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MadMarketScientist

What Is Your Craziest Trading Story or Thing You Ever Did While Trading?

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Any of us who have traded a long time have probably on occasion let your emotions get in the way or our lack of self-control enter into our trading day and done something really, really dumb. However, looking back on it, it might be really entertaining or just fun to laugh about now that some time has past.

 

What would your story/stories be?

 

I have so many I wouldn't know where to start. From the simplest such as my inventions of new profane words to some of the worst revenge trades ever.

 

One instance I remember was a few years back I got on a medication for something I was dealing with. I didn't realize it when it was prescribed but one of the side effects is some people lose their self-control. Some people have gambled crazily on the drug, or done things they in the right mind never would have done. It only effects a few percent of people this way so kinda rare.

 

Well as you can now imagine I was one of those exceptions. I took the drug, and of course it didn't work at all for my symptoms. However, I woke up at something like 3am, and in a bit of a stupor went to my computer and started to trade the Dax futures. Mind you, at this time I never traded the Dax. But that night I traded the Dax. And traded the Dax. And traded the Dax. In fact, I couldn't stop. I knew what I was doing, I even called a trading partner of mine and told him I can't stop trading. He was like, dude, just step away, turn off the computer and mellow out. On that phone call I said "you're right, but I have to take this next trade" - which I did. I continued to trade right through the close and lost about $10K that day. I literally lost all ability to turn off the desire to take trades. Looking back it's pretty funny but scary that a slight change in your brain chemistry can derail all logical thought.

 

Anyway, might be a great drug if you're looking to build up the nerve for something but probably not so great if you trade!

 

Another favorite of mine, isn't something I did but meeting a guy who worked in private security, who had nothing but time usually decided to be a trader. Yet he had a bit of a temper let's say. When things went particularly bad one day he took out his Taser Gun and used it on his monitor. I can safely say I have never tasered or shot my computer. Not that the thought hasn't crossed my mind.

 

How about you - there's got to be some funny stories?

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Not me but someone I used to work with when I started trading - he was a BIG options local. His daily equity swings were 100k-500k easy. Over time he became a mess through too many late nights etc - issues with his wife that affected his trading. Instead of taking some time out, he got more aggressive.

 

One day he comes in after a bad drawdown of about 1mil. It wasnt his fault, but those idiots who do the settles he said. Anyway, he decided the only way to get out of the hole was not to hedge anymore (with the futures - we were usually delta neutral).

 

Never saw him again after that day....

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only crazy thing I have done is decide I am bearish at a certain level and wishing to exit a long to then go and buy more at that level. Nothing too costly.

The two best stories I know of that are true.

1) guy declares himself bullish and starts to buy some calls, also sells some puts as well, after a while its going his way, he buys stock as well. After a while he is getting seriously excited and decides to hedge his position a little....yells into his two way (old days of the floor) to buy some of the index futures. (rather than sell as a hedge)

His massive long position looked good for a few days, and then spectacularly blew up.

2) One guy misread Royal bank of Scotland as opposed to Bank of Scotland (I think they were the two names) and proceeded to buy as many of the calls he could as he was bullish and they 'seemed' cheap. After lifting the market a couple of vol points that day, the next day he came in scratching his head.... wrong stock code v wrong stock. This is the crazy part..... he bought more thinking in for a penny in for a pound trying to squeeze the market..... It did not end too badly but it was still a loss.

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well I've got 2 from my first 3 months of trading...

 

My first ever "trade". I had bought stocks and mutual funds before but never with the intention to trade them, more of a buy and hold philosophy. Well a trader introduced me to trading and I was hooked! Opened up a futures account and the first day I was allowed to trade, I bought 1 CL (crude oil) and in less than a minute I was up $3600. I couldn't beleive how easy trading was (oh boy did i have a lot to learn) and quickly cashed in on my good luck. I just knew I was going to be rich in a matter of weeks. Here is what I did not know:

 

1. that Nigerian rebels had taken over a Shell refinery and I was lucky enough to place my trade seconds before the news came out - I had NO IDEA news even affected trading.

