Comments on: In Forex, why does the rate of a currency pair IMMEDIATELY go down every time I buy? http://www.myylt.com/2009/05/28/in-forex-why-does-the-rate-of-a-currency-pair-immediately-go-down-every-time-i-buy/ Discussion of Forex Trading and Currency Trading Wed, 23 May 2012 00:50:54 +0000 http://wordpress.org/?v=2.3.3 By: Dan W http://www.myylt.com/2009/05/28/in-forex-why-does-the-rate-of-a-currency-pair-immediately-go-down-every-time-i-buy/#comment-14877 Dan W Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/05/28/in-forex-why-does-the-rate-of-a-currency-pair-immediately-go-down-every-time-i-buy/#comment-14877 The spread is why you start down. there are 2 prices a bid and a buy. You pay the the price that you don't want, If you expect to the price to go up you buy which is about 3 pips higher than the bid. the entry is seldom at the exact time of a rate change but I have seen it so you will be down a few to 30 minutes before the price goes up the total of the spread then start making money. Also possible is that the price waffles around the staring point and drops below the start several times The spread is why you start down. there are 2 prices a bid and a buy.
You pay the the price that you don't want, If you expect to the price to go up you buy which is about 3 pips higher than the bid. the entry is seldom at the exact time of a rate change but I have seen it so you will be down a few to 30 minutes before the price goes up the total of the spread then start making money. Also possible is that the price waffles around the staring point and drops below the start several times

]]> By: jeffk2222 http://www.myylt.com/2009/05/28/in-forex-why-does-the-rate-of-a-currency-pair-immediately-go-down-every-time-i-buy/#comment-14878 jeffk2222 Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2009/05/28/in-forex-why-does-the-rate-of-a-currency-pair-immediately-go-down-every-time-i-buy/#comment-14878 I'm not sure why you would take a loss on purpose here (your stated purpose of getting a profit at the lower rate makes no sense), but remember that when dealing with foreign exchange, you're dealing in pairs. It's not useful to think of these exchanges as analogous to equity markets, because they're not. Further, unless you're dealing in the kinds of volume that makes you a market mover, your transaction has nothing to do with moves in the prevailing rate. You're not dealing in those kinds of volumes, so you're seeing causation where not even correlation (well, other than very weak) exists. Forex is not parimutuel. I sincerely hope that you are participating in some sort of 'play money' exercise and not wagering your own money. If you are involving your own funds, a bit of unsolicited advice: get out now. No matter what the man on the infomercial or in the book says, currency exchange is not for the individual investor, you *will* be eaten alive by sharks, and you *won't* see it coming. I'm not sure why you would take a loss on purpose here (your stated purpose of getting a profit at the lower rate makes no sense), but remember that when dealing with foreign exchange, you're dealing in pairs. It's not useful to think of these exchanges as analogous to equity markets, because they're not. Further, unless you're dealing in the kinds of volume that makes you a market mover, your transaction has nothing to do with moves in the prevailing rate. You're not dealing in those kinds of volumes, so you're seeing causation where not even correlation (well, other than very weak) exists. Forex is not parimutuel.

I sincerely hope that you are participating in some sort of 'play money' exercise and not wagering your own money. If you are involving your own funds, a bit of unsolicited advice: get out now. No matter what the man on the infomercial or in the book says, currency exchange is not for the individual investor, you *will* be eaten alive by sharks, and you *won't* see it coming.

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