Translated from Russian by Google Translate
25 Сентябрь 2008

Daily trade - the heritage of not only small investors

Trading on the Forex market is famous not only for its profitability, but to a large extent and complexity of transactions. The market, certainly, there is no single trader, who would trades without initial training. That is the complexity of trading on the currency market. The path of a dream, as many call the financial independence is very long and arduous. But above all, fairly expensive. Before you start trading currency must complete initial training, to invest a lot of time and money before seen the first signs of impact.


But often the problem is precisely the lack of funds to implement full-scale commercial operations. There are moments when to achieve the goal lacks any couple dollars, followed by price, sev deposit goes back to our side. All this raises questions about how the size of the deposit, and about the time scale of the transaction. It is generally believed that the heritage of small investors is a trade Intrada. This situation actually occurs. But the issue is that this is true, but not all 100% because there are a lot of very powerful and influential players, which firmly established themselves on our laurels trade Intrada. It is therefore clearly assert that in the short sale, which we, in fact, and we will talk, far outweigh the forces of young, inexperienced investors with small size of the deposit would be wrong.

Generally the market seen an interesting trend, or you can say, regularity. All the matter is that there is a certain proportion, the balance of power in which you can compare large and small investors in the same vein. Some have a sufficient amount of money they can lose, others also have a certain amount of money that they can afford to lose. This similarity.

But, despite many similarities, which are these investors, there is a fairly significant difference, which very clearly defines the border between small and big business. Speaking the language of man in the street, small investors limited in their trading operations, the size of his deposit, while major investor has the opportunity to conduct full-scale operations. And if a trader whose deposit is large enough to hold trade operations shoestring, he remains a much better chance of a successful outcome than the small investor.

But you need to survive and small investors, so we now briefly reflect on daily trade. Typically, when implementing trade Intrada small investors strongly unhampered in their vehicles. There must be either a strong and competent analyst, or an incredibly lucky man. Third is not granted. But the laws of life are such that the same luck has not been protyanesh, but because on the basis of the experience of previous generations of traders can be concluded that success in trading on the Forex market can bear only a solid knowledge based on their own mistakes and puncture.

How to make a profit on day-scale trade. Exits can be much, but the methods by which you can get enough profits, unfortunately quite a bit. Alternatively, you can simply take a long position at the beginning of a growing trend and expect when the price reaches its apex. But the problem is that for small investors waiting for days, weeks, not bring nothing but disappointment and loss. After all, sooner or later, even at the most marked trend is the decline, which followed a correction of current trend, which normally would not give the possibility of a trader, whose capital is small, quiet and safe to monitor the evolving situation with an open attitude towards the current trend. That is why intradeyschik unable to cope with a mass of financial flow, which grows as the time scale of trade.

It is for this reason for a trader who carries out speculation in the Forex market within days not wait growth trend with an open attitude in his direction in the long term perspective. That correction, or the distance at which commits the price rollback on the growing trend can be quite substantial sum for small investors, but because for those who prefer to trade Intrada small and limited amount of the deposit does not make sense to afford to lose potential profit. Allow such losses are comparable to those where a trader looking at the situation in the market, open positions and will not hold protective orders. It then goes and comes back, let through the week. As a result of such an approach can be a very large profit, either on the trade account will cut a wide swath figures 0.00.

Therefore, all that remains to do intradeyschiku with a small seed capital, is just tack on the waves daily currency fluctuations. Typically, trading is carried out on time schedules, as well as the most common temporal scale for short-term trading within days. Here, above all, guidance on the profit line are support and resistance. But let’s say at once that building lines of support and resistance at the time schedules is not entirely correct, because we believe that the majority of traders by trading within days of short-term schedules, it is preferred level of support and resistance, built on daily, weekly and monthly schedules. It is quite justified and appropriate use of protective orders. Typically, slots, which are placed protective orders for currency pairs with low volatility, is no more than 50-60 points. In general, when implementing short-term trading is preferred, again, short-term market, that is, there is a meaning to review the five-and ten schedules currency pairs.