Currency Trading

Articles and Information about Currency Trading

NetFinancial | Institutions | Loans
Colleges and Universities | Search Engines

Mechanical or Discretionary Trading - Which is Best?


Discretionary Trading

Pure discretionary trading will rely solely on the traders judgement. For example a discretionary trader may spot a particular pattern developing on a chart and decide to enter a trade on that basis. It would be impossible to systemise their trading because it relies on subjective judgements and 'gut' feel.

Mechanical Trading

Pure mechanical trading involves the development of trading rules that cover every situation, from entry to exit and position sizing. The trader is executing a predefined plan. They must however take every trade that the system gives them which can be difficult if the trader begins to 'think' too much!

Both sets of trader are working hard at different times and at different things. The mechanical trader spends time developing a system and does not need to think whilst trading, merely executing a plan. The discretionary trader has to be thinking all the time that they are trading and can suffer from 'information overload'.

Which is best?

The answer is probably a combination of both approaches. Coming to the market with a proven strategy rather than relying on gut instinct is far less stressful and gives the trader more confidence. However the markets are always changing and one trading strategy will not work forever - i.e. the Turtle Traders. Strategies will always need updating.

Many traders will use a mechanical system to generate buy and sell signals but then use discretion, reading the market, to attempt to gain better fill prices.

All successful traders will use some sort of proven trading strategy to begin with but the level of discretion allowed by it will vary. A trader with no plan at all will fail.

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.