 

2. I did not know what a stop-loss was. I could have just as easily lost $3600 in a few seconds.

 

3. I did not know how to open a chart on my platform. I had just figured out how to pace trades and was so anxious to do so that i just jumped in naked - no chart, no news, no ideas about anything.

 

Needless to say I blew that account out in the next 2 weeks.

 

Fast forward 3 months and I am educated now. Had coffee with a hedge fund manager who schooled me on "trend-trading" and I'm in the know. I even opened a "BIG-BOY" account with Interactive Brokers, cuz that's where the real traders trade (or so i thought). I am in Hilton Head with the family, who are all at the pool/beach while I am in the room studying my charts. Since I am a big boy I trade 6 lots at a time. Yup, just 3 months into the game and I am trading 6 of everything I touch - Wheat, Corn, Soybeans, S&P Futures, Gold, Silver, Dow Futures, you name it. Anyway - today wheat was the flavor of the day. My wife comes in the room glances at my chart and proclaims - "even I can tell thats going up! why aren't you buying it???" That was the trading signal I had been waiting for. Buy 6 lots of wheat!!! about 5 minutes later wheat was limit up! I was thrilled and decided to go to the pool and buy my wife a few cocktails! Ok, what I didn't know:

 

1) I knew about limit moves, but I didn't know that the market remained open for trading in the opposite direction. I was sure that once the limit move occurred everybody just waited to trade the next day. When I left to party I was up about $12,000 - when I got back the market had declined a wee bit and I had less than $3,000. My wife rationalized that 3k would cover the cost of the trip so I cashed out...only to see the market really close limit up on what was the start of the wheat run a couple of years back. I recall doing the math and had I been able to hold those 6 contracts for the next 2 months I would have netted close to 300k.

 

I've learned a lot since those days but I still feel like a newbie!

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Well it wasn't so much what I did but more so a matter of what my broker allowed me to do! Here I am...newby S&P trader, maybe trading a few months. Had to be in around 1996 or 97 before the time of the e-minis...only the big SPOOS....and it was $500 a point vs. the $50 a point in the present day ES. Back then there were no electronic orders...all orders had to be called in to my broker who in turn would call them into the floor. Then I would have to wait for the call back with my fill so I could place my stop. Lucky me...my broker, a sole proprietor IB working out of her home in Florida, takes a liking to me and gives me the number directly to the floor of the S&P's so I can call my own orders in and handle it all my self. Great...saved me some time and it was cool at the time to call directly into the floor. One problem...my account was only $3 or 4k and here I am calling directly into the floor with my orders. I could have called in with an order to buy 10, 20, or even 30 cars at the market and they would have placed the order, who knows? With a 10 lot order my $4000 account could have been wiped out with less then a point move against me. Pretty crazy when I think of the damage I could of done financially to both myself and my broker. :doh: (Needless to say that account didn't last very long!)

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One Sunday morning in December of 1984 as I was eating my breakfast and reading Barrons, I came accross an article about the Bhopal disaster.

 

The price of Union Carbide stock had tanked and it was in all the financial news.

 

Instead of entertaining the thought of shorting Union Carbide, I rather cold heartedly began to consider what was the capital loss and how much would it cost to pay the liability from killing over 2,500 Indians. I put the cost per person at between 250 - 500k. The market had penalized Union Carbide far more than that, many times more than that in fact.

 

On Monday I loaded all of my clients and myself up with calls on Union Carbide stock. I mean really loaded up. Within a week the stock started to run, we rolled up through 3 strike prices and I made over 100k on commissions alone, not counting my own position.

 

Kind of cold, but it was smart, it worked and I made some great dough. That trade was probably the only trade I have ever made in my life that was based on fundamentals and not technicals.

 

UB

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In early December 2008 I was trading POT, trying to time bounces as it was pretty much in free fall each day. My account was with Etrade and I paid $16 round trip on every trade, so scaling in and out of trades was cost prohibitive commission-wise. As a result I always traded 1000 shares of stocks, all in, all out, and did so regularly with POT as it continued its eternal fall from grace.

