Tag Archives: trading

Forex Trading

Logic In Investment Strategies

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I’ve been trading stocks and forex all my life. One thing I gradually became aware of during this experience was that the strategies which make the most logical sense typically are the ones which work the best.

There are so many strategies I’ve tried, I have lost count. And there are at least as many which I’ve let go without trying. There are just too many. I found a quick fire way though which helps disregard the strategies which are useless, so you can trial the ones which are worth trialing. Its logic. Look at the logic of your trading strategy and see if there are holes in it. You’ll be amazed by the number of strategies with big logical holes.

Most strategies presented to you will make sense. They have to or you would disregard them as nonsense. This is not what I am talking about though. The concern discussed in this article is logical completeness. If a strategy does not cover all possible scenarios you may come across, it will not take long before you find one of those scenarios. And when you do find a scenario which is not covered by your strategy, all of a sudden you need to make decisions outside the strategy. You will probably be left scratching your head or guessing.

Personally I think that making decisions like this, decisions which are outside the logic of an investment or trading strategy, is gambling. Its not a good situation. Sure you may make money with this gamble, but you could lose it too. Its no different than blackjack. A robust and complete trading strategy should take these gambles away from you. There should be no guesses. You should just plan the trade and then trade the plan.

The other problem with this is that no matter what happens to your returns from that point, you will never know if it happened because the strategy worked or because of the guess you just made. This also can create problems as it must impact your confidence in the strategy. If your confidence is impacted, this may further cause you to divert from the strategy in other circumstances, exacerbating the problem.

So if you are thinking about trading a new strategy, short cut experiencing some pain and loss. Go through the logic of the strategy in a robust and thorough manner. Are there scenarios you can see, which the strategy possibly does not cover? If so, try and get answers for those scenarios. If you can’t get answers for them, personally, I’d avoid the strategy. Lets face it, going to the horse races is much more fun 🙂

And once you are happy with the logical analysis you have applied, don’t forget to dummy trade for a while too. In dummy trading you will probably find a number of scenarios you never thought of. This gives you the chance of ensuring the strategy deals appropriately with them too, without risking any money. Good luck.

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Forex Trading

Euro Vs US Dollar – What Is the Next Move?

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The Euro, after initially outlining the 1.26 zone as being powerful potential support 2 weeks back the EURUSD rallied powerfully, spurred on by good stories from Greece and signs the Euro zone were making active steps in avoiding disaster with another financial emergency. Whether the proposed measures will be successful for Greece in the long term still has to be seen, but for the short term forex markets traders appear to be happy.

While writing this the domino effect does look to continue, as no earlier is Greece being managed do the sights turn towards Portugal again. Portugal understandably needs to raise finance thru its Bond sales, unfortunately bond traders are very twitchy regarding Portugal’s capacity to pay back financiers and I personally am unsure that financiers will need to risk taking a loss as in the Greek situation.

How this will affect the Euro Dollar and the timings remains to be witnessed but will be fascinating to work out if the EURUSD reacts at the zones highlighted below.

The EURUSD, after its quick ascent from this area for two weeks straight really took a break at the weekly 38.2 Fibonacci level at 1.3240 a little off of the 50% Fibonacci retracement area that I was speculating about last week. With the initial reaction off of that level the Euro Dollar came down to a 38.2 Fibonacci of the last two weeks upward move.

Again the EU Buck has found support and is, at the time of writing, moving back up to check the 38.2 area once again. If this holds we might be heading back down to retest support at the 1.26 area. If it doesn’t hold then the Euro Dollar should continue to what I consider the primary resistance area up at the 1.34 area. Being a dynamic average the weekly 20 simple moving average has come down a bit by around 50 pips and could really play at providing solid resistance before ultimately striking the 1.34 zone.

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Commodities Trading

Quite A Few Fundamentals Associated With The Price Of Silver And Platinum

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If you’re an enthusiastic investor, you may be watching gold quite closely. You may be conscious of the fact that gold proceeded to go up by almost 500percent within the last ten years. Does this sound like a fantastic gain on investing? Behold! Have a look at another marvelous metal that’s risen by much more than seven hundred percent: silver. While nearly all individuals were concentrating their investing on gold, price of silver has risen by much more than seven times during the last ten years, and that is around 40% greater than the return on gold.

You will find some more spectacular info regarding the price of silver. During the last two years, the price of silver has gone up by about 200%! This kind of unheard of rise in the price of silver is not without reason. Silver has purpose in a considerable number of areas, except rings. Indeed, more than half of the need for silver originates from heavy industrial sectors, and not the rings market. Silver is usually an outstanding conductor of electricity and is utilized in fine electronics.

Due to the unparalleled demand of silver within the consumer electronics industry, that’s matured greatly during the last ten years, the price of silver has risen much more than that of gold. The perspective for the future ten years remains bullish on silver, and additionally silver is used in numerous applications and industries because of its metallurgical properties. China and India are the significant drivers of the price of silver during the last ten years. China is known for developing all types of consumer electronics products and India is proud of the biggest usage of electrical items on the planet. Additionally, buyers from China as well as India spend money on the metal. Consequently, the price of silver is expected to remain on an increase in the the future.

Another metal which is being placed as the metal of the future 10 years is platinum. The price of platinum has offered greater returns than gold in almost all parts of the world. As a result of an unmatched increase in the price of platinum vs gold, platinum is likewise referred to as the “new gold” in certain parts of the earth. Even though nothing may be claimed with certainty with regards to the anticipated percentage profits on the price of platinum, the indicators from the past five years were reassuring, to put it mildly.

