Trading -AUD/USD

Discussion in 'Journals' started by tradingjournals, Oct 29, 2013.

  1. Visaria

    Visaria

    thanks, but i didnt really understand it. Anyway, it's your method, works for u, which is great.
     
    #241     Nov 14, 2013
  2. Visaria

    Visaria

    didnt buy usdjpy before, but just bought it at 100.18!
     
    #242     Nov 14, 2013
  3. Out at 0.9330 (10 pip loss), possible short re-entry later, I never argue with the market, it's better to take a 10 pip loss than a 100 pip loss.
     
    #243     Nov 14, 2013
  4. Taking sometime aside to think. For asian session, I would look at NZD/JPY on long side. When I check it earlier today, it was below 83. It could break 83 this evening if my thinking/intuition is correct.
     
    #244     Nov 14, 2013
  5. Too bad you closed this trade too soon, as shown on the chart I gave you, the AUD/JPY bounced off that new support line and is now at 93.60, 77 pips above your entry point.
     
    #245     Nov 14, 2013
  6. Seems like the USD/JPY is looking for 100.50 ...
     
    #246     Nov 14, 2013
  7. Some of you following this thread may ask this question: how many pairs there are , and which pairs do people trade? There is a large number of (real and conceptual) pairs (at least N*(N-1), where N is the number of tradeable currencies). If one looks at the major currencies of the western world (including Japan), there are at least 8. That makes for 56 pairs already! Not all pairs trade directly, but I can make two trades to make my own cross.

    There are a number of ways I would look at currencies. One way is: if I were to be long pair A/B, one way I would think of is: I am holding risk of A and making some else hold the risk of B. Therefore, I could think of it as buying relatively lower risk and selling relatively higher risk. If I were to be right and the market realizes it, it would reduce the price of B relative to A, which makes the ratio go back to neutral.

    When A/B goes up, some people may erroneously think B has weakened or A has strengthened, when it could be the opposite that took place or a combination of both (or the opposite of the latter combinations). Absolute references may not be an appropriate way to think about it.
     
    #247     Nov 14, 2013
  8. Well if A/B goes up, A must gain in value against B (the same A now buys more B), no?

    Are you sure about that...? :cool:

    The correct number is in fact 28 (currency pairs):
    1 2
    1 3
    1 4
    1 5
    1 6
    1 7
    1 8

    2 3
    2 4
    2 5
    2 6
    2 7
    2 8

    3 4
    3 5
    3 6
    3 7
    3 8

    4 5
    4 6
    4 7
    4 8

    5 6
    5 7
    5 8

    6 7
    6 8

    7 8
     
    #248     Nov 14, 2013
  9. I like to think of A/B and B/A as two different pairs because of some subtle differences.
     
    #249     Nov 14, 2013
  10. So for example saying that 1 GBP = 2 USD is not the same thing as saying that 1 USD = 0.50 GBP ??
     
    #250     Nov 14, 2013