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blindfingers

Is It True That 90% of Traders Never Make a Dime!

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Wychoff,

 

Its a common misconception held by novices that professionals do not make mistakes. Unfortunately, for them, it leads to a life time of chasing shadows attempting to seek perfection in a game with imperfect information. It is also unfortunate when they lead others to seek the same. I suppose someone has to feed the bigger fish.

 

I am far from arrogant enough to call myself a professional trader, but I do make money when I trade. I have demonstrated it and can demonstrate it.

 

I do not teach, will not teach, but I will give steve46 a hand if he would like one.

 

MM

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Hi,

 

I think the we need to clarify what 'make a mistake' means. Most people on this thread who are talking about making mistakes everyday are speaking about 'getting stopped out of a trade', is that right? If that is the case, then yes you will most definitely 'make mistakes' everyday.

 

But according to steve46, getting stopped out is not a mistake, its just the natural course of trading. An example of a mistake would be screwing up your risk management and taking a loss bigger than you should have. If that is the case, then I agree with steve46, you better not be making mistakes everyday!

 

So the answer depends on your definition of 'make a mistake' ... what is everyone's definition of it?

 

thx

MMS

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Well said Mad Market.

 

At the opposite, if making no mistakes means buying at a the bottom and selling at a the top of a trend on every deal, this is just not gonna happen. I guess we are always some kind of too early and too late in entries and exits. There is no way around and this could be considered as a mistakes if it is really to late or early (anticipate a reversal without clear signals or try to make some extra bucks on an hypothetic 4th or 5th leg)

 

Besides physical mistakes (wrong button, etc...), my biggest mistakes happen when I somehow try to feel and anticipate the market moves outside my rules (which are not very well defined so far because I am still experimentating, well I'm just a beginner). On the other hand it is also sometimes when I make my best trades...

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There are 4 basic mistakes that can be made.

 

Entering when you should not have entered.

Not entering when you should have entered.

Exiting when you should have stayed in.

Staying in when you should have gotten out.

 

You can make the claim, if you like, that you are not making mistakes if you are following your system to a tee. But, if you are following your system to a tee and went long because your system told you to go long when you probably should have been short or stayed out, I would strongly suggest that you made a mistake.

 

In spite of the mistakes, you do not have to trade "mistake free" to make money.

 

Don't foolishly mistake what I am suggesting to mean that you do not need a plan and you do not need to manage your risk.

 

Hopefully, some of you can see the positive in this message.

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exiting a profitable position too early is not a mistake.I only wish I could do this more often :-). Finetuning often is detrimental to long term profitability imo.

Some of the most successful players consistently sell too soon.

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MightyMouse,

 

Then you can summarize it in only 1 trading mistake: not trading well.

 

But I am not sure it helps. Anyway I understand what you mean. Optimizing these 4 actions would result in a perfect trading.

 

I consider I have to assume that no system is perfect and can make every trade profitable.

 

If my system indicates me to be long and then the market drops, I don't consider it to be a mistake. It was an opportunity that didn't realize.

 

I consider it would have been a mistake not to go long, even if the deal happened to be a loser, because it would mean that I don't take all the opportunities that makes my system statistically work on the long run.

 

For every art/technique involving random phenomenons, a very bad move can turn out good by luck and a masterpiece can turn out awfull by lack of chance. But on the long run, one can see if it was luck or mastery.

 

Anyway, this is pure procrastination. Whatever way you see the market, if it works for you, that is great. I am a just a beginner and far from getting confident in my current skills.

 

This is what I like in trading. You have so many different ways of understanding things and acting. It is still quite puzzling for me but I hope things will get clearer with time.

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Hi,

 

I think the we need to clarify what 'make a mistake' means. Most people on this thread who are talking about making mistakes everyday are speaking about 'getting stopped out of a trade', is that right? If that is the case, then yes you will most definitely 'make mistakes' everyday.

 

But according to steve46, getting stopped out is not a mistake, its just the natural course of trading. An example of a mistake would be screwing up your risk management and taking a loss bigger than you should have. If that is the case, then I agree with steve46, you better not be making mistakes everyday!

 

So the answer depends on your definition of 'make a mistake' ... what is everyone's definition of it?

