ITS NOT MINE BUT ITS NICE

One of my students followed my trade. That is his post. For a gain of 155 pip live trading. Who can complaint

LONG TERM TRADE

Last nite jump was expected but GBPUSD never made it big. Only EURUSD and AUDUSD manage to jump big enough. EURUSD was screaming long from early morning yesterday while AUDUSD make the last minute move.

From a long term perspective. AUDUSD is in a good position for a short position. This is a long term strategy and may require you to have high tolerence toward -ve pips.

So the signal is to short AUDUSD and AUDJPY at the best position as humanly possible. This trade may run up to weeks if not months. So prepare your account for long term holding of post.

Good luck

POSSIBLE REVERSE BY GBPUSD

Looking at the charts this morning, I have a very strong feeling that GBPUSD will make a reverse soon. The move will be significant enough for a reverse trade. I have closed all my short post last night. Dont get me wrong, all these pairs are still on a downtrend but the correction is going to be huge.

Only time will tell. Good luck

TESTING OUT ZULUTRADE

I test Zulutrade as a signal provider. So far so good but I must say 1 thing. FXCM is no good. Spread is extra wide. Carry trade pays so little but get charged so much. Its a losing situation.

A NEW TOY IN THE HOUSE

Busy with a new toy. Sony a350. 14.2 Megapixel Digital SLR. Much better than my old Konica Minolta 7MP. Btw all short post is closed now. Market is going to be crazy for a while.

Double Impact of the Interest Rates on Forex

The interest rates, set by the world’s central banks, are widely used in the Forex trading. Their changes are monitored by the traders and investors because the interest rates determine the fundamental value of the currencies. It’s important for every Forex trader to understand the impact of the interest rates on the currencies he trades on. It’s easy to find the interest rate table to know their latest values, but how to interpret them?

In general, the higher the interest rate associated with the currency is, the better it’s for that currency. Higher interest rates attract investors, because they offer a higher yield. Forex traders prefer buying high-interest currencies versus the low-interest ones to gain the difference yield (such trading technique is called carry trade).

On the other hand, the lower interest rates are usually more popular among the traders when the global volatility rises and the world’s financial system experiences problems. The current financial crisis shows that the currencies with the lower yield are the favorites, because they are less risky than he high-yielding ones.

So what to do and how to react on the interest rates? The volatility index (VIX) is a good tool to measure the global interest rates preference. If it’s below the «normal» level of 30%, the high interest rates act as the attractors and the currencies that have high yield grow. If the index jumps up above that level, the traders prefer to move into the less risky assets and the low interest rate currencies gain.

MARKET REVIEW MON, 10 NOV. WEEK 46

My position late friday ended up in break even. It seems the market has turned over the weekend. This is a rare situation but sometimes it happens. In forex everything is possible.

Monday morning. The currency that is most volatile is GBP, EUR and CAD. I will not talk on CAD since I dont trade it. For GBP and EUR, it has grown in strength. Market has turned and the trade is now to long GBP and EUR pairs.

I would be looking for opportunity to long GBPJPY and EURJPY. These are the pairs that shown significant trend turn that long position from now on will have a higher chance of profit.

At the moment all GBP and EUR pairs are making a correction. If support level holds, take your long entry on next low.

Good luck