Usd/zar

Trading Systems
#1

For those of you with nerves of steel and b*lls of brass and can trade the USD/ZAR pair (and are not averse to being called a ‘scalper’) then take a look at this pair!!!

I am a ‘newbie’ but I can tell you that I have been trying to make this pair work for me for a little while now and tonight is it!!!

The ZAR is strong like not for a while against the USD (look at the charts).

I think it is because for some reason or the other the USD has fallen through the floor the way I see it.

I can tell you that every chart I run on this pair is telling me that today is the day I cover my losses.

Not a highly technical explantion but it’s the best I can do for now.

Wish me luck.

Regards,

Dale.

#2

With the mile-wide spreads on USD/ZAR that I’ve seen there’s absolutely no way any retail trader (that’s basically everyone here) is going to ‘scalp’ that pair. You need moves measured in 100s of pips in that rate just to get in the money!

#3

Once again John - I did not see that you had replied until now.

OK - for what it is worth - and for everyone that was wondering:

I lost - again - big time - BUT - it was once again through my impatience.

I kept saying to myself ‘the ZAR cannot get stronger - buy USD’ - it did and it did and it did and it is now at around 7.2000 to the USD.

I would have been a rich man (at least covered my losses) if I had just hedged my positions when I started making huge losses BUT started getting scared when the losses started mounting started getting margin calls and so closed all my positions when I could not take it any more and lost most of my margin. Had I not done this I would be making a fortune in one direction and a loss in the same direction but the ZAR will not stay at 7.2000 for long and I would have made in the other direction as well.

Anyway - the point is - I don’t think that I was wrong to try and profit out of this pair (although I have now learned my lesson) - my nerves and b*lls are obviously still in the design phase of the project!!!

Let the record show though - I was at least right about one thing - the ZAR went from 7.4500 to 7.2000 in three days!!!

After saying all of this and looking for redemption - I know me too well - I’ll be watching my beloved pair for when the USD starts getting strong and the ZAR weakens again (and hopefully I’ll be able to post a message with the title ‘Hey - I’m Rich!!!’).

I must just tell you that it amazes me that the ZAR is considered an ‘exotic’ currency - there is nothing exotic about it. Our economy is in a better state than most and it can only get better with the way things are here in South Africa.

And the above statement is not a contradiction of everything I said above it - the ZAR has been steady between 7.4000 and 7.45000 (if you consider that steady) for absolute ages now - the only reason for the sudden change was USD weakness.

Feel free to comment!

Regards,

Dale.

#4

The ZAR is considerd ‘exotic’ strictly on the basis of volume. It tends to be a more regional type of currency in that the vast majority of its action occurs during your timezone, like the Mexican Peso, for example. That’s why the spreads are so huge - low liquidity. I know that the folks there are making some serious in roads in to developing and expanding the financial markets system, though, so it might not be too long before we start talking about the Rand more seriously.