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
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
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
When do you pull the trigger? This takes time to know when to pull a trigger on a sentiment shift trade. It is the combination of experience, planning, knowledge and good old fashioned bottle (or confidence for non-native speakers) to recognise and act upon a trigger for a sentiment shift trade. Trades that have an
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
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
Trading 101 In this instance when the US President Trump directed the killing of top Iranian general Qasem Soleimani in a drone attack at Baghdad airpot during last week escalation of the situation seems inevitable now. I can’t see a situation where there is not a response. The only question is, ‘to what degree is that
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
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
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
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
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
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
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.
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
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
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.