Traders will have some losing days this is normal, some days where you make just a handful of pips or points if trading stocks, and occasionally those days where you can make nothing but profitable trades. Money seems to be coming to you from the trades. Those are the days that can change your thinking on what your abilities are good and bad. Experienced traders take the small losses, but the letting your winners run seems to be the hard part for some and they should use a trailing stop to lock in profits. After every completed trade, many expect the new trader to look back and examine the reasons for where they got in and how why close the trade. When examining the exits of your trades, look at the patterns of what took place. Learning to better manage your winning trades will certainly be easier when you examine what happened to your old trades.
Open Interest
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
Friday, May 30, 2014
US releases
Gold prices continues to trade at its lowest levels since February, with a spot price of $1255.27 per ounce in Friday’s European session. The metal has notreacted to a decline in US GDP in Q1. In other US releases, Unemployment Claims were sharp but Pending Home Sales fell short of the estimate. On Friday, there are no major events on the schedule. Today’s highlights are Chicago PMI and Revised UoM Consumer Sentiment.
Thursday, May 29, 2014
US consumer EUR/USD-- USD/JPY
Traders should be prepared for some movement from EUR/USD later on Thursday, as the US releases three market movers Preliminary GDP, Unemployment Claims and Pending Home Sales. The markets are expecting a decline in the GDP reading, something which hasn’t occurred since 2009. Will the indicator surprise the markets with a gain in Q1? Pending Home Sales are expected to soften in April, while Unemployment Claims are expected to improve this week, after a disappointing performance in the previous release.
The continues to be optimistic, which is good news for the US recovery. On Tuesday, CB Consumer Confidence continued to look strong as the key indicator improved to 83.0 points in April, which was within expectations. This was the third straight reading above the 80-point level. Meanwhile, the Standard & Poor/Case-Shiller house price index posted a strong gain of 12.4%, surpassing the estimate of 11.9%. The markets are keeping a close eye on Thursday’s events, with the release of Preliminary GDP and the all-important Unemployment Claims.
The Japanese yen is stable on Thursday, as USD/JPY trades in the high-101 range early in the North American session. On the release front, it’s a busy day in both Japan and the US. Japanese Retail Sales slumped in April, posting its sharpest decline in three years. Later in the day, we’ll get a look at Household Spending, Tokyo Core CPI and Preliminary Industrial Production. In the US, Unemployment Claims dropped sharply, while Preliminary GDP posted a rare decline. We’ll get a look at Pending Home Sales later on Thursday.
The continues to be optimistic, which is good news for the US recovery. On Tuesday, CB Consumer Confidence continued to look strong as the key indicator improved to 83.0 points in April, which was within expectations. This was the third straight reading above the 80-point level. Meanwhile, the Standard & Poor/Case-Shiller house price index posted a strong gain of 12.4%, surpassing the estimate of 11.9%. The markets are keeping a close eye on Thursday’s events, with the release of Preliminary GDP and the all-important Unemployment Claims.
The Japanese yen is stable on Thursday, as USD/JPY trades in the high-101 range early in the North American session. On the release front, it’s a busy day in both Japan and the US. Japanese Retail Sales slumped in April, posting its sharpest decline in three years. Later in the day, we’ll get a look at Household Spending, Tokyo Core CPI and Preliminary Industrial Production. In the US, Unemployment Claims dropped sharply, while Preliminary GDP posted a rare decline. We’ll get a look at Pending Home Sales later on Thursday.
US economy
US economy now one quarter away from a recession, but analysts are confident that growth will bounce back on strong consumer spending.The US economy contracted for the first time in three years in early 2014 after a much worse performance than originally feared.Washington’s commerce department said the world’s biggest economy shrank at an annual rate of 1% during the first quarter รข€“ a period marked by an unusually harsh winter in some of the more populous states.
Wall Street had been braced for the revised data to come in below the first estimate of 0.1% annualised growth between January and March but was surprised by the extent of the decline.
Analysts are confident that growth will bounce back in the second quarter and pointed to the underlying strength of consumer spending during the period when the economy was contracting.
Wall Street had been braced for the revised data to come in below the first estimate of 0.1% annualised growth between January and March but was surprised by the extent of the decline.
Analysts are confident that growth will bounce back in the second quarter and pointed to the underlying strength of consumer spending during the period when the economy was contracting.
Wednesday, May 28, 2014
European Central Bank
The European Central Bank said on Wednesday that investors’ pursuit of higher profits could be generating new price bubbles, sounding the alarm as financial markets chase quick gains.
