The Japan Finance Minister Azumi said that the Group of Seven countries have come to a decision during a conference call held last Tuesday to strengthen cooperation to suppress the Eurozone debt crisis. Central banks and the G7 Finance Ministers promise to work as one to get a solution to the worsening problem of Greece and Spain. Read the rest of this entry »
Tuesday, Cristobal Montoro, the Spain treasury minister announced in an interview in a radio that the Spanish bond’s high risk premium is keeping them away from bond markets that stops Spain to refinance its debt. Last Friday, June 1st, the 10-year bond spread between Spain and Germany hits an all time European Union record of 548 basis points. Read the rest of this entry »
We’ve already briefly looked at moving averages on this blog and the basic uses for them. They essentially give us a great indication of the overall direction of the market and smooth out the extreme peaks and troughs to give us a more balanced view of what’s going on. They’re an extremely popular type of indicator and a large percentage of trading strategies use them in some shape or form.
You may be thinking that trend definition is all they’re useful for but there’s actually another major use for moving averages that many beginners don’t realise and it can actually be the most powerful way to use them.
The markets are now at a point where they can see clearly that some form of policy response is about to come. The action maybe coming from QE3 from Federal reserve, the EZ on Spain and from general release of more spur from the ECB. Read the rest of this entry »
When you first decide to give Forex trading a go there’s two big decisions you need to take early on to determine which path you’re going to go down. Firstly you need to decide whether you’re going to be a technical or a fundamental trader. That decision generally makes itself nowadays with almost everyone (particularly home/retail traders) focussing on technical trading and giving very little time to the fundamentals.
The next decision you need to make and the topic I’m going to look at here are whether to focus on day trading or swing trading. I would say that the majority of new traders try to get into day trading because it seems the most logical way to pursue trading as a full-time career since it can be treated like a 9-5 job in many ways.
It used to be the case that fundamental analysis was the be all and end all of market speculation. All the famous traders, all the up and comers and everyone else in-between considered themselves a fundamental analyst. Technical analysis was a myth, a load of nonsense dreamt up by traders who couldn’t get fundamental analysis to work for them.
That seems a long time ago now doesn’t it? All you ever see now if you’re looking for trading strategies or trading advice is indicators galore and chart patterns left right and centre. We’ve gone full swing to the point that the standard retail trader doesn’t use fundamental analysis at all. In fact the closest they get is checking an economic calendar to make sure they aren’t opening any trades during a major news release. Even if you try to find some information out about fundamental trading it’s hard to come by and it seems to be limited to large funds and institutions only.
Friday morning, the Spread between the Germany and Spain government bonds widened to an all new record-high of 546 basis points. The markets keep on punishing the already troubled Spain as the yield on the Spanish ten year bond has reached to 6.63%. Read the rest of this entry »
When you first decide to give Forex trading a go you will no doubt come across a multitude of systems and services that promise you the world for a small one off fee. The core of what these people offer you is essentially a way to predict the markets either through the use of a certain indicator or some special trading software. Almost without exception these “systems” are a complete failure and lead to losses.
Generally, almost everybody will be sucked in by the sales pitch at least once and some people are still stuck in that loop of system jumping, waiting to find that holy grail system that does what it says on the tin. The fundamental reason why we keep falling for it over and over again is because we have this unquestioned belief that the markets can be predicted. Perhaps it’s time to ask yourself if that’s really the case. Can markets actually be accurately predicted or are they much more random than you currently believe?
Forex trading is about making profit from changes on prices of the currencies you invest with. While most trader who are profitable are those who trade and stay in the market long enough to spot trends and take advantage of it, there are also forex traders who do it in short term. Read the rest of this entry »
Considering everything, fundamental analysis is one of the most effective ways of analyzing the performance of an investment - no matter if its a forex account or a public traded company. With fundamental analysis, we can estimate how political or economic outcomes affect the performance of a specific sector of a market - like the currency market or the stock market. For reaching acceptable results, it is essential that you do your homework. That means keeping up to date with the news and other information that can affect the fundamental performance of your position, no matter if it is the economic or political realm. Some investors might find it useful to analyze newspapers, navigate through the web for breaking news, and even apply tools like economic calendar. Economic calendars are specially useful for predicting turbulence in a market. You’ll see that the highest movements are around important releases of economical information.