An article in the Wall Street Journal, Currency Markets Draw Speculation, Fraud [free], talks about day trading in the foreign exchange market. The story focuses on Marc Coppola, one of my favorite Q104.3 DJs, who apparently also dabbles in trading foreign currency.
To summarize, this type of trading has grown in popularity despite its risk. However, at least one person interviewed in the article believes it is less risky than trading in stocks since larger currency cycles tend to be easily apparent.
The two currency exchanges mentioned are Gain Capital, the broker used by Marc Coppola, and FXCM (ForEx Capital Markets). I signed up for a free visitor account at FXCM a while ago, but didn’t look into it much. That company offers a mini-account that will let you get started with as small an initial investment as $300.
It might be worth it to experiment a little.
Subscribe
12:28 pm (reply)
It’s that 24 hour a day open trading session that kills me. I guess it would teach you the discipline of stop/limit orders!
1:35 pm (reply)
Chinese renminbi yuan starts to revaluate against US dollar!
1:37 pm (reply)
I’ve had accounts with Forex.com, Refco, and FXCM. I’ve traded the big currencies (fiber, cable, loonie) and must tell you that it’s a roller coaster ride. You can make $2000 in 90 seconds or lose $4000 in 30 seconds.
I’ve finally settled for spot contracts because it doesn’t keep you glued to the trading screen. http://www.refcospot.com
Mr. Opine