New to Forex Investing

Chub97

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Hello all,

This is my first post on T2W.

I'm very new to investing and haven't really had any real world experience apart from back testing a few strategies and a bit of demo trading. I have had reasonable success with a few back-tested strategies but I often find their success begins to fade over an extended period of time or either they only appear to be successful on one or two currencies. At the same time I haven't necessarily felt these strategies to fit in with what I'd want to be my trading style.

I've since come across a forex concept that has been intrigued called "carry trading". Unfortunately I haven't been able to find much information on this and otherwise a lot of the information I have found has suggested that it is no longer a viable trading strategy. To me it seems like a fairly logical trading strategy since you are profiting from both interest and price movements.

I was therefore interested if there are any Forex traders on this forum that are using or either have used this trading strategy in the past and could possibly providing me with a little more info?

Sorry if this does seem like a bit of a trivial question but the concept has sparked a little interest but doesn't seem to have much viable resource material apart from a few investopedia articles.
 
Private retail forex traders don't deal in the currency itself, but speculate on the change in exchange rate between two currencies, so carry trade is basically irrelevant to us.

Its true that some strategies work well with one or just a few currency pairs and can fail to perform as market conditions rotate, e.g. as risk appetite pushes money volume in/out of forex compared to commodities, bonds or equities. That's just part of the game - like responding to pitch conditions in sport. But in the end you might only need one decent strategy on one instrument, e.g. the biggest, the EUR/USD exchange rate, to make a living.
 
Thanks for the reply, I think I may have gotten carry trading confused with the roll over either debited or credited to an account at the end of each trading day. Anyway thank you for making that a little clearer.
 
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