Busy Day Tomorrow

[arifwise]

hi all bless traders. please someone explain why euro/usd dropped after announcement of rate hike to 4.25% ?

thanks so much for your reply. be bless always

[Tess]

I guess you don't pay very close att'n to your fundamental sheets or stay abreast of what actually is going on out there, otherwise you'd know why it was biased heavily to the short side regardless of whether they hiked or remained in neutral.

Go get yourself up to speed on the background to these pairs & the real drivers of the currency market. Then you can maybe stand an evens chance of playing ball with both hands instead of one

[Sledge]

	Quote:	arifwise
	hi all bless traders. please someone explain why euro/usd dropped after announcement of rate hike to 4.25% ? thanks so much for your reply. be bless always

Look back on this thread and study it- that is the best advice I can give. We are very lucky to have a very smart and great bunch of folks who have a lot of experience here that are offering steallar advice to get you to where you need to be in your trading.
Sledge

[idaxtrader]

I don't see why people have to respond with rude comments regarding a beginners inquiry. TL is not elite trader and people are supposed to help people over here. Any way the reason Eur fell hard on the rate hike is because some people had thought they would hike one more time. Mr. Trichet signaled that its very unlikely they will hike again so that caused the Eur to fall. If I can offer some advice don't concern yourself with why something is dropping only concern yourself that it is dropping. Fundamentals just get in the way of trading. I think the secret of this business is risk management and to ignore all news flow. Simply offset a few minutes before release time. Let the market digest the data and then wait for a trigger that will let you initiate a trade.

[Tess]

	Quote:	idaxtrader
	Fundamentals just get in the way of trading. I think the secret of this business is risk management and to ignore all news flow.

Oh boy, I've heard it all now
What ship did you sail in on??

You got the risk management part down ok, but it appears you're getting your legs all tangled up with your generic fundamentals & specific news flow releases?!?

As for being rude?? I thought it was a perfectly polite straight up & down comment. I'd grow another skin if I were you buster

[Art Krantz]

	Quote:	idaxtrader
	If I can offer some advice don't concern yourself with why something is dropping only concern yourself that it is dropping. Fundamentals just get in the way of trading.

Those are pretty short sighted views if you ask me. Little wonder most retailers get so easily spooked & muscled out of decent (potential) core positions most of the time.

Whether you like it or not, your technical set-ups are the result of fundamental flows. You can dress it up however you want (sentiment runs…psychological herding…supply demand imbalance etc), but the core drivers are numbers & data - pure & simple.

I would have thought if someone was even half serious about making consistent long term profits in FX they’d at least familiarize themselves with what drives these instruments on a week to week basis & why?

After all, if you’re looking to build a core position & aggressively compound via appropriate pullbacks and/or consolidation phases, you’re going to action those kinda trades if you possess a better than average handle on the fundamentals/drivers, & more importantly who is jostling for the ideal position & why.

In my book that’s what separates the earners from the (constant) learners.

[idaxtrader]

Dear, Mr Krantz I have to politely disagree with you. It is possible to derive an edge and be successful in the foreign exchange marketplace while systematically ignoring data releases and long term economic fundamentals. It may not be the best idea but its possible. Many beginners think they need to deeply understand the macroeconomic outlook ,read the wall street journal every mourning, and surf the websites like bloomberg and reuters for news updates. This is simply not true. The following is in essence the concept that I'm trying to illustrate. This quote is from a professional that I personally respect greatly John Person.

"You are not so much concerned with long-term macroeconomic situations as you are with riding a momentum wave. Granted, it helps to have a good understanding of fundamental conditions; but for the most part, you
are looking to ride a move and profit from it. That is your job. In short-term trading, conditions change; and you need to capture opportunities as they become present."

[Art Krantz]

Well, I guess you can respect/believe who you wish to, that’s of no concern to me. These vendor/sales/public trader type folks have a vested interest in getting their PR out to the masses, but that’s a whole other slugfest.

I certainly don’t disagree with your point about possessing an edge in your instrument/market of choice, but we’re not discussing trading edges.

Anyhow, I don’t see why a balanced diet of fundamental & technical knowledge can’t greatly enhance an edge, especially a beginners outlook. But then that involves a bit of (extra) hard work & application.

arifwise was scratching his head, totally oblivious as to why Euro popped to the downside on the back of the recent rates hike.

He was advised (rightly in my opinion) to go broaden his outlook & research base. That would undoubtedly offer him a little more confidence & structure to his trade planning, which would knock-onto, & compliment his technical awareness.

Tess wasn’t expecting him to enrol into an Economics degree course at his local college, but it wouldn’t do him (or anyone else, come to that) too much harm to become better acquainted with the key generic events which affect & drive these currency instruments on a regular basis.

I guess each individual will eventually decide how much armour they require to get the job done. But I know which trader I’d rather have in my corner when push comes to shove.

[cowpip]

I'm afraid Art and Tess are right about this.

Look at it this way, idaxtrader: Anyone can drive a car without any lessons. They just need to be told what key to turn, what pedals to push, and what the steering wheel does. Some people will get along just fine with that information. But shove them into New York City during rush hour and they'll be mashed-potato soup in short-order. Sure, they could drive - anyone can, but CAN THEY NAVIGATE? Of course not. Not without some serious additional information and instructions on how to use that information.

The more information and knowledge you have to navigate by, the better your driving will become. It's that simple.

[GammaJammer]

Wow - tough room again

Had few days away but came back and looks like Trichet caught more than a few people on the hop last week. Nice.