Millionaire Tradersor the other? Do you do both? Do you have a preference for either
one?
A: No, I usually kind of just stick with the U.S. dollar ver-
sus the majors and the Australian and Canadian dollars. There is
enough volatility and enough information to be analyzed with those
currencies.
Q: And then what catches your eye? There are about seven
primary dollar pairs on any given day. What makes you decide
which side of the trade you want to be on and which pair you want
to choose?
A: Coming into the day, I already have an idea based on the last
few days of the week what’s kind of happening. Then I see what
news has come out, since that’s what drives the market. I look at
all the economic releases, all the numbers that have been released
to see if the market has to adjust itself. If the market had a certain
consensus and it was wrong, then everyone is basically wrong and
then the market moves. And so you have to come in, assess all that
information, add that to the equation of what has happened over
the last several days, and then formulate a decision and see if it’s
viable to make a trade.
Q: Generally there are two type of traders. There are the traders
who are continuation traders and there are traders who are reversal
traders. Looking at the model you’ve described, well let’s just say
for argument sake right now, we have generally dollar-positive
information, right?
A: Correct.
Q: So continuation traders would pretty much always try to
get long the dollar given the fundamental background that we
currently find ourselves in. Reversal traders will clearly look for