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As a pundit about the war strategy for the eUS, I was very, very astonished to see the US victory of Manitoba. It was simple strategy and force. The multiple fronts and the obvious "fake out" in Sask, I have to admit that this victory was hard-fought and well-deserved. This is my first chance to see the victory I have heard about, when the eUS took back all of the eAmerica.

I have donated various sums of about $3 to various participants in the war.

Unfortunately, the statistics from the previous battle are unavailable.

So basically, I want to eat my own hat.

Trading Strategies - Supply and Demand

Buying and selling currencies that share little relation to each other (African currency and Far Eastern) is a recipe for disaster. Either you will be stuck with a large supply of foreign currency that will be almost impossible to get rid of, or you will need a chunk of currency for which there is no supply. Either way, you are stuck unless you take a huge loss. If you have ever had a chunk of about 200USD and put it on the market for 0.025GOLD, you know it will almost never sell.

For currency traders, however, large supplies of currency (I'd like to call it "hot currency") push the prices of the currency down at increasing rates. For example, where there is a high demand for USD from gold, you can see the price of USD/GOLD as low as 40.15USD. If you are like me, you end up competing with that person, each lowering the price down 0.01USD each until no profit is available.

However, usually the person you are bidding against only has one or two GOLD.

See what the gap between the current price of the currency and the next "hot currency". "Hot currency" as I am coining it right now, is when there is an active trader trying to sell a batch of currency quickly and is willing to suffer a loss. The price changes every five minutes and you end up cutting yourself out of a profit.

This is when you step back for a few minutes and chill out. See what the next price after his is. If the difference between the "hot currency" and the market rate is significant and the "hot currency" is so small, give up and market your money for 0.01USD less than the next currency in line.

For example, I was trying to long USD by shorting GOLD. The current market rate was 40.20USD. I placed my GOLD for sale at 40.19USD. A minute later, I checked and the price was then 40.18USD. When we got to 40.15USD, I noticed that I was trying to get rid of 10GOLD and he was trying to get rid of 0.30GOLD. I looked at the next lowest USD, which was at 40.30USD, so I repriced mine at 40.29USD. The next person bought his low priced GOLD and I was immediately first in line at a much higher price that I started. I basically would profit by 1USD more than I had if I kept up the bidding war.

It seems simple enough, but sometimes, in the heat of trading, you fail to see the big picture.

Thus, the low price of the "hot currency" was for a relatively low supply. Once that supply of cheap currency is off the market, the average price of currency returns to a normal number. Take your profit from the normalcy rather than fast trends.