 

thx

MMS

 

Harping on your "mistakes" is a mistake. LOL

 

I use the word "error." Some errors are major, most are not. The two biggies for me are misreading sentiment and not obeying when sentiment changes. The first is related to the trading methodology and the second is related to behavior. These two errors are very serious and go to the core of extracting from the market.

 

Less serious errors are that of timing, what people describe with the terms "early" and "late." All beginners know that fine tuning the timing of actions is worthwhile. Hence they spend an inordinate amount of time and energy looking for entries (usually called "setups") and exits (good if at "profit targets," bad if at "stop losses"). Compared to errors in misreading the right side of the market and not staying on the right side, timing errors are very minor but overemphasized by conventional wisdom (read: educators, writers, system sellers, etc.).

 

Negligible errors are things like hitting the wrong key, forgetting to switch contracts at rollover, trading with a hangover, etc.

 

 

Now to your point about whether "getting stopped out of a trade" is a mistake. Of course this is a mistake. Getting stopped out is in the first category of errors stated above that go to the core of extracting from the market. It is a very serious mistake, and people who trade this way as a rule are fish posing as serious players.

 

Yet look at how the entire vendor industry is organized around setups and stops and profit targets. These are just experienced fish selling to newer fish.

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Hi gosu,

 

Interesting post. Could you elaborate on the first 2 points?

 

How do you trade? Daily, swing, long term? What time frame? What tools do you use to read the market? Only Technical analysis / Price action?

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Harping on your "mistakes" is a mistake. LOL

 

I use the word "error." Some errors are major, most are not. The two biggies for me are misreading sentiment and not obeying when sentiment changes. The first is related to the trading methodology and the second is related to behavior. These two errors are very serious and go to the core of extracting from the market.

 

Less serious errors are that of timing, what people describe with the terms "early" and "late." All beginners know that fine tuning the timing of actions is worthwhile. Hence they spend an inordinate amount of time and energy looking for entries (usually called "setups") and exits (good if at "profit targets," bad if at "stop losses"). Compared to errors in misreading the right side of the market and not staying on the right side, timing errors are very minor but overemphasized by conventional wisdom (read: educators, writers, system sellers, etc.).

 

Negligible errors are things like hitting the wrong key, forgetting to switch contracts at rollover, trading with a hangover, etc.

 

 

Now to your point about whether "getting stopped out of a trade" is a mistake. Of course this is a mistake. Getting stopped out is in the first category of errors stated above that go to the core of extracting from the market. It is a very serious mistake, and people who trade this way as a rule are fish posing as serious players.

 

Yet look at how the entire vendor industry is organized around setups and stops and profit targets. These are just experienced fish selling to newer fish.

 

In the market if there are winners and fish and stops morph you into being a fish, the trade with only a target and no stop. By your logic, you will be a winner.

 

I do agree that I need stops to be hit for me to make money, but that doesn't stop me from mitigating risk through the use of stops.

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MightyMouse,

 

Then you can summarize it in only 1 trading mistake: not trading well.

 

But I am not sure it helps. Anyway I understand what you mean. Optimizing these 4 actions would result in a perfect trading.

 

I consider I have to assume that no system is perfect and can make every trade profitable.

 

If my system indicates me to be long and then the market drops, I don't consider it to be a mistake. It was an opportunity that didn't realize.

 

I consider it would have been a mistake not to go long, even if the deal happened to be a loser, because it would mean that I don't take all the opportunities that makes my system statistically work on the long run.

 

For every art/technique involving random phenomenons, a very bad move can turn out good by luck and a masterpiece can turn out awfull by lack of chance. But on the long run, one can see if it was luck or mastery.

 

Anyway, this is pure procrastination. Whatever way you see the market, if it works for you, that is great. I am a just a beginner and far from getting confident in my current skills.

 

This is what I like in trading. You have so many different ways of understanding things and acting. It is still quite puzzling for me but I hope things will get clearer with time.

 

Trading profitably is knowing how to take more money from the market than it takes from you. It's a skill that you develop from within. It has nothing to do with charts or indicators.

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Great posts, all.

 

MightyMouse’s

Entering when you should not have entered.

Not entering when you should have entered.

Exiting when you should have stayed in.

Staying in when you should have gotten out.

