Oct 25th (click chart to enlarge) |
At the moment the dollar is declining mostly because the price has advanced to a point where it is prudent to balance the equity/cash ratio of speculators. In other words the price is going down because the price has gone up enough to tip the majority of position holders risk/reward ratio to take profits. Speculators are weak hands traders who provide long term investors the ability to buy or sell at any time, no matter what the risk reward ratio may be. This all that liquidity means. Without liquidity there would be no chance for investors to do anything when they wanted to buy or sell.
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