Educations

Finding value in fear

Finding value in fear

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It is not every day that markets get caught out by overwhelming fear ForexLive The new coronavirus outbreak brings back many lessons in markets and one of them is to not be too blinded by the fear. There is no doubt that things may still get worse before they get better, especially with the fact…
The jump from trend to bubble is faster than ever

The jump from trend to bubble is faster than ever

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What's the rush? I love this quote from George Soros because it is more true every day. He said it in his book on the crash of 2008 but he might be talking about fake meat, marijuana or electric cars today. We can all see trends towards environmentalism, renewables, e-commerce, the internet, eating out and…
The Trump impeachment legal team and your trading.  How are they related?

The Trump impeachment legal team and your trading. How are they related?

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It's all about building your case In an economic week in the US where the existing home sales, the weekly unemployment claims and the flash manufacturing PMI are the only events on the docket, it is hard to get too excited about the prospects for trading. At least from the economic release angle. However, the…
The positive power of doing nothing

JP Morgan on the yen - narrow ranges to persist

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JPM client note on the Japanese yen, say its losing its attraction as a safe haven play USD/JPY annual range of less than 10% for three consecutive years 2019 range less than 8% (smallest since 1980) Yen: "when a risk-on mood was strong, market participants would normally actively engage" in the yen-carry trade but when…
What were the financial lessons of the 2010s?

What were the financial lessons of the 2010s?

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The next decade is often different from the prior one "Financial markets tend to base their expectations of the future on the experiences of the recent past" That's a part of human nature that has repeatedly led to folly. Nowhere moreso than in financial markets. We've started a new decade with the same enthusiasm that…
Gold gives back gains as the fear trade fades

Gold gives back gains as the fear trade fades

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Gold gives back $25 in gains Gold remains in positive territory but has given back the bulk of its gains. It's up $10 to $1562 from a high of $1588. The move is part of a broader fade in the fear trade that started in European trading and has picked up in the past hour.  This…
The positive power of doing nothing

Expect gold buyers on any further US/Iran military strikes

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Trading 101 Over in our trading and how unexpected events can provide unexpected opportunities. Sadly, the drone attack on one of Iran's top generals provides a good basic learning point for investors
The positive power of doing nothing

Guest trader: Martin's 8 principles to trade by

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Martin Nikolov is our guest trader this week In a series of articles this week, Martin Nikolov will share his trading philosophy and then guide us how he sees markets unfolding with real-world examples. Martin is a long-term professional senior trader at Varchev Finance a firm in Bulgaria with a trading office in the City of…
The positive power of doing nothing

The positive power of doing nothing

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We find doing nothing very hard  It seems that we find doing nothing incredibly hard. In fact a paper in the journal Science found that people found being alone with their own thoughts extremely hard. The surprising conclusion of the study was that many people would rather give themselves an electric shock than be left…
The positive power of doing nothing

Recognise the trigger for a sentiment shift trade

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When do you pull the trigger? This takes time to know when to pull a trigger on a sentiment shift trade. It is the combination of experience, planning, knowledge and good old fashioned bottle (or confidence for non-native speakers) to recognise and act upon a trigger for a sentiment shift trade. Trades that have an…