Forex rebates on every trade - win or lose!

Cable's been nestling on my last but one thingie in the 1.8780s
I have the 1.8720s as my current bottom line rising support from the end of June.
If that goes I'll have to get my crayons out again :)

Do you reckon that Gertie wears pigtails and spends her weekends yodelling, Choccie?

Well done this morning, Bak. One word of minor caution though which picks up on Choccie's point last week about the new black. It's been all too convenient to pin the Blanchflower and ONS stories onto a falling market. There was, however, a piece of news this morning which seems to have been allowed to pass below the radar in that the Nationwide House Price mumbojumbogobbledegook was inflationary. It's my guess that, once the Pound starts to show some signs of life again over the next few days and embarks upon the next up-leg, this will be one of the stories which sticks. It'll be interesting to see how that story runs in tomorrow's daily papers.

Thanks Hils and Chocs :-)

I'm out for +30 as I used my MA line as a trailing stop loss. It went down further but there's always another day.

Well, it's gone further south so wish i'd stuck with my friendly trend.

One thing I've definately learned over the last few months is that forex is such a fickle market. The sentiment can change from hour to hour never mind day to day depending on the what type of news the market thinks as the "new black!". (Choccie...Your phrase is so apt).

It certainly means that to be a better forex trader I'd have to be constantly on my toes.

Highly likely Hils ;)

Don't beat yourself up about it Bak.
It doesn't help the psyche to dwell on how much more you could've had out of a trade. Remember - the pips never go away :)

Bak,

Cable isn't, imo, a fickle market. The moves are actually very small and the trends are very easily and well defined. It's just that the very low margin requirements encourage overtrading with too tight stop losses and make the moves look much bigger than they really are. It's a system designed to panic the punters out of their hard earned as quickly as possible.

For instance, with cable at 1.88, a trade at 1 per pip is the equivalent of a position 18,800 in size. If that were a stock, you'd likely need a minimum deposit of 5% (ie 940) and possibly 20% or 3,760. Yet to trade cable, you need typically 200 although it can be traded for as little 60.

That 200 deposit equates to just 1.06% of the position size. If it were a stock, that 1% would possibly be less than the bid/offer spread, so you'd effectively have lost your 200 in dealing costs before the position had even moved. Yet with cable, you'd look upon a 200 pip move as a monster move and would be either hurrying to bank your profits or stringing yourself up from the nearest lampost if you were the wrong side of it.

Good post Hils. The reason I'm trying to trade Fx is because I'm so very busy at work I only have time to watch one or two instruments so Fx suit me fine as the things that move the markets generally move Fx most so it suits me fine - also means I don't tamper with my long term stock position.

And I'm now short from 778 -caught 91 but ticket held :-S

Thanks for your informative post Hils.

I knew the margins for forex were very low but never looked at it in a mathematical sense so thanks for the lesson.

I guess I'll stick to forex then :-)

Pwwhhhoooaaar!!!! I wouldn't mind a bit of Monetary Union with that Gertie!!!!!

Central Banker, know what I mean!!!!

You're meant to be a nice polite Fairy ........... not a Horny Little Devil!!!!!!

MM - Think I prefer choccies version to the real thing!!!!

gfi: I haven't seen the real thing, so I let my imagination run riot. Time for the medication, I guess.

Hil: As I said, time for the medication -- large Cabernet, if you don't mind :)

MM try here -
http://www.ecb.int/ecb/orga/decisions/html/cvtumpel-gugerell.en.html

gfi: I see she's the token woman . . *dives for cover*

They've got another picture of Gertie on the ECB website.

8 posts since I last look - got to be a few more Forex pearls of wisdom.... but all I find is pictures from the ECB website (members only section) :-)

SC: Sorry about that, normal pearls of wisdom will be restored shortly. No more naughty pictures, please, ladies.

Cable..

On a weekly chart its come back as far as it can without breaking the weekly up trend in place since April...

Its also bounced off the 38% fib from the highs near 1.9150 from the uptrend starting from 1.8200 in July.

So imo it either comes back to the 50% level and previous interim low at 1.8620 area OR its heading back up..
I am going with the latter.. I would be surprised is it retested 1.8725 its low this week. I expect it to start climbing back in the direction of 1.9000.

This week high to low it has come off 300 pips.. enough I say..

Higher rates have not gone away...in this country... its just that the time frame may have shifted back slightly.

How quickly it will get back to 1.91 and beyond is another matter, but my money is on it heading back in that direction.