Forex Trading

arrowloopboy

Dilynnio wrote: »

You can set up demos, discover the most amazing strategies, implement them, change them but all this goes out the window when it comes to a LIVE account!

When it comes to real money and your money......it is a totally different kettle of fish!

Once you hit that button and its your money your using.......everything goes out the window.....the psychological impact it will have on you is unreal!

The fear you will have watching as your money grows or decreases....the thoughts in your head.....will I pull it now or leave it in.......its very stressful!

Even the slightest bit of economic news can change the motion of a trade!The bulls and bears take over!

It is highly stressful and highly addictive!

You may win one day and loss all that the next day. Make a trading plan and do not change from it.

E.G

Today if you say I am going to Trade Eur/USD and I only want to make 20 pips and I am only prepared to loss 30 pips if the trade goes against me. Then just make that trade and close down your system. Don't get greedy...get out like you planned!

Hope this makes some sense and helps!

Some very good advise there Dilynnio,i take it from your advise that you trade real money,which is the only real way of seeing when your going to pull the trigger.What gives guys false confidence is pulling the trigger on every tick with a demo acc and banking lots of imaginery money:rolleyes:.
Saying that, i don't fancy your r/r ratio on that e/u eg you gave:D.

Mr Jinx

Does anyone know of good websites who give good information in relation to the movement of commodities markets?

reverenddave

http://quotes.nasdaq.com/aspxcontent/commodities.aspx

http://www.reuters.com/finance/commodities

these are the best i've found so far

Become

Hey Guys, anyone got an idea on this?

If euro is tipped to depreciate in the short/medium term, you know piigs, contagion, downward pressure on € etc, and a person wanted to transfer their euros into a "safer" currency for the duration, usually these foreign deposits are held at 0% interest by your bank (asaik). What's to stop a person achieving the exact same thing by buying that currency pair as a forex transaction and just keeping the trade indefinitely open until such time as they can convert back to euro (hopefully at a profit). The spreads from the forex brokers appear to be much better than what banks offer, and depending on the % differential between the currency pair in question there could possibly even be an interest differential in your favour. Eg, if you went short on EUR/NOK, you'd be holding Kronen @ 2% interest against just the 1% of the EUR.

...was just wondering ... :-)

olaguopa

Become wrote: »

Hey Guys, anyone got an idea on this?

If euro is tipped to depreciate in the short/medium term, you know piigs, contagion, downward pressure on € etc, and a person wanted to transfer their euros into a "safer" currency for the duration, usually these foreign deposits are held at 0% interest by your bank (asaik). What's to stop a person achieving the exact same thing by buying that currency pair as a forex transaction and just keeping the trade indefinitely open until such time as they can convert back to euro (hopefully at a profit). The spreads from the forex brokers appear to be much better than what banks offer, and depending on the % differential between the currency pair in question there could possibly even be an interest differential in your favour. Eg, if you went short on EUR/NOK, you'd be holding Kronen @ 2% interest against just the 1% of the EUR.

...was just wondering ... :-)

Was wondering the same thing. Specifically, i was considering transferring the bulk of my deposits to a CHF account with BOI. Would it be possible to book a EUR/CHF on the FOREX platform and hopefully ride out the storm

Become

olaguopa wrote: »

Was wondering the same thing. Specifically, i was considering transferring the bulk of my deposits to a CHF account with BOI. Would it be possible to book a EUR/CHF on the FOREX platform and hopefully ride out the storm

Hi olaguopa,

I don't know much about forex and would welcome some forex traders input here. The way I understand it (and this must be taken with extreme caution!), since the Swiss lending rates are 0.375% and the eu 1%, and you are buying chf and selling eur ie going short on eur/chf, then you are borrowing eur @ 1% interest while only getting 0.375% for the chf you've bought for the duration of the trade. So you would therefore be continuously paying the differential of 0.625% until the trade is closed. The opposite would be the case if the % rate on the currency you're holding is greater than the eur, such as with the norwegian krone @ 2%, where the carry trade would work in your favour.

However, it then begins to get a bit too complicated for me because, afaik, you operate with considerable leverage with forex deals, and you might only in fact be putting up a fraction of the amount up front while the rest could be still earning interest in your normal bank a/c. What I mean is, I think, that in the above case of shorting the eur/chf where the carry trade % differential works to your disadvantage, this should in fact only be applying to that fraction of the total euro sum that you are putting up front for the trade, or to just 1% of the total sum if the leverage were 1 - 100 for example, while at the same time the bulk of your savings are still safely in your normal bank a/c and still earning interest...all a bit confusing for me!

