Monday, October 25, 2010

My concept of Activity in the forex market

When looking for investment ideas in forex trading, and seek to obtain strategies for action in the market, whether in blogs, forums or publications, we verified that underpins the analysis that we find or defining trading systems, concepts of individual analysis of a given pair currencies.

We also showed that 99% of trades that are analyzed correspond to trades of short time duration, mainly business intraday.
This is a way of trading that interests all forex brokers.

How many more businesses, in and out of trades, the brokers earn more. Well, they always get the value spread.

For this reason it encourages both short-term business.

For this reason we mainly disseminated ideas daytrade.

Have they stopped a little and looked at how much you pay spreads in a month?
And in a year? If you do account perhaps come to conclusions very interesting.

Even if you maintain a methodology to obtain a consistently positive results, it would be nice to compare the personal gains, the gains of the broker relating to your trading. Maybe you are shocked.

For all these reasons, I chose to trade forex through a strategy that does not pose a large cost in spreads. I consider myself a trader position, maintaining a portfolio of currency pairs, creating an arbitrage strategy.

I Consider an arbitrage strategy, because it negotiates six currencies, usd, aud, eur, jpy, gbp, chf. And always in every portfolio created, each of these currencies are represented in three separate pairs.

If for example the Fed intervene with its monetary policy on the dollar, leading to an opposite sign to keep that portfolio, simply close the three currency pairs usd in which it operates. Or can even reverse the direction of these three pairs.

This means that a strategy to maintain market position without stress, accompanying the entire schedule of events that may negatively influence the position of certain currency pairs that I keep in the portfolio.

I should mention that today also trading in intraday, but only with entries in each pair in the sense defined in the portfolio, seeking to capitalize on weaknesses, I believe that pair off and temporary.

Of course here set to keep a portfolio each week, but be able to reset each week through the portfolio, but just based on central bank interventions representative of each currency, or the dissemination of consistent data that will allow me to identify a change of course.

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