So traders have bought 2 million more Euros how much will that move the EUR/USD pair considering shorts outweigh longs by roughly 2 to 1??? My guess is EUR/USD will go a bit higher then straight back down. Is there a way of finding out how much 2 million would change the price??? thanks.
So forex market is 5.3 trillion dollars, EUR/USD is about 27% roughly 2 trillion is in the EUR/USD trades, so to answer my own question 2 million Euros purchased will affect price very minimally. Will it go up a bit before going back down, what do you think?
It wont move a penny… I do about a billion a day and I don’t move the market at all.
so don’t worry
Yeah i think it will go down, what do you mean you do a billion a day? Your a professional trader? I thought most successful traders only handle a few million. Unless your a manager of a hedge fund of course and your speaking about the company as a whole but i doubt you would be on babypips if you were. if only.
I work for a bank. therefore we have a mix of trading… biz to hedge and own prop positions to run.
Oh great, I think a lot of people on this site would like to be in your position, full-time trading and making money without risking their own. What kind of salary are you on? any tips for a newbie?
Well… the parameters are not the same…
When you trade your own money… you have the luxury to trade whenever you wish for.
I don’t have that luxury…
I don’t have the luxury to have 3 or 4 down months…nor to have 20/30% drawdowns…
If you want to find a job in trading ( which is getting hard these days with the new regulations), the best is to be able to program. Most of the people we employ have some kind of programming background. ( I am talking about currencies, I have no idea about equities).
Yes very true, at least if your trading your own money you can trade when you want. So im guessing if you would have 3 or 4 losing months a trader would be fired? I have no idea about programming, I guess you need a good amount of knowledge in computers and maths. I am happy for now figuring this business out trying to make money by myself.
This is the challenge: a single trader is trading against the world… He/she has no direct influence…
Like buying a can of Coke, or even one hundred cans of Coke, would not allow you to change the
course of the company’s profit/loss, so buying a lot or even one hundred lots of EUR/USD would not
allow you to change the course of the pair’s bullish or bearish path…
Best be content with the crumbs left behind by the big money - the ones that really does the moving…
Cheers…
Thats right, it is trader pitted against trader, so then comes a question of trust. The media reports what has happened and also forecasts on what they think will happen. Now when dailyfx said the yen will rally ( about two weeks ago, they said that on a fri afternoon) it had been rallying for two days, after the weekend the yen did nothing but decline. Now was that a complete lie or did they just get it wrong? On this forum it is pretty friendly and i think everybody trys to help to the best of their ability so i trust you guys but media is another story i think. Retail traders can never change the direction of a pair, only for a moment if most retail traders make the same position considering retail trade is 5%.
Although if you looked back to the start of the week, two weeks ago roughly, you will find this sort of article from DailyFX, saying not to jump on a USD/JPY long so late:
How do you find your work? Is it more interesting ore more humdrum than what you expected?
How long will yoi stay in the job…is it permanent?
It was dailyfx the website run by fxcm not daily forex which is a different company altogether i think. Im not sure if they purposefully would deceive people with their forecasts, I am a cynic so i would say yes they would, after all we need people to lose so we can win, but my point is in general be very careful when taking other peoples advice particularly the media.
I am a DailyFX regular and I could find no article from the time you mentioned that said something misleading, so I quoted the above instead, which is what DailyFX probably would have also recommended… On the 15th, David Rodriguez, for example, put up a DailyFX video talking about selling the JPY, which was entirely proper, given what the JPY was doing… Fundamentally, Abe’s tax increases are hurting the Japanese economy, so the Yen is indeed weak.
Sorry, I just cannot fault that concept… If you could find the actual DailyFX article or video, please post it, as I spent about fifteen minutes trying to scroll through several DailyFX article from around the time you mentioned, but there are very many to go through, and I could not find something close enough, so I posted something else - but, yes, it was not from DailyFX.
Anyway, DailyFX is not a one-slogan company: traders within it may diverge in opinion; for example, Michael (Boutros) likes to scalp, Ilya (Spivak) likes long-term trades, and Kristian is a currency cycles specialist… They may all have been seeing the Yen crosses rising, but not necessarily all been long on them…
It was a video made by david rodriguez, i will try to find it and let you know tomorrow, cheers mate.
You are welcome! Feel free to P.M. me.
Goodnight!
Im still awake lol,I was on youtube not sure if this is the video i was on about because he doesnt say the yen will rally which i thought he did say on the video i was thinking. This is on youtube its Thursday 28th aug 2:48mins long, watch from 2:00 on, videos called Forex: US dollar at make-or-break levels versus Euro, Yen. david rodriguez says USD/JPY is bullish but theyve heard a rumour theres going to be a sell-off which never happened the pair remained incredibly bullish. I just feel they cover their bases and kind of say yes this is going to happen but we might also see this happen, you know what i mean, anyway I still listen to what they say very briefly.
I would ask first, where did these numbers come from ? 2 million more Euros and 2/1 ratio ?
Now the market has change and banks employed quant. Sadly, Finished is the day when you could go to trading with a college degree. You can be fired about 3/4 months yes.
You should try to give it a go ( programming) at least to be able to test simple strategies.
I would not listen to the Media and certainly not to the retail fx broker firm. They are sales guys and low skills.