Owner: DailyFX URL:http://dailyfx.blogspot.com/ Join Date: Wed, 21 Feb 2007 15:23:14 -0600 Rating:0 Site Description: forex trading blog - daily market analysis, technical and fundamental, trading ideas and advice, charts, tips and tricks and a lot more. Site statistics:Click here
EUR/USD trade outcome 1970-01-01 00:59:59 Now here's the outcome
of this week's last trade (long on EUR/USD).Gained 25 pips (from 1.3109 where I managed to get in to 1.3134). The cherry on top of a good week :)
Pip Blind 3000 - the ultimate forex trading tool 1970-01-01 00:59:59 It's weekend, everybody is relaxing.I just found the ultimate tool for those of you hunting pips every day. It's called Pip Blind
3000.Here's a short description from Ryan O'Keefe, the creator of this amazing tool.When stalking pips you need the ultimate disguise to keep your mad-skills hidden until you are ready to pounce. I recommend using the Pip Blind 3000! Pip Blind 3000 has great features such as: Camouflage which hides your entry and stop intentions from the stop gunners!Multiple openings allowing you to fire short or long!Comfortable seating for two in case you have a trading partner (that's hot)!PS: In case you didn't notice, it's just a joke. Relax guys, it's the weekend, didn't I already tell you that?
The Yen (JPY) Carry Trade Explained 1970-01-01 00:59:59 There's so much talk about the Yen carry trade lately, especially because many think it's coming to an end. But all this depends on the interest rate decision coming from BoJ (Bank of Japan) Wednesday, 21 February 2007 and BoJ governor Fukui's speech right afterwards. I'm sorry I can't give you an exact hour for this interest rate announcement, but BoJ doesn't always give reports as important as this one to the public at an exact time to prevent excess volatility into the market. The outcome is very important to everyone trading forex.But what's this "carry trade" everyone's talking about?Here's a definition from Investopedia:A strategy in which an investor sells a certain currency with a relatively low interest rate and uses the funds to purchase a different currency yielding a higher interest rate. A trader using this strategy attempts to capture the difference between the rates - which can often be substantial, depending on the amount of leverage the investor chooses to us Read more:Carry
, Carry Trade
, Trade
New Pairs to Trade at Oanda - Turkish Lira, Indian Rupee, New Taiwan Dollar, Chinese Yuan 1970-01-01 00:59:59 From the Oanda forum: The following new pairs are available on FXGame: EUR/TRY (Euro/Turkish
Lira) USD/TRY (US Dollar
/Turkish Lira) USD/INR (US Dollar/Indian Rupee
) USD/TWD (US Dollar/New Taiwan
Dollar) USD/CNY (US Dollar/Chinese
Yuan) Please note that these pairs are being deployed on a beta basis as we work through operational issues ensuring the stability of underlying bank links. To add these new pairs, you will have to clear you Java cache by following the instructions here: http://fxtrade.oanda.com/help/clear_cache.shtml You will then have to add the new pairs by accessing the Tools -> "User Preferences" -> Quotes (tab) And adding them to your "Quote List".Goodie! It means these exotic currency crosses will be there for us to trade on FXTrade
real soon. Will update on Monday to give you the spreads and interest rates of these new pairs. Read more:Chinese Yuan
, Pairs
EUR/USD Daily thoughts for 8 February 2007 1970-01-01 00:59:59 Technical view:It's been a whole month since EUR/USD stabilized under the 38.2 Fibonacci retracement. The price entered this range on 8 January 2007 and, since then, the bulls are being held in place by the 1.3030 resistance (coinciding with the 38.2 Fibonacci retracement) and the all mighty 1.2900 support.Though EUR/USD has been range trading the past month, a pattern of higher highs and higher lows can clearly be seen - euro's bullish attitude.Fundamental view:We have no significant releases tomorrow either for euro or dollar until 13:30 GMT when the European Central Bank (ECB) President Jean-Claude Trichet will speak at a press conference following the Governing Council's meeting in Frankfurt. The ECB Interest Rate Statement is void of commentary, so traders usually focus on Trichet's post-release press conference for clues about future rate decisions. Because these clues can sometimes be obscure, the market tends to experience heavy volatility during this press conference.Tradi Read more:Daily
