Full time FX trader, needing advice on market switch

[Akuma99]

Hi all,

I have a two fold question, but first, an elevator intro.

I am a private FX trader, have been since 2001, mildly profitable, enough for us to not be eating baked beans each night (although there is a lot to be said for it at times, yum).

The catch? I had cancer 5 years ago, brought on by long hours trading and living the corporate jungle lifestyle concurrently. Health is all good now, but give me a run of late nights, and the bright lights of hospital beckon back again, the most recent with pneumonia after a month of fruitful European and US session trading sessions.

This has me looking for new markets to trade that are liquid during the Aussie business day, don't have huge entry barriers and are timezone friendly. I am a tech swing trader, holding period between a few hours to a couple of days.

So the 2 questions:

1. What markets do fellow Aussie traders trade that provide good liquidity during friendly hours?
2. Of those markets, which provide low entry costs? I don't ask because I trade tiny, but rather I prefer to forward test a live account for a decent time (don't get me started on the whole demo account argument) before switching markets full time.

My initial reaction was CFD's or options, but any advice would be most appreciated.

I hope all have had a great weekend (even if we did have to watch the Kiwi's win the World Cup).

Cheers
Adam

 

[FxTrader]

This has me looking for new markets to trade that are liquid during the Aussie business day, don't have huge entry barriers and are timezone friendly. I am a tech swing trader, holding period between a few hours to a couple of days.

So the 2 questions:

1. What markets do fellow Aussie traders trade that provide good liquidity during friendly hours?
2. Of those markets, which provide low entry costs? I don't ask because I trade tiny, but rather I prefer to forward test a live account for a decent time (don't get me started on the whole demo account argument) before switching markets full time.

My initial reaction was CFD's or options, but any advice would be most appreciated.

Sorry to hear about your health battles but glad to see you have overcome them. As a forex trader myself I am a little surprised to see you wanting to "switch" markets. In general, other Aussie derivative markets provide poor liquidity, the U.S. market is the best by a huge margin. Trading CFD,s on majors is ok since the big OTC CFD providers are market makers.

Nothing beats forex for liquidity on the major pairs, but then you already know this. However, not all sessions are equal and London is simply the best session (for scalping anyway) for making money if forex. If you can't or are unwilling to trade the first 4 hours of the London session then you are handicapping yourself as a forex trader.

 

[MACD]

My suggestion would be to trade the London Opening, as this is at a reasonable time in Australia and the market is very liquid. I have traded the US S&P 500 (ES) for a while now, but have switched to the 6E (Euro Dollar Forex Futures) during the London opening as it's far better than trading the ES and the time of day is perfect.

You can also trade CFD's on ASX shares during the day. If you are trading for income, which you are, then this is another great option, however you need to watch your leverage.

Happy trading and stay healthy.

 

[Akuma99]

Yeah of course I understand the liquidity flow of the FX markets, for me though, with 2 young children, taking myself out of the household between 4pm and 9pm just doesn't work, homework, baths, dinner, story time ... they are all things as a father I feel remiss to take myself away from.

I trade for the lifestyle it provides, to watch my young children develop and grow, to have the flexibility, it is why now I am looking to shift to daytime hours, else the only other option is to shift time zones.

 

[Timmy]

Have you had a look at some of the Asian equity index futures?
Would seem to be the closest fit with your criteria.

This looks to be a good option for you too:

other option is to shift time zones.

 

[Akuma99]

Have you had a look at some of the Asian equity index futures?
Would seem to be the closest fit with your criteria.

Timmy, no I haven't, but I will be sure to do just that, thanks for the suggestion. The time zone shift has come under consideration certainly, it still remains an option.

 

[skc]

Timmy, no I haven't, but I will be sure to do just that, thanks for the suggestion. The time zone shift has come under consideration certainly, it still remains an option.

Your MECE set of options are...

1). Change your trading instrument
2). Change your time zone
3). Change your lifestyle to suit your hours (e.g. raising your kids as vampires)
4). Change your trading style

Or some combination of the four.

Have you explored 4)? Longer term holds, I know it's hard to abandon what already works to find a new style, but having been through your health episode it might well worth the effort.

As to 1)... wouldn't Asian currencies have decent liquidity during the day? May be something more obscure like the Won or $S would still have decent liquidity?

May be some transition plan would work... 4 nights a week to get your income, and one day per week to practice a new style / instrument.

Good luck.