Lessons from Dubai on risk Over the course of this last week I have been writing from Dubai as I have been leading an FX trading course for aspiring traders. Needless to say, one of the key teaching aspects I have been emphasising is the danger of using leverage and that has led me to that theme

For many newer traders, foreign exchange (FX) can seem a bit overwhelming at first glance. Given the complexity of the data or charts, it is not always clear what the best tools or patterns are to use in your trading. Indeed, figuring out the optimal indicators for your strategy and trading goals can take years

Looking at the ways one can take in order to look past the ‘noise’ When it’s too noisy, you often can’t make out what you want to hear. You may get confused and do something wrong. The same thing can happen when you trade currencies as technical analysis can be complicated by the so-called ‘market

Delinquent debt tops $166 billion Bloomberg today writes about the record $166.4 billion in US student debt that is more than 90 days behind in payments or in default. This is a terrifying number for the long-term health of the US economy. US student debt can’t be cast aside in personal bankruptcy. The debt is

Understand the mood of the market Emotions are the key to understanding financial markets. However, it’s tough to make rational decisions based on them. Even if you think you read your emotions or other peoples emotions, you may get lost in trying to comprehend the feelings of the crowd. And the market sentiment is the

Trump and Soros’ secret to riches There is power in truth but there might be more power in what isn’t real. George Soros and Donald Trump both found a way to exploit the same thing and it has critical implications for what’s coming next in the foreign exchange market. [embedded content] ForexLive

The know hows on dealing with slower trading periods Lulls in trading can present just as much challenges as periods of great movement and volatility. During quieter intervals however, ranges can be smaller due to the reduced volatility with many institutional traders away from their desks – what is the overall impact of this on

How to use price bands A moving average usually helps us detect the trend of the price of certain financial assets. However, prices usually fluctuate around the moving average. Whether you prefer breakout trading or sideways trading, price bands will support you in your journey. We will cover three technical analysis indicators that are used

Tips for taking profits Trading is a game of patience and mental resilience. If you want to get your pips of profit from the market, you need to be like a hunter: determine the exit levels in advance and stay on a stakeout until the market settles the bill. A feather in the hand is

What’s the right amount of leverage? Many traders often ask themselves what leverage is better to be used. They are not only newbies but also experienced investors who, being self-confident, want to make more profits and do it faster, so they try out various values of leverage. Let us remind that leverage is a certain

The Dollar Index is another tool for your trading toolbox  You don’t have to be reading analysts posts or market wraps for very long before you come across references to the US Dollar Index. The US Dollar Index is a very useful tool in your trading as it can confirm a directional bias for the

Trump speaks in the Rose Garden Trump beleives a great, secure deal is possible working with Democrats and Republicans Will ask Senate Republican leadership to put proposal on floor immediately for a vote The announcement isn’t a surprise at this point so markets aren’t reacting. USD/JPY has given back its gains and is back down

Instaforex: Any trade, whether experienced or a novice, hopes for good luck Any trader, whether an experienced guru or a novice, hopes for good luck. A trader is a profession that involves continuous movement, opening and closing of positions. Do you know that sharks must move throughout their lifetime in order to ensure the blood

A look at the common mistakes that most traders tend to encounter Everyone makes mistakes, that’s why they put erasers on pencils. That being said, the potential to make mistakes in your trading is manifold, and it’s important to familiarize oneself with the most common different issues faced by individuals. There is a fallacy of

A couple of pointers on the basics of technical analysis Trading requires a wide range of skills, which sometimes can range from simple techniques to complex patterns. Being able to identify both support and resistance prices trends more towards the former, though this is no less important for any respective trading strategy. At first glance,

Trump wants a stronger yuan This is possibly the most-important chart for the global economy. It’s the exchange rate between the world’s two biggest economies; the US dollar against the Chinese yuan. In the past three days, it’s fallen precipitously, at least by the narrow standards of this pair, which is managed within a supposedly-liberalized

A look at the different factors influencing the number of trades one makes ForexLive Well, how often should I expect to trade? One question that many beginner traders ask is, ‘How many trades should I take each month?’ It is obvious why it is asked as traders are trying to calculate what their potential gains

2018 was bullish but the last 2 1/2 months went sideways In 2018, the dollar index moved higher with the price mostly trading above it’s 100 day MA since the break higher in April (see blue line in the chart below).  There was a 6 day period in September when the price closed below the

A glance into algos and how they compare with the human elements of trading ForexLive Man vs Machine Once upon a time in the financial world it was all about getting the right ‘man’ to do the trading. Now, you may be forgiven for thinking that it is all about getting the right machine.  The

Ray Dalio is the founder one of the world’s largest hedge funds, Bridgewater Associates. He is one of the 100 wealthiest people in the world. If you are unfamiliar with how Dalio understands the economy and markets (ie. his mental model of how these work) this article he shared over Christmas is a good read.

A lot about trading is about anticipating what to expect ForexLive One of the beauties of trading is that every trader has their own unique style and approach when going about their business in the market. Each and every one of us has their own trading compass. But even so, one of the most important

In this article, we decided to gather lifehacks related to trading on Forex news releases. First of all, we strongly advise everyone to check the economic calendar on a regular basis. The further strategy may differ according to your preferences. Some people like venturing into trading currencies, which have important events on the agenda, others

A Bloomberg piece that might give some encouragement to those looking for BTC to recover.  Well, maybe, the guy who sold the top and now covered is not all that encouraging: “I don’t want to try to ride this thing to zero” Mark Dow shorted bitcoin: “They just saw it was going up and wanted

How to trade effectively without being overwhelmed Sooner or later, any trader faces a question: how many currency pairs do I need to trade effectively, how many instruments do an experienced and efficient trader use? And does the number of trading instruments matter at all? Or could one earn a lot using just one favorite

How long should you hold your trades? It often happens that the abundance of timeframes makes traders perplexed. On the one hand, it’s possible to lose a great deal of time while checking all the timeframes. Moreover, technical analysis of different timeframes may provide confusing signals. On the other hand, a lazy trader who uses

Another administration official to depart Reports began to circulate earlier today that US Interior Secretary Ryan Zinke was leaving the White House at year end. Shortly afterwards, Trump made the announcement on twitter. “Secretary of the Interior @RyanZinke will be leaving the Administration at the end of the year after having served for a period

Some overhead resistance to get through. Adam posted Morgan Stanley’s view that the dollar would head lower.  They cite some plausible reasons for their assessment, but as most people realize, what we think most times does not play out the way we think.   That is especially true when we face things like China/US, Brexit, US/Europe,

Algos are reading headlines, but what if they’re wrong? Algos are all over the newswires and twitter. The straightforward way is a race to trade on news and economic data. As a result of an arms race that’s lasted the past 15 years; it’s gotten hyper-competitive and now the moves are unbelievably fast. The next

Corrections are modest is the clue. The GBPUSD has trended lower today after the pair peaked against it’s 200 hour MA a 1.27586.  Since then the price has moved to the downside.   The move has moved 255 pips from the high to the low. The corrections have been modest.  That is what a trend move

Latest data from the Mortgage Bankers Association for the week ending 23 November 2018 Purchase index 247.8 vs 227.7 prior Market index 333.7 vs 316.4 prior Refinancing index 787.7 vs 783.7 prior 30-year mortgage rate 5.12% vs 5.16% prior Headline measures the change in number of applications for mortgages backed by the MBA during the week.