 

Frustrated with trying to time the stock's bounce, I decided to buy POT $55 calls late in the day on 12/4/08 after POT had fallen 5 days in a row to below $50, figuring that was a ridiculous price for a stock which had traded 6 months earlier as high as $240. Surely it had to bounce and options gave me a couple weeks to take advantage of that with a fixed risk in place.

 

The next day POT not only opened gapped down over a dollar, it continued to drop! I had a moment of irrational fear that it might go to $0, and I remembered that when you have that thought, it's almost always the time to buy.

 

I had an appointment to go to, but figured I'd add to my option position before I left. So I opened my order entry window, selected the same calls I'd bought 5 of the day before and instinctively entered 1000 in the Qty field (remember, I'd been trading 1000 shares of everything for months). Just as I was about to transmit the order I thought it would be wiser to wait until I returned from my appointment to add to the position.

 

At that moment I saw the 1000 in the Qty field and nearly had a seizure on the spot.

 

Had I transmitted the order it would've gone through immediately at market, and I've no idea how much slippage 1000 contracts of even a highly liquid option would've incurred, but even if the entire position filled at the offer it would've been $5000 for the spread, plus $760 commission one way.

 

If I'd transmitted the order, I really doubt I would've noticed the mistake because I was standing up at my desk in a hurry to leave for my appt and likely would've clicked and left, thinking I'd simply added 5 contracts, a very low risk move.

 

So I return from my appt and see that POT bottomed out around $47, finally bounced a bit, putting my losing call position slightly in the green. Then price stalled and began pulling back. Oh, no, I thought, not another leg down! As the call premium moved back toward my break even point, I closed out the position for a net gain of $30 and decided I just wasn't going to trade POT for a while.

 

Well, that day POT put in its 52-week low and over the next 2 weeks rallied to $83 a couple days before expiration. The premium on the calls I had went as high as $27, meaning 5 contract position that I paid $1000 for would've been worth over $13,000 had I held it.

 

Then there's the other "coulda": If I'd transmitted the 1000-contract order, and held it through the rally, it would've produced a gain of close to $3 million.

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One Sunday morning in December of 1984 as I was eating my breakfast and reading Barrons, I came accross an article about the Bhopal disaster.

 

The price of Union Carbide stock had tanked and it was in all the financial news.

 

Instead of entertaining the thought of shorting Union Carbide, I rather cold heartedly began to consider what was the capital loss and how much would it cost to pay the liability from killing over 2,500 Indians. I put the cost per person at between 250 - 500k. The market had penalized Union Carbide far more than that, many times more than that in fact.

 

On Monday I loaded all of my clients and myself up with calls on Union Carbide stock. I mean really loaded up. Within a week the stock started to run, we rolled up through 3 strike prices and I made over 100k on commissions alone, not counting my own position.

 

Kind of cold, but it was smart, it worked and I made some great dough. That trade was probably the only trade I have ever made in my life that was based on fundamentals and not technicals.

 

UB

 

 

Hi,

 

Few things, I am happy to learn about the trade you did and made good bucks out of it. Just leaving few point to ponder what really happened that day in 1984.

 

about 20000 people were dead and more than half million people affected and disabled due to that gas leak.

 

It was promised that each of them would getting more than $500K, but till today after 26 years of that tragedy, they either did not get anything or just about Rs 15000($300). Hahahaha, what a mockery has Indian government made by doing all this. It has nothing to do with Union Carbide chief, he left without being detained and none other than my country politicians escorted him to the plane flying to America.

 

Just a note, I have nothing to do with Bhopal Tragedy, nor was any of my family members were there, so you know it is an honest opinion.

 

By the way, I am also a day trader, I trade Indian Markets and trade for a living. I have a turnover of more than $200K per day.

 

Have a nice day all of you

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My first trading job. Working as a junior on an FX flow desk. March 2009 Bernancke is about to make a statement.

