How to Trade With Your Gut

The best traders are observers and anticipate their moves beforehand; this is called the “gut feeling”, every trader should rely on the gut feeling while trading as it is something that will undoubtedly establish to a higher degree as you gain your experience in the market.

Gut feeling can be understood by starters if we call it trading inspiration as well as high hopes, this is a very significant and dominant tool that you will need to develop to move up into the top 10% outstanding traders.

Practice Makes Perfect

A lot of professional sports players have put in massive amounts of effort and practice and because of this; they have been able to go pro, they have played with a wide range of different players and this is what gives them the gut feeling to what their opponent’s next move will likely to be, this gives them leverage out on the field, much in the same way, in your trading strategy when you’ve put in enough screen time, you will start to develop the gut feel. There are many more situations where gut feelings takes place, whether it be sports, trade or other more practical fields in life, but in all, it surely requires experience and commitment for development.

Gut Feeling and Price Action Trading

The various strategies that the trader uses will eventually become common facts to the experienced trader and as time goes on, the traders’ gut feel will help him determine if a trade is worth taking or not. Sometimes the trader may not even know why he is choosing the side of the market and not the other but his experienced mechanism will build up his thinking level, while he makes decisions the more experience and exposure that he has gotten with the charts and price action, the more prompt he will become.

It won’t come very quickly and will require lots of time of practice and experience but as you look at the charts and price actions, the gut feel will develop along with the development of strategic thinking.

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How to Think Like a Successful Trader

You’re at it again, you’re spending the day sitting before a chart and bickering with yourself over what trading card to play next.

You think you have it, you feel the adrenaline coursing through your veins as you watch all the signs point towards profit and success for you, success so close you can almost taste it but wait!- there’s a shift in the trade, and it’s unexpectedly moving against you, your shoulders sag, both your stomach and your mouth drops.

You wait and watch in dismay as the trade continues to move against you and then that’s it. You’ve lost, again, you’ve made the same mistakes you made the last ten times.

What you need to realize is that you can’t help what you’re feeling but what you can do is try and make a change. As a trader you need to understand that emotions and feeling often take over all logical thinking and successful traders keep their feeling in tow when trading amongst doing other things.

Successful Traders are Fully Aware of the Workings of Their Minds

To think like a successful trader you need to develop an understanding of your mind, especially when you are trading, a good trader knows his limits and what his goals are, he does not easily get distracted by other unimportant things while trading. Good traders know what it is that will motivate them and what kind of thoughts they should be having while trading that will have a positive effect on the way that they trade. So to get the mindset of a winner, first get to know your mind and get to know it well.

They Know the Importance of Being Biologically Healthy too

What most traders don’t realize is that their biological condition has the ability to greatly impact their mental stability while they trade. Something as simple as taking deep breaths at the right time could have been the difference between you losing or you winning. The mind and the body are linked together instead of getting worked up and letting the adrenaline take over them, successful traders exercise and know well enough what the advantages of being healthy are.

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How to Get Back on Your Feet After Continuous Trading Losses

Most of us traders have been there, incurred so many losses, so many times that we’re actually unsure of whether or not we should continue trading. Well we’re here to tell you there’s nothing you morally did wrong (unless, of course you cheated to get on top) you might have made some common trading errors that a lot of beginners tend to make.

We’re here to help you get back up when trade financially and emotionally hits you hard in the stomach and reminding you that you can’t let one streak of losses ruin all your chances of succeeding in the future.

Understand What You Did Wrong

This step is extremely very important because before you can get back up and think, “Okay, I got it this time,” you need to know what you did wrong to fail the first time around, if you don’t do this you’re just in for even more losses. There are basically two types of losses that a trader can go through;

A statistical/normal loss:

A statistical loss is one which is incurred mainly due to some sort of overvalue or undervaluation that might have effected your trade strategy, this type of loss can also be called a normal loss because it is normal for a trader to often at times lose. The fact of the matter is that there will be losers in a trade as well as winners, statistically speaking, even if you employ the most winning trading strategies, a certain percent of you will definitely be losers.

