Quotations by Grace Cheng
Most major currencies generally move less than 1% daily. [2007] - Grace Cheng
At least 80 percent of foreign exchange transactions have a dollar leg. [2007] - Grace Cheng
The London market accounts for almost one-third of the global total daily forex turnover. [2007] - Grace Cheng
Liquidity of major currency pairs: High - EUR/USD, EUR/JPY, USD/JPY; Medium - USD/CHF, GBP/USD, USD/CAD; Low - NZD/USD, AUD/USD. [2007] - Grace Cheng
Relative volatility of some currency pairs from low (daily 60 pips) to high (daily > 130 pips): AUD/USD, NZD/USD, USD/CAD, USD/JPY, EUR/USD, USD/CHF, GBP/USD. [2007] - Grace Cheng
An important factor of trading success lies in the matching of Method with the trader’s own personality and trading style. [2007] - Grace Cheng
If you are unsure of a trade, stay out. It is better to miss an opportunity than to have a loss. [2007] - Grace Cheng
The COT report allows you to gauge market sentiment in the currency futures market, which also influences the spot forex market. When it comes to analyzing information pertaining to currency futures in the COT report, it is generally more relevant for traders to focus on the non-commercial participants. [2007] - Grace Cheng
A primary trend lasts the longest period of time, and its lifespan may range between eight months and two years. An intermediate trend could last from a month to as long as eight months. A short-term trend can last for a few days to as long as a month. Day traders are concerned with spotting and identifying short-term trends. [2007] - Grace Cheng
It is essential for day traders to know the trend direction on the daily chart as this enables them to trade knowing the overall technical picture. [2007] - Grace Cheng
False breakouts are more common than successful breakouts. Successful breakouts must be accompanied with a strong surge of momentum in the direction of the price breakout. [2007] - Grace Cheng
To get some clues as to whether a trend could be reversing, you should scrutinise the price charts, and look out for certain reversal chart patterns that tend to serve as harbingers of a trend change. Examples of such patterns include the head-and-shoulders, double top/bottom, triple top/bottom and so on. If you do spot these formations in your charts especially in the daily or weekly chart, there is a high chance that a reversal may be in the works, and that you should get ready for trading a breakout. [2007] - Grace Cheng
The most useful way of applying the RSI is through its divergence signals. [2007] - Grace Cheng
Decreased volatility is detected when a moving average moves sideways, and looks like a smooth horizontal line. [2007] - Grace Cheng
Independent traders may also apply leverage (preferably not more than 10 times) for carry trades so as to potentially increase their rate of return. [2007] - Grace Cheng
I have found that certain currency pairs among the majors tend to respond better than others when it comes to trading major news releases. Out of the four majors, EUR/USD, USD/CHF and GBP/USD tend to be better candidates than USD/JPY as the European markets are normally still open during the time of US news releases. GBP/USD moved the most in terms of pips with a 60-pip move; USD/CHF and the EUR/USD moved nearly the same amount with a move of 45 pips, and the USD/JPY moved the least with a move of 30 pips. [2007] - Grace Cheng