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by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 2338
Forum Topic:

USD

Discuss USD
 
catnip
Frankfurt, Germany
Posted Anonymously
14 years ago
Oct 15, 2010 16:19
my model is that speculation has no role in fx. It is all hedging in terms of value at risk.
The CBs hedge their portfolio of devise reserves to avoid losses of their respective currency.
The FED has been successfull so far to dictate the CB's hedging.
When I say so far I mean just that, so far.
I think some do not understand that fx is entirely different from stocks. Stocks have an absolute value currency pairs have a relative value.
Snce I work with a money flow visualizer which uses all traded fx pairs as an input I could clearly see that EUR was just not strong - absolutely - when everyone touted strong Euro.
Or more precisely the value at risk ( a real number between 0 and 1 ) was almost always as high as of USD. Right now EUR has a higher value at risk than USD it is weaker than JPY and GBP, too.
chloethebull
Posted Anonymously
14 years ago
Oct 15, 2010 16:17
thats why i think we need to give the funnd side of trading a lil more importance over tech ..because theres big ben an company,jc trichett,merkel.uk politician.pboc members ect..all of whom constantly making remarks that have huge effects on the markets an like u said they all play an instrument in the orchstra an its up to us(well u) to figure how there goin to play with the rest..an u did call earlier for a bounce in $$ before sell off resumes:) again pl have a great weekend:) an always excercise acct &margin managment don;t be greedy:)
DaveO
UK
Posted Anonymously
14 years ago
Oct 15, 2010 16:17
I been professional futures trader 16 years but only started looking at forex this year. Imo this site/service is not suitable for newbs. A novice trader should take one pair and focus upon that to climb their learning curve. Ashraf is jumping around finding the best mechanical advantage for us to trade at any given juncture, based upon his enormous insight and experiece. I like that he combines the shorter term day to day fundamentals with the technicals and that is why I am here. If I have trouble following Ashraf sometimes I'm darned sure any novice trader is gonna drown.
Ashraf Laidi
London, UK
Posts: 0
14 years ago
Oct 15, 2010 16:00
It's amazing how each time euro drops 50-80 pips, you get all the euro bashers feeling vindictive (based on theories of lack of fiscal union, PIIGS profligacy and German superioroty etcc)

And when you get EURUSD rallying 90 or 100 pips, you get the other camp cheering (basing their their argument on US no longer being center of the world, etcc)

And when you get China raising rates, you get ...

You see my point


Tthis is a market based on capital flows, fund managers's operations and a whole lot more of other factors. And yes, the technicals do have a major game. And I try (hard) to integrate all of these dynamics in reading the market over various time frames. Often times, these dynamics supercede the aforementioned maco dynamics.

Ashraf
subway90
Korea Sout
Posted Anonymously
14 years ago
Oct 15, 2010 15:50
guess Catnip can't stop making stupid remarks... :)

Trying to sound really smart... but only seem to be an empty can creating a lot of noise...
like i said.. not worth debating something outside his box... coz he thinks the box he lives in is everything... good luck catnip... keep playing your assumption game... :)
chloethebull
Posted Anonymously
14 years ago
Oct 15, 2010 15:48
ashraf, don;t waste ur time explaining ur calls, pl need to better understand ur trading style before they follow u ,its taken me 14mths to understand ur way but i got it now an im making lots of mulla on a daily &weekly basis where b4 i was looking at mthly earnings..ur the best out there an u offer ur advice for free so again no need to explain urself to some1 whos crying over loss money..again have a great weekend an get ready for next weeks data an tech info:)
Ashraf Laidi
London, UK
Posts: 0
14 years ago
Oct 15, 2010 15:28
So i leave the forum for a few days and I get all sort of phenoms calling me names in my own website. Wonderful.

When EURUSD was at 1.31. i called it day by day to 1.38. Walked you guys thru the Jackson Hole talk, and the last 2 FOMC meetings, while most euro bashers were making grand remarks about Euro integration and Chinese trade.

Catnip, how can you conclude what i underestimate and overestimate large economies via my FX calls? Don't you know that the medium term FX dynamics are not always necessarily related to the long term fundamentals of these economies? In case you did not notice, my attempt is to call the market and not necessarily the maco dynamics--Thats why economists at the IMF, WB etcc wont be able to read the market.

Sarmad, take the time to read what i write over the last 2 months about the euro then go look at the chart. Being liquidated depends on your positioning and margin use.

unbelievable

Ashraf


Ashraf
DaveO
N.Cornwall, UK
Posts: 5733
14 years ago
Oct 15, 2010 15:24
You don't have to convince me of fundamental weakness of eurozone. I have never believed it could possibly work so the recent crisis came as no surprise to me whatsoever. Fact is the EU has rallied 2280 pip since its June low. Would I want to be perma short EU ? I think not.
ebarrett
Mexico City, Mexico
Posts: 4
14 years ago
Oct 15, 2010 15:18
I agree with you that PBOC has an increasing influence and the FED is running out of options. However, its still quite likely they the fed will implement some form of QE2. Do you think they wont do QE2??
catnip
Frankfurt, Germany
Posted Anonymously
14 years ago
Oct 15, 2010 15:10
dave
it depends whether one is position trader or day trader. Most day traders have a poor performance overall but position trading can be very profitable. For example the Euro crisis
was easily predictable as no common eurozone economy exists this is a death knell in a global
recession. And still is as nothing changed. So sometimes one trades the future and sometimes now. Ashraf's error - as will turn out soon- is to assume the FED can still do whatever FEd wants to. I think no this time is over.