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Resolved Question
Taking only sell trades improves profitability?
Since more reasons are required that price would go up than down.
over 2 years ago
Best Answer - Chosen by Asker
Not necessarily. You have to remember that in trading currency pairs, one currency's price is going up or down relative to its counterpart currency. For example, when you are selling (shorting) EUR/USD, you are hoping that the value of the EUR goes down. At the same time however, you are also hoping that the value of the USD rises against the EUR. Always remember that when trading currencies, you are both buying and selling a currency at the same time, so it doesn't necessarily mean that only taking sell (short) trades would make you more profitable.
over 2 years ago
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Answers (1)
That's not always the case... Besides, I think there are just the same amount of reasons required for the price to go either up or down. If your trades are based on fundamental analysis, you'd notice that better than expected economic reports from one country could cause their local currency to appreciate against others. Conversely, weaker than expected reports could cause their currency to fall in price.
You also have to consider the current trend of the currency pair. More often than not, following the general direction of the price action could improve profitability.
over 2 years ago
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