Why massive US job creation matters for markets – DailyFX Tips & Picks ON FRIDAY, the latest US non-farm payroll report was released, and it showed that a staggering 321,000 new jobs were created in the US in November. This is not a new record in itself, but it’s a clear fundamental trigger, as the markets expected 230,000 new jobs to be added. When more jobs are created [...]
Why less leverage can mean more trading profits – DailyFX Tips & Picks TRADING financial markets is exciting for most people, particularly since most brokers offer high leverage and, with this leverage, even a small trader can generate a substantial gain. Yet this leverage can sometimes work to your disadvantage, leading to big losses very quickly. This is because markets are often random in the very short term. [...]
How to cut through the noise of the economic calendar – DailyFX Tips & Picks TRADING the markets involves having an understanding of both technicals and fundamentals. But with a sometimes ambiguous relationship between macro fundamentals and FX prices, it will usually take time before traders figure out how to incorporate both into their trading. The situation is made more difficult because so many different macro fundamental reports are published [...]
Why retail forex traders perform best in the morning – DailyFX Tips & Picks November 10, 2014 It can be hard to work out the best time of day to trade the FX markets, not least because the decision is dependent on the type of strategy you use. But through research, we have some idea of when retail traders may perform the best. Data from 12m real trades were collated, and it [...]
Roaring dollar-yen: How much further could it go? – DailyFX Tips & Picks November 3, 2014 DOLLAR-YEN traded significantly higher last week, as the Bank of Japan surprised the markets with more QE. As we have seen on many other occasions, when a central bank decides to ease monetary policy, the country’s currency tends to weaken. Dollar-yen is 4.5 per cent higher than on Friday last week. It’s hard to know [...]
How inflation data prints affect financial markets – Daily FX Tips & Picks October 20, 2014 WITH most market participants expecting a rate increase in the US during 2015, this Wednesday’s inflation figure will be very interesting. Markets anticipate that US inflation will show an annual growth of 1.6 per cent, while the reading that excludes food and energy price changes (the “core” measure) is expected to have increased by 1.7 [...]
Risk off: How to take advantage of declining markets – DailyFX Tips & Picks October 13, 2014 RISK off is an old concept, but it has recently started to re-emerge on the back of stock markets declining slightly more than people had been expecting. It’s a term used when people opt for safety over potential returns. As an example, the FTSE 100 is down 7.8 per cent since August, which far exceeds [...]
Traders should learn the importance of doing nothing – DailyFX Tips & Picks October 6, 2014 TRADERS often rush into trades thinking that trading is like any other job, where you always need to be busy, independent of whether the task is of high or low value. Applying this mindset to trading is not necessary and can be harmful. In fact, trading low conviction ideas could cost you money. A useful [...]
Why traders should watch out on Fridays and Mondays – Daily FX Tips & Picks September 29, 2014 DID YOU know that 60 per cent of weekly price highs or lows will occur either on Friday or Monday? This is the common pattern for a currency pair like euro-dollar. What this tells us is that, if we spot a reversal on either Friday or Monday, the following five trading days will probably follow [...]
Shifting your time frame can improve risk-reward ratios – Daily FX Tips & Picks September 22, 2014 With FX volatility picking up and trends turning parabolic, it’s easy to miss out on strong trends. One good example is the current 830 pips rally in dollar-yen. Traders that are not long now probably feel that they have missed too much already, and so hesitate to trade. Risk-reward ratios with longer time frames will [...]