 

is the same list as

 

1 Entering too early

2 Entering too late

3 Exiting too early

4 Exiting too late

 

just from a different perspective

 

Entering when you should not have entered is same as 1. Entering too early. It’s entering way way way too early ;) – something I’ve done more than a few times in the conditions of the last couple of weeks

Not entering when you should have entered is same as 2. Entering too late. It’s entering way way way too late so late you don’t enter at all in some cases ;)

Exiting when you should have stayed in. is same as 3 Exiting too early. Cash123 posted “exiting a profitable position too early is not a mistake.I only wish I could do this more often :-). Finetuning often is detrimental to long term profitability imo.

Some of the most successful players consistently sell too soon.” This is highly system specific and if, for whatever reasons (sychological mostly), we jump out and don’t stay with a position to the optimal exit, that is a mistake… many more aspects of this exist than we’re covering here… but those ‘most successful players’ are not selling too soon. Specific to their system, they are selling just at the right time…

Staying in when you should have gotten out. is same as 4 Exiting too late. Giving profits back is one side of this mistake. The other - letting a loss run = exiting way to late! :doh: No Stop is the account killer mistake. Any outcome is possible this trade. Getting stopped out is not nearly as big a fkn mistake as is not getting stopped out when you should have. Not having a loss point set is stepping out over the edge and being delusional about the ultimate result because the market’s random-like outcomes sometimes makes the ‘magical’ intermittently possible .

 

When in flow, the opposite of those mistakes happens. Paradoxically, the ever present and varying degrees of imprecision are embraced. They become like 'da nada'. I operate in an environment of ever changing conditions, uncertain outcomes, and in opportunity and risk elevated above ‘normal’ and repeatedly ‘restart’ to personally bring those factors conscious and up front

 

For me, the biggest trading mistake possible is to stop working on clearing whatever is standing in the way of creating COMPLETE WHOLE HEARTED COMMITMENT!

 

I thought about expanding on some of these ‘mistakes’ thoughts and posts further, but … might as well practice what I preach. In the end, we will all be better served moving our attention to what is working and how to make that work better instead of on obstacles and what is wrong…

 

All the best,

 

zdo

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Great posts, all.

 

MightyMouse’s

Entering when you should not have entered.

Not entering when you should have entered.

Exiting when you should have stayed in.

Staying in when you should have gotten out.

 

is the same list as

 

1 Entering too early

2 Entering too late

3 Exiting too early

4 Exiting too late

 

just from a different perspective

 

Entering when you should not have entered is same as 1. Entering too early. It’s entering way way way too early ;) – something I’ve done more than a few times in the conditions of the last couple of weeks

Not entering when you should have entered is same as 2. Entering too late. It’s entering way way way too late so late you don’t enter at all in some cases ;)

Exiting when you should have stayed in. is same as 3 Exiting too early. Cash123 posted “exiting a profitable position too early is not a mistake.I only wish I could do this more often :-). Finetuning often is detrimental to long term profitability imo.

Some of the most successful players consistently sell too soon.” This is highly system specific and if, for whatever reasons (sychological mostly), we jump out and don’t stay with a position to the optimal exit, that is a mistake… many more aspects of this exist than we’re covering here… but those ‘most successful players’ are not selling too soon. Specific to their system, they are selling just at the right time…

Staying in when you should have gotten out. is same as 4 Exiting too late. Giving profits back is one side of this mistake. The other - letting a loss run = exiting way to late! :doh: No Stop is the account killer mistake. Any outcome is possible this trade. Getting stopped out is not nearly as big a fkn mistake as is not getting stopped out when you should have. Not having a loss point set is stepping out over the edge and being delusional about the ultimate result because the market’s random-like outcomes sometimes makes the ‘magical’ intermittently possible .

 

When in flow, the opposite of those mistakes happens. Paradoxically, the ever present and varying degrees of imprecision are embraced. They become like 'da nada'. I operate in an environment of ever changing conditions, uncertain outcomes, and in opportunity and risk elevated above ‘normal’ and repeatedly ‘restart’ to personally bring those factors conscious and up front

 

For me, the biggest trading mistake possible is to stop working on clearing whatever is standing in the way of creating COMPLETE WHOLE HEARTED COMMITMENT!

