Novice Traders' Notebook | AUG 2003
The FX Daily Conundrum by Kristian Kerr
The FX Daily Conundrum by Kristian Kerr Hours And Days - The FX Daily Conundrum In a 24-hour market, what is the best time frame to use when looking at charts? The rising popularity of foreign exchange trading over the past few years has been impressive. Equity traders fed up with trying to eke out profits in the brutal bear market environment have flocked to the fast-paced spot currency markets in record volumes. This rise in forex’s popularity can mostly be attributed to the clear advantages that currency trading has over other markets. Unlike trading equities, foreign exchange offers traders true 24-hour trading, excellent liquidity (over $1.5 trillion a day), and great leverage (up to 200 to 1). Another big factor behind the increase in retail spot exchange volume has been technically driven equity traders who are switching to currencies. The technical nature of this market makes it much easier for equity traders to switch to foreign exchange (also referred to as forex or FX) than to other markets, although forex does have its own nuances that must be understood. The biggest issue for most technical traders making the switch is the daily chart. Due to the structure and nature of the currency market, the daily is not as effective and useful in FX as it is in equity trading.
by Kristian Kerr
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.