Emotional loss

Emotional loss is pretty self explanatory, all traders are humans, and human beings sometimes do let their feelings and emotions get in the way of their work. Emotional loss also refers to losses made when you let your inner feelings such as desire for revenge, greed or over confidence get in the way of you and your real trading objectives. You can even feel pressurized- especially if you’re a full time trader to gain as much profit as you can and this can lead to losses if you’re not able to handle the pressure properly.

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The US Dollar in the Aftermath of the Brexit Vote

GBP has dropped more than 8% against USD in the aftermath of Brexit vote. This is a serious concern and one should be alarmed if they trade US dollars.

Brexit 52% vote over 48% Bremain vote sent shockwaves in the International financial market on Friday. This marked an end to UK’s 43 years EU membership in a referendum that attracted a record 72% of the registered voters. The pound dropped more than 8% against the dollar in the early trading session while its Euro counterpart was down more than 7%. In the run up to the voting day, polls showed a tightly contested campaign too close to call with major pollsters showing a bias towards remain.

At 2100GMT the polling stations closed, YouGov polls showed remain with its nose ahead of leave by a 4 point lead at 52% remain Vs 48% leave. Another survey carried out by ComRes implied a 6 lead at 48% remain compared to 42% leave camp. At the end of the Friday trading session, assets worth over $10 trillion had been wiped out of FTSE benchmark as the yield on 10-year UK government bond fell below 1% for the first time in history as reported by Sky News.

It will take approximately two years for Britain to formally withdraw from the EU. Until 2007, there was no formal procedure for member states to withdraw from the EU. No member state has ever rescinded its EU membership even though the Lisbon treaty sets out the withdrawal procedures.

David Cameroon resigned after the vote, in The Guardian article “I was absolutely clear about my belief that Britain is stronger, safer and better off inside the EU. I made clear the referendum was about this, and this alone, not the future of any single politician, including myself.

-See more at:  https://www.hiwayfx.com/forex-articles/us-dollar-aftermath-brexit-vote

BREXIT: Game Changer for the UK and the EU? What to Expect Next

EU leaders have already met to ponder over the way forward after Britons surprised the world by voting to leave the EU. Ex-PM David Cameroon urged the EU to give Britain more control over immigration. Cameroon had promised the EU leaders in the run-up to the referendum that he would deliver the win. EU leaders may blame him for allowing the Brexit referendum in the first place, but as he explained, the pressure was too huge to avoid.

At the EU summit in Brussels, French President Francois Hollande, made it clear that UK must be ready to bear the consequences of leaving the biggest single market union. It is not business as usual, U.K. won’t enjoy the advantages of the EU single market after rescinding its membership without applying the rules governing trade in the monetary union, reported Bloomberg.

Ben Bernanke weighed in his thoughts on Brexit. The former chairman of Federal Open Market Committee and leading US economist says that the biggest loser is Britons themselves.  The votes open doors to numerous political and economic uncertainties in the UK. Uncertainty about how the UK will manage the trade rules with its neighbors in continental Europe. The fate of workers in the UK of foreign origin as well as UK workers in EU countries. Bernanke also makes a case on the uncertainty over the political direction the deeply divided country will take going forward.

-See more at:  https://www.hiwayfx.com/forex-articles/brexit-game-changer-uk-and-eu-what-expect-next

Theresa May and the Way Ahead With Brexit for the UK

Background Analysis

Theresa May is going to be the new prime minister of the United Kingdom. It is also a fact that most people know what led to her becoming the prime minister. But for the sake of those that are not so conversant with developments in the United Kingdom or current affairs in general, I will give a little background of what led to her succeeding David Cameron as prime minister.

There were calls from UK citizen for the country to break away from the Euro block in which the country was a key player. The argument from this group of citizens was that the country will be better off being alone than being a member of the euro block. While the calls were going on, some citizens not in support of the break-away called for restraining and caution.

David Cameron being the then prime minister left with the task of conducting the popular Brexit referendum to decide whether the country will remain in the block or pull out. He, however, made his decision clear to the citizens and fellow politicians of his intention to resign as prime minister if the citizens voted to leave the block during the Brexit referendum.