 

I thought about expanding on some of these ‘mistakes’ thoughts and posts further, but … might as well practice what I preach. In the end, we will all be better served moving our attention to what is working and how to make that work better instead of on obstacles and what is wrong…

 

All the best,

 

zdo

 

Wasn't taking credit away or trying to change them. Other things lead to one of the 4 mistakes. For example: Having a conversation with you wife before you trade could lead to mistake A, B, C, or D. So, you should refrain from speaking to her before you trade.

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Wasn't taking credit away or trying to change them...

 

Nor was I... it might have seemed that way because I mixed noting the similarities in with some disagreements with other posts.

 

... Other things lead to one of the 4 mistakes. For example: Having a conversation with you wife before you trade could lead to mistake A, B, C, or D. So, you should refrain from speaking to her before you trade.

 

Good point...

wife / girlfriend and family issues needs a whole separate thread in ‘psychology’ section :)

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The percentages fluctuate, but mostly are accurate. As an experienced trader with 15+ years of experience, you have good months and bad months.

 

A few reasons traders struggle:

 

Smart traders have an insurance nest egg (ie., 5-10% of all profits) that they can use to pay themselves during the tough times.

 

Consistent profits can be generated from using consistent chart patterns and formations for chart analysis and execution. (KISS method.)

 

The focus is to master your style of trading and learn to always be humble with the markets.

 

For example, mastering the most repeatable chart pattern (i.e., FLAGS) in all markets can

lead to great profits ....weekly!

 

If you can learn to make just a $100 a day consistently with a small account, then you can begin to make a nice monthly living.

 

As you gain experience and success in one style of trading, then you can experiment with small risk in another. This approach will lead a developing trader down the path of multiple streams of profits.

 

Leroy

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The percentages fluctuate, but mostly are accurate. As an experienced trader with 15+ years of experience, you have good months and bad months.

 

A few reasons traders struggle:

 

Smart traders have an insurance nest egg (ie., 5-10% of all profits) that they can use to pay themselves during the tough times.

 

Consistent profits can be generated from using consistent chart patterns and formations for chart analysis and execution. (KISS method.)

 

The focus is to master your style of trading and learn to always be humble with the markets.

 

For example, mastering the most repeatable chart pattern (i.e., FLAGS) in all markets can

lead to great profits ....weekly!

 

If you can learn to make just a $100 a day consistently with a small account, then you can begin to make a nice monthly living.

 

As you gain experience and success in one style of trading, then you can experiment with small risk in another. This approach will lead a developing trader down the path of multiple streams of profits.

 

Leroy

 

This is great advice/ Most of the time consistency is more important than anything else. Also, I think it is very important to limit your losses on a daily basis as well. As long as your losses are less than your gains you are on the right track.. Having that feeling of making your money back can really hurt you. Knowing when to stop is vital.

Thanks for the input!

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Most traders ignore the obvious "Dirty Little Secrets" that impede their progress.

 

The markets consistently provide repeatable events, so experience and profitable traders pick one or two events (ie., flags, breakouts) and learn to make money with those.

 

One of the most not-so-obvious lessons for traders is having a great SOH strategy...Sit-On-Hands that is!

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One thing I forgot to mention in my first post, #15, which probably determine the final outcome for the most, is that many people are actually not willing to do what is required. Personally I think this is the factor that determines it all. Just like with any other business idea people have, they are not willing to do everything which is needed to realize their dream. So when it all comes to it, one end up in the same convenient 9 to 5 work routine. Nothing new. Nothing new created.

 

Laurus

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So, my questions to you, the reader, is this:

 

1) Are you making money or losing money?

 

2)How long have you been trading?

 

1. Sometimes make and sometimes lose. But winning ratio is less than lose ratio.

2. Approximate 1 year.

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Many trader wannabee's think they make money by "plunging." This is nothing more than gambling - flipping a coin except the probabilities are less than 50 - 50%.

 

As was alluded earlier... staying out of the market is a position. Waiting patiently for a set up and then stepping in front of it is where we create the opportunity for ourselves...

 

Somehow trader wannabees read these cliches but think they are for someone else..

