VERY basic trading principals HELP!

[yamaha123]

Fellow Traders-

I have been trading on a practice account for a few weeks, and have come across something that I get wrong consistently, and would like to clarify once and for all.

Please forgive my ignorance, as I will only ask this ONE time.

With FOREX, I like to use a 60/40 split trading approach of Fundimental to Technical analysis.


Now, something that confuses me, and Is not clicking for some reason.

The EUR/USD pair represented as such, and for WHATEVER reason, I cannot come up with the very simplistic answer. (Thats why I am here)


If I anticipate a Bullish appreciation of the USD against the EURO, say for an increase of Fed rate by the CB do I:


A: Buy or Go Long in this instance for EUR/USD
(if the # goes up, say from 1.57 to 1.77 does that mean that the USD Bulled or Beared in this instance by 20pips?)

or

B: Sell or Go short for EUR/USD
(if the # goes down from 1.57 to 1.47, does that mean the USD bulled or beared by 10pips?)


If I Go Long, that means I am anticipating that the EURO will appreciate against the USD (USD losing value), or does it mean that Going Long in EUR/USD will give me positive PIP movement if the USD appreciates?

This allways confuses me for some reason, and I would just like it clarified now, so I can quit losing money.


ALL help is appreciated, and I thank you for not flaming me for this juvenile clarification issue.

Thank you fellow traders!:smart:

 

[nine]

EUR.USD = euro divided by usdollar.

1. So if Euro goes up then it goes up (so go long).
2. On the opposite side, if USD goes up then it goes down (so short it).

So if you think that the eur is going to rise relative to usd its case 1.

 

[Rhody Trader]

The simple thing to keep in mind is that when you place a trade to go long or short any pair, that position applies to the first currency (base), and thus you will have the opposite position in the second currency (quote).

 

[yamaha123]

Right on guys.
I think this solves my problem.

Appreciate the help.