How’s The Dollar Performance and How To Gain Money

18 Aug

Posted by xBrain as forex

How’s The Dollar Performance?

For the past one year, if I’m not mistaken since last June, dollar start to weaken. Dollar or Grrenbucks have no value to the investor anymore. Dollar performance with their neighbour, Canada Dollar was terrible. So how do you think either dollar can make the comeback or continue to be even weaker than before?

Dollar Relationship With Oil And Metal

Do you notice that dollar have the close relationship with the oil and metal. I’ve heard to one unofficial resources that if the dollar weak, oil and metal price will be higher and vice versa. For the last few weeks we can see the dollar start to gain against the other major currencies.

What green has to do with oil and metal price? You can see that dollar is raising and the crude oil price is going down. Gold and silver price are going down too. It’s is simple rite?

Advice to Forex Traders Out There

Most of the young generation tend to choose to trade in currencies with either NFA registered brokers or not. Most of this newbies tend to use robots and taking to hard on the technical analysis. Why? Do they know that speculative and financial report will move the graph? If you have this thinking before about when the dollar will shine again?

See the screenshot below of USD/CAD for the past one year:

USD/Cad chart

How much you can earn? Lets do the math:

You know from the history that there is no currency that can be even killed especially USD, GBP and EURO rite? So every bear has their own limit. Take the USD/CAD on November 2007. The USD dropped till closely reach 0.900. Take the highest point today 1.0650 or just take 1.0600. So what is the total Pips that you can get if you bought the pair from November. The capital gain will be about 1600 pips. Correct if if I’m wrong yeah. How much will you earn?

Let put $-2.96 interest that you have to pay for daily and each pips value is $9.4180. You buy one lot and it will cost you around $250.

Cost : $250

Each pip value : $9.4180

Total Pips Gain : 1700

Interest You Have To Pay Daily : -$2.96*300days until today :-$888

Your Gross Profit : $16010

Your Net Profit : $16010 - $888 = $15122

Let see the second example:

GBP/USD Chart

Same calculation. Lowest point on Jun 2006, 1.700 and highest point on November 2007, 2.120 and the total profit gained will be 4000 pips.Let put $14.50 interest that you will get daily and each pips value is $10. You buy one lot and it will cost you around $250.

Cost : $250

Each pip value : $10

Total Pips Gain : 4000

Interest You Get Daily : $14.50*510 days = $7395

Your Gross Profit : $40000

Your Net Profit : $40000 + $7395 = $ 47395

So do you understand it? Why must be a day trader which always loss? Why must you trust the robots that always sink your money? Understand the currency and you can win long term. If you wanted to follow this style, please make sure that you have enough margin to sustain if the graph against you. Remember that you will gain on interest paid to you daily.

I have tried this formula last year but I have shorten down the time. I have no enough time to wait for the 12 months result. I managed to secure about 1,000 pips on selling USD/CAD and gain 1,200 pips on buying GBP/USD. Using this simple method you can earn in the long term basis but you must have patient.

Who said trading in forex have to be in front of your computer every day. Practice this method and you will be less pressure and you can monitor or take the profit let say once a week. Don’t jump into the band wagon with full of so called trader with their own technical analysis method.

By the way, the graph and graph reading might not been accurate. Don’t trust the calculation 100%. I want you to calculate yourself to realize the profits. This method had been widely used by most of the top banks in the world. If you don’t trust me, walk in to the bank which trade currencies and you will find out.

Do you know that why GBP/USD gained to 2.12 last year? Most of the banks and big trader cash in their money and those big fat wallet player wants the GBP to reach above two. You can’t beat those guy. Remember this lovely quote :