Day: June 20, 2024

A Day In Life Of A Forex Trader

FXgram The Ugly Truth About Trading Related Posts 09 June 2024 Being Born Poor Is Not Your Fault Does it have a ‘slap-in-the-face’ effect on you? Then it’s time to take action and… Read More 02 June 2024 Sky-Tide Marketing SkyTide – the official news publication of Gramatik LTD. SkyTide – the… Read More 28 May 2024 Big Short’s Michael Burry bets against S&P 500 and Nasdaq 100 Michael Burry, the hedge fund manager that inspired Martin Lewis’s book The Big Short,… Read More 20 June 2023 UK billionaire Hamish Harding on board missing Titanic submersible UK billionaire Hamish Harding is one of five people on board a missing tourist submersible… Read More A Day In The Life Of A Forex Trader Hi everyone! Today, I’m excited to take you through a typical day in my life as a Forex trader. If you’re new to trading or have had a rocky experience in the past, I hope my story can shed some light on what it’s really like to trade Forex.   Published by FXgram on June 11, 2024 Open a trading account with a Broker right now OPEN Read the Risk Warning before you register Morning Routine: Success Mindset My name is Matt, I’m a professional trader and I have been living in Bali for almost 8 months. If you are a trader or interested in Forex please read this article until the end.   My day starts early at 6 AM. The first thing I do is grab a cup of coffee and check the latest market news. I follow several financial news websites to get a sense of the market sentiment and any overnight developments that might affect my trading strategy.     For instance, on March 1, 2024, I came across news that geopolitical tensions and ongoing robust central bank purchases provided strong foundational support for the gold rally. Central banks, including India’s Reserve Bank, continued to add to their gold reserves. Knowing this, I immediately pulled up the XAU/USD chart to analyze the potential market movements. The chart from that morning showed a consolidation pattern, indicating that traders were waiting for more information before making any major moves.   By 7 AM, I’m at my desk, reviewing these charts and analyzing trends. Here’s what I saw:   Support and Resistance Levels: The chart showed a strong resistance level at $2,055. The contributing factor was a surge in technical buying. Gold broke through several psychological and technical resistance levels, which spurred additional investment from traders covering short positions and those seeking to capitalize on the upward momentum. Candlestick Patterns: I also noticed a series of doji candles forming near the resistance level in previous days. This often precedes a breakout or a reversal, making it a critical point to watch. Simple Moving Averages: The price remained above 50-day, 100-day, and 200-day averages, thus indicating an uptrend, suggesting bullish sentiment in the market. Volume Indicators: There was an increase in trading volume during the Asian trading session, coinciding with the news of the potential interest rate hike. Higher volume often confirms the strength of a price movement, whether it’s up or down. Economic Calendar: A weak ISM manufacturing report in the U.S. could become a crucial trigger but given the unpredictable nature of such events, it was essential to carefully calculate the associated risks. Based on these signals, I anticipated that the market would experience prevailing bullish sentiment. This analysis helped me prepare my trading strategy for the day. Trading Session: The Heart of the Day By 8 AM, I’m ready to start trading. My focus is on XAU/USD. With the news on the growing geopolitical tensions in mind, I placed a few strategic long positions on gold, anticipating a rise in its price.   Risk management is a crucial part of my trading strategy. Before placing any trade, I ensure that I’m not risking more than 1-2% of my total account balance on a single trade. For this example, let’s say I have an account with $30,000. I decided to risk 1% of my account, which is $300. Given the leverage available, I was able to open a long position on XAU/USD. Open a trading account with a Broker right now OPEN Read the Risk Warning before you register Here are the trades I made throughout the day: 1. • Position size: 10 ounces • Entry price: $2,056 per ounce • Exit price: $2,071 per ounce • Profit per ounce: $15 • Total profit: $150 2. • Position size: 5 ounces • Entry price: $2,055 per ounce • Exit price: $2,053 per ounce • Loss per ounce: $2 • Total loss: $10 3. • Position size: 15 ounces • Entry price: $2,058 per ounce • Exit price: $2,072 per ounce • Profit per ounce: $14 • Total profit: $210 4. • Position size: 10 ounces • Entry price: $2,060 per ounce • Exit price: $2,078 per ounce • Profit per ounce: $18 • Total profit: $180 By the end of the day, my trades had yielded a total profit of $530. Here’s the breakdown of the profits and losses: Trade 1: $150 profit Trade 2: $10 loss Trade 3: $210 profit Trade 4: $180 profit Afternoon Routine: Reflect and Plan Ahead Around 2 PM, I take a break to have lunch and clear my mind. Trading can be intense, so it’s essential to step away and recharge. After lunch, I reviewed the trades I had made. The broker I use provides detailed reports and analytics, which help me understand my performance and areas for improvement. This data is invaluable for refining my strategies and becoming a better trader.By 4 PM, I start winding down my trading activities. I close out any remaining positions and review the day’s performance. This is also the time when I plan for the next day, setting up alerts and preparing for potential market movements. Evening Routine: Balancing Work and Life Evenings are my time to relax and unwind. I usually… Continue reading A Day In Life Of A Forex Trader