In a strongly-worded message that underscored concerns in Frankfurt about the downside to runaway market enthusiasm, the ECB cautioned that the dash for higher returns could suddenly unravel, sending the investor herd charging in the opposite direction.
“As the search for yields intensifies, so do concerns regarding the build-up of imbalances and the possibility of a sharp and disorderly unwinding of recent investment flows,” the central bank said in a closely-watched biannual report.
With the financial crisis and any fear of a break-up of the euro all but forgotten, governments in debt-strapped countries from Italy to Ireland are finding it ever easier and cheaper to borrow.
In a strongly-worded message that underscored concerns in Frankfurt about the downside to runaway market enthusiasm, the ECB cautioned that the dash for higher returns could suddenly unravel, sending the investor herd charging in the opposite direction.
“As the search for yields intensifies, so do concerns regarding the build-up of imbalances and the possibility of a sharp and disorderly unwinding of recent investment flows,” the central bank said in a closely-watched biannual report.
With the financial crisis and any fear of a break-up of the euro all but forgotten, governments in debt-strapped countries from Italy to Ireland are finding it ever easier and cheaper to borrow.
GBP/USD Daily
GBP/USD Daily
Today's trade has seen further breakdown with prices reaching/breaking the last swing low at 1.6730. Indicators are at extremes now so we should see some recovery attempt soon. However, we expect further weakness (after bounce) with next target sup. at 1.6680. Initial res. is in the 1.6770/80 band.N.I.
R5: 1.6920~ 21, 22-May highs
R4: 1.6881 * Tues high
R3: 1.6835/55 intraday level
R2: 1.6815 today high
R1: 1.6770/80 intraday level
S1: 1.6680 15 Apr low
S2: 1.6552 * Apr low
S3: 1.6459 * Mar low
Today's trade has seen further breakdown with prices reaching/breaking the last swing low at 1.6730. Indicators are at extremes now so we should see some recovery attempt soon. However, we expect further weakness (after bounce) with next target sup. at 1.6680. Initial res. is in the 1.6770/80 band.N.I.
R5: 1.6920~ 21, 22-May highs
R4: 1.6881 * Tues high
R3: 1.6835/55 intraday level
R2: 1.6815 today high
R1: 1.6770/80 intraday level
S1: 1.6680 15 Apr low
S2: 1.6552 * Apr low
S3: 1.6459 * Mar low
Tuesday, May 27, 2014
Stock market
U.S. stocks were broadly higher, with upbeat economic data helping provide support for the S&P 500's rise to an all-time intraday high. The S&P 500 index climbed eight points, or 0.4%, to 1909. The index hit an intraday high of 1909.55, topping the record of 1902.17 hit on May 13.
The Dow Jones Industrial Average rose 74 points, or 0.3%, to 16663. The Dow was closing in on its May 13 record high close of 16715.44, and its intraday record of 16735.51 hit the same day.
The Nasdaq Composite Index advanced 27 points, or 0.6%, to 4213. The early gains put the benchmark indexes on course for a fourth-straight rise. Stocks appear to have shaken off recent concerns about uneven economic growth, a Federal Reserve that was slowly removing stimulus measures and tensions in Ukraine that have kept the market hemmed in tight trading range over the last couple months. Through last week, the S&P 500 had traded within a 4.5% band since March 4, pushing the CBOE's Market Volatility Index to its lowest close since March 2013. And the Russell 2000 index of small-capitalization stocks, which had underperformed the broad market by a wide margin during that time, is set to outperform the S&P 500 for a third-straight session. The index is up 0.9%, putting it on an early track to close at 4 1/2-week high.
The Dow Jones Industrial Average rose 74 points, or 0.3%, to 16663. The Dow was closing in on its May 13 record high close of 16715.44, and its intraday record of 16735.51 hit the same day.
The Nasdaq Composite Index advanced 27 points, or 0.6%, to 4213. The early gains put the benchmark indexes on course for a fourth-straight rise. Stocks appear to have shaken off recent concerns about uneven economic growth, a Federal Reserve that was slowly removing stimulus measures and tensions in Ukraine that have kept the market hemmed in tight trading range over the last couple months. Through last week, the S&P 500 had traded within a 4.5% band since March 4, pushing the CBOE's Market Volatility Index to its lowest close since March 2013. And the Russell 2000 index of small-capitalization stocks, which had underperformed the broad market by a wide margin during that time, is set to outperform the S&P 500 for a third-straight session. The index is up 0.9%, putting it on an early track to close at 4 1/2-week high.
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