Reinko

Top 10 Currency Trading Tips From Deutsche Bank

A very good strategy is to trade against the big boyz, when they unwind their positions because they are sh*tting their pants it is time to hit the 'execute' button.

I have a golden, a silver and a bronze tip on this.

I only expose bronze:

Look for Central Bank policy setting meetings, when there is no financial news of any significance you often observe (just an example from lately) a sharp rise in the US$/Euro in the hours before the rate decisions are made public.

Hence: Big players like that Chicago sh*t are unwinding.

Of course you must use your brain: What kind of crap will this particular Central Bank come up with?

But if that Central Bank comes up with what most was expected the big players will take their old positions in again and you have a good profit when you have leverage of one thousand...

Remark: The big players can also unwind on the back of the economical news of that day (that is early unwinding in the run up to the Central Bank rate decision).

Again: Always use your brain and if you do not understand the situation; DO NOT TRADE!

Good luck trading the bronze tip...;)

Strategies for Currency Investors

Indeed a nice article, I have tried some demo programs myself and that was big fun.

But the reason I give a reaction is the next:

When you start a demo program they always contact you by phone, to my surprise one of those 'advertising people' told me it was an advantage that they had leverages of up to one thousand times...

This is of course a stupid selling proposition because when you trade leveraged one thousand, you need a big big margin in order to pay that call when it comes.

All leverages above 10 are fake because you can make only smaller trades if you use a higher leverage (when you are a bank it is different, why pay the margin call when you can also classify it as a Level 3 asset?).

But it is great fun and you better use one of those demo's first because I can remember I wanted to buy Canadian dollars, but the pair was noted in reverse so I actually sold them.
So do your thinking because selling Euro/US$ is the same a buying US$/Euro.
And I was looking at my losses and I did not grasp it...