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  • #261,361
  • Jun 21, 2010 9:42pm Jun 21, 2010 9:42pm
From what one trader told me, China wants to move from 'Cheap products country' to more 'High end product' country. There long term strategy is to compete with Japan and Korea in Auto and high end electronic products sector.

Chinese move to relax its currency is a strategic move, they would soon come forward in high end automobile and electronics sector and force korea and japan to lower the prices of their product.

And I am yet to meet one chinese guy who dosent have deep resentment against japanese because of all the rape in 'nanjing province' (former capital before beijing) during WW2.
  • #261,362
  • Jun 21, 2010 9:56pm Jun 21, 2010 9:56pm
I am long from here. Any advice guys?
  • #261,363
  • Jun 21, 2010 9:58pm Jun 21, 2010 9:58pm
Quoting perrier
My take is that by not pegging the CNY to USD, it gives the false impression that China may appreciate the Yuan.

However, I still strongly believe that China knows that dollar will continue to appreciate due to Eurozone problem plus risk aversion. Europe and USA are their biggest importers and it sure makes no sense to become more expensive with the still weak consumer power.

China can now actually depreciate their currency vs the USD while still maintaining its competitiveness despite the weakening Euro.

My thinking could be wrong.
Short term -like you mentioned- a weaker yuan will benefit the Chinese but over and into 5 years the Chinese may transition into more of a production economy as opposed to an export economy. Rising pay in China coupled with the sheer numbers of their population and they won't need to export and support a lower (export friendly) yuan so one would expect the yuan to strengthen into that scenario..
  • #261,364
  • Jun 21, 2010 9:58pm Jun 21, 2010 9:58pm
Quoting perrier
My take is that by not pegging the CNY to USD, it gives the false impression that China may appreciate the Yuan.

However, I still strongly believe that China knows that dollar will continue to appreciate due to Eurozone problem plus risk aversion. Europe and USA are their biggest importers and it sure makes no sense to become more expensive with the still weak consumer power.

China can now actually depreciate their currency vs the USD while still maintaining its competitiveness despite the weakening Euro.

My thinking could be wrong.
Maybe China should peg the Yuan to the Euro. That would make them REALLY competative.
Si vis pacem, para bellum.
  • #261,365
  • Jun 21, 2010 10:06pm Jun 21, 2010 10:06pm
Quoting PipMaxzz
I am long from here. Any advice guys?
Keep a tight S/L.
Not all sins are created equal
  • #261,366
  • Jun 21, 2010 10:10pm Jun 21, 2010 10:10pm
Quoting PipMaxzz
I am long from here. Any advice guys?
Just my 2 cents but would be more bullish if bulls could re-take 1.2350. From what I can tell specs are selling this action at the moment which I think bodes well for upside.. is the bull dead? Might make another dash at 1.24 I think.
  • #261,367
  • Jun 21, 2010 10:10pm Jun 21, 2010 10:10pm
Very often aspiring forex traders become lost in a web of confusion with the amount of data that the various financial media outlets plaster all over the internet and television. It is extremely easy to experience “analysis paralysis” while trying to trade forex or any market for that matter. There are so many competing ideas and trading methods along with more fundamental data coming out every day than you could ever hope to digest, it can be very overwhelming to even try and make sense of it all and develop a trading plan based off this amount of information. One of the biggest psychological mistakes that almost every aspiring trader makes on their journey to success is firmly believing that the amount of economic data analyzed and (or) having a technically complicated or expensive trading method has a direct linear relationship with profiting in the market. In reality, as any professional trader will attest to, these factors usually have an inverse relationship with trading profits, at least after certain point. This essentially means that once you do a certain amount of analyzing market data any further time spent analyzing this data is likely to have a negative effect on your trading; it causes you to lose money
"Pippin aint easy"
  • #261,368
  • Jun 21, 2010 10:14pm Jun 21, 2010 10:14pm
Quoting Buitragojl
Very often aspiring forex traders become lost in a web of confusion with the amount of data that the various financial media outlets plaster all over the internet and television. It is extremely easy to experience “analysis paralysis” while trying to trade forex or any market for that matter. There are so many competing ideas and trading methods along with more fundamental data coming out every day than you could ever hope to digest, it can be very overwhelming to even try and make sense of it all and [url="http://www.learntotradethemarket.com"][color=#2d67a8]develop...
So...the more information you have to make an informative trading decision, the more money you will lose...is that what you're saying?
Si vis pacem, para bellum.
  • #261,369
  • Jun 21, 2010 10:15pm Jun 21, 2010 10:15pm
Quoting Trendstar
Short term -like you mentioned- a weaker yuan will benefit the Chinese but over and into 5 years the Chinese may transition into more of a production economy as opposed to an export economy. Rising pay in China coupled with the sheer numbers of their population and they won't need to export and support a lower (export friendly) yuan so one would expect the yuan to strengthen into that scenario..
I agree with you on that. I have the same thought as well. Once their overall standard of living improves, their domestic demand will fill up the gap. I won't even be surprise if China firms will one day set up their factories in countries like Vietnam, Laos, Cambodia.

