Long term traders will work from end of day data and look to
hold trades for a few weeks up to many months. Usually trend
trading.
Advantages
No need to watch the markets intraday.
Fewer transactions means lower commission costs.
Cost of equipment and data is minimal.
Disadvantages
Large equity swings on single positions with large stops.
Usually only 1 or 2 exceptional trades a year so patience is
essential.
Bigger capitalization required to ride longer term swings.
Frequent losing months.
Short Term
Working from intraday data and looking to hold for a day up to
a week. Usually swing trading.
Advantages
More opportunities for trades.
Less chance of losing months.
Less reliance on one or two trades a year to make money.
Disadvantages
Transaction costs will be higher.
Intraday data adds to costs.
Overnight risk becomes a factor.
Day Trading
Working from intraday data the day trader will attempt to take
small profits from intraday swings. All positions will be exited
at the market close.
Advantages
Many trading opportunities in a day.
Much lower chance of losing months.
No overnight risk.
Reduced margin requirements due to no overnight risk.
Disadvantages
Transaction costs will be high.
Psychologically more difficult due to frequency of
trading.
Profits are limited by needing to exit at the end of the
day.
Data costs are high as real time data is essential.
Tim Wreford runs Online Futures
Trading, a website that provides information and resources
for traders. Tim also provides a free
day trading system, the results of which are updated daily on
the site.
Sri Lanka Rupee, Stocks Drop After Currency Trading Band Removed Bloomberg The central bank narrowed the currency's trading band against the dollar on Feb. 3 and Feb. 6 and today, prior to announcing its removal. The monetary authority raised benchmark interest rates for the first time since 2007 on Feb.
India Eases Currency Trading Limits for Some Banks Wall Street Journal By SUDEEP JAIN MUMBAI -- India's central bank has asked banks to approach it individually for relaxing some foreign currency trading limits and has already eased restrictions for some banks, a top official said Monday. "Some limits, based on their ...
iFOREX Adds Oil to its list of Tradable Commodities MarketWatch (press release) ROAD TOWN, Tortola, Feb 09, 2012 (BUSINESS WIRE) -- Leading currency trading company, iFOREX, has recently expanded its services, giving all Forex trading accounts direct access to oil CFDs. Targeting an audience that has little or no experience with ...
This January Azerbaijan's exchange currency trading totaled $82.5 million Azerbaijan Business Center Baku, Fineko/abc.az. The Baku Interbank Stock Exchange (BBVB) has renewed statistics of its operations. BBVB reports that in January 2012 the nine participating banks concluded 28 deals in 36 trading sessions in e-trading system (BEST).
FOCUS: Technology Buoys Retail Currency Trading, Reshapes Old Models Wall Street Journal By Eva Szalay Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Retail foreign-exchange trading is emerging as one of the biggest growth areas in the currencies space, and some of the trading firms that facilitate these flows are building up a whole new ...
Morgan Stanley Currency-Trading Head Stephen Mettler Leaves Bank BusinessWeek By Michael J. Moore Jan. 26 (Bloomberg) -- Stephen Mettler, who oversaw Morgan Stanley's interest rates and foreign-exchange trading businesses, has left the bank. Mettler, who joined the firm in 1997, retired, according to an internal memo obtained by ...
Bank of England and ECB Hold Steady, Indonesia Cuts CNBC.com [CNBC] ----------------------- MULTI CURRENCIES VS THE DOLLAR Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm. Learn more: The essential vocabulary for currency trading is on Key Currency ...
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