Saturday, 26 March 2011

Position trading

My friend The Market Cycle have been teaching me basic principles of position trading.

He is an excellent trader and programmer! Very hard working guy! Check out his blog when you have time! You won't understand the language, but you'll find some interesting stuff on english just by searching through the blog.

Anyway, due to that I'm studying long term charts I'm trying to find something interesting for building longer term positions.

Generally, these pairs I've chosen are the extreme in terms of interest rate differentials, and carry most rollover profits.

I've decided to try building a position from small to larger one, trading the extremes where rollover and the price (hopefully) go in my favor.

With AUD/CHF I see some resistance too close to my entry price, so I think my choice is going to be AUD/JPY.

This is purely long term channel trading. Haven't entered any of the market yet. I'm going to do analysis of the other pairs as well.

Have a nice day!



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