This going to be a long break day for me... looks like new setup for a day have been made.... and we just in the middle of it... yes its still a downtrend to me.. but looks like a news nowdays r going to change it.. well... let see IF IT going to break a border..
Cable Update (GBPUSD)
- #297,563
- Jan 12, 2012 4:23am Jan 12, 2012 4:23am
- Joined Jan 2010 | Status: Trader | 10,268 Posts
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return:
0.7%
- #297,564
- Jan 12, 2012 4:27am Jan 12, 2012 4:27am
- Joined Jul 2010 | Status: Always manage your risk & leverage | 7,339 Posts
not euphoria follower
- #297,565
- Jan 12, 2012 4:27am Jan 12, 2012 4:27am
- Joined Dec 2007 | Status: mac daddy junior :) | 20,899 Posts
[quote=bguguen;5288292]
can u..
but i thought if something rare its value is increased, i asked a friend a while back who has an MBA in accounting (reckons economics was his strength, kinda made sense to me)that analogy
tricked again..
example basket ball game..few tickets left ..price increase on ticket..depends on the ratio (1, 0, -1 sh*t) i forget the exact term but i know for sure there are instances where what im saying is true
if he adds im finished..its a good thing
Olympics is coming therefore printing money will reduce demand as more is in circulation.. simple ecomonics
reduce supply increase demand (i think)[/quote]
hehe....
use Price on one axis and quantity on the other...
reduced supply leads to a reduction in quantity demanded...
for money... the Price axis will be the exchange rate...
if you Increase supply of GBP, the Price(in this instance the EXCHANGE rate of GBP Falls) leading to an increase in the amount of quantity...
but i thought if something rare its value is increased, i asked a friend a while back who has an MBA in accounting (reckons economics was his strength, kinda made sense to me)that analogy
tricked again..
example basket ball game..few tickets left ..price increase on ticket..depends on the ratio (1, 0, -1 sh*t) i forget the exact term but i know for sure there are instances where what im saying is true
- #297,566
- Jan 12, 2012 4:33am Jan 12, 2012 4:33am
- | Joined Jun 2010 | Status: Trader | 1,429 Posts
yeah he always been wise like that
my trade is starting to be a nightmare turn reality
ever think to take a position at every 'mini rally opportunity? maybe a hit and run just to scaling out..
- #297,567
- Jan 12, 2012 4:33am Jan 12, 2012 4:33am
- Joined Jan 2010 | Status: Trader | 10,268 Posts
[quote=nAVIN2007;5288302]
THe increase in supply of money is to manipulate the exchange rate...
by printing money or increase money supply you devalue your currency making your currency CHEAPER to other Currency holders, and that is where the demand comes in... From abroad... when people see that the GBP is cheaper... it attracts demand... its simple as that...
This is why there are a lot of talks about why greece may leave the EU, simply because at current EU prices, theres no demand for Greek Goods...
if Greece were to get out of EU, and go back to their Drachma, they will be able to devalue their currency in all sort of ways... like printing money... QE wtever... they devalue their currency so that their currency is cheaper for say... people who holds RMB or YEN or USD... people would be interested to Demand the Drachma... That is the fundamentals in using the increase in supply of money to stimulate growth by increased demand...
can u..
but i thought if something rare its value is increased, i asked a friend a while back who has an MBA in accounting (reckons economics was his strength, kinda made sense to me)that analogy
tricked again..
by printing money or increase money supply you devalue your currency making your currency CHEAPER to other Currency holders, and that is where the demand comes in... From abroad... when people see that the GBP is cheaper... it attracts demand... its simple as that...
This is why there are a lot of talks about why greece may leave the EU, simply because at current EU prices, theres no demand for Greek Goods...
if Greece were to get out of EU, and go back to their Drachma, they will be able to devalue their currency in all sort of ways... like printing money... QE wtever... they devalue their currency so that their currency is cheaper for say... people who holds RMB or YEN or USD... people would be interested to Demand the Drachma... That is the fundamentals in using the increase in supply of money to stimulate growth by increased demand...
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return:
0.7%
- #297,568
- Jan 12, 2012 4:36am Jan 12, 2012 4:36am
- Joined Dec 2007 | Status: mac daddy junior :) | 20,899 Posts
[quote=bguguen;5288326]
thank u ..makes complete sense..
THe increase in supply of money is to manipulate the exchange rate...
by printing money or increase money supply you devalue your currency making your currency CHEAPER to other Currency holders, and that is where the demand comes in... From abroad... when people see that the GBP is cheaper... it attracts demand... its simple as that...
This is why there are a lot of talks about why greece may leave the EU, simply because at current EU prices, theres no demand for Greek Goods...
if Greece were to get out of EU, and go...
