[09:36:40 17/04/09] Stalion : helloo there, LP....
[09:39:32 17/04/09] Stalion : We put a sell stop on GBPUSD @ 14795...1ST TARGET @
14735...2ND TARGET @ 14665.. STOP LOSS @ 14850...
[09:40:58 17/04/09] Learning_pips : hmm
[09:42:30 17/04/09] Stalion : looks like the CHF report got the swiss pair in an uptrend
frenzy....
[09:43:35 17/04/09] Learning_pips : ok. I am only lookin at gbpusd for now.just one pair is
enough for me to begin with lol
[09:45:26 17/04/09] Stalion : of course, gbpusd might still have some strength for a rally
when the CAD report comes out in a few minutes
[10:06:47 17/04/09] Learning_pips : sell stop got triggered
[10:36:06 17/04/09] Learning_pips : made 35 pips before I did something while putting a
trailing stop and my position got closed by mistae
Hi Paul...hope you are enjoying your weekend?what you might have missed was proper risk
management.. Our sell entry on the cable,last friday, @ 14795 was on the mark at the first
foray, which went to a low of approximately 43 pips downward before reversing back beyond
our initial entry, up to a high of 14850..
Assuming you had entered, you would utilize the risk mgt tool of ''closing out half minilots
when +20 pips ahead, then shifting stop loss to initial entry level''...in this case,
SL=14795=initial sell entry...
By applying that rule, you would have been stopped out at breakeven profit, since you've
already closed out half your position at +20 pips...Remember price made a freefall down to
43 pips or so, to reach a low of 14752, 17 pips shy of our 1st target of 14735..
So its more of a case of good entry but less spectacular finishing/exit, if proper risk
management is not adhered to...like you observed on the log, Learning pips took out 35 pips
or so from the trade, which was enough for him for that day.. also we had like 3
opportunities to go in and out of the trade for 30 or more pips that friday...so it is still
valid till Monday..Hope you understand...
Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop
questioning.
- Albert Einstein
Helloo onwuka, how is it going? No offence taken, mon ami...we all learn at each of our
different levels in life...not just in trading...
To answer your question, we might take a little look at what interest rates mean.. They are
more or less payment for the use of a given sum of money, or its equivalent over a period of
time. Implied in this defination are demand and supply as determinants of market price, in
which price is the rate of interest. Interest is a COST to demanders of funds and an item of
INCOME to suppliers of funds, and the rate of interest influences their entry into a given
market in varying ways and degrees. The rate is stated on the basis of one year(per
annum),even though loans can be made for shorter or longer periods.
You see, the market referred to, is a credit market, in which debt is seen as an obligation
to pay money and credit is the right to recieve money. Such markets bring together borrowers
and lenders(investors), and in them are established and communicated the prices at which
they are willing to make transactions.
The price of credit is an interest rate, and that which is demanded and supplied are credit
or debt instruments, whose primary function is to allow control over money to be
transferred. Suppliers of debt instruments are demanders of funds, and demanders of such
instruments are suppliers of funds, so that in essence, it is the price of these instruments
at a given time which gives the market yield, or rate of interest. Interest rations the
supply of savings, serves as compensation to lenders, helps cover the costs of risks, and
can be used to help stabilize an economy or promote growth.
So onwuka, if a country's interest rate is held, under normal market conditions, it tends to
appreciate against other currencies with relatively lower interest rates. Short term
interest rates are the important factor in currency valuation - traders look at most other
indicators merely to predict how rates will change in the future;thats where we get to the
inflation/unemployment tradeoff.. If a country's Central bank feels inflation is high, they
usually increases interest rates in order to mop up excess liquidity..but that constricts
credit flow for growth and productivity which increases the unemployment rate..
But wait..
if unemployment is the top priority of the government, then interest rates are lowered in
order to increase credit expansion flows in the system so as to enhance employment through
wider growth and productivity...but that tends to increase inflation due to excess
liquidity...a TRADEOFF in the country's kitty..
http://sports.yahoo.com/top/news?slug=ys-rcsbadspenders041509&prov=yhoo&type=lgns
Hi katipunero, thanks for your mail...the right trading system is essential for the right
individual...not all size fits all...if you want to take up my services, then you are
free...just send a mail specifying which of them you are interested in, and I'll get back to
you,ok...
The Arabs have an ancient proverb that affirms:
He who knows not, and knows not that he knows not,
is a fool—shun him.
He who knows not, and knows that he knows not,
is a student—teach him.
He who knows, and knows not that he knows, is asleep—wake him.
He who knows, and knows that he knows is wise—follow him.
[09:39:32 17/04/09] Stalion : We put a sell stop on GBPUSD @ 14795...1ST TARGET @
14735...2ND TARGET @ 14665.. STOP LOSS @ 14850...
[09:40:58 17/04/09] Learning_pips : hmm
[09:42:30 17/04/09] Stalion : looks like the CHF report got the swiss pair in an uptrend
frenzy....
