Forum > View Topic (Analytic)
This thread was started in response to the Analytic:
GBP Trade Index 18-Year Chart
Daily GBP (British Pound) chart of 18 years of cyclical developments in finance & politics
Curiously, for a long time I was "scared" of cable, and left it alone, but gradually, and mostly with Ashraf's guidance, I am getting to know its ways. I was also wary of EUR/USD, but have gradually got used to it. And at only 1 pip spread, it's my first choice for scalping! :-) (but I only do this when I'm feeling desperate ... :-) ). I'm gradually getting to know EUR/JPY. EUR/GBP I have decided is wierd, very wierd. Its only advantage is that it is not (usually) volatile). Gold is definitely volatile and needs kid gloves. I'm still a bit scared of GBP/JPY, because of its volatility and since the spreads are awful, I can't see any good reason to trade it. I think you have to be a bit of a specialist to trade oil; for now, I think I'll avoid it. I've had a bit of fun trading ranges in EUR/CHF and USD/CHF, but to be honest, it can be a bit like hard work, and I'm not sure it's worth the effort, as the spreads are on the high side. However, when there's nothing else going on I suppose .... and that concludes my highly-technical currency analysis... :-)))
With all the excitement of the last week or so, I'm afraid I'm getting to be a bit of an adrenalin junkie....gonna have to watch this :)
@Pipped: Thanks for the link; will give it a look. I think some hard-core traders almost take pleasure in being stopped out, just to prove they can take it. Not me mate :-)
Limited liquidity: Are there holidays in parts of Asia, or are you referring to the normal Asian market levels? We have a 3-day-weekend coming up for the USA don't we? Can't remember what it is. Canada too?
Check him out sometime:http://twitter.com/JamieSaettele
Conversely, I've made a bunch recently on cable and EUR/USD (Goldmann-Sachs notwithstanding...), and a bit on EUR/JPY (selling into the rallies, not buying them, although both were possible with good timing; my timing isn't all that, so I stick to the simple rule (for the time being) off selling Euro/almost-anything.
Then again, I can't seem to make any money out of EUR/GBP, which seems odd, as a Brit who also knows Europe quite well. Maybe I'm just too close to it. Was wondering whether you are "too close" to USD/CAD to see it sufficiently objectively? Just a thought.
(Also, in my case, USD/CAD has a much bigger spread than either cable or EUR/USD (which is the smallest, with my S.B. broker :-) I know one shouldn't let the tail wag the dog, but it is sometimes a consideration).
So therefore, timing wise, I am guessing Chinese have squared bit of their positions and put fresh upon returning from long spring festival / Chinese New Year holidays. Several other market here in Asia, although much smaller than China, probably not big enough to make any impact, will be also closed for several days, but I am more interested on the cumulative lack of volume from Asia in those days of holiday overlaps pan-asia.
I haven't analyzed volume during the Chinese spring festival / Chinese New Year, and therefore, wondering whether we will have any material impact on trade with potentially thin volume.
I would love to hear views on to expect for the current forex market this major Asian holiday season. Asian indices in general trade higher just before the Chinese New Year, but these are not normal times....
Callum