There are two ways in my opinion of making money by trading in the FX market. Firstly there’s the slow and steady approach, income generation if you will. Secondly there’s the ‘let it ride’ approach, but we’ll be kinder here and call it capital gain.
I definitely belong in this second group as I will make my money on a small number of trades each year which I get right. I build a decent sized position and then let it ride, sorry I mean accrue capital.
The technical team over at Citibank are also of the opinion that they are on a winner and they are piling up the bets, I mean trades. They’re long Gold at around $1120 from memory, they bought EUR/USD at 1.3590, they bought cable last night at 1.5425 and they are looking to sell USD/CAD for a move back to 90. If they get these right they are going to clean up.