[09:36:40 17/04/09] Stalion : helloo there, LP....

[09:39:32 17/04/09] Stalion : We put a sell stop on GBPUSD @ 14795...1ST TARGET @

14735...2ND TARGET @ 14665.. STOP LOSS @ 14850...

[09:40:58 17/04/09] Learning_pips : hmm

[09:42:30 17/04/09] Stalion : looks like the CHF report got the swiss pair in an uptrend

frenzy....

[09:43:35 17/04/09] Learning_pips : ok. I am only lookin at gbpusd for now.just one pair is

enough for me to begin with lol

[09:45:26 17/04/09] Stalion : of course, gbpusd might still have some strength for a rally

when the CAD report comes out in a few minutes

[10:06:47 17/04/09] Learning_pips : sell stop got triggered

[10:36:06 17/04/09] Learning_pips : made 35 pips before I did something while putting a

trailing stop and my position got closed by mistae



Hi Paul...hope you are enjoying your weekend?what you might have missed was proper risk

management.. Our sell entry on the cable,last friday, @ 14795 was on the mark at the first

foray, which went to a low of approximately 43 pips downward before reversing back beyond

our initial entry, up to a high of 14850..
Assuming you had entered, you would utilize the risk mgt tool of ''closing out half minilots

when +20 pips ahead, then shifting stop loss to initial entry level''...in this case,

SL=14795=initial sell entry...


By applying that rule, you would have been stopped out at breakeven profit, since you've

already closed out half your position at +20 pips...Remember price made a freefall down to

43 pips or so, to reach a low of 14752, 17 pips shy of our 1st target of 14735..
So its more of a case of good entry but less spectacular finishing/exit, if proper risk

management is not adhered to...like you observed on the log, Learning pips took out 35 pips

or so from the trade, which was enough for him for that day.. also we had like 3

opportunities to go in and out of the trade for 30 or more pips that friday...so it is still

valid till Monday..Hope you understand...


Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop

questioning.
- Albert Einstein

Helloo onwuka, how is it going? No offence taken, mon ami...we all learn at each of our

different levels in life...not just in trading...
To answer your question, we might take a little look at what interest rates mean.. They are

more or less payment for the use of a given sum of money, or its equivalent over a period of

time. Implied in this defination are demand and supply as determinants of market price, in

which price is the rate of interest. Interest is a COST to demanders of funds and an item of

INCOME to suppliers of funds, and the rate of interest influences their entry into a given

market in varying ways and degrees. The rate is stated on the basis of one year(per

annum),even though loans can be made for shorter or longer periods.

You see, the market referred to, is a credit market, in which debt is seen as an obligation

to pay money and credit is the right to recieve money. Such markets bring together borrowers

and lenders(investors), and in them are established and communicated the prices at which

they are willing to make transactions.

The price of credit is an interest rate, and that which is demanded and supplied are credit

or debt instruments, whose primary function is to allow control over money to be

transferred. Suppliers of debt instruments are demanders of funds, and demanders of such

instruments are suppliers of funds, so that in essence, it is the price of these instruments

at a given time which gives the market yield, or rate of interest. Interest rations the

supply of savings, serves as compensation to lenders, helps cover the costs of risks, and

can be used to help stabilize an economy or promote growth.

So onwuka, if a country's interest rate is held, under normal market conditions, it tends to

appreciate against other currencies with relatively lower interest rates. Short term

interest rates are the important factor in currency valuation - traders look at most other

indicators merely to predict how rates will change in the future;thats where we get to the

inflation/unemployment tradeoff.. If a country's Central bank feels inflation is high, they

usually increases interest rates in order to mop up excess liquidity..but that constricts

credit flow for growth and productivity which increases the unemployment rate..
But wait..
if unemployment is the top priority of the government, then interest rates are lowered in

order to increase credit expansion flows in the system so as to enhance employment through

wider growth and productivity...but that tends to increase inflation due to excess

liquidity...a TRADEOFF in the country's kitty..

Worst athletes from whom to ask financial advice - Yahoo! Sports



Hi katipunero, thanks for your mail...the right trading system is essential for the right

individual...not all size fits all...if you want to take up my services, then you are

free...just send a mail specifying which of them you are interested in, and I'll get back to

you,ok...

The Arabs have an ancient proverb that affirms:
He who knows not, and knows not that he knows not,
is a fool—shun him.
He who knows not, and knows that he knows not,
is a student—teach him.
He who knows, and knows not that he knows, is asleep—wake him.
He who knows, and knows that he knows is wise—follow him.

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