A forex broker actually sent me this message, I added the part in parenthesis. Now, after reading this statement, what comes to mind? Are you imagining pressing some buttons on your smart phone from the 18th hole (I’m writing like I know something about golf) and smiling because you just made a thousand? Sounds nice right? Many forex brokers today provide apps for your mobile devices that allow you to execute trades, receive news, signals and quotes, and look at some simple charts. What more do you need to make sound trading decisions anyway? You’re not day trading right? You need more. A lot more, no matter what type of trader you are.
First let’s get right into scalping. Don’t even think about it. There is too much detail and analysis required to gather enough information to make such quick decisions and adjustments. Too much precision is required and I don’t think looking at quotes and simple charts on your phone can adequately provide enough information to get a good sense of the price action. Plus if you are using a dealing desk broker and not on any active trader platform or ECN, you shouldn’t be scalping to begin with, nevermind on a smart phone. If you are not sure what I mean by ECN, read my article about that here.
Now how about intraday momentum trading? I think this is somewhat possible because speed and precision are not required. The key to employing this style on your smart phone is to do your research and analysis ahead of time at home on your desktop computer. Your analysis should provide the key support and resistance levels and other information required to help you quantify the risk, reward potential and entry price ahead of time. Your smart phone in this case will just allow you to walk away from your computer. Of course intraday momentum trading still requires attention and adjustments so I would not recommend new traders go out and attempt to do this on a mobile device.
The styles best suited for mobile trading are swing and position trading. Why? No precision required and adjustments can be applied over hours or days. Just like with intra day momentum trading, the assumption is you are employing a methodology that defines your entry prices, risk and reward potential way ahead of time. With your research already done on any number of pairs, you can set up your smart phone to let you know when such an entry level is reached and then wait for some additional confirmation if your plan calls for it. Remember your research should be your own and it should be conducted on a computer that can provide the tools and detail you need to come up with meaningful analysis.
So is mobile trading easy? Technically it is nothing more than sending orders to buy or sell through your mobile device. Sure it’s easy. The difficulty that remains is you still need to have a sound trading plan that will allow you such flexibility. Think of the mobile device as a limited execution tool and nothing more. Most importantly you do not want to rely on the news and other trading stimulants that your mobile device app will be generously pushing. These features are not for you benefit. So before you going to the golf course and start banging out trades on your mobile device, make sure you have the knowledge, experience and results from trading on your traditional home computer first.
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Marc Principato
*No Relevant Positions
