Resolved Question
Is it possible to profit from a down trend?
If you sold your entire position at the peak of an up trend for the EUR/USD pair and thereafter EUR continued downward for a week as it weakened against the USD, is it possible to make any profit in one direction of the same currency pair or can you only go long and profit as the trend moves upwards again?
Your answer is greatly appreciated.
8 months ago
Best Answer - Chosen by Asker
If you buy EURUSD, you buy EUR in exchange for USD. If you sell EURUSD, you buy USD in exchange for EUR. If you buy USD, you believe that the USD will go up in value over the EUR. If you buy EUR, you believe that the EUR will go up in value over the USD. So, while one is called a sell, they are both really buys.
A downtrend in the EURUSD means that the USD has gained value over the EUR. An uptrend means that the EUR gained value over the USD. So, yes you can make a profit trading the EURUSD either on a sell or a buy.
I would suggest reading everything on the school in babypips.com and then practicing for quite a while in demo accounts. Trading forex is very difficult and most lose money over the long term.
8 months ago
* You must be logged in to add comments. Sign In or Join Askpips.com.
Answers (0)
There were no other answers submitted for this question.
Open Questions in Beginner
Resolved Questions in Beginner
- Should I go live? Please give me your advice on this.
- For a newbie, which currency pair do you think is the best to start with?
- Which do you think is better? Daytrading or Position Trading?
- For a newbie like me, is $1000 a good starting deposit in forex?
- I work full time and I'm wondering if signal providers really work. Has anybody had any experience with them?
VegetaForex
Good answer and good advice. Thank you.
8 months ago
Report it