One of the reasons I don’t usually hold my trades for long periods of time these days is because of all the crazy stuff going on in the world today. This is the case with most of the majors that are commonly traded in the Currency exchange. The Yen, U.S. Dollar, the Euro, The Great British Pound, and even the Australia Dollar has been crazy with the natural disasters that have come recently.
Currently there is a lot of talk of a strong Dollar and weak Euro with all the negative news on the Euro coming out this past week. I agree the Euro is week but I personally have no confidence in the U.S. Dollar because we are just one news away from a complete reversal in the current downward move on the Eur/Usd.
The Dollar is not a strong currency at all right now and there have been no signs of that changing at all. The point of this article is to advise traders to be ready to get in and out at a moments notice and not continue to hold positions because you have a belief about the economic events at hand. The market is too volitile in these current markets to trade that way.
One other trap to avoid is jumping on the bandwagon if everyone is yelling Euro short and you jump in, then be sure that the moment you jump in is when it will be bound to change directions. Many countries which are leaders in the global economy are very unstable right now so that provides a great deal of opportunity for traders who can make good decisions and are quick to adapt.
In my trading there are times when I try to go against the crowd and when everyone else is going short I might be going long. It has taken me a long time to develop the skills to trade in this manner but I have found an interesting article about picking tops and bottoms that you might find interesting.
If you would like to follow me on twitter I recommend it because there is a great deal of good market information that gets put out from there. Also please dont hesitate to contact me if you have any suggestions.
Winner’s Edge Trading, as seen on: