EURUSD

Take bloomberg link i think it will show Ben bernanke speaks

http://www.bloomberg.com/avp/avp.htm?clipSRC=LiveBTV

Regards,
Muslim

I have been hearing/reading that the asian exporting countries are alarmed at the wekening USD and will try to buy $ in the E/U rise. Of course you also hear samo "strong dollar" shit out of the EZ. Who, then, wants to see a continuosly weakening USD? "We have met the enemy and it is us..."..?

Good morning all koalas !

its friday

Morning!

Yes it is!

i need a job.. but i dont want to work for it.. so ill just have to pay for it. i would rather soft hands with a good grip..conversation optional.

do u shit in the woods?

You are one romantic motherfarmer...

I will not disclose in detail of what I do....I am under nd agreements with my client. But I trade the EU and UC and sometimes the GY, however my main investment is the USD...the E and U just so happen to come with it....I sell dollar weakness and buy dollar strength. I hedge when a position goes against me or goes in my favor. I also utilize very small position sizes so that no single market move can blow my account. That is the single most important thing I can share with you out of all my trading strategies.

The EUR and CHF are negatively correlated, this is where the risk lies in that they move against you and the dangers are most noticeable when you break the hedge by taking a profit on one side of the equation.

If EURO moves x amount of pips and CHF stays stagnant, you can capitalize on the fact CHF will move the same amount of pips to catch up to the EUR. This is the correlation between the pairs and is 99% guaranteed. It is one way to benefit from the hedge...the other method is to place both pairs on at the same time, since the pairs move in and out of correlation, a news announcement that drives one pair one way, may not affect the other pair immediately and thus you can benefit from the deviation between the movement if the overall balance is in profit.

Do some research on hedging and you will find all type of ways to perform the method. My method works for me and may not fit everyone's style of trading. But I do not like to gamble my capital away. My first rule of trading is capital preservation. The profits do and will take care of themselves in a natural flow.

The best way to learn to hedge is place a few trades on yourself. Hedging requires a lot of patience. If you are used to scalping, this method will probably not suit your personality.

The reason hedging gets alot of bad press is because the majority of traders do not understand how to do it correctly. Many banks and institutions deploy some form of hedging in their investment dealings.

Another method of hedging you can deploy is cross pairing. Let's say you wanted to use the EURUSD and USDCHF to hedge with. You decide to place both trades long and buy on dips. Let's say 500 pips later, you've laid out 10 pairs of trades of equal value on both sides only to find your account is still negative. This very incident occurred in a famous hedging method called Freedom Rocks. I believe it was this carry trade that gave hedging in the FX world its bad rep. The reason the account continued to make negative gains even though a hedge was placed X pips on both sides below the original trades was because no one considered to look at the influence of the cross pairs excluding the USD, in this case the EURCHF....

If you take any cross pair and find out its true trend direction and hedge the majors that influences its direction, you will find that the average trending bias will always provide you a clue to which way to trade the hedge and turn a profit.

For instance, if you long EURUSD and USDCHF several levels deep and EURCHF was in a down trend, you would lose money on the hedge. However, if EURCHF were in an uptrend and you sold EURUSD and USDCHF, you would also lose money, but if EURCHF were uptrending and you bought EURUSD and USDCHF on price dips, you would stand a better chance to come out positive on the trade.

There are other methods as well, but different strokes for different folks. I use none of the methods mentioned above, but all are viable hedge solutions if done correctly.

There were a couple of veteran traders on here that ridiculed the fact that I hedge and that is fine. It simply shows the lack of intelligence or understanding on their part. The number of years someone trades does not reflect the amount of knowledge acquired. And anyone that tells you otherwise, I would say, do your own research, who knows, you may very well be the next Soros and not know it yet.

Anyway, I've taken enough time away from my trades....that's plenty to go by....have fun.

i cant help it.. since you noticed i must be an old softy...


i mean old hardy not softy..

Good Morning, Singapore.