But as I've said, I'm still just playing with this idea and would really appreciate some forex trader input here.

Edit: Error, Swiss central Bank lending rate is 0.25% and not 0.375%

olaguopa

Become wrote: »

Hi olaguopa,

I don't know much about forex and would welcome some forex traders input here. The way I understand it (and this must be taken with extreme caution!), since the Swiss lending rates are 0.375% and the eu 1%, and you are buying chf and selling eur ie going short on eur/chf, then you are borrowing eur @ 1% interest while only getting 0.375% for the chf you've bought for the duration of the trade. So you would therefore be continuously paying the differential of 0.625% until the trade is closed. The opposite would be the case if the % rate on the currency you're holding is greater than the eur, such as with the norwegian krone @ 2%, where the carry trade would work in your favour.

However, it then begins to get a bit too complicated for me because, afaik, you operate with considerable leverage with forex deals, and you might only in fact be putting up a fraction of the amount up front while the rest could be still earning interest in your normal bank a/c. What I mean is, I think, that in the above case of shorting the eur/chf where the carry trade % differential works to your disadvantage, this should in fact only be applying to that fraction of the total euro sum that you are putting up front for the trade, or to just 1% of the total sum if the leverage were 1 - 100 for example, while at the same time the bulk of your savings are still safely in your normal bank a/c and still earning interest...all a bit confusing for me!

But as I've said, I'm still just playing with this idea and would really appreciate some forex trader input here.

Hi Become,

I actually hadn't considered the interest rate differential (naively). Was coming from the viewpoint of a EUR depreciation over the next 2-3 years. Your insight is very helpful though and i may take a look at other currencies that should hold their value aswell as having a +ive interest differential. A forex traders input would be helpful also

Become

Anyone like to recommend some forex broker/platforms?

digitally-yours

Become wrote: »

Anyone like to recommend some forex broker/platforms?

I use FXPRO and FXCM

If you are new you can try exness to trade in fraction of lot.


in terms of trading FX because of holidays volume is low so trade with caution.

Happy Trading

Become

Thanks d-y.

arrowloopboy

Become wrote: »

Anyone like to recommend some forex broker/platforms?

You dont need a Forex broker B,you can trade the very same with a spread betting firm,with no tax on profits,i'd highly reccomend IG Index.
As regards platforms,DailyFX should have every thing your looking for as regards charts,analysis ,financial calander etc etc.
For every thing else Forex,The ForexFactory forum is the leading forum on forex.

Regards......

A.

Echo6

Hi everyone,

I am new to boards.ie and this is actually my first post!.

I have an interest in Forex and currently trade on a part-time basis. I spent roughly 6 months solid learning before going live in October '10. I have read over all the previous forex posts and will look to contribute to any others in the future.

For now though I was wondering what the situation is with tax on forex profits in Ireland. I am steadily making profits on my account (UK broker) and although I wont be cashing in for a few years I would like to know what Mr. taxman will take off me when I eventually do wish to withdraw profits from my account.

Any thoughts?

If I've broken any rules by tacking this question onto the end of an existing thread please let me know.

Mr_Roger_Bongos

Hi Echo and welcome to boards!

Info on Irish capital gains can be found here.

Echo6

Thanks, I'll check it out.

arrowloopboy

Look up 3 posts ,#42

Echo6

I understand there is no tax on spread betting.

I was asking about the spot currency market.

Is there no tax on profits made from the spot market either?

arrowloopboy

I think there is on Forex profits,but not s/b,i changed for this reason.

Become

arrowloopboy wrote: »

You dont need a Forex broker B,you can trade the very same with a spread betting firm,with no tax on profits,i'd highly reccomend IG Index.
As regards platforms,DailyFX should have every thing your looking for as regards charts,analysis ,financial calander etc etc.
For every thing else Forex,The ForexFactory forum is the leading forum on forex.

Regards......

A.

Thanks A.L.B. I finally got round to checking them out (IG Index), and going through some of their tutorials and am so far impressed... also opens up other investing options besides currencies of course too.