 

I am the junior and look after the commodity currencies (AUD/USD, USD/CAD etc) but, my boss and the other guys decided Bernancke would do nothing and so they would prefer to go out drinking than stay for the FOMC. They leave me in charge of the book for the first time. Im keen to impress but my risk parameters dictate I cant run anything about 1 million.

 

6pm a client calls in and buys 30million USD off me, selling me EUR. I am long EURUSD at 129.76... I wait half an hour and we have traded through resistance and 1.30, trading 1.3031. I figure i will cover it just before the announcement HOWEVER just then CNBC show Bernancke coming out, before his speech and he is bright red, and sweating. I get a gut feel something is going to happen here.

 

I think, you know what, if he does announce QE this thing is going to fly, and if he doesn't im about support at 1.3 anyway. So i put a stop in at 1.2984 and hold on.

 

SO ANNOUNCES QE! EURUSD goes from 1.3031-1.345 in about 3 minutes! I cover for a cool profit of just under 2 million Euros! not bad for a guy who was targeted on making 50k per month!

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Not a story while trading, but it is related to trading business. During the 1997-1998 I started a very successful Financial Market Research/Analysis company automatically generating the full Market/Technical Analysis reports with charts, signals to retail and institutional clients. About the same time, internet was booming and of course any company with a .com was a hit, specially related to stock markets. So we were quite popular as we were fast upcoming .COM company with great technology and had great people/press behind us.

 

Within the first 3 months of launch, we reached our 1000 subscribed member, way before our goal of 1000 within a year. So, my team decided to send out a MileStone email to 1000 members thanking them. We had our own mail-server, web-hosting servers at the hosting company (Verio). In our excitement, I wrote the thank you/mile-stone email (ColdFusion based email) to send to all 1000 members individually looping through each email address from our Databases. What I did not realize that EACH of those 1000 members get 1000 emails (addressed to other 999 subscribers with name/email) from us because of an external loop in the code, which I forgot to delete/check. Once all of us confirmed the content and email, we pressed <GO> and started partying. We never realized our mistake until after an hour or so we started getting emails from subscribers cursing/hating us (instead of congratulating) for sending 1000 of emails with each client name/email listed. Imagine, how we got sober fast and how we spent another 6 hours writing sorry letters to each of the subscriber, this time one-at-a-time :)

 

Although this was a moment to remember and laugh at our (my) mistakes, we went onto build a great company.

 

So, my "Best Moment and the Worst Moment" came in the same hour.

 

Regards,

Suri

Edited by suriNotes

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i like to share here my story.In fact this a kind of advice.never subscribe to a trading room or buy any kind of trading plan unless you have an uppertunity to return it and get refund your money.A lot of people selling garbage.they will talk a lot but practically zero.Do you call a trading room a trading room when moderator never show his trade and never call a trade,,even in sim mod but in daily vidio announce 20 to 30 or some time more ticks profit in e mini ES and keep doing this since long time.Never have a loss.No trial period he offer

and he disable comments on his vidio on u tube.Thats e mini junkie,,,,realy junkie as his name.

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suriNotes,

 

Very funny story. Not funny at the time of course.

 

How many of us over the years have written an email, maybe one not for all to see and sent it to the wrong person? I remember years ago doing something I lived to regret and assumed that "retrieval" button on an email works -- uh, no it doesn't. Once it's gone, it's gone. Then the apologies start :)

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Some would argue the "reply to all" button on email should also be eliminated from email. I know a couple of people who have lost jobs over that one.

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As a follow-up I should ask...."What's the dumbest thing you've ever done after a losing trade?"

 

I would personally have to say my all-time is always my revenge trades. These are my classic trades to get back to even, etc... after a particularly frustrating loss. Usually that losing trade is one that gets just entered on a high tick, which feels bad enough then plunges past a stop. Or a trade that I manage really poorly, or get into by mistake.

 

Then my "revenge trade" mentality kicks in. Which usually means if I was trading 3 contracts, I double it to 6 contracts and say "if this one works out - I'll be ahead and where I should have been if it wasn't for that last trade" and then of course blame the conspiracy for causing this pain.

