Is there really some kind of logic to short term FOREX trading? Or is it the case that?

nomethinks asked:


… 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?

Sara

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November 30, 2009 • Tags: , • Posted in: 852

4 Responses to “Is there really some kind of logic to short term FOREX trading? Or is it the case that?”

  1. Xelam - November 30th, 2009

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  3. MarketStock - December 3rd, 2009

    My experience its roulette table but so far ive been lucky guess.

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