G'day,I have been trading currencies recently. Whilst I can...

G'day,

I have been trading currencies recently. Whilst I can fairly well develop a strategy for trading shares, am finding it difficult in formulating a currency strategy or mechanical system, the moves and volatility are insane.

I am trying to work out the pshycology of currency trading that goes longer than holding it for a few hours, where I have found you can make or lose a weeks wages in a single day.

I read on the news wires where analyst A suggests " the AUD is trading in a range 65-70c and sell into rallies " etc. I honsestly don't think they know.

I would be curious to know of others systems and how they trade:

I crrently use a stop of 20pips, basically trade the short term trends (easy if it is going in a particular direction, difficult if doesn't know which way to go).

I use the EURUSD as an indicator, if this tanks, the AUD normally follows.

Anyway still learning.