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Chapter 26, Part II. Should We Rely on Carry Solely?

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, Feb 16, 2012.

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  1. Administrator

    Administrator Just Administrator :-)

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    Part II. Should We Rely on Carry Solely?
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    Pipruit: Sir, I suggest that we’ve discussed mostly the technical foundation of the carry trade, but what about analysis? Is it just a technical feature and we should not pay much attention to it, or carry makes some sense and it’s worthy to be used in some economic conditions. The only question is what conditions…​


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    Commander in Pips: Yes, we have to speak about it. The first thing, and most simple one], that could form your relation with carry is what kind of trader you are. I think that you understand – taking into consideration carry on a 5-min chart trading is absurd, 15-min – absurd, even 4-hour trades. But, at what time frame does trading carry makes sense? Surface answer is – when it becomes a valuable part of your total profit or loss, and this makes us think that we speak mostly about trading on weekly and monthly charts, i.e. long-term traders - but not only about them… This could even be even day traders, if they use significant leverage. Carry trade could be more significant for a day trader, who holds position for 1 week at 1:100 leverage than for weekly trader who holds position, say 3 months but just at 1:3 leverage. Do you understand me?

    Pipruit: Not quite. Your statement is a bit blurry.
     
    #1 Administrator, Feb 16, 2012
    Lasted edited by : Feb 21, 2012
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