MORE RESOURCES:
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/0i-0fd=Rurl=http://www.rte.ie/business/2008/1006/euro.htmlcid=1254889944ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNH5Hh8hfWAIgnzdNvyyI27_zotnSwimg src=http://news.google.com/news?imgefp=WeTN4ck4Yv0Jimgurl=dynimg.rte.ie/00019d1010dr.jpg width=80 height=60 alt= border=1brfont size=-2RTE.ie/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/0-0fd=Rurl=http://online.wsj.com/article/SB122358053217020031.html%3Fmod%3Dgooglenews_wsjcid=1254889944ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEPiQZjTueh23I3Aykp6fw8qhXAvAStampede for Yen Saps Asian bCurrency Trading/b/abrfont size=-1font color=#6f6f6fWall Street Journalnbsp;-/font nobrOct 9, 2008/nobr/fontbrfont size=-1Meanwhile, hedging against foreign-exchange risk has become more difficult as options related to bcurrency trading/b have become more expensive, Mr. Liu said. b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-1fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601087%26sid%3DaVkVu3p842AQ%26refer%3Dhomecid=1254889944ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNE32f8OWye5dPIfSp1e-wOmVFc3KAYen Rises on Speculation Stocks Rout Will Reverse Carry Trades/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-2fd=Rurl=http://news.xinhuanet.com/english/2008-10/07/content_10157483.htmcid=1254889944ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEwUZ2EltKdhTgSoozcsfhSSjidlgDollar higher against euro, sharply lower against yen/a font size=-1 color=#6f6f6fnobrXinhua/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/0-3fd=Rurl=http://www.tradetnt.com/euro-banks-feeling-dollar-shortage/1204.htmlcid=1254889944ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNGXdUcUcbDD_m3EF81j_Cb5pN8jnAEuro Banks Feeling Dollar Shortage/a font size=-1 color=#6f6f6fnobrTradeTNT.com/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1254889944hl=ennobrall 553 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/1i-0fd=Rurl=http://www.canada.com/topics/news/world/story.html%3Fid%3D89564178-d998-4e07-a260-84d221b4d08bcid=1255748512ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNHtKzNmCx1vfROu4I6CCD97w_LT3wimg src=http://news.google.com/news?imgefp=CktzXrCcLAQJimgurl=a123.g.akamai.net/f/123/12465/1d/media.canada.com/6d03bf1c-03fd-4a15-8106-b83ca306188c/iceland-bank1009.jpg%3Fsize%3Dl width=80 height=80 alt= border=1brfont size=-2Canada.com/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/1-0fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601085%26sid%3Daiz5QIq94nrw%26refer%3Deuropecid=1255748512ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEsV3O3cgLpX7-0QWziONFA9uV9VAIceland#39;s Krona bCurrency Trading/b Halts as Kaupthing Taken Over/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobrOct 9, 2008/nobr/fontbrfont size=-1By Bo Nielsen Oct. 9 (Bloomberg) -- Trading in the Icelandic krona came to a halt after the government seized control of Kaupthing Bank hf, the nation#39;s b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/1-1fd=Rurl=http://blogs.wsj.com/marketbeat/2008/10/08/shortest-currency-peg-ever/cid=1255748512ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEYNruDyKEdO4x1Sr1HsCDBtYpsNgShortest. Currency Peg. Ever./a font size=-1 color=#6f6f6fnobrWall Street Journal Blogs/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1255748512hl=ennobrall 1,470 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/2i-0fd=Rurl=http://sify.com/finance/fullstory.php%3Fid%3D14772695cid=1256329986ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNFlDoZ-vofV6XDUh5itdGNUM6qD-Aimg src=http://news.google.com/news?imgefp=fdaERz8UVY8Jimgurl=im.sify.com/sifycmsimg/sep2008/Finance/14753479_MCX_180.jpg width=80 height=55 alt= border=1brfont size=-2Sify/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/2-0fd=Rurl=http://sify.com/finance/fullstory.php%3Fid%3D14772695cid=1256329986ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNFlDoZ-vofV6XDUh5itdGNUM6qD-AMCX Stock Exchange begins bcurrency trading/b/abrfont size=-1font color=#6f6f6fSify,nbsp;Indianbsp;-/font nobrOct 7, 2008/nobr/fontbrfont size=-1Mumbai: MCX Stock Exchange (MCX-SX) has recorded a turnover of Rs 287.49 crore with 59952 contracts valued at $1000 traded on the first day of currency b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/3i-0fd=Rurl=http://sify.com/finance/fullstory.php%3Fid%3D14771031cid=1252832063ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNFAohQuWbxwBgWC-TWStKqbxlq3EQimg src=http://news.google.com/news?imgefp=SBGic4oxq_wJimgurl=im.sify.com/sifycmsimg/jul2008/Finance/14727680_sebi_220.jpg width=80 height=57 alt= border=1brfont size=-2Sify/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/3-0fd=Rurl=http://www.hindu.com/thehindu/holnus/006200810011731.htmcid=1252832063ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNHtTRJeaSJgemepQ5-SScWudB3G3QRBI, Sebi to relax bcurrency trading/b norms/abrfont size=-1font color=#6f6f6fHindu,nbsp;Indianbsp;-/font nobrOct 1, 2008/nobr/fontbrfont size=-1Mumbai (PTI): The Reserve Bank of India and Securities and Exchange Board of India (Sebi) are in discussions to relax the bcurrency trading/b norms, b.../b/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/3-1fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601091%26sid%3DaJQqfYFBEE9Q%26refer%3Dindiacid=1252832063ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNECj1lFOi0C07hRLTVSArmB00_e8QIndia Working on Relaxing bCurrency Trading/b Rules, Bhave Says/a font size=-1 color=#6f6f6fnobrBloomberg/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/3-2fd=Rurl=http://www.indiainfoline.com/news/innernews.asp%3FstoryId%3D80612%26lmn%3D1cid=1252832063ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEdai4OiBEkBenLy8Z80UEsYzVP_wRBI, SEBI mull easing bcurrency-trading/b norms/a font size=-1 color=#6f6f6fnobrIndia Infoline.com/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/3-3fd=Rurl=http://www.topnews.in/bse-launches-currency-futures-trading-272932cid=1252832063ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNE-6QiIYS-8NYRA6p2wpSqoPC7FdwBSE Launches Currency Futures Trading/a font size=-1 