FX TRADING STRATEGy
a fundamental event occurs that has profound and significant affect on the market – it throw our
competitive strategies into
turmoil. Such an even happened over the past weekend – and r e v er b er a t e d again today, Tuesday, March 19, 2013. That event
was
the European M on e t ar y Union’s demand that Cyprus levy a “tax” on bank deposits as a condition to receiving bailout funds for its government. This action– c o n side r e d by many to be outright c o n fisc a t io n of personal pr op e r t y (money). To say the markets didn’t like it would be a major understatement.
stronger and far more dangerous than all of the previously mentioned competitors. That competitor
is an unexpected fundamental event, such as the
immediately – if you are on the wrong side of the market’s reaction to the event. Of course you could be lucky and be on the right side – and experience a wild and p r ofit ab le ride. But the sensible thing for a trader is to be out of such markets – at least until the market can digest the event and settle down to a more normal trading pace. This usually occurs fairly quickly.
We can of compete the with psychology the
other market participants by aware
This
action cost yours truly money – we just could not exit a position fast enough.
That brings up a final point
about our competition when trading Forex. There is another competitor out there; it is bigger,
70 FX TRADER MAGAZINE April - June 2013 one described above.
That competitor can only be dealt with by diligently managing your trades. The only truly safe place when such an event occurs is the sidelines. If you are not on the sidelines, then you must be ready to get to the sidelines
driving
numerous being them
Damn, we love trading Forex! Where else can you compete with ind iv id u a ls and institutions from all over
the world – numerous large and small computer systems – and occasional
lightning bolts
from the blue (unexpected fundamental events) – and still make a profit in the end (if you are good enough)!
Phil Elrod
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94