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Replies to #42104 on FOREX TRADERS
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ElderWolf

02/19/13 5:12 AM

#42105 RE: Capitalist #42104

Hey Cap! The dollar's days as a bearish trade are coming to an end. I'm glad you've made money in the meantime!

Just remember...the Fed is pumping dollars into the system but the velocity of money is pretty low. Also, in order for the dollar to collapse/weaken, there must be a place for it to go. Where? There's nowhere in the world for the massive capital to park itself except the dollar. There's also the stock market as investors shift from public to private investments as confidence is lost in our governments. What do they need in order to invest in the market? The dollar! Even though things seem pretty bad here, they're much worse elsewhere. There simply is no replacement for the dollar...even now.

Also, the majority is ALWAYS wrong. ALWAYS. In fact, the majority provides the fuel for the counter-move. I've always been a trend investor looking for thousands of pips over several months. I don't look at today or tomorrow. I look at next year. I haven't entered anything yet but when I do, I don't mind short term losses when my horizon is several months.

Look for the dollar to strengthen relative to other currencies over the coming months/years, especially in times of uncertainty.