Currency Trading Information

Where is the Market Going?


If you ask me whether the market will have moved up or down by this time next year, well I may as well flip a coin, because I don't know.

If you ask me whether the market will have moved up or down by this time next month, well again, I may as well flip a coin, because I still don't know.

If you ask me whether the market will have moved up or down by this time next week, AGAIN, I may as well flip a coin, because I don't know.

And if you ask me whether the market will have moved up or down by this time tomorrow, I am sorry, but I JUST DON'T KNOW!

But? if you ask me whether the market will move up or down in next few minutes, well I will have a definite opinion. Why? Because if I can see the CURRENT state of buying and selling in the market NOW, then I can make a reasoned and fairly accurate estimate of what the market will do in the next few minutes and moments.

My prediction will not be based on some secret formula; it will not be based on some esoteric sounding indicator, nor on some complex mathematical equation. No, it will be based on my evaluation of the current state of supply and demand.

Predicting the long-term movements of the markets is a guessing game. All we have to go on is the past; all we can reasonably do is assume that what has happened in the past will continue to happen in the future. Basically that is what trend following is, making the assumption that the past equals the future.

In my trading world, the only law that works is that of supply and demand: if there are more buyers than sellers then the market will go up; and if there are more sellers than buyers the market will go down.

It matters not one iota the whys and wherefores of the buyers and the sellers. It does not matter that a trader has chosen to sell now because the 9 period moving average has crossed the 14 period; or because he has just lost his shirt; or because he is taking a profit; or because he is just plain bored.

No, I don't care why a trader has entered a buy or a sell order, I just care that they have, by their act, added to either the buying or the selling pressure.

Malcolm Robinson
LIFFE Pit Trader & Electronic Trader
InstinctiveTrader.com


MORE RESOURCES:

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Currency market volatility has dipped once again through the past week of trade. An earlier spike in our DailyFX 3-Month Volatility Index quickly reversed ...


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Expect a dollar rally to begin the week. This opportunity should be used to establish / add to long standing USD bearish positions. ...


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If you're a stock trader or an avid financial news junkie, then you already have an edge over other beginning currency traders. ...


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In currency trading, as in any form of active investment, it is important to understand how you arrive at your investment decisions. ...
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BIG rally on Wall Street
India Infoline.com, India - 3 hours ago
In currency trading, the dollar rose versus the euro and the yen. COMEX gold for August delivery fell US$5.50 to settle at US$923.30 an ounce. ...


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Daily FX, NY - Jun 16, 2008
The EURUSD and GBPUSD appear to have finally bottomed for at least a few weeks. Near term, the pairs should advance slightly more before undergoing very ...


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Dollar Rises as Bernanke Says Fed May Extend Lending, Oil Falls
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... chief currency strategist at FOREX.com, a unit of online currency trading firm Gain Capital in Bedminster, New Jersey, in a Bloomberg Radio interview.
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Treasury losses may dent banks' profits
Economic Times, India - 11 hours ago
Since April, currency trading owing to a volatile rupee is emerging as a new earning avenue. Also, despite the slowdown, credit has grown sharply in the ...


How to Trade DailyFX+ Currency Trading Signals in the Week Ahead
Daily FX, NY - Jun 9, 2008
... entering a period with larger currency price movements, forcing us to make fairly substantial shifts in our outlook for our currency trading strategies. ...


Top Currency Trading Ideas for the Week of June 9, 2008
Daily FX, NY - Jun 9, 2008
The USD will likely head to yearly lows against a number of currencies (except for the CAD) in the coming weeks and months. After the large moves last week, ...

Currency-Trading - Google News

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