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Trade Against The 90% That Lose Money 2nd Nov
Retail traders are notoriously wrong at picking market direction/tops and bottoms. Most retail traders very naturally seem to adopt a counter-trend stance and this offers very accurate signals for individuals looking to trade against this group. This daily report is designed to help traders focus their efforts on higher probability pairs.
So what are the signals?
Strong Short 66% Retail Longs
Short 60% Retail Longs
Long 60% Retail Shorts
Strong Long 66% Retail Shorts
We are looking for 60%+ (Ideally for best opportunities 66%+) of retail traders to be trading either long or short a currency pair, we then look for opportunities to fade (trade against) this group. For example if 72.99% of traders are long the USD/CHF we look for opportunities to short that pair.
The pairs that we feel offer the highest opportunity for success are described in the Strong Short and Strong Long areas.
What’s New Today? After the Aussie rate hike news, retail short positions in the AUDUSD made a big push higher and are now close to the long zone. The USDCAD entered the short zone after a long while of hovering close to the zone but not quite making it.
Provided by Pivotfarm - The Home of Support and Resistance Trading
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so QE2 = FED prints money and buys USA bonds. What HAPPENS with all this DOLLARS? Is USA treasury going to hold this cash or its going to be spent by buying mortages and similar stuff?
The Retail Investor is not that wrong over the log haul. Actually, the Mutual Fund and Pension Fund manager have worse records when it comes to buying tops and selling bottoms.
On my old trading desk we tracked both - retail investors as individual traders do not have the fire power to move the market, they are an ancillary player. Institutional cash positions (especially for fixed income when matched with duration targets) are generally a better indicator of 'buying power'.
Also, there is a chance that the retail investor his undergoing the same generational change that we saw from the Great Depression - do individual investors trust the stock market going forward.
You found a retail investor?! Do you have pictures of the beast?
Retail investors are trading FOREX ? What's the definition of 'retail'
It seems to me "institutional players" and not just the usual "whipping boy of retail" is caught up in "the rule" too. Why coming to ZH a necessity. Unlike (what is left of) retail "institutional players get to hide things." We shall see if indeed "we're heading for a hyperinflation." This is one hell of a stealth bull market and today is classic example of that. Of course "nothing but good news when the market is up."
The 'Market' is creating news not the other way around lol