Do you think adaptation to the realities of the market is most important?
Many times in the past I have written about the need to adapt, the need to be able to change their behavior in relation to the market because the markets are constantly changing.
He stated that mechanical systems can be viable, but only for a short time in relation to the life of the markets. You must learn to operate what you see and understand what is seen in a picture.
When you first began trading there was no such things as futures contracts on foreign currencies. Why there? Because there was no need for them! In the 1970's everything changed when the U.S. dollar abandoned the gold standard and began to float against other currencies. Then, the Chicago Mercantile Exchange began to create currency futures to provide a place where currency traders could hedge the risks associated with foreign exchange trading. Some of these risks are direct and some indirect. Direct risk is involved for those who work directly in foreign currency. Indirect risk involves companies who export or import and receive payments or make payments in the currency of another country.
Since the currency futures were created, which have been in a state of flux. More recently, the effects of futures trading, money exchange have focused on a massive movement away from currency futures to more direct trading in the currency markets. Currency futures, while maintaining its volume and open interest figures, are actually less liquid than it was before. Volume and open interest do not reveal the image of what is happening in the currency futures pits. Levels of volume and open interest are held by fewer and fewer futures traders.
In the period from 1992 to the present, we have witnessed currency futures moving from "red" to "cool" and now hot again insofar as speculators are concerned. Currencies, which in 1992 was one of the best plays, first turned dull and then back to the exciting.
This has occurred can be seen in the areas of which most futures traders are ignorant. Five years ago, currency traders were paid huge salaries and anyone with a history could practically name his price. After this, currency traders were no longer in great demand. Now, again, there is a huge demand for successful currency traders.
Currency futures are just a small representation of the exchange market $ 1.5 trillion foreign dollars. The professional forex traders use forex, broadcasting contracts, derivatives of all kinds, and future wells to deploy their various trading and hedging strategies. You see only the future is like the blind trying to say what an elephant is like by feeling only the tusks.
In recent years, foreign exchange desks at banks, insurance companies, brokers and other institutions were closing down and laying off hundreds of employees. Today, they are again looking for currency traders.
In the 1990's, Midland Bank closed its office in New York foreign dismissal of dozens of people. Frankfurt had retired from the Bank of New York and Tokyo exchange closed its office. At that time, the world's largest currency trader was Citicorp. In the D-Mark alone fell from 39 traders working in 17 different locations around the world to 4 D-Mark traders all working in a room. Note that these were merchants who had been in a greater or lesser extent with currency futures. The result then was that there were fewer big fluctuations in currency futures once the benefits were and therefore much less.
However, today the opposite is happening. Central banks are now making much greater intervention in currency markets. They have stopped publishing targeted exchange rates. Such action by central banks leaves currency speculators at a loss for what to do, and the result has been a huge increase in currency trading.
Because Forex brokers today are abundant and active marketing of the idea of currency speculation, which is having a profound effect on foreign exchange planning of individuals, businesses and nations.
If some day the major currencies would be the U.S. dollar, yen and euro-J, which takes thousands of merchants to trade? Would be far fewer currency misalignments to provide a basis for trade. But that's not the way the world is moving. The picture just presented ignores the rise of China as a major economic force on the world stage. Almost certainly, the Chinese currency will become a major commercial vehicle. The same is true for other emerging countries. Some of them undoubtedly have major currencies from the point of view of world trade. But these currencies are traded in futures markets or in forex?
The changes in this area only one? currency trading? are an example of how quickly things change and point to the need for traders to adapt. There are, indeed, been many changes in recent years. The advent of electronic markets has generated all the markets of a completely different kind. Computers have brought the ability to trade in various time frames. New exchanges have created new markets and new contracts? many, in fact, it is difficult to know exactly where to direct the efforts of the business. It is now possible to trade virtually all day. It seems that somewhere, some market is trading.
Many times in the past I have written about the need to adapt, the need to be able to change their behavior in relation to the market because the markets are constantly changing.
He stated that mechanical systems can be viable, but only for a short time in relation to the life of the markets. You must learn to operate what you see and understand what is seen in a picture.
When you first began trading there was no such things as futures contracts on foreign currencies. Why there? Because there was no need for them! In the 1970's everything changed when the U.S. dollar abandoned the gold standard and began to float against other currencies. Then, the Chicago Mercantile Exchange began to create currency futures to provide a place where currency traders could hedge the risks associated with foreign exchange trading. Some of these risks are direct and some indirect. Direct risk is involved for those who work directly in foreign currency. Indirect risk involves companies who export or import and receive payments or make payments in the currency of another country.
Since the currency futures were created, which have been in a state of flux. More recently, the effects of futures trading, money exchange have focused on a massive movement away from currency futures to more direct trading in the currency markets. Currency futures, while maintaining its volume and open interest figures, are actually less liquid than it was before. Volume and open interest do not reveal the image of what is happening in the currency futures pits. Levels of volume and open interest are held by fewer and fewer futures traders.
In the period from 1992 to the present, we have witnessed currency futures moving from "red" to "cool" and now hot again insofar as speculators are concerned. Currencies, which in 1992 was one of the best plays, first turned dull and then back to the exciting.
This has occurred can be seen in the areas of which most futures traders are ignorant. Five years ago, currency traders were paid huge salaries and anyone with a history could practically name his price. After this, currency traders were no longer in great demand. Now, again, there is a huge demand for successful currency traders.
Currency futures are just a small representation of the exchange market $ 1.5 trillion foreign dollars. The professional forex traders use forex, broadcasting contracts, derivatives of all kinds, and future wells to deploy their various trading and hedging strategies. You see only the future is like the blind trying to say what an elephant is like by feeling only the tusks.
In recent years, foreign exchange desks at banks, insurance companies, brokers and other institutions were closing down and laying off hundreds of employees. Today, they are again looking for currency traders.
In the 1990's, Midland Bank closed its office in New York foreign dismissal of dozens of people. Frankfurt had retired from the Bank of New York and Tokyo exchange closed its office. At that time, the world's largest currency trader was Citicorp. In the D-Mark alone fell from 39 traders working in 17 different locations around the world to 4 D-Mark traders all working in a room. Note that these were merchants who had been in a greater or lesser extent with currency futures. The result then was that there were fewer big fluctuations in currency futures once the benefits were and therefore much less.
However, today the opposite is happening. Central banks are now making much greater intervention in currency markets. They have stopped publishing targeted exchange rates. Such action by central banks leaves currency speculators at a loss for what to do, and the result has been a huge increase in currency trading.
Because Forex brokers today are abundant and active marketing of the idea of currency speculation, which is having a profound effect on foreign exchange planning of individuals, businesses and nations.
If some day the major currencies would be the U.S. dollar, yen and euro-J, which takes thousands of merchants to trade? Would be far fewer currency misalignments to provide a basis for trade. But that's not the way the world is moving. The picture just presented ignores the rise of China as a major economic force on the world stage. Almost certainly, the Chinese currency will become a major commercial vehicle. The same is true for other emerging countries. Some of them undoubtedly have major currencies from the point of view of world trade. But these currencies are traded in futures markets or in forex?
The changes in this area only one? currency trading? are an example of how quickly things change and point to the need for traders to adapt. There are, indeed, been many changes in recent years. The advent of electronic markets has generated all the markets of a completely different kind. Computers have brought the ability to trade in various time frames. New exchanges have created new markets and new contracts? many, in fact, it is difficult to know exactly where to direct the efforts of the business. It is now possible to trade virtually all day. It seems that somewhere, some market is trading.
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