I got this article written by a well-known trader in my inbox and it makes lots of sense to me so i wanted to share with everyone...
About every year at this time, currency traders lose their minds… Then they lose their shirts. It's going to happen again this year.
The most popular trade in the currency market right now is to be long the dollar and short the euro. At first glance, this seems like a reasonable trade. After all, Europe is on the brink of collapse. And as the continent dissolves, investors flock to the safety of the U.S. dollar. It's the ultimate "risk-off" trade.
But here's the thing… the world has a habit of not coming to an end.
Think about it. Back in May 2010, Greece was threatening to default on its debts. Spanish banks were in trouble. Ireland, Italy, and Portugal ......
