Your position size should be such that you are not risking more than what you determine to be a truly acceptable loss. You should make sure this number which is really your ultimate risk is a number you are very comfortable with. With the correct numbers figured in your plan, you can be wrong and lose money on two out of every three trades for the rest of your life and do very well. So you completely understand, both losing trades were profitable for a bit and then stopped out after moving your protective stop order closer to your entry price. These were not full stop losses but even if they were, it would still be more than fine because your protecting profits. Taking your proper losses and holding your positions to your profit targets is the key to small losses and larger profits. Traders shound not be greedy "pigs get slaughtered".
Trading plan
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.
Thursday, July 10, 2014
Wednesday, July 9, 2014
GBP/USD Daily
GBP/USD Daily
13::00 GMT - Drop back this am. has drawn GBP into a trading range below 1.7120 but still inside Tues' range- rally potential is on hold for now whilst a smaller 2/3 day balance trades between 1.7110 & 1.7130. Market is still on track for a July/ start Aug top.
GBP/JPY Daily
13::10 GMT - GBP's sitting on 173.80~/ a 50% retrace of the latest (end-June) rise : GBP's tended to hold the mid point on pullbacks since May and is therefore positioned for another run up here. Push past 174.40 or so improves. Next refs. up: 175.50, 181.35.
13::00 GMT - Drop back this am. has drawn GBP into a trading range below 1.7120 but still inside Tues' range- rally potential is on hold for now whilst a smaller 2/3 day balance trades between 1.7110 & 1.7130. Market is still on track for a July/ start Aug top.
GBP/JPY Daily
13::10 GMT - GBP's sitting on 173.80~/ a 50% retrace of the latest (end-June) rise : GBP's tended to hold the mid point on pullbacks since May and is therefore positioned for another run up here. Push past 174.40 or so improves. Next refs. up: 175.50, 181.35.
Tuesday, July 8, 2014
forex contingent
Not the ideal start to a week where many expected more enthusiasms to be expressed across the various asset classes, especially after last week’s strong U.S. employment headline print. Maybe the market is priming itself for the summer doldrums. The global equities excuse is that investors prefer to assess equity valuations ahead of corporate earnings reports. Too many investors think it’s a tad rich at record highs to consider jumping in with both feet.
The forex contingent continues to live off scraps, with the 18-member single unit being squeezed mostly on the crosses rather than outright. Today the EUR happens to get a small lift from an ‘old foe,’ the U.K., whose headline economic releases have managed to push the pound to different heights, something that was not expected.
The forex contingent continues to live off scraps, with the 18-member single unit being squeezed mostly on the crosses rather than outright. Today the EUR happens to get a small lift from an ‘old foe,’ the U.K., whose headline economic releases have managed to push the pound to different heights, something that was not expected.
Friday, July 4, 2014
Trading Environments
Keep an eye on supply and demand levels by watching the volume, traders can specifically talking about the size of buy and sell orders from willing buyers and sellers. Thus “willing” because they have not bought all they wanted to buy yet. Let’s say your looking at the actual buy and sell orders, specifically the sell orders as you will reference that later in your trading. You are looking to short the market as you see a price level a little higher where there is a significant amount of unfilled supply and you see no significant buy orders demand until much further down in price. Thus you are expecting price to turn lower from supply and fall down to demand.
In that scenario, things are very set and there is almost a profit guaranteed barring any good news event where a huge set of new orders come into the market which does not take place often. This is a big reason traders paid so much money for seats on the exchange years ago, it’s all about visibility to the significant orders. Ok let’s focus on the supply where we are expecting price to turn lower at. What if just above that supply area, there was an even larger amount of supply? Would you now feel even better about shorting at that level? This would be a safer trade.
Trading Environments Bitcoin News
In that scenario, things are very set and there is almost a profit guaranteed barring any good news event where a huge set of new orders come into the market which does not take place often. This is a big reason traders paid so much money for seats on the exchange years ago, it’s all about visibility to the significant orders. Ok let’s focus on the supply where we are expecting price to turn lower at. What if just above that supply area, there was an even larger amount of supply? Would you now feel even better about shorting at that level? This would be a safer trade.