 

I agree with the poster who talked about flags. I love to see a flag developing.. on a 15m chart.. I know that the stops underneath the developing pennent will get picked off on the counter rotation. I wait to position there. Patiently wait for it.. Not only can I have a measuing objective off the flag but I can align it with other targets my methodology identifies...

 

If I am long from down below I use the flag to add to my position or if not create a continuation trade... I trade ES and I find that if I give the day time to develop I do much better than plunging in during the opening range..

 

While I have other setups I love continuation trades... I do not need to buy the bottom but I can often sell near the top.. In the end it is about making $, not to trade for the action...

 

We don't need many setups to be profitable..only one initially - executing consistently is obvious. Does it really matter if we even have only one setup we have identified? If it is statistically valid just up the contracts on it.. & you will succeed.

 

I have a trader friend who made the transition from floor trader to screen trader. He basically trades one specific setup, all in all out.. he has the advantage of an exchange membership so his costs are minimal. He executes 20 - 50 lots at a time..several times a day & makes $7 Figures a year. Why? He only needs one setup to be consistent..that's all any of us need..

 

Success in trading is not obvious but having a specific plan as another poster said with entry, risk management & exit criteria that is repeatable is almost all you need. I am assuming you are adequately capitalized and aligned psycologically with it. Whatever plan you must "own" it.

Edited by roztom

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One thing I forgot to mention in my first post, #15, which probably determine the final outcome for the most, is that many people are actually not willing to do what is required. Personally I think this is the factor that determines it all. Just like with any other business idea people have, they are not willing to do everything which is needed to realize their dream. So when it all comes to it, one end up in the same convenient 9 to 5 work routine. Nothing new. Nothing new created.

 

Laurus

 

One should apply Malcolm Gladwell's 10,000 hour rule.

In his recent book ‘Outliers’ Malcolm Gladwell describes the 10,000-Hour Rule, claiming that the key to success in any cognitively complex field is, to a large extent, a matter of practicing a specific task for a total of around 10,000 hours. 10,000 hours equates to around 4hrs a day for 10 years. For some reason most people that ‘try their hand’ at trading view it as a get rich quick scheme. That in a very short space of time, they will be able to turn $500 into $1 million! It is precisely this mindset that has resulted in the current economic mess, a bunch of 20-somethings being handed the red phone for ... (full story)

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there are platforms like zulutrade thatt help newbies win as well. I am a live example of that :) what is it 5m and pipping some stable roi and I still have little to none idea about manual trading candles and gann lines:doh::):)

