USD/CAD – Canadian CPI fell to -0.3% in June which was the most since 1955 and a sign that deflation risks still exist for the country. Looking at the breakdown we see that clothing prices fell 2.8% during the month which could be a sign that domestic demand is weak. However, the core reading only saw a slight decrease to 1.9% from 2.0%, while the monthly headline print rose by 0.3%. The sharp fall in energy costs are still filtering through the economy, but as long as the core reading remains firm, the BoC can refrain from quantitative easing measures. However, there is concern that the central bank will over react and start tightening too soon, if prices start to rise again.
EUR/USD – The Euro-Zone Trade balance report showed a surplus for a second month as falling imports outpaced exports. The net gain of 1.9 billion was lower than the month prior’s 2.7 billion, but beat estimates of 0.0. Exports fell for a third straight month which may be a sign that the impact from global stimulus efforts are starting to dissipate and could Limit the scope of a recovery. The ECB has just begun its covered bond purchase program and may remain on hold until they can assess its impact.
TFX Charting Software Download: https://secureforexprocessing.com/fxtfx/
Free TFX Virtual Trade Floor Guest Pass: http://tradingfx.webs.com/joinnow.htm
http://www.piprangebars.com/
Monday, July 20, 2009
Saturday, July 18, 2009
Forex Re-Engagement Trade Presentation
TFX Charting Software Download: https://secureforexprocessing.com/fxtfx/
Free TFX Virtual Trade Floor Guest Pass: http://tradingfx.webs.com/joinnow.htm
Thursday, July 16, 2009
The Rules of Trading
by Derek Schimming
Patience & Discipline – Always be patient and trade with discipline, plus never think the market owes you something. Embrace the fact that some of your trades are going to lose money. It is how you handle the mistakes, that is the key to long term trading success.
Set a Stop Loss – Establish an amount per trade and per day, and stick to it. NO QUESTION! Goals - Set daily & weekly goals, and stick to them. Start with a small goal and raise the amount each month after you have consistently achieved your target. Increase the size of your trades and do not expect the market to allow for bigger trades.
Trade Smart - Do not look for trades, let them find you. You do not have to be in a trade, so be selective and wait for the better looking trade opportunities. It all goes back to patience and discipline, knowing the trend and not forcing the issue.
Consistency – Trading success is all about consistency, base hits and scoring 1 goal at a time. You should NEVER be looking to make that homerun or trying to score 4 goals at once by finding that one massive trade. You should strive to be consistent, because consistency will afford you the ability to be fortunate and land the BIG game winner from time to time. Making 5 base hits will always add up to more than just 1 homerun, and taking consistent shots on goal will in fact win the game.
Know the Trend – The trend really is your friend and can compensate for a slightly poor entry. Even if you plan to trade contra to the trend, you need to know that you are doing so and trade accordingly.
Step Back - Take a look at what is actually happening by looking at longer term views and work your way in for more detail.
Be Early – It is better to enter a trade early with potential and being wrong, then to be right and enter the trade late but with no more potential. When you can identify the trend correctly and you seek proper trading tools and entry techniques, you can trade with confidence and enter your trades at the correct times.
Add to Your Winning Positions – You should look for the opportunity to add to any winning position. However any addition must be handled like a new trade and pure entry. So ask yourself; “If I wasn’t already in my current position, would I enter this new trade right here and right now?”
Never Add to a Losing Trade – Just Don’t Do It! The best way to never have the desire to add to a losing position is to never sit in a losing trade beyond your stop discipline. Do not use losing strategies like “doubling down” or “dollar cost averaging” because they only set you up for trading failure. Establish your Stop Loss order, be firm and hold to it regardless!
Never Chase Any Trade – If you miss the entry do not worry, there will always be another trading opportunity.
Recognize What is Actually Happening – Learn to understand and identify the 4 market stages and the 7 market events which comprise those stages, plus their 4 distinct psychological states. The market always follows the Gaussian Curve, so you should know where you are in the cycle at all times and identify the stage and trend before you enter a trade.
