a) The FED always is late hiking rates b) Unemployment is going to be high for "an extended period of time" c) A big amount of mortgages (even more than subrprime loans) is going to be reseted in the next two years. A rate hike will increase due to high unemployment levels an increase in foreclosures and bankrupcies afecting bank's balance sheets and producing more banks failure (last year more than 100, this year we are for 15) d) It will sink real state industry e) CPI is manipulated so "nobody" has to know that inflation is rising f) They must go on printing money to devaluate the currency in order to pay the big amount of debt with cheaper dollars. g) and so on.
Radu, I think you are confusing leverage with margin (money required to you by the broker in order to enter a position) and money at risk. They are three different things.
- Leverage is how many times you are multipling your own money. For example, if you have a $10000 account and you buy a mini lot in EURUSD (10000$), then your leverage is 1:1, if you buy 20000 then your leverage is 2:1 and so on. - Margin is the money the broker ask your for an especific position. If your broker give you a 1% margin account or 100:1 then it will ask you to have at least 1% of the overall money you have invested, if you have invested 100000$ (1 lot in eurusd for example), then your broker will ask you 1000$ and you will receive a margin call when your margin reaches that amount. - Money at risk is the amount of money in % of your account, for example if you have an 10000$ and your unrealized losses (open positions) is 3000$ then you are risking 30% of your account.
Asad, I don`t agree in one sense with your strategy. I like that you diversify in different prices your risk so you have more oportunities to close a position with profits but if you have a bearish strategy for example in oil it makes more sense to open the bigger position at 73 and the smaller one at 69 reducing the posibilities of incurring in bigger losses in case of a retracement.
Ashraf, I read your book and I think is a really good work. Congratulations!!. The website is also cool but I don't like when people start to argue for silly things, I guess we are here to make money in this complex market, not to make people waste their time reading other things different to how to be more profitable
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ما وراء هبوط الدولار مع الذهب و من منهما يتمكن الارتداد؟
موعدنا الآن في غرفة شركة إكس أم لجلسة الأسواق
https://t.co/Y7tD0RxCS2
@XM_COM (1 year ago)
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Regards,
Paco
There are many reasons.
a) The FED always is late hiking rates
b) Unemployment is going to be high for "an extended period of time"
c) A big amount of mortgages (even more than subrprime loans) is going to be reseted in the next two years. A rate hike will increase due to high unemployment levels an increase in foreclosures and bankrupcies afecting bank's balance sheets and producing more banks failure (last year more than 100, this year we are for 15)
d) It will sink real state industry
e) CPI is manipulated so "nobody" has to know that inflation is rising
f) They must go on printing money to devaluate the currency in order to pay the big amount of debt with cheaper dollars.
g) and so on.
Paco
- Leverage is how many times you are multipling your own money. For example, if you have a $10000 account and you buy a mini lot in EURUSD (10000$), then your leverage is 1:1, if you buy 20000 then your leverage is 2:1 and so on.
- Margin is the money the broker ask your for an especific position. If your broker give you a 1% margin account or 100:1 then it will ask you to have at least 1% of the overall money you have invested, if you have invested 100000$ (1 lot in eurusd for example), then your broker will ask you 1000$ and you will receive a margin call when your margin reaches that amount.
- Money at risk is the amount of money in % of your account, for example if you have an 10000$ and your unrealized losses (open positions) is 3000$ then you are risking 30% of your account.
Asad, I don`t agree in one sense with your strategy. I like that you diversify in different prices your risk so you have more oportunities to close a position with profits but if you have a bearish strategy for example in oil it makes more sense to open the bigger position at 73 and the smaller one at 69 reducing the posibilities of incurring in bigger losses in case of a retracement.
Ashraf, I read your book and I think is a really good work. Congratulations!!. The website is also cool but I don't like when people start to argue for silly things, I guess we are here to make money in this complex market, not to make people waste their time reading other things different to how to be more profitable
Regards,
Paco