[09:43:35 17/04/09] Learning_pips : ok. I am only lookin at gbpusd for now.just one pair is
enough for me to begin with lol
[09:45:26 17/04/09] Stalion : of course, gbpusd might still have some strength for a rally
when the CAD report comes out in a few minutes
[10:06:47 17/04/09] Learning_pips : sell stop got triggered
[10:36:06 17/04/09] Learning_pips : made 35 pips before I did something while putting a
trailing stop and my position got closed by mistae
Paulfx said:Stallion, I didnt enter the market on this play however it seems like it was
stopped out. After entry, I have a candle with high tick of 1.4850 which was also the SL.
From the chat log, it seems like learning pips picked up this play and made money. What am
I missing? Thank you,
Hi Paul...hope you are enjoying your weekend?what you might have missed was proper risk
management.. Our sell entry on the cable,last friday, @ 14795 was on the mark at the first
foray, which went to a low of approximately 43 pips downward before reversing back beyond
our initial entry, up to a high of 14850..
Assuming you had entered, you would utilize the risk mgt tool of ''closing out half minilots
when +20 pips ahead, then shifting stop loss to initial entry level''...in this case,
SL=14795=initial sell entry...
By applying that rule, you would have been stopped out at breakeven profit, since you've
already closed out half your position at +20 pips...Remember price made a freefall down to
43 pips or so, to reach a low of 14752, 17 pips shy of our 1st target of 14735..
So its more of a case of good entry but less spectacular finishing/exit, if proper risk
management is not adhered to...like you observed on the log, Learning pips took out 35 pips
or so from the trade, which was enough for him for that day.. also we had like 3
opportunities to go in and out of the trade for 30 or more pips that friday...so it is still
valid till Monday..Hope you understand...
Hello Mystikal,
Please i will like to ask: if a country's interest rate is held ,will it depreciate or
appreciate against other currencies?
Am sorry if ur annoyed with the last question i asked the other time,dont mean any harm.just
trying to learn ok. stay cool.
Onwuka Arisa
Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop
questioning.
- Albert Einstein
Helloo onwuka, how is it going? No offence taken, mon ami...we all learn at each of our
different levels in life...not just in trading...
To answer your question, we might take a little look at what interest rates mean.. They are
more or less payment for the use of a given sum of money, or its equivalent over a period of
time. Implied in this defination are demand and supply as determinants of market price, in
which price is the rate of interest. Interest is a COST to demanders of funds and an item of
INCOME to suppliers of funds, and the rate of interest influences their entry into a given
market in varying ways and degrees. The rate is stated on the basis of one year(per
annum),even though loans can be made for shorter or longer periods.
You see, the market referred to, is a credit market, in which debt is seen as an obligation
to pay money and credit is the right to recieve money. Such markets bring together borrowers
and lenders(investors), and in them are established and communicated the prices at which
they are willing to make transactions.
The price of credit is an interest rate, and that which is demanded and supplied are credit
or debt instruments, whose primary function is to allow control over money to be
transferred. Suppliers of debt instruments are demanders of funds, and demanders of such
instruments are suppliers of funds, so that in essence, it is the price of these instruments
at a given time which gives the market yield, or rate of interest. Interest rations the
supply of savings, serves as compensation to lenders, helps cover the costs of risks, and
can be used to help stabilize an economy or promote growth.
So onwuka, if a country's interest rate is held, under normal market conditions, it tends to
appreciate against other currencies with relatively lower interest rates. Short term
interest rates are the important factor in currency valuation - traders look at most other
indicators merely to predict how rates will change in the future;thats where we get to the
inflation/unemployment tradeoff.. If a country's Central bank feels inflation is high, they
usually increases interest rates in order to mop up excess liquidity..but that constricts
credit flow for growth and productivity which increases the unemployment rate..
But wait..
if unemployment is the top priority of the government, then interest rates are lowered in
order to increase credit expansion flows in the system so as to enhance employment through
wider growth and productivity...but that tends to increase inflation due to excess
liquidity...a TRADEOFF in the country's kitty..
http://sports.yahoo.com/top/news?slug=ys-rcsbadspenders041509&prov=yhoo&type=lgns
Katipunero said:Hi, FxGreenLand
I have read some of your posts dating last October of 2008 and I must say that I'm impressed
with the way you analyze the markets. I would like to request from you, if its possible that
you could share with me your next trading plans on the markets. Since I live in a different
timezone, I don't think I can spot you online so is there a way that I can receive on my
email or on my inbox here in this forum your trading advices on the prevailing market
movements? I would appreciate any help you could extend
By the way, I've been trading for over a year now and my trading is fine but I still haven't
find the right system for me.. maybe you could help since I've found your trading system to
be really good
Kind regards,
Katipunero
Hi katipunero, thanks for your mail...the right trading system is essential for the right
individual...not all size fits all...if you want to take up my services, then you are
free...just send a mail specifying which of them you are interested in, and I'll get back to
you,ok...
The Arabs have an ancient proverb that affirms:
He who knows not, and knows not that he knows not,
is a fool—shun him.
He who knows not, and knows that he knows not,
is a student—teach him.
He who knows, and knows not that he knows, is asleep—wake him.
He who knows, and knows that he knows is wise—follow him.
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