Learn to Anticipate – Anticipate the possibilities and ONLY act upon reality!
http://www.youtube.com/user/TradingFXcom
Patience & Discipline – Always be patient and trade with discipline, plus never think the market owes you something. Embrace the fact that some of your trades are going to lose money. It is how you handle the mistakes, that is the key to long term trading success.
Set a Stop Loss – Establish an amount per trade and per day, and stick to it. NO QUESTION! Goals - Set daily & weekly goals, and stick to them. Start with a small goal and raise the amount each month after you have consistently achieved your target. Increase the size of your trades and do not expect the market to allow for bigger trades.
Trade Smart - Do not look for trades, let them find you. You do not have to be in a trade, so be selective and wait for the better looking trade opportunities. It all goes back to patience and discipline, knowing the trend and not forcing the issue.
Consistency – Trading success is all about consistency, base hits and scoring 1 goal at a time. You should NEVER be looking to make that homerun or trying to score 4 goals at once by finding that one massive trade. You should strive to be consistent, because consistency will afford you the ability to be fortunate and land the BIG game winner from time to time. Making 5 base hits will always add up to more than just 1 homerun, and taking consistent shots on goal will in fact win the game.
Know the Trend – The trend really is your friend and can compensate for a slightly poor entry. Even if you plan to trade contra to the trend, you need to know that you are doing so and trade accordingly.
Step Back - Take a look at what is actually happening by looking at longer term views and work your way in for more detail.
Be Early – It is better to enter a trade early with potential and being wrong, then to be right and enter the trade late but with no more potential. When you can identify the trend correctly and you seek proper trading tools and entry techniques, you can trade with confidence and enter your trades at the correct times.
Add to Your Winning Positions – You should look for the opportunity to add to any winning position. However any addition must be handled like a new trade and pure entry. So ask yourself; “If I wasn’t already in my current position, would I enter this new trade right here and right now?”
Never Add to a Losing Trade – Just Don’t Do It! The best way to never have the desire to add to a losing position is to never sit in a losing trade beyond your stop discipline. Do not use losing strategies like “doubling down” or “dollar cost averaging” because they only set you up for trading failure. Establish your Stop Loss order, be firm and hold to it regardless!
Never Chase Any Trade – If you miss the entry do not worry, there will always be another trading opportunity.
Recognize What is Actually Happening – Learn to understand and identify the 4 market stages and the 7 market events which comprise those stages, plus their 4 distinct psychological states. The market always follows the Gaussian Curve, so you should know where you are in the cycle at all times and identify the stage and trend before you enter a trade.
Learn to Anticipate – Anticipate the possibilities and ONLY act upon reality!
http://www.youtube.com/user/TradingFXcom
Tuesday, July 14, 2009
Dollar Mixed on Economic Data & Strong Earnings
The dollar was mixed Tuesday after the Labor Department reported a sharp rise in wholesale prices and retail sales, while investor confidence in Germany slipped in July after an eight-month rise.
Meanwhile, investors turned more optimistic about the U.S. economy after Goldman Sachs Group Inc. and Johnson & Johnson Inc. posted better-than-expected earnings. Signs of an incipient economic recovery have driven investors to pull out of the dollar and shift into riskier assets.
Investors were uneasy after a report showed wholesale prices rising far more than expected last month and the most since November 2007, due partly to higher energy prices.
A separate report showed retail sales posted their largest gain in five months in June, much of that increase from higher gas prices. Prices for gas have fallen sharply since mid-June amid increasing concerns about energy demand, so the higher sales figures may not be sustainable.
In Germany, Europe's biggest economy, the ZEW institute said its monthly index, which measures investors' outlook for the next six months, slipped to 39.5 points this month from 44.8 in June, as worries over bank lending clouded optimism over improving industrial data. Economists had expected a slight increase, or at worst a smaller dip, in the overall index.
www.PipRangeBars.com
Meanwhile, investors turned more optimistic about the U.S. economy after Goldman Sachs Group Inc. and Johnson & Johnson Inc. posted better-than-expected earnings. Signs of an incipient economic recovery have driven investors to pull out of the dollar and shift into riskier assets.