 

And, you know what happens next - does that trade ever work? Almost never. I'd say my win/loss on revenge trades is about 10%.

 

Why do I do it? Well, thankfully it's rare that I do it anymore, but I'm going to be honest and say I didn't learn my lesson after 1 or 2 of these trades - it took a lot more. The need to be right and be competitive where I seek revenge was hard to overcome.

 

How about you? I can say I don't recall ever actually doing any physical harm to my computer, monitor, overturn a desk, etc... but I'm sure I have used some colorful language and maybe tossed something :)

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How about you? I can say I don't recall ever actually doing any physical harm to my computer, monitor, overturn a desk, etc... but I'm sure I have used some colorful language and maybe tossed something :)

 

You mean like this?

 

[ame=http://www.youtube.com/watch?v=wKAu2cP0aHM]YouTube -Daytrader loses cool[/ame]

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You mean like this?

 

 

LOL!!

 

Obviously a typical EliteTrader.com kinda guy!

 

Always makes me laugh when I hear of people losing and listening to music in the back ground. Clearly not really focused (or trying) is he?

 

Nice one Macdfx.

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Of course, this got me thinking. What would go on the "Trading Soundtrack"? A few random ideas....

 

There are the obvious classics...

We are the Champions - Queen

The Winner Takes it All - Abba

Chariots of Fire Music

 

The more current....

Winner - Justin Timberlake & Jamie Foxx

All I Do Is Win - DJ khaled

The Winner - Drake

3peat- lil wayne

R. Kelly - Sign of Victory

 

And, of course for the loss....

You Can't Always Get What You Want - Rolling Stones

I'm Losing It - Akon

Come and Get It - Badfinger

Fade to Black - Metallica

 

Of course with a few of these going in the background I'm not sure what would be worse - having to hear some of these songs or a really bad losing trade but I digress....

 

 

 

MMS

 

LOL!!

 

Obviously a typical EliteTrader.com kinda guy!

 

Always makes me laugh when I hear of people losing and listening to music in the back ground. Clearly not really focused (or trying) is he?

 

Nice one Macdfx.

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The craziest trading story? The fact that I'm still sitting here, trying to figure out how to make this work for myself, seven F$%$ years later. And no I do not have a job, nor an income. I got a 7 year son that I have custody of, and I'm just about to quit. Just cant keep this going anymore. I just can't do it, what ever the hell " IT " is.

 

I " thought" if I just tried long enough I'd get it, think I was wrong. Thats tough to swallow, better a hot knife in my eye, than something less than what I want in life.

 

" I do not know.............[long pause]...............I do not know, what the f%$%&^ hell was that!"

 

Have those words every crossed your lips after a day of trading.

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I'm sure any of us reading this would very much empathize with your situation.

 

I think everyone knows just how difficult trading is/can be. There is no easy or fast solution to riches which is what is discovered eventually by all.

 

Clearly made much tougher when you have the pressure of trying to create a full time income in tough economic times. Those are really difficult conditions to succeed because even in the best of times it can be a roller coaster.

 

With no quick fix at hand, maybe at least describe what you are trading now if anything, and your method/approach whatever it might be.

 

MMS

 

 

The craziest trading story? The fact that I'm still sitting here, trying to figure out how to make this work for myself, seven F$%$ years later. And no I do not have a job, nor an income. I got a 7 year son that I have custody of, and I'm just about to quit. Just cant keep this going anymore. I just can't do it, what ever the hell " IT " is.

 

I " thought" if I just tried long enough I'd get it, think I was wrong. Thats tough to swallow, better a hot knife in my eye, than something less than what I want in life.

 

" I do not know.............[long pause]...............I do not know, what the f%$%&^ hell was that!"

 

Have those words every crossed your lips after a day of trading.

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" I do not know.............[long pause]...............I do not know,

 

Those thoughts usually cross my mind before, during and after trading.

sometimes after trading I add the expletives.