, February
, thoughts
, USD Daily
, USD Daily thoughts
GBP/USD Daily thoughts for 12 February 2007 1970-01-01 00:59:59 Technical view:GBP/USD is playing between the Fibonacci retracement lines. Support was reached on Friday and I expect some bullish days to come.Fundamental view:There will be some reports today affecting the GBP crosses: PPI Input & PPI Output at 9:30 GMT. Medium volatility expected.Trading advice for today, 12 February
2007:Intra day trading recommended only if going long. This way, you'll benefit from the longer trend bias. Also, open trades after the releases at 9:30 GMT, if a trend develops. It would be best if the reports are positive or at least neutral for the GBP, so the upward longer term is sustained.Trade suggestion:This is a longer term trade suggestion, could hold it beyond this week so carefully size your position.Long at 1.9500, SL@1.9450, TP@1.9680 Read more:Daily
, thoughts
, USD Daily
, USD Daily thoughts
One thing I like to do while trading 1970-01-01 00:59:59 ...is to play Monopoly online. I don't need to watch the trades every time, and when I have spare time (because usually I read different articles or blogs) I play Monopoly.If anyone wants to challenge me some day, you know how to reach me.
Trade idea 1970-01-01 00:59:59 PPI came out as expected, EUR/USD fell but 1.3100 resistance is holding really well. Took a small long at 1.3105, with SL at 1.3080. We'll see how this goes through the consumer sentiment release at 15:00GMT. I think it will be the last trade of the week.I'll keep you updated. Read more:Trade
EUR/USD Daily thoughts for 15 February 2007 1970-01-01 00:59:59 Technical view:EUR/USD broke the strong 38.2 fib retracement support line today, escaping the range it was trapped since January. It climbed until 1.3150 which is the next support. Current price @ 1.3135.Fundamental view:Weaker than expected Retail Sales data fom the United States caused the break of the range trading.We have today some major releases also from the US:Empire State Business Conditions Index at 13:30 GMT (previous 9.1, forecast 10.5)Measures the general business conditions of manufacturers in New York State.Expect some serious USD bulls if numbers are over 11, as the USD is currently oversold.TIC Report (previous 68.4B, forecast 60.0B)The Treasury International Capital (TIC) Report measures foreign demand for US debt and assets. Strong demand tends to strengthen the dollar as foreigners convert their money in order to purchase US securities.I really don't see how this report can turn out good for the dollar considering the current global situation and sentiment for USD, Read more:Daily
, February
, thoughts
, USD Daily
, USD Daily thoughts
Forex links for today 1970-01-01 00:59:59 Here's a list of 25 forex blogs you might want to check out: http://www.forexreader.com/2007/02/top_25_forex_bl.html (thanks forexproject.com for the link).I already have some of them in my RSS reader and will be reviewing the others later this week.And if you're still here, you might want to check out this list of Forex
Resources: http://list.forexproject.com/. Read more:links
Thin Liquidity in Forex Today, Watch Out! 1970-01-01 00:59:59 Markets are known to get more predictable as more players participate. It's like statistics: they're most accurate when they are made on large numbers of people.Here's what I wrote to one of my readers in a letter todayBe careful this Monday, US markets are closed so liquidity will be thin. This means that it's easier for big players to move the markets, so it won't be easy to predict where price is going. Just be careful. Read more:Forex
, Liquidity
, Today
Radio Show on Forex with Ed Ponsi 1970-01-01 00:59:59 Ed Ponsi, FX Educator at FXstreet.com, is being invited to Vince Rowe's radio show today from 17:00GMT.I'll be making a guest appearance on the Vince Rowe radio show today! Click on this link to LISTEN LIVE at 17:00 GMT.I won't be around the computer at that time, so if you're going to listen, tell me how it was. Read more:Forex