The recent walkouts in China was a wake-up call for many companies.
  • #261,370
  • Jun 21, 2010 10:16pm Jun 21, 2010 10:16pm
Ouch!!

down first

anyway, not hit my sl yet ..........so keep those long to 2352 at least then maybe 2400
  • #261,371
  • Jun 21, 2010 10:17pm Jun 21, 2010 10:17pm
Quoting Buitragojl
One of the biggest psychological mistakes that almost every aspiring trader makes on their journey to success is firmly believing that the amount of economic data analyzed and (or) having a technically complicated or expensive trading method has a direct linear relationship with profiting in the market. In reality, as any professional trader will attest to, these factors usually have an inverse relationship with trading profits, at least after certain point..
Excellent post.
  • #261,372
  • Jun 21, 2010 10:18pm Jun 21, 2010 10:18pm
Quoting Duce
So...the more information you have to make an informative trading decision, the more money you will lose...is that what you're saying?
Read it again.
  • #261,373
  • Jun 21, 2010 10:19pm Jun 21, 2010 10:19pm
Quoting PriceVolume
Read it again.
Why?
Si vis pacem, para bellum.
  • #261,374
  • Jun 21, 2010 10:19pm Jun 21, 2010 10:19pm
Quoting Duce
Maybe China should peg the Yuan to the Euro. That would make them REALLY competative.
You got unique humor.
  • #261,375
  • Jun 21, 2010 10:23pm Jun 21, 2010 10:23pm
Quoting Jay Walker
Whoa dude!
what's up Jay. How's the North Korean life treating you? Say hi to Dresnok for me would ya.
  • #261,376
  • Edited 10:36pm Jun 21, 2010 10:26pm | Edited 10:36pm
Quoting PipMaxzz
I am long from here. Any advice guys?
#260957 below 2281 or LL gtfo .. or just short before the drop.. you missed the entry.. 2307 with a tiny short is a start. add on pullbacks..
those who can, do. those who cant, talk about those who can
  • #261,377
  • Jun 21, 2010 10:28pm Jun 21, 2010 10:28pm
Quoting 2+2=4ex
what's up Jay. How's the North Korean life treating you? Say hi to Dresnok for me would ya.
I will.
Not all sins are created equal
  • #261,378
  • Jun 21, 2010 10:29pm Jun 21, 2010 10:29pm
Quoting PriceVolume
Read it again.
I am beginning to respect you more and more.
  • #261,379
  • Jun 21, 2010 10:31pm Jun 21, 2010 10:31pm
Quoting perrier
I am beginning to respect you more and more.
yeah, but will your respect leave more coin on the night stand when you leave in the morning? is the bigger question
those who can, do. those who cant, talk about those who can
  • #261,380
  • Jun 21, 2010 10:33pm Jun 21, 2010 10:33pm
Quoting perrier
I am beginning to respect you more and more.
Thanks - though I'm not sure I deserve it.
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