Before we actually actively trade the market, it perhaps help
to take a step back and think about how you would want to approach the market.
There's more to currency trading than meets the eye.
And the trading style that we
choose is one of the most important determinants of overall training success.
So you know what I call as different strokes for different folks.
There are as many trading styles and
market approaches in FX as there are in in the Indian market.
But most trading styles can be grouped into some buckets that
boil down to varying degrees of exposure to market risk.
The two main elements of market risk are time and elective price movements.
The longer we hold a position the more risk we are exposed to.
The more of a price change that we are anticipating the more risk
we are exposed to.
My aim here at this lecture is not to advocate or I won't be advocating
a certain particular training style because styles frequently over lap.
And you can adapt different styles for
different trade opportunities as a lot of professional traders do.
Or they also change trading styles based on market conditions.
My goal here in this lecture is to give you an idea of the various approaches used
for ex-market professionals so that you can understand the basis of each style.
What I'll be doing in the next two lectures is essentially
look at short term high frequency trading strategies, and
contrast that with, in the next lecture, with medium term directional trading.
So we'll basically look at short term trading in the next lecture and
in the lecture after that, we will basically look at medium term trading.
Which would predominantly would be directional trading.
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