Do Rate Cuts Really Work?

Is the Rate Cut really of any help?

I leave you to be the judge,

chart attached 6mth trend since subprime and consequential rate cuts, dj and usdjpy....

Top charted my longs on euro. I'm done with the USD.

Anyone rooting for the USD?

?The weeklies are telling us some interesting developments of the USD.

Majors have indicated a possible reversal to USD weakness esp afetr the emergency rate cut by the Fed, fundamentally prostituting the USD.



But CAD AUD and NZD still indicates sustained USD strength.

Hard times. Is the USD really bound for death? Looking at the way the interest rates are being cut, it wouldn't be long before we take USD our new favorite carry trade vehicle. heeeh.

Update on DBS

Look at her go...can we see $15.50? Well thats a target, for me at least. Annuoncement due in mid Feb, we'll watch the developments till then.

We have suddenly seen huge price swings, extreme volatility, difficult times to trade. A word of advise for fellow traders, keep the stops HUGE and reduce the overall exposure, we are gonna see plenty of slippages.

AUSUSD Demo Trade Update

Well since this is a demo trade...no point flattering myself, just updating the position. Oh btw the account opened today, i'll be TTing the money tonight and should be ready to trade in a day or two.

Demo Trading the AUDUSD

Since i'm still waiting for some account matters to clear up with the broker. Allow me to share a setup i took with the Aussie.

DBS Annihilated

STI's big cat just broke a 6mth low, it seems like financials around the world carry one strategy. Sell... All time high cemented at 23.00 current trading at 18.20. DBS has lost 21% of its value since the high. Have we seen value? i'd suggest, staying aside.

Why Your Trading is Doomed

An interesting article, introduced to me by a fellow forumer in FF. This is why setups and stop management are so annoyingly important.

Author: Jordan Knight
@ 1888 Articles.com

The single most important aspect in trading forex is to stay in the game, which means not to blow up
your account. Whatever method of trading that you employ will not earn you
profits if you keep on blowing off your hard earned profits or your account on a
few losing trades.

The single most important aspect in trading forex is to stay in the game,
which means not to blow up your account. Whatever method of trading that you
employ will not earn you profits if you keep on blowing off your hard earned
profits or your account on a few losing trades. There are many traders out there that boast high returns but almost all of them
will be followed by similar magnitude of losses that will bring them to break
even or even total loss.

Even the best trader in the world can only make up to 30% average return
per year and yet you are fooled to believe that you can make better than that.
Many profitable trades are offset by losses brought about by potential wins went
wrong. If only one can know before hand which trades will be profitable, the
losing trades can be avoided. However in reality, this is impossible and this is
why we have to assume that all trades will be profitable and hope that the
winning trades offsets the losses.

A common mindset of new traders is, risk is acceptable to a larger degree
while profits must be locked as soon as possible. This is evident in many forums
that highlights the use of trailing stops as small as 10 pips. If you have
traded long enough, you will realize that even 60 to 100 pips can be considered
as market noises and they are virtually unpredictable. So any small trailing
stops are bound to be hit. Given the small capital that most new traders have,
they are left with no choice but to employ such ridiculously small stops. When a
trader has a small profit, the greed and fear kicks in that even before the
target is reached, the trade is closed with a small profit. This may seem like a
safe option, but in the long run, it is the system that matters. What guarantees
success is a system that is religiously followed. Emotion and greed have no
settings or parameters to be fiddled with, and they are truly subjective. So how
one can determine which 'settings'of greed and fear that work best? This is
where a system comes into play. A good system takes away the emotion and greed.
A good system has parameters and settings that can be fine tuned unlike emotions
and greed. And when the best settings are found, the system can be used with
huge success no doubt it will never be perfect.

In real world, the successful and wealthy traders made their fortune slowly
and steadily through careful risk management and very wise leverage use. However as a small
trader, low leverage may be too slow. There are ways to make profit like the
hedge fund managers using high leverages, but these methods are often
overshadowed by the false promises of so called forex gurus and brokers that
entice newcomers with ridiculously high profit potentials.

Every method that you employ will fail to work if these methods of trading
management are not employed. After scouring numerous sites and forums, I have
never seen any traders utilizing these trade management ideas. Now this sheds
some light on the saying that 90% of traders often fail!

So can this be the holy grail everyone is searching for? For me, the answer
is yes, the holy grail in forex trading lies in trade management. However, to
attain this skill it needs years of experience and the sound knowledge of your
own self!

Euro Vs Aussie

Is it just me or has 2008 been very difficult to trade?

Look at the two charts i posted and tell me how would you trade this. Would it be a good idea to short? Or should i wait a little longer for another bullish confirmation bar be on the long side? What do the pros tell you to do when you are not sure? just step aside and let the old boys show you how its done. oh well....

The Sterling Attraction

So, we have reached an important point in the Sterling trend. At the current price it is trading at factoring the interest diferrentials, it would be hard not to suggest that we have likely been given the possibilty of collecting some sterling at a very very attractive offer rate. Further anticipation of interest rate cuts in the US could further fuel a cause for more upside of this currency. I'll be looking to stream in to some entries from the lower time-frames.

STI Consolidates On Speculations

Since the subprime alert during July 07, we have seen the STI achieve a new level of volatility. While the Index has succesfully computed a new high, much has to be asked abt the current market sentiment. If we we to collectively correlate the price movements of the DJIA against the STI, one could note that both our markets have actually been moving in tandem.

The correlation suggests that the weakening trend in DJIA will likely affect future prices of the STI. At the current moment, one could digress that the index is currently slated in a very consolidative mood. Events unfolding in the US for the next few weeks would determine the indicative direction our STI would make.

For now, i'd say oscillation plays between zones 3300 - 3600 would be the best bet if one has desires to speculate.

Singapore's GDP grew 7.5% in 2007

Happy new year! Wishing everyone a blissfull 2008.

Ministry of Trade & Industry has just released the latest GDP report for Q4 of 2007, which also completes the year's GDP cycle for year 2007. As we could see, compared to 2006, the GDP has dropped by -0.5% compared to the growth of 2006, at the same time, lets note that the nation is still facing inflationary pressures, attributed to rising prices of almost all commodity vehicle.

Manufacturing sector not only concluded a hugely decelrated growth in Q4 but if we compare it to data mined from 2006, we are seeing a significant slowdown of growth in this sector. In effect, this would definitely have caused by a reduction in consumer demand and exports.

On the contrary, the construction sector has seen one of its biggest growth in 2007, backed by buying demand for housing, 1-2 years down the road, expect supply to overtake demand, evident in the current activities in the construction sector.

As for the overall face of the Singapore economy, i must conclude that 2006 through 2007 has seen one of the finest growth in the new millenium. But note that as we are slowing down on GDP (expectations as reported for Q1 2008). We are still facing the overbearing fact that prices in commodity will continue to rise.

Report : http://www.singstat.gov.sg/news/news/advgdp4q2007.pdf