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Federal Reserve news: markets leap around the world!In the screencast I show how supposedly good news from the Federal Reserve today caused stockmarkets all over the world to leap north. Wall Street jumped some 600+ points, for the joy of many people. I don't see any reason for joy. Sorry. Forex pairs influenced by stock markets also moved seriously. The reality is that Powell used softer more measured and 'pleasing' language. However, the 38 page full text of the Feds Financial Stability report of 28th Nov 2018, contains a rather worrying situation that was in need of 'monitoring'. Lovely language - isn't it? ;) Powell actually pointed to the " Bottom Line: Financial Stability Risks Are Moderate ". It's all in the 'choice of words'. So - beware of crowds and what you pick up on the news.
OANDA:US30USDEducation
by Captain_Walker
Elements of a Successful Trading Plan 102SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Elements of a Successful Trading Plan 102 2. Risk Level Managing a risk in trading is essential if a person wishes to make profitable investments. As a trader, one cannot control the market but he/ she do have the capacity to change what can be done as circumstances require. They need to adapt the changes as the market conditions evolve. A person does not take a position and hopes the market acts in your favour. Managing trading risk will be a key factor in an individual’s long term success as a trader. As the market, structure changes, the risk profile of trade will also change. Risk will vary at different points of a trade and needs to be managed in a manner, which is consistent with the individual style of each trader. This will be dependent on each trader’s personality and time frame. Assessing market conditions can be categorised into core areas where one need to consider the risk profile in his/ her trade. This risk needs to be assessed also in line with your trading objectives. Active traders will tend to add and take off risk for each new swing in the market, whilst passive investors will ride minor retracements looking to achieve larger reward targets. Following are some areas where risk can be managed throughout a trade as well as what to look out for at these points that indicate that the risk is increasing; • At Entry: Stop loss risk. • Distance from Moving Average: Price exhaustion risk. • “M” Pattern: Price retest failure risk. • Candlestick Tails and Shadows: Price rejection risk. • Period Close: Price rejection risk. • Reducing Range: Trend momentum risk. • Support or Resistance: Price level failure risk. It is necessary that how an individual plan to address the risk management needs to be included as a critical part of the trading plan in order to protect the invested capital and preserve the profits. One need to have strategies in place for how he will deal with the different areas throughout a trade and how he will know when risk is increasing to a point where action needs to be taken either to protect profits or capital. Follow your trading plan, Remain disciplined and keep learning :) More elements will follow... Like, share, Comment and follow us to keep updated on our professional trading ideas and education :)
FX_IDC:USDWTIEducation
by SMPTrader
How to buy or sell Litecoin for Profit!SELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY 5 Litecoin Order Types Order Types a) Market order A market order is considered as a buying and selling order, which should be executed based on the current market prices. Market orders are utilised when execution certainty is prioritised by investors on the execution of price. Investor produces market orders by using brokerage service. b) Stop order/loss 1. The investor places a market order for the selling of any LITECOIN at a certain price level determined by the investor. This can enable the investors to limit the generation of loss in their investments or a security. The stop-loss order also instructs the broker to buy the security at a price defined by the investor. 2. For instance, if the investor buys the security at a price of $40, he may order the broker when it price comes to $45, this can enable the investors to avoid of loss as a result of decreased prices. c) Limit order A limit order determines a specified price level or even better prices to the broker, so as to buy or sell the currency within the price limits specified. Lower prices limits are determined in a buy limit order, which needs to be executed when the price gets lower. Conversely, higher price limits are provided in a sell limit order. However, this does not provide a guaranteed order for execution as the price limits are not defined, exactly. d) Buy stop order 1. This order is used in buying a security when the prices increase as compared with the level of current price offering. The order is triggered when the price of a Litecoin touches or goes beyond the price limit provided in the order. 2. The order can be accomplished automatically and this can enable the investors to generate profit when the prices go upward. e) Using leverage to trade Today, investors and different organisation use to advantage, in order to increase the returns on their investment. A broker who handles the account of investors provides the loan to them in terms of Leverage. Leverage is provided to the investor on the margin of his investment. If 100:1. Leverage determines that investor has invested $1000, and then this means the amount he can trade values $100,000. However, this can increase the investment risk, as a result of changes in litecoin prices. If the price changes are 1% or lower than that the situation seems to be less risky, higher price changes can lead the investor towards the huge risks. Follow your trading plan, remained disciplined and keep learning :)
BITFINEX:LTCUSDEducation
by SMPTrader
Trading Psychology- Master your Mind and Money BY BEN WRIGHTSELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Trading Psychology- Master your Mind and Money Are you continually loosing money and not knowing why? For the past decade of trading the financial markets, I believe psychology is so vital to trading success. Below is a small snippet of questions that you need to ask yourself prior to entering the market so that you are in the best condition to compete; 1. Have I slept well? ........................... 2. Do i feel emotionally and physically fit? ................................................... 3. Am i following other people's opinions? ................................................... 4. Am i following my head or my heart? ................................................ 5. Have i received losses lately? Should i be entering the market? If so do i have a drawdown procedure in place? .......................................................................................................................................... 6. Have I had a series of winning trades? If so monitor your behaviour and ensure your ego doesn't cripple your performance ....................................................................................................................................................... 7. And many more............... Let me know if you have any questions or would like to know more :) Happy trading "Rule number 1: never loose money. Rule 2: Never forget rule number 1." Warren Buffet
Education
by SMPTrader
3
Dow Jones (Wall Street) - the big wobble.Crystal balls are either cracking or working overtime around the world in attempting to predict what's going to happen with Wall Street. See also What rules the world? As I said so many times before, 'nobody can predict anything' in stock markets or any other market - for the simple reason that nobody owns the future. In this screencast, I show a bit of my own methodology. There was a potential reversal zone on the weekly, that was stalked carefully for entry point on the hourly time frame. The 1h time frame was exploited. Then stop loss tightened on the 2h time frame using a combination of the VMA and Vervoort. Looking ahead, the 1D time frame shows a serious change of sentiment of investors. Price busts violently through an Guppy (GMMA) investor zone. Those watching a 200EMA on 1D chart will see that there is hesitation as price moves into that zone. Price may respect that sort of zone for a while but it doesn't have to. The squeeze momentum indicator also reflects the sudden change of momentum. Whatever it is that has accumulated to spook this market, is significant. I do not need to know. The news has reported that Wall Street is fighting back. Well yes, but it's not a major fight back at this time on the 2H to 4H time frames. Avoiding a 'predictions model', I simply position myself to get stopped out where I think is best. As mentioned in the video I do factor-in experience in this market, which cannot be written into an algorithm or set of instructions. Each instrument has a different 'personality'. So, my knowledge and experience in Wall Street is brought to bear on my probability estimates. In other words, though I have a methodology, how I apply it varies from instrument to instrument. Overall, my assessment of the market on 1D and lower time frames, is probability for further down side. But for every probability in one direction there is a residual probability for the opposite direction.