Brexit Outcome and its Aftermath

Following the successful conduct of the Brexit referendum and the eventual outcome of the voting result, it became clear that majority of UK citizens voted in favor of the country breaking away from the Euro block.

The attention of the world then shifted from the outcome of the referendum to wanting to know how the decision will affect not just the Euro block but the world in general economically and financial.

There were fears of how the result will affect financial markets in Europe and the world in general. There were equally fears of what will become of the Pound Sterling and the Euro when compared to other major currencies of the world.

Financial Impact of Brexit on the Pound Sterling

Following the end of the referendum, the country’s currency gained slightly against the United States dollar and the euro. The currency also gained against other major world currencies. But there were fears whether this gains will be sustained or not following the change of power in the country, as a result of the resignation of David Cameron as prime minister and the coming to power of Theresa May.

This is due to the fact that she may likely introduce new economic changes and financial policies which could affect the country’s currency positively or otherwise.

 -See more at:  https://www.hiwayfx.com/forex-articles/theresa-may-and-way-ahead-brexit-uk

Can the Chinese Market Wade Through the Economic Murky Water Stirred By Brexit?

Recently, in the city of Tianjin, the Chinese PM Li Keqiang while addressing a World Economic Forum gathering said “It's hard to avoid short-term volatility in China's capital markets, but we won't allow roller-coaster rides and drastic changes in the capital markets".

He went ahead in the speech to wish the European Union and Britain a stable and prosperous future but not without ringing warning bells saying "against the backdrop of globalization, it's impossible for each country to talk about its own development discarding the world economic environment." (Reuters)

The interconnectedness of world economies today has been accelerated by the globalization of markets, goods, services and people more than any other time in human developmental history. The financial market turmoil continued into its second day after the historic Brexit vote last Thursday. 

The British pound hit all time low since 1985 to trade at 1.31230 against the greenback. Approximately $2T dollars have so far been wiped out of the market as investors repatriate their capital from risky assets in the wake of uncertainty created by the Brexit vote results.

Wall Street Journal headline reads “Next Fallout? ‘Brexit’ Tests China’s Precarious Balancing Act”.  Apparently, the Chinese Premier paid a short visit to the Central bank Policy makers bearing one message: “The Yuan must be kept stable”.

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How to Figure Out When is the Best Time to Trade Forex

When we observe the trend of trades, we see that timing is of essence to the success of a trade. Many traders have faced major losses in a trade due wrong timing. They have traded currency pairs at times when the price charts are against them. 

Study the Markets

It is a fact that not all hours of the day are suitable for trading. When the market is most active and when there is least fluctuation in the market, it is the safest to open a trade. When more than one market is open, then there is greater fluctuation in price movements. It can be more than 70 pips north. However, when only one market is open, the price gets locked into a static zone with a change of around the 30 pip range. Moreover, you need to study the New York Stock exchange (NYSE) because the US dollar is involved in 90 percent of all trades and it is the biggest trading platform in the world. You also need to have an in depth knowledge of the market you are going to trade in before making a trade or you’re just handing your fate to luck and that isn’t what experienced traders do.

Overlap timing

When the markets overlap then there is an equal chance of greater risks and profits. As mentioned earlier the markets move significantly when more than one market is open. The biggest overlap in the US/ London markets occurs from 8 am to noon and as we know that the dollar and euro are the hottest currencies to trade and  this is the optimal time when the volatility is really touching the roofs , this would be the time to start a trade. The 2am to 4am time in the Sydney and Tokyo market overlap isn’t as volatile as the above market but it still gives you a higher pip fluctuation and greater opportunity in the market. The London Tokyo overlap which happens between the 3am to 4 am mark sees the least volatility in the market and lower opportunities as compared to the above two markets.

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Electronic Communications Network (ECN) and Market Makers

Within the last couple of years Forex has emerged as the single biggest name in the world of online trading.

This immense success of the system has led to an influx of a large number of brokers, who have made the trading platforms accessible to almost everyone.

In the present market the brokers working to provide trading platforms can be clearly distinguished into two categories:

Brokers that are conventional market makers and brokers that use an ECN system. There are also some brokers that are operating both ways, depending upon the customer needs and the type of the account.

