The stagnant currency markets of the moment remind me of when I was broking and the amount of patience I had to instil in some clients. In situations like those that exist today in the major currencies, Japanese Yen, Swiss Franc, British Pound, and Euro against the US Dollar , the clients would often have been holding positions for several days. They got bored, nothing was happening, the forex markets were focusing on the wrong things, other financial markets were moving and they felt that opportunities were being missed. At that moment when frustration with the position was such that it was possible to get out of the trade for a scratch; that is when I would have to work hardest to persuade clients to hold on to the position. If you take the view that ’markets’ are out to ‘get’ as many participants as possible, then a ‘slow’ market with a lot of non-producing positions will try and get rid of as many participants as possible, then move. Result , a lot of very frustrated traders who have missed out on lots of pips. So , the tip is : sluggish markets are telling you that the market is overburdened with ’stale’ positions. Let other traders abandon their positions, you keep yours , so you can take advantage of a streamlined move.


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