, Radio
, Radio Show
BoJ Increases Yen Interest Rate to 0.5% 1970-01-01 00:59:59 The Bank of Japan's policy board on Wednesday voted eight to one to raise interest rates a notch to 0.5 per cent, pointing to strong economic growth data as it made the first increase since July.Kazumasa Iwata, the deputy governor who is considered the board's most dovish member, voted against the increase, the first time in the bank's history that that the two deputies and the governor have formally disagreed.source: ft.com Read more:Interest
Technical problems with the blog 1970-01-01 00:59:59 It seems there are some technical problems
going on with the images in this blog. I'm working on fixing them as soon as possible. Sorry for the inconvenience. Read more:Technical
Yen Carry Trade - Two Different Points of View 1970-01-01 00:59:59 Views on the carry trade and the weak Yen are different among traders.David Andrew Taylor has an interesting point of view: The carry trade is said to be at around $1 trillion that the world knows about (perhaps another $1 trillion that we don't). That means that $1 trillion dollars have moved out of Japan in the form of borrowing from Japanese banks, and transfered out into other parts of the world and deposited earning higher interest rates.What would happen to Japan's economy if $1 trillion dollars were to all of a sudden show back up in Japan? Talk about liquidity. In fact, there would be so much money sloshing around, the Bank would have a hard time controlling these assets. You want to see inflation? Throw money at citizens like it's growing on trees. You want to see growth? Put suitcases of cash outside the bank's doors for businesses to walk by and pick up if needed. And, the yen would rise in response to this move.It's a really interesting way of seeing the situation. But Read more:Carry
, Points
, Trade
Scalping the forex market - is it a good habit? 1970-01-01 00:59:59 To all those scalping skeptics around, these are my thoughts:You're very right about scalping strategies - nobody should only scalp. Scalping
is risky.Scalping is dangerous and it could indeed lead to big losses or even margin calls. But when using low leverage, when only approaching high probability patterns and when tight and rigid stop losses are used, scalping is great for the trader's mind. You get a feeling of how the price is moving when studying these short term trends + you get the benefit of training the brain to impose and respect very strict money management and system rules.This is what scalping does for me - it keeps my mind in shape, and it helps me remind how important the psychological factor is when trading longer timeframes and bigger position sizes.Scalping doesn't earn a living. It just keeps me in shape Read more:forex market
Managed account performance (week 1) 1970-01-01 00:59:59 The managed forex virtual account (click here to join) I started at the beginning of the week witnessed a very good evolution within these 6 trading days (this week + last week's Friday afternoon).I traded for more than 40 clients, the number of accounts being managed growing every day.The accounts that joined the fund Friday afternoon (9 February 2007) are currently (16 February 2007) up 7.29%. For six days I'd say that's pretty good.Here's how a 50000 EUR account performed during this trading week:UPDATE: The exact trades can be seen in this spreadsheet.If you're interested to see the evolution of this account in real time I'd suggest you joining the fund with paper money from your FXGame account opened at Oanda. If you don't have such an account, you'll be prompted to create for free after you click the invite link.If you want more details on this, feel free to contact me.Enjoy the weekend!
Managed account trade history 1970-01-01 00:59:59 After an email from a reader requesting the exact trades for the first week of the forex managed account, I published the trade history on a Google Docs & Spreadsheets document that can be seen here.