Peppesrtone, Chris Weston: The unstoppable US equity markets – The biggest risk to the momentum juggernaut

https://preview.redd.it/l5bay08ovn7d1.png?width=1200&format=png&auto=webp&s=36457b425a06c42f30a9e17689e5dcd4c5a28a71 Authored by Chris Weston With US markets closed for the Juneteenth holiday, and as we look ahead to a massive US quarterly options expiration on Friday, which could have big implications for equity markets and volatility next week, we look at the current trend in US large-cap indices and what could spur a lasting reversal of fortunes. S&P500 YTD gains coming predominantly from six stocks When could we see Nvidia reverse its bull trend? The big risk to markets Why market positioning is a factor to consider With the NAS100 eyeing 20k and the S&P500 pushing 5500, and with the knowledge that July is typically a solid month for returns in the NAS100 (the NAS100 has closed higher in July in all 15 of the last 15 years), the question of what derails this momentum move is one we hear ever more frequently from clients. Granted, all is not so rosy under the hood, where index market breadth has been poor, with participation underwhelming, suggesting the rally has been built on a shaky foundation. (NAS100 returns per month) https://preview.redd.it/a52jqhnyvn7d1.png?width=1384&format=png&auto=webp&s=4e039886f6d6e9a0637246cb31c42e7cdbb4f385 As many who have tried to short these indices – at least outside of a scalp or a day trade – will attest to, bearish directional trades have been tough, as we rarely get follow-through after a 1-day down move. Naturally, the question comes down to what rocks Nvidia, Apple, Microsoft, Meta, Alphabet and Amazon, given these six names alone have accounted for 60% of the S&P500’s 15% YTD gains. Conversely, only 30% of S&P500 constituents are outperforming the S&P500 YTD – the lowest read in two years. It has simply been a tough trade to bet against AI in its various guises – so until we lose these behemoths then pullbacks at an index level will likely be shallow and well-supported. https://preview.redd.it/kyx6gfp6wn7d1.png?width=1384&format=png&auto=webp&s=f48476d9f390b790b9142984fe6c3bc663209315 Nvidia remains the most important stock in the world, having now eclipsed Microsoft as having the largest market capitalisation globally. There has been some focus that corporate insiders (within Nvidia’s upper ranks) have recently been selling down holdings, but judging by the price action, few in the investment or trading world have seen this as a signal to reduce exposures – in fact, given the daily massive level of short-dated call (option) buying relative to puts, most market players continue to chase the intraday rallies. Maybe this dynamic changes as we head into US Q2 earnings, where Nvidia report on 23 August. Perhaps should Nvidia trade on a 55x-60x forward PE multiple (currently 50x) and where this quarterly earnings report should see a decline in gross margins into 75%, then perhaps this could be the time to rotate into other areas of the market. The big overriding concerns that could impact The scenario which would cause a lasting reversal in risk would be a trend towards deteriorating economic data flow, with labour markets cooling far quicker than many expect, consumption metrics pulling back rapidly and business and consumer confidence falling hard. If this was to occur, especially if inflation remains at current levels, or even rises, then all bets are off and we think about the Fed having to ease rates to stimulate the economy. However, if the US economic data flow is really going to deteriorate increasing the prospect of a recession, which would impact corporate earnings, then it isn’t going to happen overnight and could take months to fully evolve. We also know there is Fed insurance that supports risk sentiment, with the central bank ready to ease rates to a more neutral setting (considered to be 3.5% on the fed funds rate), should conditions warrant such action. We also know the Fed can very effectively utilize its balance sheet should it need to. Why sell equity exposure when the Fed have your back? The French election risk rolls on and there could be further volatility going into the second-round vote on 7 July, but it is not going to spur a correction in these big US tech names. Quite the opposite in fact, where capital will likely come out of EU assets and head to the US tech plays should we see increasing concerns. The threat of France leaving the EMU is also very low, even if the right-wing RN party get a working majority. The US Presidential election is not until 5 November, and it’s still too early to be expressing a view at this point. Again, it is early days, but the probability markets (and recent polls) currently suggest that Trump will likely be re-elected as President, with the Democrats flipping the House and the GOP getting the Senate. Granted, Trump will go hard on tariffs, but he’ll be just as hard on deregulating industries and that could be…dare I say it…. The trumping factor that sees US equity outperform. We can go on looking at the risk factors that could spur a lasting trend reversal, but one aspect that makes me nervous is equity and volatility positioning. Now positioning alone won’t be the cause of a more prolonged drawdown in the US500, US30, US2000 or even NAS100, but it would exacerbate the pace at which any sell-off happens. Positioning is the clear consideration The recent Bank of America Fund Manager survey, which canvasses some 238 money managers and accounts for assets under management of $721b, highlighted that fund managers’ cash levels are now at 4% – the lowest since 2021, arguing against the notion of ‘cash on the sidelines’ still ready to come into the market. Systematic trend-following funds (known as ‘CTA’s or Commodity Trading Advisors) are positioned max long of equity futures. While ‘risk parity’ funds – i.e. pension & insurance funds whose exposure to the equity market is calibrated to the level of realised volatility in the S&P500 – are also fully invested. We see the weekly CFTC report showing net positioning in VIX futures sits at -37k contracts – the biggest net short position ever. When in doubt sell equity volatility (vol), but as vol stays low,… Continue reading Peppesrtone, Chris Weston: The unstoppable US equity markets – The biggest risk to the momentum juggernaut