Once you have developed your trading strategy and managed consistent returns the next step is to further optimize your overall trading approach. The biggest part forex traders need to focus on is risk management. It does not matter what else you work on and how well you will be able to perform, if you fail at risk management you will essentially fail at trading forex as over the long-term you will be faced with unusual market circumstances which will test your forex portfolio. For example let us take a look at January 15th 2015. Many will...
The Canadian Dollar has stopped its massive sell-off over the past few weeks and was stuck in a narrow trading range especially against the US Dollar. The USDCAD was unable to breakout above 1.2834 and unable to breakdown below 1.2351. As far as technical indicators are pointing out there is no catalysts which could result in a strong enough move to result in either a breakout or a breakdown. The Fibonacci Retracement Levels are providing strong support and resistance. Forex traders should look for fundamental reports to provide the catalyst...
Tomorrow the US will release its much awaited non-farm payrolls report for March. Forex traders are eagerly awaiting this report in order to judge the health of the labor market. The NFP report is the biggest economic indicator out of the US released every month. During the first Friday of each month the Bureau of Labor Statistics, a department of the US Department of Labor which is responsible for the NFP reports, will release the NFP report for the previous month. The Federal Reserve closely follows labor trends as the US central bank is...
Maybe you have come across the term ‘Tankan Survey’? Those who have not should look it up as it is a very important economic report released by Japan. The Tankan Survey is released by the Bank of Japan four times per year; in April, in June, in September and in December. The Tankan Survey is the most important economic survey released by the Bank of Japan and every trader should take note of the report and read it carefully. What does the Tankan Survey cover? The Tankan Survey covers thousands of Japanese companies across all industry sectors...
The US Dollar bulls suffered a heavy defeat which was delivered by the same entity which gave them hope; the US Federal Reserve. Every forex bull in the US currency has placed all their hopes and arguments for a strong US Dollar on the assumption that the US Fed will raise rates as soon as June of this year. This caused more and more buy orders to flood the market while economic reality was utterly ignored. The NFP report for February appeared to have given then final bullish push as the data came in better than expected. Many have paid too...