Quote on speculation in the financial markets 1970-01-01 00:59:59 Speculators play a very important, well recognized role in the financial markets in that they are often counter party to those that need to hedge their risks, where the stability of a financial market is a function of the diversity of market participants.Dr. Richard Olsen Read more:Quote
, speculation
EUR/USD Daily thoughts for 20 February 2007 1970-01-01 00:59:59 Technical view:Trading the breakout of the setup explained yesterday.Fundamental view:German PPI m/m at 7:00GMT - low volatility expectedFrance GDP q/q (r) at 7:45GMT - low volatility expectedFed Governor Bies Speaks at 15:30GMT - medium volatility expected; could set a trendTrading advice for today, 20 February
2007:Trade in the direction of the trend.Trade suggestion:Look to go long in the 1.3140 area, SL @ 1.3110, TP @ 1.3180. Read more:Daily
, thoughts
, USD Daily
, USD Daily thoughts
Scalping the FOREX Market - Useful Tips and Tricks 1970-01-01 00:59:59 A forum thread and some emails I exchanged with a reader of the blog made me get more into writing about scalping in forex.Scalping
is risky.What scalping does for me is to keep my mind in shape and help me remind of how important the psychological factor is when trading longer timeframes and bigger position sizes with, of course, other systems.Scalping doesn't earn a living. It just keeps me in shape :)Here are some tips if you just started scalping.Watch the chart as much as you can. Get used to how the market is moving. If you can, correlate market movements with the time of the day. Each trading session move the prices in a different way. Find the best time interval for you and start knowing it. Start feeling the market. You can do this, really.Always check the bigger time frames before opening any position. Find out what the big trend is and trade it. Find out where support and resistance lines are. Be aware of them - they might help you or they might be your enemy, depends only Read more:Market
, Useful
When time's a problem... 1970-01-01 00:59:59 ...do NOT trade!I've been really busy these days setting up a company so I didn't have much time to watch the markets. I didn't trade my live account at all. Made some trades though on the managed account just to keep things running - some gains, some losses, tomorrow will decide whether this week will be a good or a bad one.Never trade when you don't really have time for trading. Better take a day or even a week off. In fact, never do anything in a rush if you know time won't let you do it as good as you can.
Why does the world need foreign exchange (FOREX market)? 1970-01-01 00:59:59 Someone asked a very good question yesterday on ForexFactory.Hi all, this is unrelated question about trading. i wanted to know why the world need foreign exchange market? i know basically if japan sells his car to USA, then there is need for an exchange. but i hope someone can give a detailed explaination why the world need foreign exchange market?please advice.When you buy a car from Japan you need to make an exchange. That's all the explanation, really.But the story is a little longer. Let me get into it a bit more. You need to know why we need money.Well, we need money to measure value of things. Let's say you are a farmer making vegetables and I am a craftsman making tools. I need to eat tomatoes from your farm to live. You need some tools from me to cultivate your tomatoes and make a living. But to exchange one tomato for one tool wouldn't be fair. We have different costs of making these goods. So this is how money appear. Instead of exchanging the products themselves, we exch
Managed account performance (week 2) 1970-01-01 00:59:59 I'm not sure how this week was for other traders, but for me it wasn't that good, mainly because of me. Because I was busy taking care of other things and didn't have enough screen time. I should have watched the charts more, but I couldn't.This translated into poor performance over the week, but I managed to get back on track yesterday, on Friday.I started the week making some money, then I lost it. Made the money back, lost it again. And so on until Friday (see chart below).This is a chart showing how a 50.000 EUR account started at the beginning of week 1 performed during this week:The overall performance was good, getting the account to +12.55% profit in these two weeks (7.29% in week 1 + 5.26% this week).The exact trades of week 2 can be seen on this spreadsheet (thanks to Google Docs & Spreadsheets).If you're interested to see the evolution of this account in real time I'd suggest you joining the fund with paper money from your FXGame account opened at Oanda. If you don
World Top Investor Competition - a Contest Worth Watching 1970-01-01 00:59:59 I found an interesting contest that you might want to hear about - World
Top Investor
Competition.What is the World TopInvestor Competition?The World TopInvestor competition is a live money, capital markets trading competition. It lasts for a full year: February 19, 2007 to February 18, 2008.You can trade whatever you want, not only forex. The only thing is you need to have an account with a broker that sponsors the contest - that's the tricky part. And that you must trade your own money (at least 5000 USD or EUR). That's another tricky part :)But guess what the prize is:The winner of the World Top Investor Competition will get to be portfolio manager for a year of an investment fund of USD 250,000.Sounds good, heh? Well, it really is good. And I'm talking about this contest because it's better than the contests we're used to see in the forex market. We hear about monthly contests from Forex.com, FXCM or whatever-desperate-broker-looking-for-new-clients where they have Read more:Contest
, Watching
, Worth
Recommend Site To A Friend
