The degree of trading difficulty has taken toll even amongst the best hedge funds portfolio managers like Louis Bacon of Moore Capital Management. Where he has decided to lessen his company's trading capital exposure due to dried-up Market liquidity taking place and the degree of trading exposure in placing a huge structured trading strategy of their portfolio in the current market conditions.
With a higher degree of expectations every year after a posting contrast with his previous success of 18.3% since inception, a 1990 and 1992, return of 86 and 45 percent was some of the highlights. But contrary to the previous year down by 2% and currently a 0.35% as of June this year 2012.
Although, Mr Bacon does not trade a huge portion in the FX market; but this has shown that a substantial amount of value in trading confidence in the market proves the overall degree of trading difficulty have gradually been increasing alongside the volatility of market price fluctuations. Once more "what is the percentage of a potential & profitable trade?" comes into question with the current market conditions. What trade tools are applicable and practical to increase the degree of trading successfully in the market today? These are the vital questions that needs to be addressed before any trading decision should be made which we would likewise be discussing in our next article.
For now, after a gruelling trading 2 weeks of daily up and down market swings experienced particularly with the Euro and the Sterling Pound last Aug 02-03; where market prices have traded within a wider-trading range before and after Mario Draghi's remarks. Not to mention the inability of the FED, ECB & the BOE to do more to justify a quantitative easing actions which the market participants were so eager to anticipate & speculate the need to take action. At the same time some analysts have started their interest in challenging ECB President Mario Draghi to make good and follow-through his strong comments of preserving the Euro currency last week.
The two (2) day market price movement of the Euro with short-covering actions by sellers have led the market squeeze of the EURUSD, GBPUSD and spilled-over on the USDCHF. Market capitulations would gather pace with increase volatility and major market price swings towards the next trading weeks to follow. No new catalyst to spur any dramatic price action for the week as market investors wait out for stocks to continue its rally after its corrective moves.
On the technicals;...pls. continue
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