color=#6f6f6fnobrTopNews/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/3-4fd=Rurl=http://www.thaindian.com/newsportal/business/norms-for-currency-futures-likely-to-be-relaxed_100102431.htmlcid=1252832063ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNE36hQg3VO2mdJZk17gheGIvhmnYwnobrThaindian.com/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/3-5fd=Rurl=http://www.thaindian.com/newsportal/india-news/bombay-stock-exchange-launches-currency-derivatives_100102299.htmlcid=1252832063ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNFqsaNXlWFNEIc8E0JFg_CXY6br-AnobrThaindian.com/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1252832063hl=ennobrall 151 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/4-0fd=Rurl=http://en.rian.ru/business/20081010/117667286.htmlcid=1255026447ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNHatYxtjKIFr_N4iY6R66ktIMx2ZAMICEX plans to open trading as normal on Mon./abrfont size=-1font color=#6f6f6fRIA Novosti,nbsp;Russianbsp;-/font nobr19 hours ago/nobr/fontbrfont size=-1MOSCOW, October 10 (RIA Novosti) - The Moscow Interbank Currency Exchange plans to begin trading as normal on Monday morning unless the Federal Service for b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/5-0fd=Rurl=http://www.bloomberg.com/apps/news%3Fpid%3D20601080%26sid%3DalJJx6wybqMc%26refer%3Dasiacid=1250859859ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNGTq9fSJIMBs6Y1csKPR7uUpFWhLAChina Banks Cut bCurrency Trading/b With Foreign Lenders (Update1)/abrfont size=-1font color=#6f6f6fBloombergnbsp;-/font nobrSep 26, 2008/nobr/fontbrfont size=-1By Judy Chen and Belinda Cao Sept. 26 (Bloomberg) -- China#39;s banks are limiting foreign- exchange transactions with US and European financial companies on b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/6-0fd=Rurl=http://www.dailyfx.com/story/currency/jpy_ssi/USDJPY_Japanese_Yen_Likely_to_Gain_1222955721225.htmlcid=0ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEytMu_4VtBKcEbJipGWmueIZWkmAJapanese Yen Likely to Gain as bCurrency Trading/b Crowds Buy USDJPY/abrfont size=-1font color=#6f6f6fDaily FX,nbsp;NYnbsp;-/font nobrOct 2, 2008/nobr/fontbrfont size=-1USDJPY – Our forex positioning indicator continues to forecast US dollar losses against the Japanese Yen, as we see that bcurrency trading/b crowds continue to b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://news.google.com/news/url?sa=Tct=us/7i-0fd=Rurl=http://www.wkrg.com/financial/article/stocks_5_year_lows/19848/cid=1256435323ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNG0prvHXjK5OntCNLURcPEealBq1gimg src=http://news.google.com/news?imgefp=D1FLNrcw3eUJimgurl=media.wkrg.com/media/news3/cache/t1home.nyse1_.ap_-265x239.jpg width=80 height=72 alt= border=1brfont size=-2WKRG-TV/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/7-0fd=Rurl=http://money.cnn.com/2008/10/10/markets/markets_newyork/%3Fpostversion%3D2008101015cid=1256435323ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEid9mZlLcRxhvRGiyietEIT8lnNgMarket turnaround/abrfont size=-1font color=#6f6f6fCNNnbsp;-/font nobr15 hours ago/nobr/fontbrfont size=-1COMEX gold for December delivery rose $14.50 to $901 an ounce. In bcurrency trading/b, the dollar gained against the euro and the yen./fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-1fd=Rurl=http://money.cnn.com/2008/10/09/markets/markets_newyork/%3Fpostversion%3D2008100918cid=1256435323ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNGsBXKk9vh39d_yswzrDuZpoveq2QDow tumbles 7%/a font size=-1 color=#6f6f6fnobrCNNMoney.com/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-2fd=Rurl=http://www.wkrg.com/financial/article/stocks_5_year_lows/19848/cid=1256435323ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNG0prvHXjK5OntCNLURcPEealBq1gStocks: 5-year lows/a font size=-1 color=#6f6f6fnobrWKRG-TV/nobr/font/fontbrfont size=-1a href=http://news.google.com/news/url?sa=Tct=us/7-3fd=Rurl=http://www.wibw.com/nationalnews/headlines/30591699.htmlcid=1256435323ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEW9OjyVGqNNVKkXi2pHanELfoEeAA 5-year low/a font size=-1 color=#6f6f6fnobrWIBW/nobr/font/fontbrfont size=-1 class=pa href=http://news.google.com/news/url?sa=Tct=us/7-4fd=Rurl=http://money.cnn.com/2008/10/09/markets/markets_newyork/%3Fpostversion%3D2008100910cid=1256435323ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNE4N9va0X5-pkvACMs_jmvMyELrhwnobrCNN/nobr/anbsp;- a href=http://news.google.com/news/url?sa=Tct=us/7-5fd=Rurl=http://money.cnn.com/2008/10/06/markets/markets_newyork/%3Fpostversion%3D2008100610cid=1256435323ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNF_bC4fV0SxKk9dXRVmPOT_VBtDTAnobrCNN/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256435323hl=ennobrall 31 news articles/nobr/a/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/8-0fd=Rurl=http://www.thezimbabwean.co.uk/index.php%3Foption%3Dcom_content%26view%3Darticle%26id%3D15567:slow-take-off-for-zimbabwes-foreign-currency-trading-scheme-%26catid%3D31:top%2520zimbabwe%2520stories%26Itemid%3D66cid=0ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNH-tg_asOz8Y9Pr6hBBhfwMphhEqQSlow take-off for Zimbabwe’s foreign bcurrency trading/b scheme/abrfont size=-1font color=#6f6f6fThe Zimbabwean,nbsp;Africanbsp;-/font nobrOct 2, 2008/nobr/fontbrfont size=-1After a slow take-off for the new foreign bcurrency-trading/b scheme, a handful of shops started selling in US dollars or South African rands. b.../b/font/div/font/td/tr/table

table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://news.google.com/news/url?sa=Tct=us/9-0fd=Rurl=http://www.dailyfx.com/story/market_alerts/technical_alert/Currency_Trading_Signals_Catch_a_1222974028240.htmlcid=0ei=xIPwSJbgMIGi9gToxazGBwusg=AFQjCNEJOS13lXf5cs7DYDYTpIChtXe2aAbCurrency Trading/b Signals Catch a Powerful Japanese Yen Rally b.../b/abrfont size=-1font color=#6f6f6fDaily FX,nbsp;NYnbsp;-/font nobrOct 2, 2008/nobr/fontbrfont size=-1Our Forex Trading signals accurately forecasted that the Japanese Yen would gain aggressively against the Euro, US Dollar, Australian Dollar, b.../b/font/div/font/td/tr/table

Currency-Trading - Google News

Currency Trading | Investing | Leadership | Negoatiation | Real Estate | Stocks and Mutual Funds | Taxes
home | NetFinancial | Institutions | Loans | Colleges and Universities | site map
Search Engines | EZmatic | 0pops | GetSonic | TrafficFish | Health
© 2006