Thursday, December 13, 2012

What to trade in forex?

It can be very hard to select trading picks that you think might be profitable. Sure, anyone can 'guess' something to trade and start with 'how about...' but the point is to have some sort of guideline. That guideline is sometimes hard to find. Many FX traders among us resort to news sources on the internet. After all, they are 'recent' and recent is decent for our FX trades! Right? Nope, far from it. Decent is simply not good enough to contort to actual trades. FX websites are filled with noise. Brokers hire writers to write something, just anything about the FX market. Whether that information will help your trades isn't relevant. As long as you visit their website they're fine with it.
What I always personally would've liked to see is an overview of what professional traders and 'trading institutions' (like banks etc) trade. I know there are a gazillion of websites out there with people that share trades with their readers (just like this one), but it is interesting to see what the 'pros' are doing.
FX Street lets you see what the 'big guys' are doing. 
FX street has something in their side bar that lets you see what the big guys are doing. Based on this information you can draw your own conclusions. Of course it is not solely based on this, but see it as an addition to your trading tool box. Checking the markets, volatility, sentiment, news, etc and also see what other people do... it might give you a good idication what (or what not) to trade.
For instance, to the left you can see that the Danish Bank has a buy limit order on the EUR/USD, they bought it at 1.3065 and their stop-loss (in case things go south) is at 1.2995. Their target is also shown at 1.3207. Brilliant! This is a major bank, displaying all the information publicly. There are more showing, these are professional trading organizations; showing what they trade. I'm not saying you have to do exactly what they're doing, but it does give you a good indication what to trade.

Disclaimer:

All opinions expressed, trade recommendations/advice on this website are solely of John van der Munnik and are not affiliated with any investment firm or any other organization. You should not make an investment only based using this website VDM Trading for your trading needs without seeking help from your own financial advisor.