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  • The popular ‘carry trade’ is unwinding — and economists fear Fed rate cuts could make matters worse

    From cnbc.com

    Rapid interest rate cuts from the Federal Reserve could make matters worse for the global “carry trade” unwind, according to economists at TS Lombard. The warning comes as market participants seek to aggressively roll back on carry trades following a dramatic global sell-off in risk assets. Carry trades refer to operations wherein an investor borrows in a currency with low interest rates, such as the Japanese yen, and reinvests the proceeds in higher-yielding assets elsewhere. The trading strategy has been hugely popular in recent years. Stock markets in Europe were unsettled on Tuesday, paring earlier gains amid ... (full story)

the fed is going to cut rate in next week as they are calling urgent meeting , on Thursday as cpi and unemployment data will decide. things are getting worse than expected.
This was one of the biggest fuckups of my trading life. 7 years on forex and like a fucking kid after building 15k $ profit from 3k$ deposit on yen intervention I blow it up betting on UEDA weak hands. And I know I'm doing bad thing, I feel it..god effect. Learn kids, black swans always fly randomly..
Quoting BillyIdol
This was one of the biggest fuckups of my trading life. 7 years on forex and like a fucking kid after building 15k $ profit from 3k$ deposit on yen intervention I blow it up betting on UEDA weak hands. And I know I'm doing bad thing, I feel it..god effect. Learn kids, black swans always fly randomly..
1st step is admitting you made a mistake. The market isn't going anywhere and it can cut us in either direction but to be honest this YEN trade was long brewing for a reversal. How long could it keep being sold without some type of correction.

Just have to be more objective moving forward and be quicker to cut that loser.
The solution is (x).
Quoting Momofrmnyc
{quote} 1st step is admitting you made a mistake. The market isn't going anywhere and it can cut us in either direction but to be honest this YEN trade was long brewing for a reversal. How long could it keep being sold without some type of correction. Just have to be more objective moving forward and be quicker to cut that loser.
Thanks. Yes, I knew it was going to reverse. I plan to build huge sell positions on usd/jpy. I was playing for one last push to 160. It won't happen. It was so stupid and naive. The market punished me well. I go on.
When I started forex trading many many years ago, I was a day trader. A day trader always loses, always. Sooner or later. Trade long term fundamentals and use major supply and demand lines with proper position size. It’s a winner.
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No doubt it will go back to 160 now
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  • Posted: Aug 6, 2024 10:30am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 6  /  Views: 3,750

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