Investors were uneasy after a report showed wholesale prices rising far more than expected last month and the most since November 2007, due partly to higher energy prices.
A separate report showed retail sales posted their largest gain in five months in June, much of that increase from higher gas prices. Prices for gas have fallen sharply since mid-June amid increasing concerns about energy demand, so the higher sales figures may not be sustainable.
In Germany, Europe's biggest economy, the ZEW institute said its monthly index, which measures investors' outlook for the next six months, slipped to 39.5 points this month from 44.8 in June, as worries over bank lending clouded optimism over improving industrial data. Economists had expected a slight increase, or at worst a smaller dip, in the overall index.
www.PipRangeBars.com
Monday, July 13, 2009
Forex Trader's Weekly Bullet Points
USD - Needs a Reason to Break its recent Consolidation
GBP - Has Additional Trading Risk Prior to the Q2 GDP Release
EUR - Will Likely Stay in its Volitile Trading Range this Week
JPY - Could Move Higher if Carry Trades Follow Equities Lower
CAD - Current Consolidation Held in Check with Oil Prices
CHF - Markets are Anticipating further SNB Intervention
AUD - Traders will Weigh Future Policy Outlook
NZD - Remains Weak as Trade's Risk Tolerance Declines
http://www.PipRangeBars.com
GBP - Has Additional Trading Risk Prior to the Q2 GDP Release
EUR - Will Likely Stay in its Volitile Trading Range this Week
JPY - Could Move Higher if Carry Trades Follow Equities Lower
CAD - Current Consolidation Held in Check with Oil Prices
CHF - Markets are Anticipating further SNB Intervention
AUD - Traders will Weigh Future Policy Outlook
NZD - Remains Weak as Trade's Risk Tolerance Declines
http://www.PipRangeBars.com
Wednesday, July 8, 2009
TFX Currency Strength Index "CCYX"
FOR MORE INFO & FREE GUEST PASS: Info@TradingFX.com
Presenting The Unique TFX Currency Strength Index. Identify Divergence & Convergence plus Confirm Momentum & Trends. A Revolutionary Pip Range Bar Charting Software Tool for Forex Traders
Monday, July 6, 2009
Quote of the Week
"Your job as a trader is not to predict or forecast what is going to happen, but to anticipate the possibilities and react to reality.
I know it sounds simple, however many traders are far too busy predicting and forecasting to actually identify or trade what is REALLY happening."
Derek Schimming
TradingFX Co-Founder & Lead Trader
http://www.piprangebars.com/
I know it sounds simple, however many traders are far too busy predicting and forecasting to actually identify or trade what is REALLY happening."
Derek Schimming
TradingFX Co-Founder & Lead Trader
http://www.piprangebars.com/
Sunday, July 5, 2009
Forex Trader's Weekly Bullet Points
USD - Range bound, with risk aversion creating bullish potential
GBP - Will remain under pressure ahead of BofE rate decision
EUR - Volatility likely before Central Bank reports rate decision
JPY - Could strengthen as the appetite for risk decreases
CHF - May decline if bulls give up the fight against intervention
CAD - Should weaken further as labor market loses confidence
AUD - Has greater risk as investors weigh future policy outlook
NZD - Selling pressure ahead if the equity markets turn lower
http://www.youtube.com/user/TradingFXcom
GBP - Will remain under pressure ahead of BofE rate decision
EUR - Volatility likely before Central Bank reports rate decision
JPY - Could strengthen as the appetite for risk decreases
CHF - May decline if bulls give up the fight against intervention
CAD - Should weaken further as labor market loses confidence
AUD - Has greater risk as investors weigh future policy outlook
NZD - Selling pressure ahead if the equity markets turn lower
http://www.youtube.com/user/TradingFXcom
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