Platinum finds its utilization in necklaces, and an expensive one as well! Platinum can be viewed wearing several of the nearly all valuable pieces of necklaces these days, from wedding rings and wristbands to bangles and charms. Platinum will go wonderfully with expensive diamonds when compared with gold, which is the principle reason it’s found application of in engagement rings. Platinum is likewise progressively employed to design innovative pieces of necklaces. The world’s most expensive cellphone is designed out of platinum. Going through the way platinum is continuing to grow in popularity throughout the last three years, you can be positive the price of platinum will go up in the many years to come. The steadiness and projections about the price of silver and platinum each offer you tremendous chance for investors searching for long run investing possibilities.

Commodities Trading

How To Sell Gold For The Very Best Price

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You will find lots of men and women these days who are on the lookout for ways how to sell gold within most effective manner. On the surface, the task of supplying gold appears to be very easy one. All you have to do is discover a permit then start trading your jewelry. Even so, if you are looking which will make a superb income out of the industry or if you want to transform it straight into a sustainable organization, you may have to do more than this. There’s a higher than average need for gold right now, which means that the gold price might be beneficial to these types of trade. Even so, at the same time, the big requirement for gold implies that you will find much more men and women who could con you by persuading you to supply the rare metal at lower than the market price.

As a result, when you’d like to sit and learn how to sell gold, the initial thing you should really be prepared to accomplish is discover information about gold price. As an example, you’ll want to discover information regarding the current gold price in your personal market. This could be carried out by merely going online and reading through several of the fiscal reports on gold price. The fact that gold price is an exceptionally important financial sign suggests that it’s continually revised, and you could even notice web-sites that offer frequent improvements on the price of gold in totally different markets.

For that reason, by consulting such web sites when you want to find out how to sell gold at the right price, you should have a superb idea of just what prices to request from your consumers. This may also supply you with an idea of whether a particular customer may be attempting to con you by offering apparently alluring deals which could bring you much less funds than when you just sell off the gold to other men and women.

When attempting to discover tips on how to sell gold for best results, you must also keep in mind that the gold price may change from time to time. Just as with almost every other commodities, gold will cyclically appreciate and depreciate in price. The aspects that determine whether the price of gold are numerous, for example the economical and political standing of the nation. Consequently you will find times when you might sell gold, merely to find out a couple of days or weeks after the fact that market gold price has risen. To be able to reap the benefits of such modifications, you may want to keep your gold until the cost is ready to start heading down.

This data may also be acquired from a variety of economic web sites. it is vital that you attempt to base your own gold trade on the information received from all of these web sites, since they make certain that you receive the most value for your own gold. As an example, you could attempt and study the fundamental research into the gold price coming from a reliable finance web site. These generally supply suggestions whether or not the price is positioned to increase or decrease. If you notice that the signals all point to the gold price happens to be elevating, you can then keep hold of your own gold until it actually does.

 

Commodities Trading

Factors That Cause Variances In The Price Of Gold

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Gold has long been a clever investment selection for ages and historical statistics tell us that the price of gold has long been rising continually through the years. The charge of gold for an ounce of gold, nonetheless, can act inconsistently at times and financial investment in gold is acknowledged to have broken a variety of people financially. You’ll find numerous factors which affect the retail price of gold for an oz of gold. Gaining a crystal-clear viewpoint of such factors and discovering how they impact the estimate of an ounce of gold can assist you in hedging against unsure times. In this write-up, we analyze the best means to invest in gold and hedge in opposition to price variations.

You’ll find two broad ways in which you may invest in an oz of gold: either by buying physical gold or by investing in gold stock. Each type of financial commitment features its own benefits and drawbacks. With paper gold (gold financial commitment through stocks), you will not be worried about taking good care of the safety of the gold. Having said that, physical gold, in the sort of coinage and bars, is far more liquid and may be traded without documentation. Therefore, the sort of financial commitment is the first important thing that impacts the cost of an oz of gold. Yet another important reason for the variances in the cost of gold is the existing market condition. Desire and supply controls the general market environment have an effect on the cost of gold.

Gold price is portrayed with regards to US dollar. Essentially, there exists an inverse partnership between the retail price of US dollar and price of an oz of gold. Gold is recognized as a relatively safe financial investment over paper currency principally due to the fact the supply of gold can not be heightened or diminished to accommodate marketplace circumstances. Therefore, when you’ll find currency variations or currency conflicts, people tend to place their funds in gold so as to to protect against these currency changes, as this can force the price of gold upwards. Therefore, you will need to have an eye for noticing dollar variations and currency so as to draw out the maximum gain from your own financial investment in an ounce of gold.

Even when you’re a professional trader, you can generate a tidy yield on gold. You will need to invest in pure gold, like gold coinage, if you want to help with making a tidy return on your own financial investment. The requirement for gold will almost always be around and the supply will almost always be limited. Therefore, you’ve got an incredibly excellent prospect of making funds on your own financial investment. It is just a question of the length of time you hold onto your own bullion reserves and the current price of gold for a single ounce of gold.

Most commodity markets usually regulate the price of gold. Commodity dealing is carried out at the current price of gold so you will need to learn how to obtain cues from commodity and futures prices to comprehend the price of gold. There isn’t any set relation regarding the two, even so, almost all specialist merchants believe that the value of gold is influenced directly with the cost of crucial goods like petroleum.

With this advice about the price of gold, we are certain you are prepared to go for it in gold financial commitment. Keep a knack open for any information related to market instability please remember, any poor reports for the market is typically good for the price of gold.

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