Forex Trading – 05 October, 2013
So what’s the significance of trading forex on October 05 2013?
Nothing really. Zip. Nada. Just another day of the week really ( all be it a Saturday ) but, I guess that’s the point really. It’s just another day.
When you take a step back and consider the actual “on the street” exchange rate of any two given currencies ( EUR / USD for example ) and their fluctuation during a “single given day of trading” you’ve really got to ask yourself…..
What can the movement of 9/10th’s of a cent ( within a 24 hour period ) possibly suggest in any “fundamental sense”?
Taking a single day’s trading into consideration – has global trade come unbalanced? Have you cancelled your vacation to Mexico, now knowing your hotel might cost and additional 22 Euros?
Of course not.
The forex market is so grossly leveraged that traders lose sight of the basic reality of it all……..the fundamentals. Would a “massive move of 500 pips” seriously change the future of global trade between the U.S and Europe?
Not in the slightest.
Trading forex as of October 05 , 2013 is no different than trading any other day of the year – “IF” you’ve got a grasp on the fundamentals.
The day to day is noise…..just noise.