Is there really some kind of logic to short term ...

… only over longer periods of time can there be any rationale to currency price movements, as regards the fundamentals of the economy.

In other words, is intraday trading more like setting chips on a roulette table?

Also, how much of the future (i.e., to what period of time in the future) is priced in to a currency? Does trading in anticipation of the future (speculation) create severe irrationality in price movements in currency? Is speculation a majority of the force behind currency price levels?

Technical analysis sometimes feels like meaningless, wishful thinking.

Also, how do hedge funds trade currencies? Which market do they go through (directly through banks and central banks?) or do they use the market makers that individual traders use?

What is the most theoretically (and practical) way to go about trading currencies? I don't mind sleeping 3 hours a day for fundamental analysis, I've done it- but am I winning for the reasons I think I'm winning?

to answer your question would take a whole lot of pages in this forum. talk to expert Forex traders where you can get your much needed solutions to alll these queries. i suggest you check this site where for a minimum deposit of $100 you can TALK LIVE to a personal Account Service Manager (ASM) via phone, email or chat. you can then take this opportunity to ask everything you want to know. being an expert forex trader himself, your ASM will be your best resource person to provide feedbacks and options in all your trading theories and assumptions and guide you in making your own technical and fundamental analyses which are very essential to achieve profitable forex dealings. he will even trade with you to make sure you get familiar with their trading system. on the other hand, they have a 24 hour chat room where you can always interact with other expert forex dealers to get their opinions.

Hi
Answer to your first question is that intraday trading is one of the many methods out there of forex trading. Intraday trading
"if done with strict money management and one or two trades a day" is safe and can be done with very low capital.On the other hand if you have a strategy,you can enter
at right time and keep accumulating every 100 pips away from your original position. and sell all the positions at your
original entry price. The price movements are generally based on two different groups of traders(fundamental,technical),also there are so many strategies around and everyone thinks that their strategy is the best.
Ultimately person who has more holding power wins in the end.
I hope this explains

Regards
I have been trading for more than 5 years,I can be contacted at www.fxchamp.co.uk

In my experience it's a roulette table but so far I've been lucky I guess.

Focus more on fundamentals than technical analysis. Economic news analysis is what moves the markets.

Here is a free site that shows what has happened after economic news releases:

http://www.forexnewspatterns.com

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Tags: currency price, individual traders

This entry was posted on July 30, 2011 at 3:25 pm and is filed under Forex Articles. You can follow any responses to this entry through the RSS 2.0 feed.