Alright, alright – that’s enough with the pleasantries. Now that we’re all “cozy” let’s get down to business here.
First off, I get up earlier than you. Secondly, when I say I trade the fundamentals – I mean exactly that. You know all those Monetary Policy Statements that Central Banks put out? Oh yes…you guesssed it – a stack of em a mile high in the “loo of Kong” as I actually read them.
If you’re merely “surfing headlines” and placing trades, let me be the first to tell you – you’ll be “pounding sand” in no time.
I could give you thousand examples where the “current news headlines” and the “underlying fundamentals” have generally run opposite one another. In a broad sense, moves in the forex market are much like those of a battleship – taking considerable time to turn, regardless of stormy seas. You’ve got to learn to decipher which stories will impact a country (and it’s currency) on a fundamental level – and those that will only contribute to making waves.
Take Cyprus as a quick example. Scan the headlines, and one would assume the EUR is finished. Pull a weekly chart of EUR/JPY and see the pair has barely budged, with only a modest pullback – and if anything a possible opportunity to buy.
Did you consider in your analysis – that the EUR is the second most widely held reserve currency on Earth? Not to mention the second most widely traded, and that 17 countries currently depend on EUR for things such as payroll and the purchase of goods?
I didn’t think so. Point being – the EUR isn’t going anywhere any time soon, and if you’d bothered to look a little deeper than your local news rag – you’d know that.
But you already know everthing right?
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Good point , however , wasted on the flydome group . And to add insult to injury ask your typical next door neighbor his opinion on Cyprus and he’ll propably tell you that he likes all trees .
Im at a loss. You’re of the view then – that readers here are disinterested?
You’re not a typical next door neighbor?
The Kong is an awesome addition to iBC. I like the post and look foward to learning more from you.
I think The Kong will be a great addition to iBC – he seems to be a currency version of TheFly – no wonder it makes sense for them to collaborate in this great website! 🙂
Yeah, I’m on board. In 1/2 a days time, I’m already liking Kong & looking forward to learning more.
Kong
I’ve banned over 1,300 douchebags from reading the site, commenting on my site. Your new blog isn’t outfitted with such weaponry. Expect some unsavory types, like THE OSU, to magically reemerge.
With blessings from the man in the big chair (that’s you) – I looking forward to dangling these toadstools over open flames…..in the most polite and elegant way possible of course.
I always know there is more to currency trading than just scanning the surface; that is why I stay away from it. The super-leverage that is available in the Forex, I’m sure, wipes out quite a few casual players.
When another friend of mine who was a newbie investor told me he was trading Forex full-time, I felt bad for him ’cause I knew he would lose his money in no time. The last I heard he found a new full-time job to keep himself busy.
Thanks for laying down the “truth” of Forex trading.
Leverage is absolutely the number one killer of accounts – and demands considerable respect.
What’s really unfortunate, is the retail forex market does very little to educate newcomers to “responsible methods” of trading, as their business models are primarily based in “smash n grab” – as opposed to building long term clientele.
Of interest….my brokerage (who make reasonable dollars as I continue to trade) has removed my negative rollover deductions, as well called me repeatedly asking what else they can do to improve my experience.
Perhaps things will improve for others..but I won’t be holding my breath.