MARKET UPDATE 2
QUESTIONS AND ANSWERS: TRADE ALERTS:
I would like to know is necessary to trade all the currency you had sent to have a good results, or if i trade some of them is enough. I am asking it for you because you have alot of experience and to hear it from you can give me confidence.
key is called: Right Side Trading
Concentrate on right side trading. If you have one position for each of those you will be diversified. When I say right side trading I mean you want the pairs above to be on the right side of the price quote. For example, eur/usd ( usd is on the right side of the quote and eur the left side. But for the pair usd/jpy, the dollar is on the left side and the jpy is on the right side. If you have at least one position on the right side for each of the big 4 pairs you will be diversied.
If not you will end up with too many positions in one currency. you don't want to be long the Gbp/usd and the Eur/usd at the same time because the usd is on the right side of both of these currency quotes. That means you have doubled your risk in the usd.
I would like to know is necessary to trade all the currency you had sent to have a good results, or if i trade some of them is enough. I am asking it for you because you have alot of experience and to hear it from you can give me confidence.
key is called: Right Side Trading
Now way do you have to trade them all and I don't suggest that you do. What you want to do is disversify between the majors, USD, GBP, EUR, JPY.
Concentrate on right side trading. If you have one position for each of those you will be diversified. When I say right side trading I mean you want the pairs above to be on the right side of the price quote. For example, eur/usd ( usd is on the right side of the quote and eur the left side. But for the pair usd/jpy, the dollar is on the left side and the jpy is on the right side. If you have at least one position on the right side for each of the big 4 pairs you will be diversied.
If not you will end up with too many positions in one currency. you don't want to be long the Gbp/usd and the Eur/usd at the same time because the usd is on the right side of both of these currency quotes. That means you have doubled your risk in the usd.
CHEERS, JERRY
JERRY@FOREXTRADINGMAJIC.COM
JERRYJSTEW@YAHOO.COM