OANDA:US30USDEducation
by Captain_Walker
The dangers in listening to the newsI'm sharing a chart to give my sentiments about listening to the news. New traders especially tend to listen to the news and website opinions about where markets are heading. I show a bit on how I approached a particular situation on the US30. A lot of news is late and people who create news items or blogs have their own biases, based on the information they have. The news can be dangerous to trading as it can cause a trader to become apprehensive, doubtful and stay out of trade setups that may be quite sound for entry. News can be depressing and cause a trader anxiety. Some very important earthshaking news may be useful e.g. some major monetary policy change in Europe or America. But on the whole, listening to or reading news is fraught with problems. I've found that I make better decisions when I approach the markets with a kind of fearlessness described by Mark Douglas . The fearless state of mind is not 'recklessness'. It is about calmly making decisions and accepting risks in a reasonable way, based on a tested strategy. None of the above or the video is advice to traders.
FX:US30Education
by Captain_Walker
USDJPY > Simple candlestick signals easy to recognizeEducation > Basic Candlestick Signals Chart > USDJPY > Non-Farm Payroll News Release > Friday, Oct. 6, 2017 - 8:30 A.M. Analysis in chart 1. Large body w/small wicks indicate strength 2. Larger the body w/smaller wicks indicate greater strength 3. Long wick w/body at opposite end of candle indicates shift in trend momentum 4. Wicks at both sides w/smaller body in middle indicates indecisiveness and both sides have equal strength 5. Larger wicks w/smaller body in middle indicates increase of indecisiveness * Personal analysis only. Please use your own rules and strategies prior to entering market. ** Forex trading involves HIGH RISK. Before entering a trade, carefully consider your objectives, financial resources and level of experience.
Education
by ALSM59
1
Trading the News: How Dueling Speeches Affected the GBPUSDJust wanted to document how tracking the news should be an important part of EVERY trader's practice... Take for example, an hourly chart of this week's GBPUSD... In particular, notice how this week's MOST significant price action corresponds with two major speeches by UK officials. In the first instance, BoE governor Mark Carney delivered a "dovish" speech where the headline message was "no rate hikes yet" www.bloomberg.com However, no less than 24 hours later, Chief Economist and UK-MPC Andy Haldane delivered a "hawkish" speech which put him directly at odds with Carney. www.theguardian.com Both speeches initiated a 100pips movement (1st decline, then rally) in a relatively short period... So, the lesson to take from this moment...? Stay on top of your news..!!! (For those who don't know: I highly recommend ForexFactory as a great source of fundamental announcements as well as breaking news...) Good Luck and Always Trade Mindfully...! ...$B...
Education
by DollarBuddha
1
FOREX AVOIDING SLIPPAGE - FOMC - MEETINGS - FEDS INTEREST RATES Many people who trade in the financial markets, especially those who engage in foreign exchange trading, do not pay attention to a very important aspect in trading that can cause great losses or reduce large profits. What I am talking about is slippage, which is the gap between the forex price we ask and the price we get in the execution of an FX trade. There will always be some difference between the prices, which sometimes we do not even noticed, but if you trade with a decent broker, you can control the damage done, even reduce slippage and find a way to live with it. How much can you lose with slippage? This following forex example emphasizes the direct influence that the slippage has on your accounts -it's not just for day traders in foreign currencies but for anyone who wants to receive the market's real prices. Let’s say that you want to open a long position of one standard lot (100K) on the EUR/USD. The price that you ask is 1.4520. You press the button to send the order, and the execution has slipped to 1.4530, or 10 pips above your request. It might not sound like the end of the world, but this slippage means that you just lost £100. And if you multiple £100 with three trades a day (though the average is much higher) the result would be a loss of £300 in just one day. That means that you lose about £5,000-£6,000 every month - and all because of the slippage! That is a significant amount for all types of traders. How to reduce slippage Obviously, due to technological reasons, there will always be some slippage between the requested price and the execution price. Nevertheless, you should find a broker that allows trading with minimum slippage that will not kill your account. What should you look for? Brokers with advanced technology and systems, an ECN broker (Electronic Communications Network – basically meaning trades are processed by a computer) that broadcasts all of its clients’ orders straight to the market and provides the market’s real quotes and prices. There are some great tools on the web for comparing slippage and performance. You can also avoid large slippage in your current broker by not trading while high impact news is released or during 'dead' hours. I want to wish you all the best today with the FOMC and hopefully you can protect your capital
Education
by Oztrade