Recently I have been studying currency pairs’ behaviors in different months and Im trying to see if there are any significant difference, decency and some other weird things ;) between the months in FX Market. Here Im simply considering EURUSD daily return in the month of January during 2002 - 2013. It should be added that daily return is counted base on the difference between Close Price Day2 and Day1, then Average of whole month, plus Standard Deviation (as the risk measure) and…

Budget concerns in the world’s largest economy are projected to derail the recent advances of the Canadian dollar, and lead to losses against the safety bet US dollar. Risk aversion returns in the global market sentiment just a day removed from the holidays, as fresh debacles in the US Congress has already rattled the risk appetite of the markets. The spotlight is back on the United States and developments on negotiations over its looming fiscal cliff, or the lack thereof.



With US…

The Japanese yen recovered from its previous losses in yesterday's Asian trading exchanges before the Eurogroup leaders met for a third time to make an attempt in reaching a Greek deal. However, gains of the Yen versus the Australian dollar were curbed by expectations that the Bank of Japan (BOJ) would be pressured to aggressively ease monetary policy after the December election. In today's trades, the AUDJPY pair is set to turn losses to gains, given that an agreement as regards Greece's…

Increased appetite for risk boosted the Euro versus the US dollar in the previous European trading session as economic data from the US and Germany reduced worries over the world economy, and on increasing hopes of a Greek agreement this week. In contrast, the Greenback dropped as markets became more willing to buy riskier assets because of improving prospects for the global economy. With the recent positive risk environment, the single currency is seen to go higher than the Buck in today's…

Often times, we measure our success as a trader by our account value, whether it has grown, perhaps doubled in size, or whether we have lost and are under water.  Unfortunately, this is really a myopic way of measuring our success in trading.  If this was the true benchmark, then for my first 6 mos of trading, I must have been a rock star turning 3k into 83k.  How did I do it? Over-leveraging to the hilt and having the most unbridled approach to the markets.  If you measured success by my…

The Commitment Of Traders Report from December, 2011 showed large traders heavily longing the US$. But they were 25% less long on US$ in the latest January, 2012 report. So we may have a "risk-on" environment for the next few periods.

Between C.O.T. reports, JPM is a good barometer of risk, the critical level being its October 27, 2011 high of about $37.50. If JPM fails to reach or sustain above $37.50 soon, a "risk-off" environment should return.

The preferred pair during…

Last week I taught a highly viewed webinar on Risk Management with fxstreet whereby we went over one of the most critical models for managing risk along with a unique model to get you thinking about managing risk in a different way.



To learn more, click on the link…

In 2009, Gary Kasparov, one of the world's greatest chess players of all time (now retired from competitive chess), played what is a called a simul game exhibition. In this exhibition, he played 25 simultaneous games against some of the top local talent all that the same time. The opposing players had as much time as they wanted to think about their moves while Gary had only about 5 seconds (max 30) per table to make his move.  Below are the results of this…

Just a few days ago, I was talking to someone named Marshall.  His dad is the head of a major investment firm which manages over $1Billion.  We are in talks with his fathers firm about investing with our fund and Marshall was the first person we were talking to.  We got into a really good conversation about the psychology of risk and some great things came out of the conversation. But first, we are going to start with a question;



 

Have you ever heard of a hedge…

Check out www.thebinaryoption.com for http://www.thebinaryoption.com/2011/11/18/pictorial-explanation-of-bullish-technical-support-for-eurusd-going-forward/ and previous recent articles explaining why you should be expecting the EUR/USD to climb a wall of worry and mount a bullish risk rally now through Christmas, at…

When I am not trading, or preparing for trading, I spend a lot of my time watching professionals, particularly high-level professionals.  I find watching any high-level professional in any field gives me tremendous insight into being a professional, how to operate at a high level, and how I can improve my trading.



 

This week I had a buffet in studying…

After spending a fantastic week of trending last week, we open today at very extended lows yet still within this downtrend on many pairs. So even though the long term charts are suggesting a pullback before major new lows is likely, there is still no reason to not try and continue the trend at every technical opportunity that makes sense.  In this video I focus on the very first of these chances on the AUD/USD pair that occurred during the London session (other pairs such as EUR/USD offered…

After a fantastic New York trading session yesterday, the time between that and today's London open was mainly spent grinding back to test role reversal/Fibonacci pullback zones across the board. In class today we covered eur/usd, gbp/usd, aud/usd, and nzd/usd on pretty much identical setups, all of which ultimately produced pips.  However, even though we nailed every plan on these pairs, it became increasingly difficult to leave well enough alone throughout the entire London session, and…