Education

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
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
It is not every day that markets get caught out by overwhelming fear ForexLive The new coronavirus outbreak brings back many lessons in markets and one of them is to not be too blinded by the fear. There is no doubt that things may still get worse before they get better, especially with the fact
JPM client note on the Japanese yen, say its losing its attraction as a safe haven play USD/JPY annual range of less than 10% for three consecutive years 2019 range less than 8% (smallest since 1980) Yen: “when a risk-on mood was strong, market participants would normally actively engage” in the yen-carry trade but when
The next decade is often different from the prior one “Financial markets tend to base their expectations of the future on the experiences of the recent past” That’s a part of human nature that has repeatedly led to folly. Nowhere moreso than in financial markets. We’ve started a new decade with the same enthusiasm that
Martin Nikolov is our guest trader this week In a series of articles this week, Martin Nikolov will share his trading philosophy and then guide us how he sees markets unfolding with real-world examples. Martin is a long-term professional senior trader at Varchev Finance a firm in Bulgaria with a trading office in the City of
We find doing nothing very hard  It seems that we find doing nothing incredibly hard. In fact a paper in the journal Science found that people found being alone with their own thoughts extremely hard. The surprising conclusion of the study was that many people would rather give themselves an electric shock than be left
The hidden dangers in plain sight  With the holiday season upon us it is worth reflecting on the psychological impact that FX trading can have. One of the most neglected areas to talk about amongst retail traders is the addictive nature of FX trading. The reasons for the neglect are obvious. Brokers want traders to
A couple of pointers on learning how to focus on the right things in your trading If you ask just about any trader, most will agree that trading is an art form rather than a systematic profession – no matter if you rely on EAs or algos/modelling. One of the reasons for that is because
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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
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
Some tips to help your trading going into the new year No doubt, a quick internet search will yield a plethora of forex trading tips and strategies. The problem with many of these are now dated and are either no longer valid or need to be tweaked so as to be applicable to current lines
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