Thursday, July 3, 2014
Gold futures
Gold futures headed for the biggest drop since May after the U.S. added more jobs last month than forecast, curbing demand for a haven asset. The addition of 288,000 jobs followed a 224,000 gain the prior month, Labor Department figures showed today. The median forecast in a Bloomberg survey of economists called for a 215,000 advance.
Bullion rose 11 percent this year through yesterday as the Federal Reserve said it will keep interest rates low for a considerable time after ending bond buying, while unrest in Iraq and Ukraine spurred demand for a haven. The metal plunged 28 percent in 2013, the most in three decades, as the U.S. economy gained traction. The job numbers are telling us that the economy is healthy, and people don't need a lot of safe haven going forward, Alfonso Esparza, a senior currency analyst in Toronto at Oanda Corp Gold will probably now start weakening again.
The gold imports during the first 11 months of the outgoing fiscal year 2013-14 plunged by 43.48 percent as against the same period of last year. According to data revealed by Pakistan Bureau of Statistics (PBS), during the period under review, 4,177 kilogram of yellow metal worth of US$ 172.950 million was imported as compared to the import of 5,740 kg valuing $306.005 million during July-May 2012-13. The overall imports of metal group, registered a decrease of 9.26 percent during the first 11 months of the year 2013-14 against the same period of last year.
The metal group imports in to the country during the period under review were recorded at $2.7438 billion against imports of $3.024 billion during same period of last year.
Bullion rose 11 percent this year through yesterday as the Federal Reserve said it will keep interest rates low for a considerable time after ending bond buying, while unrest in Iraq and Ukraine spurred demand for a haven. The metal plunged 28 percent in 2013, the most in three decades, as the U.S. economy gained traction. The job numbers are telling us that the economy is healthy, and people don't need a lot of safe haven going forward, Alfonso Esparza, a senior currency analyst in Toronto at Oanda Corp Gold will probably now start weakening again.
The gold imports during the first 11 months of the outgoing fiscal year 2013-14 plunged by 43.48 percent as against the same period of last year. According to data revealed by Pakistan Bureau of Statistics (PBS), during the period under review, 4,177 kilogram of yellow metal worth of US$ 172.950 million was imported as compared to the import of 5,740 kg valuing $306.005 million during July-May 2012-13. The overall imports of metal group, registered a decrease of 9.26 percent during the first 11 months of the year 2013-14 against the same period of last year.
The metal group imports in to the country during the period under review were recorded at $2.7438 billion against imports of $3.024 billion during same period of last year.
Mario Draghi's headline
Markets are starting to respond to Mario Draghi's headline about the potential TLTRO take up of EUR1 trillion, notes Valentin Marinov, G10 FX analyst at Citigroup. "This is considerable amount taking into account that the ECB's balance sheet is close to EUR2 trillion. If Draghi is right the ECB balance sheet would grow considerably over time. This should push the ratio of ECB/Fed balance sheet lower before long. Given the historic link between EURUSD and the ratio of Fed/ECB balance sheet - this should underscore the downside risks to EURUSD." The pair is now just above $1.36
Wednesday, July 2, 2014
USD/JPY 7/2
USD/JPY is steady on Wednesday, as the pair trades in the mid-101 range late in the European session. On the release front, today’s highlight is the ADP Nonfarm Payrolls, which should be treated as a market-mover. As well, Federal Reserve chair Janet Yellen will address the IMF in Washington. There are no Japanese releases on Wednesday.
The Tankan indices are key indicators of the health of the Japanese economy, and the May data was disappointing. Tankan Manufacturing Index slipped to 12 points, a three-month low. The Tankan Non-Manufacturing Index dropped to 19 points, down from 24 points a month earlier. This reading matched the estimate. As well, Japanese Average Cash Earnings posted a respectable gain of 0.8%, matching the forecast.
The Tankan indices are key indicators of the health of the Japanese economy, and the May data was disappointing. Tankan Manufacturing Index slipped to 12 points, a three-month low. The Tankan Non-Manufacturing Index dropped to 19 points, down from 24 points a month earlier. This reading matched the estimate. As well, Japanese Average Cash Earnings posted a respectable gain of 0.8%, matching the forecast.
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