Maybe Weston has raised an valid point, I know MT is right re the bells, the point is how banks move price intraday, often against what many people may expect.
Case in point, imagine a swing trader who went long cable on the result of the Scottish vote - he is now under water and figuring he has been scammed - truth is if he is a day trader he is out with his profit, if a swing then he will wait until at least Monday morning.
It is really a matter of learning how the banks ‘manipulate’ price, they have done and will do for many years, just part of the game - learn it and use it.
I am that trader, although I am not thinking I am being scammed. . . I think the Pound is down because of big profits being booked in / collected, but come Monday we could see more of the same … Pound rising
I am staying long the Pound, no problem
Hi from Scotland, by the way … The streets are peaceful, and there is no civil war, just in case you wondered
Hi PMH, I’m glad you guys aren’t fighting each other - life is way too short for that.
Have to agree with you on GBP, also glad you are not one of those that the banks managed to panic out.
Many traders may have missed the UK numbers this week, not a single thing to go short on, and the biggie is the avg earnings - can I sense the whole interest rate rise thing raising it’s head again?
Next week is quiet so it’s possible you may have to thread a little water - but remember - YAZZ
Well I’ve got to say I agree with everyone’s post so far. The market is rigged but that doesn’t mean you can’t make money off it.
I exited my GBP long on thursday before it rallied past 1.64 because i was expecting a buy the rumor, sell the fact situation, which is exactly how it panned out. Of course, some may prefer to compare this with casino gambling except with this, you can develop an edge with experience and you also don’t have it lose it all in one loss.
Okay, so you decide, I want to trade currencies, an unregulated market space where 90% of all trades are done by hedge funds and banks seeking to profit from knowing what way the market will go by selling to hedge funds. You join this market trading in cents, you found yourself on the wrong side of the order flow, then you blame LIBOR manipulation like a media hack? Even though the LIBOR rate does not affect you at all…
If you do think it affects you please explain why…
I never went long sterling for one reason, HFT type machines were naturally going to start buying early, if the vote is yes, then more buying, if the vote is no then it is time to take profits and run. That is what played out.
The logic here was risk management, if speculators started to push Sterling back up then this is a problem for the Central bank. Scottish referendum no vote is not that important to Sterlings value. Why should it be when it wasn’t before? Part of trading a currency is understanding the country in question.
So a yes vote was the game changer. With that in question and a weekend coming a yes just meant the world can rest easy I close my positions and go to sleep in a profit. Why buy more Sterling, only to realize Salmond supporter rioted over the weekend or the vote was rigged and a recount is demanded? A seasoned hedgefund would not want to be long, it is too risky, especially knowing that the technicals say Sterling will stay below its 200 Day MA. Precisely what me and GP00 said, that we actually think Sterling is going lower but we were not going to trade it, remarking we must be the only guys thinking it, we must be nuts…
Buy the rumors, sell the news… Trading 101 in all instruments.
Gambling is fun… I love gambling, especially when I see the queen betting at Ascot. Banks gamble, hedge funds gamble, it is a way of life. Who wants to make an honest living when you can just gamble?
Wannabe trader??? The last time I check Pipme was making pips and rolling over trades. What does fella have to do? Wait! I know! Work for Morgan Stanley and catch the tube to canary wharf everyday… Real trader eh! Last I checked those analyst made less than 60k a year and that’s gross, they all try real trading eventually but end up quitting and becoming educators to the real hopefuls Like…No names…