- #297,569
- Jan 12, 2012 4:36am Jan 12, 2012 4:36am
- | Joined Mar 2010 | Status: The Honor is still Mine.. | 313 Posts
[quote=nAVIN2007;5288302]
well ..I see something else... in this forex world, we are doing something else... if we think in the real world things goes like this.. in this fx world, thing will goes into something else.. 
can u..
but i thought if something rare its value is increased, i asked a friend a while back who has an MBA in accounting (reckons economics was his strength, kinda made sense to me)that analogy
tricked again..
example basket ball game..few tickets left ..price increase on ticket..depends on the ration i forget the exact term but i know for sure there are instances where what im saying in true
- #297,570
- Jan 12, 2012 4:37am Jan 12, 2012 4:37am
- Joined Jul 2010 | Status: Always manage your risk & leverage | 7,339 Posts
not euphoria follower
- #297,571
- Jan 12, 2012 4:37am Jan 12, 2012 4:37am
- Joined Jan 2010 | Status: Trader | 10,268 Posts
[quote=nAVIN2007;5288302]
What you are talking is the Price Elasticity of Demand buddy.... if PeD is >1 it means a small increase in price would lead to a LARGE drop in demand, where as if its PED <1 a LARGE price increase will have very small change in quantity demand
PED>1 means the good has an elastic demand whereas PED<1 means the good has an inelastic demand...
the scenario you are talking is that basket ball game... Unique to the day... there are no substitue to this game... sooo No matter how high the price goes, there will still be Demand for it... That is an Inelastic Demand... Same Theory goes with Oil... Oil though is due to necessity... no matter how high oil goes... theres not much change in the demand for oil...
But this has completely nothing to do with Money Supply....
can u..
but i thought if something rare its value is increased, i asked a friend a while back who has an MBA in accounting (reckons economics was his strength, kinda made sense to me)that analogy
tricked again..
example basket ball game..few tickets left ..price increase on ticket..depends on the ratio (1, 0, -1 sh*t) i forget the exact term but i know for sure there are instances where what im saying is true
PED>1 means the good has an elastic demand whereas PED<1 means the good has an inelastic demand...
the scenario you are talking is that basket ball game... Unique to the day... there are no substitue to this game... sooo No matter how high the price goes, there will still be Demand for it... That is an Inelastic Demand... Same Theory goes with Oil... Oil though is due to necessity... no matter how high oil goes... theres not much change in the demand for oil...
But this has completely nothing to do with Money Supply....
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return:
0.7%
- #297,572
- Jan 12, 2012 4:38am Jan 12, 2012 4:38am
- Joined Dec 2007 | Status: mac daddy junior :) | 20,899 Posts
- #297,573
- Jan 12, 2012 4:40am Jan 12, 2012 4:40am
- Joined Jan 2010 | Status: Trader | 10,268 Posts
[quote=Johnny Depp;5288333]
in the FX world theres 2 time aspect... Short term and Long term... Fundamental Economic Theories are respected in the LONG TERM.... however in the short term... like today... Poor Data from the BRIT is ignored simply because you got manipulations from the big boys... AND thats where people have the idea of doing opposite to what the news say....
well ..I see something else... in this forex world, we are doing something else... if we think in the real world things goes like this.. in this fx world, thing will goes into something else..
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return:
0.7%
- #297,574
- Jan 12, 2012 4:42am Jan 12, 2012 4:42am
- Joined Dec 2007 | Status: mac daddy junior :) | 20,899 Posts
[quote=bguguen;5288337]
thank you..i will save your post on this..thanks again on setting me straight
yes elasticity was the word that elude me
What you are talking is the Price Elasticity of Demand buddy.... if PeD is >1 it means a small increase in price would lead to a LARGE drop in demand, where as if its PED <1 a LARGE price increase will have very small change in quantity demand
PED>1 means the good has an elastic demand whereas PED<1 means the good has an inelastic demand...
the scenario you are talking is that basket ball game... Unique to the day... there are no substitue to this game... sooo No matter how high the price goes, there will still be Demand...
yes elasticity was the word that elude me
- #297,575
- Jan 12, 2012 4:51am Jan 12, 2012 4:51am
- Joined Jan 2010 | Status: Trader | 10,268 Posts
[quote=nAVIN2007;5288351]
btw incase ur interested in money supply
heres a diagram which helps understand the effect of increasing money supply...
http://tutor2u.net/economics/revisio...onetarism.html
also increase in AD is regarded as economic growth
so increase in money supply DOES stimulate economic growth
but theres a fear of increased inflation due to the high levels of demand...
thank you..i will save your post on this..thanks again on setting me straight
yes elasticity was the word that escape me
heres a diagram which helps understand the effect of increasing money supply...
http://tutor2u.net/economics/revisio...onetarism.html
also increase in AD is regarded as economic growth
so increase in money supply DOES stimulate economic growth
but theres a fear of increased inflation due to the high levels of demand...
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return:
0.7%
- #297,577
- Jan 12, 2012 4:55am Jan 12, 2012 4:55am
- | Joined Jun 2010 | Status: Trader | 1,429 Posts
..i will make a plan if this level fails.1.5 is my last hope..
wish u all the best mate
- #297,578
- Jan 12, 2012 5:00am Jan 12, 2012 5:00am
- Joined Jul 2007 | Status: Trader | 5,392 Posts
ex member
- #297,579
- Jan 12, 2012 5:01am Jan 12, 2012 5:01am
- | Membership Revoked | Joined Mar 2010 | 3,853 Posts
All systems of divination, like music itself,work through patterns.
- #297,580
- Jan 12, 2012 5:04am Jan 12, 2012 5:04am
- Joined Jan 2010 | Status: Trader | 10,268 Posts
Now the 4hr candle on this feed has just closed bullish.
Market expecting no change re rate and Qe - Uk Boe Mpc announce later so any change may cause a ripple ?
G/L
i could be wrong...
Reason why im guessing it'll go done again from here on is that knowing there are huge Sell Stops waiting to be triggered below 1.5270 i see no reason why big boys would not want to hunt those stops before letting this thing bounce...
We live in a finite world with infinite possibilities.
FxTyrant M-Series (Live - Darwinex) All Time Return:
0.7%