 

Whatever happens dont feel bad, trading is not for everyone. If you have been doing this for 7 years your knowledge base should be pretty good and maybe you can put that to use.

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Had started trading DAX futures intraday and was doing okay after a couple months of trading. After getting long 4 contracts one day, quotes suddenly stopped updating. But I'm still getting data on all other contracts. So I'm thinking it's a data feed issue specific to that symbol. Better quickly hedge that off with some SP eminis...crap, now I can't get an order to route. What the hell is going on? This is through IB and I hate dealing with them on the phone. I place the call and promptly get schooled on the intricacies of DAX futures on expiration day. It was my first roll with the DAX and unlike US futures, there isn't an early handoff the week before as the front month contract remains the most liquid contract all the way to the last day. But, wait, there's one other...um....noteworthy difference with DAX futures...they settle MID-day. Mid-mfing-day! Are you kidding me! What kind of BS is that? I knew it was expiration day, I just assumed that by "day" it implied "all day", you know, as in "end of day." Nope. End of the morning session...4am my time (PDT). So, I'm told I have just taken 4 contracts into cash settlement and because of that, the increased margin requirements maxed out my buying power and it wouldn't be until the following Monday before my account would be available to trade again. So no laying off that open position. Completely naked and no one able to tell me when a settlement price would be posted. Sweated bullets for good while before the price finally posted and I ended up being paid about $2600 for my ignorance. Total absurdity. Rest assured, I have plenty of horror stories that more than offset that "ill-gotten" gain.

