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“FUNDAMENTAL’s” vs “technical’s”

Discussion in 'Beginners Bootcamp' started by Eric Alyea, May 5, 2010.

  1. Eric Alyea

    Eric Alyea Master Sergeant

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    Hey newbie’s
    Something just happened!!!
    EUR/USD!!!!!!
    For “YEARS” I used to respond to new members and say....
    “READ the Daily Report’s”, Even if you don’t understand it.... practice READING IT”
    It will sink in some how.
    NOW more than ever, it is a time for “FUNDAMENTAL’s” vs “technical’s”
    You will get a margin call...
    It is listed as a joke but it isn't. (I think it is my most worth while post)
    http://www.forexpeacearmy.com/forex-forum/mess-hall/2342-jokes-4.html#post33750

    Quote:
    Originally Posted by Pharaoh
    Short form:
    You don't have enough money left in your account, so the forex broker automatically closes some or all of your positions.

    Long version:
    When using leveraged investments, one often trades more money than is in the account. Originally, a margin call was a phone call from a broker notifying a trader that more money needed to be deposited when price moved too far against a trader's position and the equity in the account became too small to sustain the minimum margin requirements to maintain open positions.

    Most forex brokers don't place this sort of phone call. When a forex account has too little equity to keep all the trades open, the broker usually automatically closes some or all of the open trades in the account.

    before you wake up..... your money is GONE
    Both the account leverage and the minimum margin requirements can affect when a margin call will happen.
    Traders who exercise proper risk management can still lose money, but will rarely need to worry about margin calls.
    If you don’t know this pair STOP using it. (unless you know how to work a "short")
    Read, Research, and OWN (the responsibility of your action’s) what you do in trading.

    http://www.forexpeacearmy.com/forex...hat-fun-roller-coaster-today-3.html#post35332
     
    #1 Eric Alyea, May 5, 2010
    Last edited: May 6, 2010
  2. cowmadagan

    cowmadagan Sergeant

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    Yup..

    I also believe that any technical bet against the fundamentals can just profit from the delay of the inevitable. The Aussie and CAD, literally this week, have proved it.

    The envy of the world's banks in Canada still got spanked to the tune of seven cents against the USD in as many days, despite the almost certainty of Chinese oil consumption driving foreign inflows to Canada.

    If European and US economies are in limbo, then the year long downward trend of the USD/CAD pair doesn't matter. Its resilience gave great indication that every time it took a positive spike, you can expect to make some serious profits shorting later.

    blah blah...
     
  3. Forexwatchman

    Forexwatchman Sergeant

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    Thought you were talking about the EUR/USD for a second.
     
  4. Pharaoh

    Pharaoh Colonel

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    Most currencies (and other trade-able instruments) do a retrace or reversal after a big spike. The problem is how and when to catch that shift in direction. Jump in at the wrong moment and you could find the spike was just hesitating for a moment before getting bigger.
     

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