ECN

Electronic Communications Network (ECN) refers to the system that the broker employs to transfer orders and receive quotes.

A broker using ECN simply provides the trader with a trading platform and then acts as a middle man between the buying and selling parties.

This system simply presents the best quotes after collecting them from liquidity providers without considering the source.

Market Maker

A market maker is a completely different experience. . A market maker makes his own market.

The broker determines the buy and sells quotes before presenting them in the market maker platform. As the market fluctuates the quotes also change according to its flow.

The choice of a Forex broker is indeed a very important one. Hence, before choosing any broker it is important to get familiar with the ways on which each of the systems operate and also determine their pros and cons to be able to make the best choice.

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How to Use the Economic Calendar to Increase Profitability

A successful trader requires both, the traits of a market fighter and a keen trade analysis, which requires authentic market news. There is nothing more important for an analysis than continuous up-to-date news. And one of the best ways to grab this news is through the economic calendar of the forex market that allows the trader to collect all the important global financial news and all the up-to-date info, about the finance at the time of its publication.

The economic calendar also ranks the news in the order of importance and capacity of its influence on the market - for the ease of the traders. The economic calendar acts as a helpful guide for the trader on his road to profit. Forecasts and economic history is also taken into account. The economic calendar is published online, right before the opening of the trading week, and its data plan is constantly adjusted in accordance with the current situation.

The use of economic calendar for trading involves at least the following three meanings of the announced economic events:
1. The actual event
2. The consensus (forecast/prediction)
3. The previous meaning.


In case, the forecast by the calendar is justified i.e.  It is in accordance with the calculated values, and then the market reaction will often be small or be completely absent.

-See more at:  https://goo.gl/0tWFp9

How to Use the Economic Calendar to Increase Profitability

A successful trader requires both, the traits of a market fighter and a keen trade analysis, which requires authentic market news. There is nothing more important for an analysis than continuous up-to-date news. And one of the best ways to grab this news is through the economic calendar of the forex market that allows the trader to collect all the important global financial news and all the up-to-date info, about the finance at the time of its publication.

The economic calendar also ranks the news in the order of importance and capacity of its influence on the market - for the ease of the traders. The economic calendar acts as a helpful guide for the trader on his road to profit. Forecasts and economic history is also taken into account. The economic calendar is published online, right before the opening of the trading week, and its data plan is constantly adjusted in accordance with the current situation.

The use of economic calendar for trading involves at least the following three meanings of the announced economic events:

1. The actual event

2. The consensus (forecast/prediction)

3. The previous meaning.

In case, the forecast by the calendar is justified i.e.  It is in accordance with the calculated values, and then the market reaction will often be small or be completely absent.

-See more at:  https://goo.gl/0tWFp9

Top 6 Forex Trading Lessons

The only best way one can learn about trading is by exploiting the knowledge from the professionals in the field. No school or college is going to teach you about the trading market, you have got to self-educate yourself and get as much knowledge as you can from effective sources.

For example, this article. I’m going to share some of the important things I learned in my 15 years of experience in the trading world.

Develop a Consistent Trading Plan

The first thing you need to understand is that it’s easier to over-trade than one can imagine. I didn’t even know I was over-trading in my rookie years, it’s a very, very easy mistake to make, especially for beginners, and it’s also a very costly one. You need to have a trading strategy and trading plan criteria so that you can develop some structure and routine into your trading processes, so that way you can tell whether or not you’re over-trading.

Don’t Overuse Indicators

The next thing you need to remember is that indicators are a bootless errand. Yes, indicators may seem quite attractive and fancy but all they do is add extra burden for you to deal with. There is no use of analysing them, I started reducing variables instead of adding them and that had a huge impact on my trading outcomes.

Let Trades Play Out Themselves for you

However, if someone asks me to give them an advice on trading, this ones the first that’ll come to my mind; give your trades time and space to play out themselves for you. One has to be patient with the market and give the trade some space, this means to place wider stop-loss orders. Don’t react at every fluctuation in the market, let it prove you wrong.

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