I have received a lot of letters from my subscribers with the only question: “What’s up with the Euro?”
This is a very hot topic especially during the summer holiday period (joke)…
I should say that I do not know the future. However, I have my own view on this as a trader.
Therefore, I decided to publish a small post on this topic in my blog.
It’s no secret that I primarily rely on the net position of Commercial from Commitments of Traders when analyzing any market. Continue reading “Three reasons to sell the Euro”
I have received a lot of requests where you ask me to show how I analyse Daily Bulletin (DB), as very little information about this can be found on the Internet. So today we will continue our analysis of the futures on the Swiss franc that we began in the previous article, where we used the data provided in the COT report.
I would like to emphasise that I use the same sequence when analysing any market. First I work with the COT report where I find the markets with the emerging trend or at least that are ready to make a strong directional movement, based on the net open position of commercial participants. Only after that I look at the balance of the option levels with the maximum open interest using DB to determine the entry point with the least risk. As a result of this sequence, we can open a trade with a good potential movement and low risk. Continue reading “Trading Strategy #2: Daily Bulletin Analysis”
It’s been a while since I shared my ideas on market analysis with you and I see that the interest in the subject only increases. In my opinion, it objectively reflects the fact that the information that we receive in these reports is of interest. Especially for those who are trying to understand the true causes behind the price movements in a particular market.
So today I want to move from theory to practice and on the basis of data obtained in the COT report on 18th November 2016 to make a detailed analysis of one of the markets. My goal is to show you how I do in in order for you to be able to use it in your trading tomorrow.
So let’s begin! Today we look at the futures market Swiss franc. Below you can see the COT report for this instrument of November 15, which we received the 18th. Let me remind you that this report is published by the CFTC every Friday, where the data originates from last Tuesday i.e. we obtain this data with a three day delay. Continue reading “Trading Strategy: COT Report Analysis”
Inspired by your comments, I decided not to slow down and to continue the series of articles on the subject of trading. This time I want to share with you my current observations through the prism of my methods of analysis, which I have already mentioned before. Today I want to show you what conflicting signals the market can show, how important it is in these circumstances to understand the tools that you use and what to do if your trading system has stopped working.
Lately most of my attention has been drawn to two markets: the gold and the British pound. The reason, first of all, is in the fact that these two instruments have met the conditions according to the COT report, which I have mentioned in the previous article. In addition, the operators here have the opposite expectations of the market movement from the public view that the pound will fall down as a result of Brexit, and the gold will go up for the same reasons due to uncertainty. Continue reading “What to Do If Your Trading System has Stopped Working?”
Before my enthusiasm ran out, I decided to continue the theme that I begun in the previous article. Moreover, judging by the comments and feedback that I have received, the interest in this subject is obvious.
Don’t expect that after reading this material you’ll be able to start working with reports, which I have already mentioned. My job is to give you a general idea, and if it takes root in your mind you will be to develop, without my help, learning materials by other authors, and there are many. Ideas that will be outlined below are not my insight. I just picked those options that I myself find more appropriate. I suggest you to do the same — to evaluate and choose.
Commitments of Traders (COT)
The first report that we begin is COT. Every week the US Commission Commodity Futures Trading (CFTC) publishes data Continue reading “Two Top Strategies for Predicting the Market”
Today I would like to raise the issue of trading. Regarding my trading, my system of beliefs and attitudes underlie my trading decisions.
In general, I have not traded long enough to be a guru regarding this question, but I have traded enough to have my own point of view on this matter. Maybe someone will find this interesting or even useful. However, my main goal is to show that on the other side of your trading platform, on the side of your broker, there are people like you, who are also passionate about trading, every day analyzing the market data and trying to make money from it.
How to build a trading system
In my opinion the foundation of any good trading system should be based on three elements: Continue reading “What is the Basis of any Trading System?”
When people ask me what I think is the most important for understanding the financial markets I confidently reply that it is important to understand what a profit is and with whom you have to compete when it is received.
One – your profit is someone else’s loss
You need to realize this before you decide to engage in an exchange trade or over-the-counter trading because this statement is true and not only for the forex market.
Whatever asset you trade, whether it’s shares on the stock exchange, currency futures on CME or a gold contract on the spot market, everywhere your profit will be based on the losses of other traders.
You should have no illusions that money in the market somehow multiplied. There is a simple redistribution Continue reading “Why Do You Keep Losing Money?”
In this article, Jonathan Brewer describes the advantages of a Prime of Prime solution as the sole liquidity provider. I am not a supporter of using this business model, as I think that only in conditions of healthy competition can we find optimal solutions both in business and in life. I think that a business model with one liquidity provider is suitable only for a limited group of Forex brokers. I’ll explain my position below…
First of all, I would like to distinguish two main groups of retail brokers:
1. Brokers who largely operate as market makers (MM), i.e. act as a counterparty for client transactions.
2. Brokers who provide access to interbank liquidity, that is, act as an intermediary for client positions.
Of course, nowadays the line between the two is blurred. Continue reading “Should Brokers Depend on Only One Liquidity Provider?”