Posts by "lawrence"

Chloe, I read that you don't use stops, but use overbought/oversold as a "natural" stop. I use a similar technique, but hedge with one or more highly correlated pair. I'm always long AUDUSD to pick up the interest, but hedge with USDCHF (very small interest cost) and a few other highly correlated pairs. Given current interest rate differentials and my personal risk tolerance, the annual interest gain approaches 50%. There are times when I get nervous, but it seems to work with no stops. Any experienced traders think I am foolish?

Ashraf, I understand that gold prices closely follow the gold holdings (in tonnes) of the GLD exchange traded fund. Supposedly this fund is one of the top five holders of gold in the world, and I assume this fund is driven by retail traders, not the big boys. So, do you see this gold rise being driven by retail traders, or are there larger forces in play? And, why is silver likely to outperform with a slowing world economy weighing on industrial commodities? As always, thanks for your insights.

Last week, I read with interest you continuing articles about equities hinting at renewed risk aversion and oil on a downward trend. I figured buying USD/CAD was a good move for intermediate term trade. Results so far have me questioning this strategy. Your thoughts?