Comments on: FED decision.

By: Shock and … what? | fxmadness.com

Shock and … what? | fxmadness.com — Fri, 20 Mar 2009 17:23:19 +0000

[...] so I closed it also. It was mentioned on these pages many times, most recently two days ago in FED decision. I took about 2 weeks from the time order was placed to execution. There is more potential here, [...]

By: Ray

Ray — Thu, 19 Mar 2009 10:31:51 +0000

Those were very accurate observations, about what FED might do. Indeed they are going to buy US debt. I think they are really pushing the envelope here, with both debt issue and deflationary forces. If we don’t see results of these actions soon, then we are stuck in this recession for few more years.

By: Andy

Andy — Thu, 19 Mar 2009 06:29:23 +0000

Well, you nailed it. Wanted something intresting to happen and it did. Hope you describe how that GBP-CHF order worked out. This pair also had wild swings.

By: admin

admin — Thu, 19 Mar 2009 04:54:17 +0000

Heather, yes it was crazy. Imagine being on the wrong side of it and not being able to get out….
Hi Grace. If you are absolutely new and want to trade short term EUR-USD, USD-CHF, USD-JPY are probably the best. Longer term trades could include GBP-USD, EUR-JPY, AUD-USD and USD-CAD, but beginners should focus on the first 3.

By: G.R.

G.R. — Thu, 19 Mar 2009 04:27:55 +0000

Hi,
my name is Grace and just wanted to say hello. Have been reading this blog for some time now and find it interesting, even though it is way over my head. I’m still trading demo but getting ready to open a real account. Which currencies do you think a beginner should focus on? Thank you.

By: Heather

Heather — Thu, 19 Mar 2009 04:12:47 +0000

Now I’m not surprised you avoid trading during time of news releases. I have never seen EUR-USD move so much so fast. Crazy

By: admin

admin — Wed, 18 Mar 2009 19:14:19 +0000

Interesting, Jason? Understatement of the year. I think it is perception of debt finally catching up with the dollar. I’ll discuss it in depth in next update.

By: admin

admin — Wed, 18 Mar 2009 19:11:00 +0000

Mark, these kind of concepts are interesting. At this point, though, no matter what happens general public will not change opinion about the employees. They in turn, are sure they deserve the payments. Vicious circle. Glad I’m not involved.

By: Jason

Jason — Wed, 18 Mar 2009 18:58:02 +0000

Well, this was interesting. No rate change but currencies exploded. What is your take on this?

By: Mark

Mark — Wed, 18 Mar 2009 18:01:33 +0000

re. AIG post this suggestion from Macro Man http://macro-man.blogspot.com/2009/03/big-day.html is a gem:

“… Don’t seize the bonuses via a one-off excise tax. Instead, pay them in the amounts contractually-mandated, and use normal tax treatment. But pay them in stock, and allocate shares on the basis of the average AIG share price in 2008: $27.57.
So someone receiving a million-dollar bonus will receive 36,269 shares of AIG. Current market value: $34,818. This should appease the baying masses and also introduce an incentive to these valuable employees to right the ship as quickly and successfully as possible. Oh, and at the same time, introduce these guys to another concept well-known to hedge fund types: the high water mark.

If and when AIG were ever to surpass the high water mark of the stock allocation price, that would be a very big day indeed, for both the employees and the taxpayer.”