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    • Date : 16th September 2019. MACRO EVENTS & NEWS OF 16th September 2019.Welcome to our weekly agenda, our briefing of all the key financial events globally. The week ahead is expected to be a massive one, as four of the major Central banks will announce their rate decision, i.e. Fed, BoJ, SNB and BoE. There is a lot of interest in seeing whether BoJ will follow the Fed’s steps next week in cutting rates. Monday – 16 September 2019   Industrial Production and Retail Sales (CNY, GMT 02:00) – The Chinese Industrial Production growth is expected to have risen, at 5.2% y/y in August from 4.8% y/y last month. A slightly positive reading is also expected in the Retail Sales figure at 7.9% from 7.6%. Tuesday – 17 September 2019   Monetary Policy Meeting Minutes (AUD, GMT 01:30) – The RBA minutes, similar to the ECB Reports, provide a detailed assessment of the bank’s most recent policy-setting meeting, containing in-depth insights into the economic conditions that influenced the rate decision. They are usually a cause for FX turbulence. ZEW Economic Sentiment (EUR, GMT 09:00) – Economic Sentiment for September is projected at -38.0, from the lowest level since 2011 at -44.1 seen last month, as the current conditions indicator for Germany turned negative. The ZEW is a pretty clear indication that investors are gearing up for a much higher risk of a global recession, which ties in with developments in global bond yields and the marked flattening of curves. Wednesday – 18 September 2019   Consumer Price Index (GBP, GMT 08:30) – The UK CPI inflation is anticipated to be more underwhelming than the July data, at 1.9% y/y from 2.1% y/y, with a monthly rise up to 0.5% m/m. Consumer Price Index and Core (EUR, GMT 09:00) – The final reading of inflation is expected to have held steady at 1.0% y/y and core at 0.9% y/y, with an increase in the monthly number at 0.2%m/m from -0.5%m/m. Lower energy price inflation keep a lid on the overall number meanwhile as CPI excluding energy moved up to 1.2% from 1.1% y/y last month. Consumer Price Index (CAD, GMT 12:30) – The August CPI is expected to continue adding to the backing for steady BoC policy this year, even as the Fed and ECB add stimulus. CPI has been forecasted to grow to a 1.7% y/y pace in August, below the 2.0% last month. Interest Rate Decision, Monetary Policy Statement and Press Conference (USD, GMT 18:00-18:30) – The August’s jobs data did little to alter the market’s expectations for a 25bp rate cut at the September 17-18 FOMC meeting. Based on Powell’s latest comments, the Fed is very committed to a symmetric 2% inflation goal, hence given low inflation, interest rates will remain low. That leaves very little room to cut rates further. The Fed is not forecasting or expecting a US recession, nor a global downturn, said Powell. The fact that the chair doesn’t seem too concerned about a recession in the States, or the world, suggests the FOMC is not going to be aggressive easing policy. Thursday – 19 September 2019   Interest Rate Decision, Monetary Policy Statement (JPY, GMT 02:00) – The BoJ kept its short-term interest rate target at -0.1% and its pledge to guide 10-year JGB yields around 0% while maintaining its asset buying program. The central bank is expected to signal once again its commitment to keep interest rates at current levels “for an extended period of time, at least through around spring 2020”. The BoJ pledged to keep an eye on the output gap, but for now at least it seems the bank is seeing the risks as coming mainly from the outside. Interest Rate Decision, Monetary Policy Statement (CHF, GMT 07:30) – The SNB kept policy on hold at the June council meeting. The Libor target was replaced with a key policy rate, but the central bank was adamant that the degree of monetary accommodation remains unchanged. After the ECB cut rates, while the Fed is now widely expected to ease rates, the SNB has little room to manoeuvre, especially against the backdrop of ongoing Brexit uncertainty and geopolitical trade risks. The SNB’s central message remains that the situation remains fragile and the currency “highly valued”. Interest Rate Decision, MPC Voting (GBP, GMT 11:00) – Shadowed by the ongoing political developments in Brexit, the BoE is not expected to proceed with any interest rate actions. Friday – 20 September 2019   Retail Sales ex Autos (CAD, GMT 12:30) – Retail sales and Core for August are seen steady, while the headline is anticipated to drop to 2.9% y/y from 3.3% and core to 2.5% from 2.9%. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • China’s New Cryptocurrency   China plans to release a new digital currency which would bear some similarities to Facebook’s Libra coin. It would be usable across several platforms like WeChat and Alipay.   In a recent interview with the Shanghai Security News on the 6th of September, the deputy director of the People’s Bank of China, Mu Changchun, stated the purposes and the need for the new digital currency. He stated that the central bank needed to evolve from the use of traditional paper currency and delve into electronic payment methods which are making strong advances around the world. He said that the digital currency would be a realistic way to protect monetary sovereignty and legal currency status, stating that this digital currency initiative was a way of planning for a rainy day.   He also mentioned that digital currency would be as safe as the traditional central bank-issued paper notes and that it could even be used without requiring an internet connection. This offline feature is one of its major selling points as monetary transactions can still be carried out even in the face of communication breakdowns resulting from natural disasters like earthquakes, tsunamis and so on.   In 2014, the Chinese central bank set up a research party to explore the possibilities of a China-based digital currency to reduce the costs of producing and circulating paper money, which in turn would boost policymakers’ control over the supply of money.   Information about the development of this new digital currency was unknown to the public until last month when Mu announced that the innovation was almost ready.   US-based financial magazine Forbes has made claims that the currency would be ready by November 11.   Analysts are saying that the announcement made by social media giants, Facebook on the release of its digital coin, Libra, is the reason for the acceleration of the push towards digital currency by the PBoC.   Mu made mention of how the new digital currency would strike a balance between allowing anonymous payments and preventing money-laundering as compared to Libra. Although the Chinese digital currency may bear some resemblances with Libra, it would possess characteristics that even Libra didn’t have.   Facebook’s Libra Facebook’s Libra has sparked a lot of worries among global regulators that it could become the predominant digital payment format and could become a medium for money laundering considering the social media’s wide reach.   Libra is said to be a digital currency that would be backed by several real-world assets, including bank deposits and government securities, and it will be held by a network of stewards. The structure of Libra is predicated on promoting trust and to stabilize its price.   Finally, Mu further discussed the superiority of the digital currency over altcoins was that others could go bankrupt and cause its users huge losses. Thus he said, can never be the case of PBoC’s new currency.   Source: https://learn2.trade         
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