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    • Date : 18th January 2022. Market Update – January 18 – BOJ Stands Pat.Asian markets weaker as BOJ stays put (-0.1% interest rate) with stimulus package intact, raises inflation target to 1.1% and growth to 3.8% for 2022. Kuroda: “Will ease monetary policy without hesitation as needed, there has been a notable improvement in the economy.” USD firmer, Yields moved up with US 2-yr over key 1.0%, 10-yr over 1.8%. Oil higher – Saudi’s retaliate, attacking Yemen and Gold holds at $1815.   USD (USDIndex 95.25) holds on to gains from Friday, pushing to 953.8 earlier. US Yields 10-yr moved higher again and trades at 1.818%. Equities – US closed yesterday. Nikkei -0.27% – USA500 FUTS lower again at 4633. USOil – Spiked over $84.70 as very tight supply, Saudi’s retaliation on Sanaa and NK continued firing of missiles unsettles sentiment. Gold – holds at $1815 from a test of $1823. Bitcoin another down day, tested to $41,600, back to 42,200 now. FX markets – EURUSD back to 1.1400, USDJPY now 114.80 tested 115.00 earlier, Cable back to test 200hr MA 1.3620, +20 pips after UK jobs data. Overnight – UK Earnings in line at 4.2%, Unemployment (4.1%) and Claims better than expected. PBOC deputy governor says will keep yuan exchange rate basically stable.European Open – The March 10-year Bund future is down -19 ticks, Treasury futures are underperforming. Stocks across Asia struggled with the renewed rise in yields and DAX and FTSE 100 futures are also down -0.3% and -0.2% respectively. Inflation risks and central bank outlook will be dominating the discussion in coming months.Today – German ZEW, Empire State Manu. Index & Earnings from Goldman Sachs. Day 2 of DAVOS (on-line).Biggest FX Mover @ (07:30 GMT) CADJPY (again) (+0.34% again) Rallied all day over 91.73 (Thursdays high) and onto test 92.00. MAs aligned higher, MACD signal line & histogram higher & above 0 line. RSI 68 rising, H1 ATR 0.131 Daily ATR 0.804.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. Stuart Cowell Head 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.
    • Date : 17th January 2022. Market Update – January 17 – USD Holds onto gains.Big bank Earnings disappointed on Friday, the USD recovered from 8-week lows and Fedspeakers continued to worry about inflation as hawkish tones increased. Stocks recovered early losses, Yields moved up to close the week as Oil moved up and Gold moved down. China’s PBOC delivered the first rate cut in a while as signs of slow down persist and Covid cases once again spread.   USD (USDIndex 95.20) holds on to gains from Friday. Bouncing from 8-week lows under 94.60. US Yields 10-yr moved higher again to close at 1.772%. Equities – USA500 +3.82 (+0.08%) at 4662 as Financials weighed following Earnings from JPM (-6.15%) Blackrock (-2.19%) and WFC (+3.68) Tech & Energies lead recovery into long weekend. USA500 FUTS lower at 4652. USOil – Spiked over $84.00 as markets look beyond Covid spikes with very tight supply. Gold – settled at $1816 from a test of 1830 again. Now at $1822. Bitcoin support once again at $42,000, Friday, back to 42,800 now. FX markets – EURUSD back to 1.1465, USDJPY now 114.40 at 115.85, Cable back to 1.33680. Overnight – Chinese GDP and industrial production exceeded expectations, whilst retail sales disappointed. UK house price data from the Nationwide was strong. The Chairman of Credit Suisse has resigned due to Covid breaches.Week Ahead A Bank of Japan meeting which concludes on Tuesday, UK inflation data on Wednesday and Australian jobs figures on Thursday. Earnings from GS, BAC, MS, P&G, NetflixEuropean Open – The March 10-year Bund future is down -36 ticks, alongside broad losses in US futures, which points to a further rise in yields across Europe. Stock market futures are trading mixed, with DAX and FTSE 100 futures posting gains of 0.4% and 0.2% respectively, while an 0.4% decline in the NASDAQ is leading US futures lower. Central bank outlooks and inflation expectations remain in focus, the Fed is gearing up for a round of central bank hikes this year that will also impact the outlook for BoE and ECB amid hopes that the pandemic phase of Covid-19 will start to fade.Today – Little data from Europe & All US markets closed for MLK Day.Biggest FX Mover @ (07:30 GMT) CADJPY (+0.34%) Rallied from 90.50 lows on Friday to 91.37 (Fridays high) now. MAs aligned higher, MACD signal line & histogram higher & above 0 line. RSI 64 & rising, H1 ATR 0.121 Daily ATR 0.794.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. Stuart Cowell Head 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.
