Disliked{quote} Peter, i have been told a few times about the relevance of ftse and gu, but no one has been able to explain to me conclusively how the two are related. what should i be looking at when i superimpose the two (GU&FTSE100)? so far i have only noticed that they tend to run contrary to each other, but i cannot derive a rule from this. thx.Ignored
Hard lesson time = It's called "get off your frickin ass and off the charts and look at real life".
"The pound" for eg. is a constituent base, which means there are many pieces within it that contribute to it. All industries and management and conservative departments. Each major centre of business and finance worldwide, has it's own constituent base ie. "currency". This in part is what it's about. They always "appear" to be in competition with each other but are not, cannot be. Look at the FTSE and learn what it is, why it was created, how important it is or not important. Once you begin to read through these you can see the connectors. No there is NOT a quick simple answer, there is knowledge then there's other.
Learn about what they are and how they function, instead of "just asking someone". People on these sites either - don't know or don't care. Or both.
How you trade them is up to you. I merely showed those chart pics to show the use of one instrument's PP's overlaid on another instrument for ease of use. Many selective position traders use PP's onchart that they trade so they can pinpoint "their trades" inline with 'confluence'. Sure you can do that but, it limits what you can do....depending on WHAT you're seeking to do. Some people will tell you "it's about correlation" or 'Risk ON/OFF'. Makes me laugh. They MIGHT play a very small reactive role, but that is not what is happening. You need to appreciate the seed factor ..... WHY does a participant do what they do? And this is why I am VERY WARY of people who push the idea that trading is all about 'the money'. To me, it's an EXTREME oversimplification. And those people who believe this about money, are always the same ones who blame the government, the politicians, the "industry", the broker, other traders or themself / never themself etc etc etc. Common sense is available and cost free to access at any time.
That's my answer. DO real research and learn. Instead of looking for the quick answer. You will learn more and your real confidence will improve.
Peter
Real Trading is not gambling.
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