HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do

Sound words of advice Josh Brown on CNBC said as he and Brad Gerstner of Altimeter Capital discussed the markets, (and I paraphrase): The person you want to run away from now is the person who KNOWS what will happen. Just before that Adam and I were chatting and shared these simple thoughts: The fact

Volatile markets heavily drive sentiment What a few weeks we have had in the market in the recently. The human cost to the current coronavirus crisis is mounting and fresh deaths are sadly being reported day by day. Adam was well ahead of the curve of almost everyone when he flagged this concern to ForexLive

Trade continues in forex despite the closing of futures tade due to limit locks  FX has no such restriction, the chaos is expressed in wild swings (USD/JPY range today has been over 300 points, and others have been wider still) and wide spreads. No limit down. No limit up.  USD/JPY chart. daily candles: ForexLive

When can you catch a bounce?   I came across a thought provoking article on Market’s Live Blog this am on the S&P500 futures chart. The piece was suggesting that some buyers might be buying S&P500 futures this am on the premise that after four big down days then a correction is due. Here was the

The importance of gauging market sentiment 101 Having returned from Dubai where I taught around 150 people how to trade the financial markets it has reminded me once again of going over the basics of trading. One of the most foundational aspects to grasp is that of sentiment, or put simply, the mood of the

Unpicking the jargon What is the Gold/silver ratio? The Gold/Silver ratio measures the relative strength of gold versus silver prices. It shows how many ounces of silver it takes to purchase one ounce of gold. To get this number, you divide the current gold price by the current silver price. When you have done this you now have

It’s all in how you approach your trading In her book “Mindset: The New Psychology of Success”, Carol Dweck characterizes people in two general buckets.  Fixed mindset  Growth mindset The FIXED MINDSET person: Looks at CHALLENGES and avoids them Gives up easily when OBSTACLES get in the way See EFFORT as fruitless or worse Ignores

Keep the main thing, the main thing I was thinking this last week what I would consider to be the most important aspect of FX trading to understand. There are many different aspects of trading: the fundamentals, the technicals, sentiment analysis, trading psychology and risk management to mention the main ‘pillars’. The reality of course

Understanding the balance sheet The Fed is going to continue adding cash into the banking system by buying billions of Treasury bills for a few more months. However, it want to start cutting back these purchase in Q2 according to Jerome Powell on this week’s rate meeting.    Why did the Fed start buying Treasury

This is a story as old as time There’s nothing better than the metaphorical warm hug of a top-level bureaucrat in a crisis. Humanity is more-informed that ever but with uncertainty at extremes, we still abandon critical thinking and defer to authorities. It’s a tale as old as time. The WHO has soothed the nerves

What’s the rush? I love this quote from George Soros because it is more true every day. He said it in his book on the crash of 2008 but he might be talking about fake meat, marijuana or electric cars today. We can all see trends towards environmentalism, renewables, e-commerce, the internet, eating out and

Gold gives back $25 in gains Gold remains in positive territory but has given back the bulk of its gains. It’s up $10 to $1562 from a high of $1588. The move is part of a broader fade in the fear trade that started in European trading and has picked up in the past hour. 

How month-end models can predict movements into the end-of-month fix Here is how SocGen explains its month-end currency rebalancing model and it’s a good basis for how all firms try to anticipate what will happen into the month-end fix. The FX Month-End Rebalancing model explained The model is based on the concept that global portfolio

Interesting paper on the effect of distractions Some of the best trades come from focusing on something that everyone else is ignoring. Market participants are naturally attracted to volatility but oftentimes there are clearer signals that build up in quiet markets before they finally make a move. Afterwards the momentum traders are pulled in and

How to combine strategy, analysis, and indicators  A successful Forex trader stands out from the crowd with the types of trading strategies they choose to deploy to and how to utilize different strategies in different circumstances. More experienced traders know that a single strategy will not do when trying to become a success in the world

Jim Simons had modest wealth at 52; now he’s worth $23 billion Financial markets — and risk taking in general — are largely the domain of the young. Early adulthood is the time to swing for the fences while middle age is a time for prudence, perhaps risking a manageable part of the nest egg.

A bit of inspiration Success in any endeavor is similar. It takes a combination of dedication, discipline, resilience and luck. On the weekend, Canelo Alvarez pulled off an incredible feat — moving up 20 lbs in weight and knocking out Sergey Kovalev to win a light-heavyweight title. It makes him a four-weight world champion and

A case study in sentiment trading A few weeks ago I wrote a post here on trading fresh sentiment. From September 23 – October 08 I kept the news flow going for Justin over the European am session, so I thought I would put together a few examples of fresh sentiment trading that there was

Crypto bulls are not happy with me The classic expression is that: “The bigger they are, the harder they fall”. For markets, it might be “the harder they fight, the weaker they are.” I’ve written about markets for more than a decade and often the articles that generate the most-surprisingly lively reactions are the when

Ten mistakes to avoid when trading FX If you aim to become a successful and profitable forex trader, there are a number of seriously damaging mistakes that you’ll want to avoid. It should go without saying that you will make some mistakes when learning how to trade. It’s simply unavoidable. This is not necessarily a

Feel like it’s time to achieve your investment goal and boost your income? Every trader has its own unique reason for why he or she started trading in the first place. But at the end of the day, every trader feels disappointment and frustration when profits are not coming the way he or she hoped.

A better understanding of forex signals Forex trading can be overwhelming, especially for beginners. This is why trading signals are a valuable tool in your resource kit. Thanks to signals, you can make decisions about whether you should buy or sell a currency pair at a certain point in time. Signals can be generated by

FX lessons Learning point this am which we shouldn’t let pass.  When a hawkish board member makes a dovish comment This is what happened earlier. Bank of England’s Saunders is a hawk, but his comments about not delaying a necessary rate cut because of Brexit were dovish. See here for his earlier comments. The reactions

A look back at two trade ideas On August 28, both Goldman Sachs and Citigroup issued trade ideas on the Canadian dollar. Let’s have a look at they did. Goldman Sachs recommended buying USD/CAD with a target of 1.3600 and a stop at 1.3050. “Unlike most of its G-10 peers, the BOC has not signaled

Risk management 101 This article is for you if you want a starter on risk management that is practical and simple to follow. I have written recently on the attitude required to manage money. See this article here on talking about the M-word. I have also written previously on the use of leverage and how

How to start out in forex trading, from EagleFX Forex, often shortened to FX or the foreign exchange, is a global decentralized market for the trading of a wide variety of currencies. The forex market is the largest in the world, with billions of dollars being traded daily. Once you’ve selected a broker, whether it

Profits and when to take them This article is in response to a comment made by Anwar on the ‘five tips for when you are struggling article‘ that I published on September 07.  At the bottom of the piece Anwar asked for an article on ‘taking profits’.  So, here it is for you Anwar.  An

A great taboo of our age Sex, religion and politics are easier to talk about than the ‘M-word’. Well it’s true. Money is very hard to talk about. I was talking to my friend who works in accounting a few months back and he was bemoaning the fact that whenever he tried to advise his

The Japanese Yen is a risk haven currency The Japanese Yen is a safe haven currency which investors rotate into during times of uncertainty. The Yen is most probably the largest risk sentiment mover and is the go to currency of choice for risk on and risk off moves. So, the next time there is