Mark this words...
I bet... today... 08 08 08 will be remembered as BLACK FRIDAY for the rest of the world... except USA.
I bet... today... 08 08 08 will be remembered as BLACK FRIDAY for the rest of the world... except USA.
Help needed in OANDA + users from Malaysia 105 replies
Dislikedsham, gu can long ka??
already at the bottom of previous monthly candleIgnored
Dislikedsmart thinking frenz...wait patience a good reversal (bear rejection) to entry long journey...Ignored
Dislikedsham, gu can long ka??
already at the bottom of previous monthly candleIgnored
DislikedThis is something to THINK of... just a fruit for thought. Open for DISCUSSION.
Everybody is saying about the DOOM of the US DOLLAR right now. From my FA and some background in ECONOMICS... this is LESS likely gonna happen. The Dollar is weakening... certainly YES... but not forever.
Why I said so? Think... what is happening now. USD is getting cheaper and cheaper everyday. Since the last Interest Rate cut from the FED... even cheaper! Believe me... they might even CUT some more. We all know that the DIRECT CORRELATION between the CURRENCY and the INTEREST RATE. If you still don't know about this... I suggest... STOP trading FOREX Some might think... why is FED so stupid of doing so. You wanna know why?
The main interest of FED or any NATIONAL BANK... including BANK NEGARA... IS TO ENSURE AND PRESERVE THE COUNTRY ECONOMIC GROWTH. They will do this even though by jeopardizing the STRENGTH of the its Currency. The aim now is the ECONOMIC GROWTH. I think the FED is doing a smart move.
Think... with all the hype of SUBPRIME ISSUES storming in the USA now... surely it's affecting the National Economy. From the Fundamental Data being reported... indicating slow or stop or reverse GROWTH of the economics there. What would you do to JUMP START the economic growth?
That is why the FED has to CUT the IR. Lower interest means... homeowners can afford to pay back the LOAN or Mortgage. Banks will get LIQUIDITY again... meaning will get back some of the CASH they've lent out and using that CASH to finance new loans. New loans for houses and construction. With the lower IR... people will prone to BUY more things including houses rather than SAVE it.
Why HOUSING data is so important for the Economic Growth indicator? Think... when you can afford to buy a house... or think that this is the right time to buy one because of the LOW IR... many people also can afford it and thinking alike... create DEMAND. Hence, the SUPPLY will automatically increase... meaning more contractor or developer making houses. More houses need more concrete... cement... wood... raw materials... paints... wires... fan... aircond... kitchen equipment... furniture... pet... security systems... even insurances! :surprised
See what I mean? Indirectly the housing growth affecting all others industries including service industries. Look at now. With the cheap currency and low IR... isn't it convincing for foreigners to BUY a house in the USA?
Another thing to THINK of... what happen to the people in CANADA now? They all rushing to USA for SHOPPING What actually benefiting from this? USA economic growth of course!
We as Malaysian... which overseas holiday destination is more convincing to travel to after taking consideration about the cost? UK >>> the Pound getting expensive, Europe >>> the Euro getting expensive. USA >>> the Dollar getting cheaper. What actually benefiting from this? USA economic growth of course!
What happen if the Economy grow bigger and bigger? INFLATION occur. If this happen... FED can start hike up the IR again. Wallllaaaaaaaa.... the USD will strengthen.
Just throw a stone in a pond. You'll see ripples. Observe how the ripples traveling from the centre outwards. Right now... we all know that USA experiencing SUBPRIME PROBLEMS and trying to solve it by CUTTING IR. What about UK? Europe? Malaysia? When or Never?
Back to basic.... EQUILIBRIUM.
Don't ask me when is the BIG REVERSAL... or the long awaited TURNING POINT. Seriously... I DON'T KNOW. That's why I am always vigilant about this... and get ready to change my TRADING PLAN from BUY FROM DIP to SELL FROM BOUNCE.
Ignored
Dislikedmorning sham,
i want short on eurusd,
is it a wise decision..........Ignored
DislikedI start my weekend early. No trade today. It's FRIDAY... and it's already crazy enough when I open up my eyes from sleep. I am on a losing streak. Perhaps ... I should take a break.
I'll be at PORT DICKSON tonight till Sunday. Call me if you guys/gurls wanna learn FOREX from me. We can do the Forex Class at the beach Too much stress past few days... need to relax and unwind. If not.... I won't survive for the trading days ahead.
SHAMX
013-2491533Ignored
GATHERING
Come and join us at PORT DICKSON this weekend.
Chance to meet and interact live with Forex Traders face to face.
Call me for more info.
SHAMX
013-2491533