Wednesday, January 14, 2009

Forex For The Small Speculator


Today was a banner day for me... trading the AUD/JPY with a return of more than 10% NAV. The market simply walked up and down my trend lines bringing me profits with every pass. How come this doesn't happen more often?Anyway, as a small time speculator I thought I'd outline some issues that we face compared to some of the larger traders:
We trade in very small lot sizes
To make any meaningful revenue we may trade with a large percentage of our NAV.
Carry trading strategies may be meaninglessEach of these issues is something that we need to think about and potentially make some adjustments to compensate.

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