. ..let alone my ignorance of what even makes a currency go up or down. But, it does seem like a shame. From what little I follow of these markets, it seems like currencies trade in really persitant trands. I think a long-term technical trend following strategy might work well in these markets.
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There are multiple brokerages out there - and I'm currently using the one referred to me by the forex training company I've decided to go with. There's a 5 pip bid ask spread for this company - which is in the mid ranges of the ones I've seen. Ranges go anywhere between as low as 3 pips to as high as 8. However the companies with 3 pips have crap for charting - and it's more difficult to see the trends.
As far as technical trends go - I've been pretty successful using momentum trading. Same day - within a few hours type. My avg take in is about 300/day. So that amounts to about an extra 6k a month - which isn't too shabby. I'm no pro either though, so the long term technical analysis will take time to get accustomed to. Swing trading (long term) is still a more difficult concept IMHO.