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by Ashraf Laidi
Posted: Aug 13, 2009 16:38
Comments: 200
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Unsustainable Appetite in FX, Equities & Oil

We're witnessing more signs of peaking appetite, this time inside the individual Forex pairs, as well as more failure in oil and Chinese stocks
 
radu
bucharest, Romania
Posts: 203
15 years ago
Aug 21, 2009 0:01


Hello Fdasalguero ,

Thanks for your advices and for your time .
But , in fact , was a little exprimation error ( but in my mind everything is clear...i think :) ...1-real leverage ( total value of transaction/total trading capital ) is what you say , correctly ,2- 100/1 is " the margin based leverage " or margin required of total transaction value for a specific position , yes , and i agree too with the last your point .
And when i told 2-3-5 percente from my account i want to said if i should have a 10000$ account i should open a position with 2-3-500$ maxxxxim 1000-2000$ ( cumulative in few positions and that depends by many factors ) ...i recognise sometimes push up too hard , but 95% i really do lake i said.

Regards
Radu
Eye C.U.
Posted Anonymously
15 years ago
Aug 20, 2009 23:28
Another global bubble has formed and is ready to burst. How do I know? AIG, Fannie and Freddie are up 20% in one day. Be patient, my bear friends.
Ashraf Laidi
London, UK
Posts: 0
15 years ago
Aug 20, 2009 21:41
houram, Bernanke's speech will be part of many speeches made by many central bankers and i beleive he will reiterate the Fed view that inflation is subdued which is negative for USDJPY. hell definitely say markets have stabilized and economic weakness is abating but that wont affect markets much.

Ashraf
houram
Vancouver, Canada
Posts: 55
15 years ago
Aug 20, 2009 21:23
Hi Ashraf,
What impact do you think tomorrows Bernanke announcement will have on the markets? Could we see another short jump in risk appetite?
Your opinion is very appreciated
Ashraf Laidi
London, UK
Posts: 0
15 years ago
Aug 20, 2009 21:06
annauel, all eyes will certainly be on oil whgich i reemphasize to be the impulsive driver to current market activity, especially every asset class is mired with low volumes

Paco, thanks

Ashraf
fdasalguero
sevilla, Spain
Posts: 3
15 years ago
Aug 20, 2009 18:41
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

Regards,
Paco
anauel63
london, UK
Posts: 34
15 years ago
Aug 20, 2009 17:39
Ashraf, do you think there (is/will) be any fundamental trigger to give us a directional move on the majors & crosses for next week?
perhaps; a mssive sell off in crudeoil?
Ashraf Laidi
London, UK
Posts: 0
15 years ago
Aug 20, 2009 17:29
hamish, check out latest IMT. USDCAD could take queues from CADJPY whose resistance is at 86.30s. we may touch 86.40 but have NOT closed above 86.15 since Aug 14.

Ashraf
hamish
vancouver, Canada
Posted Anonymously
15 years ago
Aug 20, 2009 17:23
CAD
Maybe there is a conspiracy to annihilate Canadian manufacturers at least the citizens will benefit with lower priced goods etc !!!!!
speculator
Posted Anonymously
15 years ago
Aug 20, 2009 17:23
moving to cable

weak UK fundamentals outweighed risk taking in the stock markets and the pound suffered today.

As i said, UK fundamentals are shocking and pound is certainly overvalued on an economic point of view. I do expect the pound to be below 1.55 sometime this year.

the fact that crude oil forecasts are starting to head lower for this year should add further support for a falling pound vs dollar even if stocks dont fall sharply and heavily.