Thanks X. I've got more class than Soros, though.

Seeing as how I'm still in forex grade school I will do some extra homework mn hedging....

Good morning everyone! Hope everyone make some pips last night!
As to the question do I hold a real job? Oh yes, working 5 days week from 8.30 to 6 as a IT and AV support staff.

So what is the news about this pair this morning? Are we still going to the north for christmas?

Cheers!

hey Mr. Oden you are not far from me! I am in Mission Bend.

Good day folks.

How's everyone?

Holding on to your f@#king hats?

Nothing beats the sight of good food to start the day for my fellow Singaporeans.

I want to set a price alert on my chart via a line... then have the alert fire when it hits that level.

Example: When price hits a pivot point I won't it to alert me.

Is there an easy way to do this... maybe an indi someone uses.

Thanks all.

Mike

Good to see sg trader here..

Hi Guys,

Bernanke says that the interest rates will rise in Dec. Does that normally mean that the dollar will appreciate over time (present - Dec) as we are still in a bull trend against the dollar.

Dollar Rises After Bernanke Says Fed Ready to ‘Tighten’ Policy

The dollar rose against the yen for the first time in five days after Federal Reserve Chairman Ben S. Bernanke said the U.S. central bank is ready to “tighten” monetary policy, increasing the appeal of U.S. assets. The euro advanced against the yen after European Central Bank President Jean-Claude Trichet said yesterday the region’s economy is emerging from a period of “free fall,” damping demand for Japan’s currency as a refuge. The Australian dollar headed for its biggest weekly gain since May amid wagers the central bank will raise interest rates twice more this year after a surprise increase on Oct. 6.



“Bernanke is shifting to a hawkish tone in terms of the timing of exit strategy following moves by other central banks, especially the Reserve Bank of Australia,” said Takeshi Tokita, vice president of foreign exchange sales at Mizuho Corporate Bank Ltd. in Tokyo. “That’s benefiting the dollar.”
The U.S. currency strengthened to 88.74 yen as of 9:31 a.m. in Tokyo from 88.39 yen in New York yesterday. The dollar climbed to $1.4765 per euro from $1.4794. Europe’s single currency rose to 131.01 yen from 130.76 yen.
Australia’s dollar traded at 90.42 U.S. cents from 90.62 cents in New York yesterday when it touched 90.90 cents, the strongest level since Aug. 7, 2008. The currency bought 80.21 yen from 80.10 yen.



The dollar gained against 13 of its 16 most-traded counterparts after Bernanke said in prepared remarks at a conference in Washington “when the economic outlook has improved sufficiently, we will be prepared to tighten.”
Bernanke’s comments echoed those by Kansas City Fed President Thomas Hoenig, who on Oct. 6 said raising interest rates wouldn’t derail the U.S. economic recovery.



‘Incremental Increases’
“Even if we were to start immediately, much time would pass before incremental increases could be considered tight or even neutral policy,” Hoenig said in Denver. “I would not support a tight monetary policy in the current environment, but my experience tells me that we will need to remove our very accommodative policy sooner rather than later.”
Trichet signaled the ECB will keep interest rates at a record low to spur growth.



“The current rates remain appropriate,” Trichet said at a press conference in Venice after policy makers left the main refinancing rate at 1 percent. “Excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability,” he said, reiterating the Group of Seven’s statement on currencies.


Australia Rates

The yen dropped against 15 of its 16 major counterparts as the Nikkei 225 Stock Average rose 0.5 percent, following a 0.8 percent increase in the Standard & Poor’s 500 Index in New York yesterday.
Investors are certain Reserve Bank of Australia Governor Glenn Stevens will raise the overnight cash rate target on Nov. 3 by a quarter percentage point, according to Bloomberg calculations based on interbank futures on the Sydney Futures Exchange.



They’re wagering on a 96 percent chance he follows with another increase in December to end the year with a cash rate at 3.75 percent.

Try this one. It should do what you want.