Will the U.S. Dollar Ever Rebound?

Read More

Two of the Most Important Elements of the Gold Trade

You can’t trade the news, they say.

“There’s no way to accurately gauge how a news event will play out in the markets, I don’t care what they say.  Trading the news is an especially seductive trap for those who aren’t in tune with major stock market trends. They don’t realize that in most cases the market’s already baked the news “into the cake” by the time it’s reported.”

Read More

Technical Patterns 101: Simplicity at its Finest

“Everything should be made as simple as possible, but not simpler.”

That’s according to Albert Einstein.

Applied to trading, it simply tells us simplicity is key. 

 

Read More

How to Spot Pivots in the VIX

It was a rare occurrence we hadn’t seen in 24 years.

The infamous fear gauge – the VIX – fell to an unusual low of less than 10 in May 2017 – something that hasn’t happened since December 1993.  In the single digits, the idea is that all is well.  Calm as resumed.  But it’s at these points when smart investors begin to worry.

Read More

Currency Trading: Highly Effective Trading Indicators

We all have a tendency to overthink just about everything.

We make things much harder than they really have to be.  We’re all done it.

But let’s be honest.  The simpler things are, the easier it is do just about anything, including making money.  It’s the simple strategies that allow for the best results with less stress.  In fact, many currency traders will only look at charts as a simplified way to identity patterns and opportunities, instead of being bogged down with the noise of the news. 

Read More

How to Use MACD Effectively

When it comes to pattern recognition on a chart, we could spend hours looking at daily, weekly, monthly, one-year and five-year chart. 

We can examine every wiggle, every bounce, and every dip for hours. 

In fact, look at the U.S. dollar. 

Read More

How to Trade Collapsing Currencies

Since 2017 began, the Mexican Peso has been an absolute mess.

In fact, since January, it fell 16% from 22. 

However, as you can see in this chart of the $USD-MXN, it sat at an extreme low at double-bottom support dating back to November 2016. Will support hold, or will the Peso continue to fall?

Read More

Education 101: The Most Common Trading Question

Risk tolerance comes up in a lot of trading conversations.

And the usual response I give is – well…  how much can you afford to lose?  What’s your personal risk tolerance?  It may seem like a ridiculous question, but it’s also one of the most ignored.  In fact, some traders are so focused on hitting that jackpot trade, they never stop to ask themselves how much they can really afford to lose.

Read More

Technical Analysis 101: Why Chart Patterns Matter

Whether you trade currencies, commodities, or even just ordinary stocks, understanding technical analysis is crucial to your success.  Unfortunately, many traders continue to fall into the same trap of ignoring the basics like resistance, channels and false breakouts.

Read More

Technical Analysis: The One Certainty of the Markets

If you want strong returns when markets are on another wild ride, always keep an eye on the VIX, or the Volatility Index, which measures implied volatility of S&P 500 options.  Always… It’ll tell you exactly when to go long.

Read More

Update: The Technical Argument for Gold

In early April 2017, we made a technical argument for further downside in the U.S. dollar.  In fact, after drawing our trend lines, a falling wedge pattern became apparent, exposing overhead resistance at 100.95.  We argued that if the currency failed at that point, it was likely to reverse lower and stay within the pattern.

Read More

How to Really Let your Winners Run

We’ve all seen fortunes made.

Unfortunately, we’ve also seen fortunes lost in a matter of seconds.

To this day, one of the biggest reasons for sizable losses is failure to protect profits and cut losses timely with tools, such as the trailing stop loss.  But we have to realize that without any kind of exit strategy in place, emotions could come into play. 

Read More

Technical Analysis: How to Spot Pivots in Currencies

When it comes to trading currencies, technical analysis is just as important as the global chaos impacting them.  While the importance of such analysis varies from trader to trader, we must be aware that currency markets are greatly influenced by it.

That’s because this analysis – especially with currencies – helps to remove that urge to trade on gut reactions and what may be happening in the world.  It removes the noise.

Let’s start with the USD/JPY.  

Read More