Hey everyone does anyone else find trading safe haven currencies tricky. Particularly the Swiss franc (Chf). I cannot really figure it out. In my experience it does not beat the USD as a currency people turn to in times of crisis yet even when risk on sentiment ensues it seems to perform poorly. Does anyone have any tips for trading CHF?
I ask this because I have a small account and USDCHF would be an ideal pair to trade. It has lower spreads, is not as volatile, and is low risk but it really confuses me. Whenever there is risk off sentiment I assume it will do well but its not really that impressive. Take for example it’s performance during the worst of the covid-19 pandemic. It was unable to perform that well against other currencies. Now with the increase in risk sentiment it has so far had one good week and seems to be losing momentum now. Is there anyone who has advice for trading CHF against any other currency?
Yep dont , sorry bad joke , I personally dont trade it always find it a little unpredictable
Lol not that bad a joke actually. You are right it is unpredictable. I have received some really great advice from you in the past actually. Since the last time I spoke with you I was able to progress from breaking even to making profit a little bit more often…so much so that my equity has increased. However like I said my account is quite small and I am constantly trying to find ways to grow it. Do you have any suggestions for traders with small accounts?
Hi - I think you’ve not got the right focus here. First off I don’t really see evidence of safe haven currencies: during risk-off times, everything is weak, CHF and JPY move together but without great demand. During risk-on, AUD is definitely bought dramatically (and then its subsidiary, NZD), as are US equities.
Secondly, the spread on USD/CHF looks not good, especially when you convert the spread in pips to pips as a percentage of price. A pip is not a pip is not a pip, no matter what the industry would like to imply.
Hmm…that may very well be the case with regard to performance. Although I believe that JPY and CHF have very different characteristics as safe havens. I am interested in learning above all things so I am always going to pay attention to someone else’s point of view. Can you please elaborate further on the spreads in relation to pips and if possible demonstrate how it is that spread on USDCHF isn’t really low.
Simply take the spread for a forex pair in pips and convert it into a percentage of the bid price for that pair. Likewise for another pair.
Also try taking 1 pip for one pair and 1 pip for another pair and convert these into percentages of their respective bid prices. You’ll pretty soon see that 100 pips on one pair is not equivalent to 100 pips on every pair.
OK well I suppose that makes sense. It is something I will take a look at in greater detail.
The only way to grow it is to concentrate on the process, let the money look after its self. As you increase your total pot by a set figure say 10% increase your bid size by 5% and repeat. Teachers discipline and keeps the risk managed
How exactly does one increase bid size. Is it the same thing as increasing position sizing?
The broker I use has set position sizes meaning its kinda difficult to increase it according to your own preferences.
Depends on the broker , I use IG & Intertrader mainly and can place any position size I choose over the min bid