    • GOLD FLUCTUATES BELOW $1,830 OVERHEAD RESISTANCE, MAY SLUMP TO $1,800 LO Key Resistance Levels: $1,900, $1,950, $2000 Key Support Levels: $1,750, $1, 700,$1,650 Gold (XAUUSD) Long-term Trend: Bullish Gold (XAUUSD) is in a sideways move but may slump to $1,800 low. Gold is retracing as it faces rejection at the high of $1,830. However, if price breaks the resistance level, the market will rise and retest the previous high of $1,860. Meanwhile, on January 14 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement suggests that Gold will rise but reverse at level 1.272 Fibonacci extension or $1,840.86. XAUUSD – Daily Chart Daily Chart Indicators Reading: Gold is at level 55 of the Relative Strength Index for period 14. The market has reached the uptrend zone and further upside is likely. The 21-day SMA and the 50-day SMA are sloping upward indicating an uptrend. Gold (XAUUSD) Medium-term bias: Ranging On the 4 hour chart, the Gold price is in a sideways trend. The gold price fluctuates below the $1,828 overhead resistance. The sideways trend has been ongoing since December 21. Each time the market retest the overhead resistance, the selling pressure will resume. The current downtrend is likely to extend to the low of $1,804 before upward. XAUUSD – 4 Hour Chart 4-hour Chart Indicators Reading XAUUSD is below the 80% range of the daily stochastic. The market is in the bearish momentum. The 21-day SMA and the 50-day SMA are sloping upward indicating the uptrend. General Outlook for Gold (XAUUSD) Gold’s (XAUUSD) price is declining as it may slump to $1,800 low. The market is fluctuating below the $1,828 resistance zone. The Gold price is falling to the downside. The upward move will resume if price finds support above the $1,800.   Source: https://learn2.trade 
    • USOIL REACHES AN OVERBOUGHT REGION, MAY FACE REJECTION AT $85.39 Key Resistance Levels: $80.00, $84.00, $88.00 Key Support Levels: $66.00,$62.200,$58.00 USOIL (WTI) Long-term Trend: Bullish USOIL has been in an uptrend but it may face rejection at $85.39. The index is retesting the previous high of $85.39. In previous price action in October and November, the bulls failed to break above the overhead resistance. Meanwhile, on December 9 uptrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that WTI will rise to level 2.0 Fibonacci extension or $81.61. From the price action, buyers have broken above the Fibonacci extension and have reached a high of $84. USOIL – Daily Chart Daily Chart Indicators Reading: USOIL is at level 70 of the Relative Strength Index period 14. It indicates that the index is in the overbought region of the market. The current uptrend is likely to face rejection at the recent high. Besides, sellers will emerge to push prices down. The index price is above the 21-day SMA and 50 –day SMA which indicates a further upward move. USOIL (WTI) Medium-term bias: Bullish On the 4-hour chart, the index is in an uptrend. WTI price has broken above the resistance at level 83.00. Meanwhile, on December 12 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that WTI will rise but reverse at level 1.278 Fibonacci extension or $84.22. USOIL – 4 Hour Chart 4-hour Chart Indicators Reading The index is above the 80% range of the daily stochastic. The market has reached the overbought region. Sellers are likely to emerge to push prices down. The 21-day and 50-day SMAs are sloping upward indicating the uptrend. The uptrend will continue to the upside as long as price bars are above the moving averages. General Outlook for USOIL (WTI) USDOL has reached the overbought region of the market but may face rejection at $85.39. The current uptrend is likely to terminate at the previous price level of the market. WTI is trading at $84.39 at press time. Source: https://learn2.trade 
    • ANNUAL FORECAST FOR EURJPY (2022) EURJPY Annual Forecast – Price Is Set to Scale New Heights With a Bullish Flag Formation The annual forecast for EURJPY is for it to scale new heights, having conformed to a bullish flag formation. The bullish flag formation, an offshoot of the triangle pattern, began towards the tail end of 2020 as bulls began to exercise dominance in the market. The market began to recover from the 116.910 support level in May 2020. It pulled back when it first hit the upper border of its triangle pattern and surged through it at the second time of asking, thereby leading to the creation of the flag pattern. EURJPYJPY Significant Zones Supply Zones: 134.150, 140.650, 149.010 Demand Zones: 113.920, 116.910, 127.630 EURJPY Long Term Plan: Bullish A bearish impact is visible annually in the market, notably since 2013. Every time EURJPY makes a bullish move, the move is cut off prematurely and it always leads to a plunge back around the 113.920 demand level. This happened from 2013 to 2016, and then from 2017 to 2020. The result is a triangle-tapered market structure. By June 2020, the price hit the 116.910 demand level and began another ascent, but this time, it eventually broke the triangle pattern on 2021 New Year’s Day. The flag pole was formed as the price surged from 120.920 and was stopped abruptly at 134.150. Subsequently, EURJPY began cranking through a downward channel. This continued into the year 2022. The market forecast is for an upward liquidity flow. The upward signal of the MA Cross is still very valid. Meanwhile, the Moving Average Convergence Divergence indicator is showing dwindling bullish bars. This is due to the downward ranging in the market. Its signal lines remain above the zero level. EURJPY Medium Term Plan: Bearish In early 2022, prices are set to drop after hitting the upper border of the ranging channel. The MA Cross is directed down-sideways to show the undulating nature of the current market. The same can be said for the MACD indicator. The annual forecast is towards the end of the year 2022 into early 2023 when the bullish flag pattern is anticipated to drive the market upward towards 140.650. Source: https://learn2.trade 
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