One of the most important subjects, that new traders fail to address in their trading plan, is the element of drawdown. There are several reasons for this but we’ll highlight just two. Firstly, it could be that the overt optimism new traders experience, shortly after finding the industry, prevents them from accepting that losses are […]
According to Markit Economics U.S. private sector activity increased in November after slowing during the previous month, whilst new orders grew at their fastest pace since April 2012. Financial data firm Markit stated that its preliminary composite Purchasing Managers Index (PMI), a weighted average of its manufacturing and services indexes, rose to 57.1 in November
As many European markets opened in positive mood, with some analysts suggesting that the Iran nuclear negotiations has helped to boost confidence in the region, the German DAX index has posted a record high in early trading, other European indices also gained ground. Meanwhile, taking a cursory glance at the DJIA equity index future, it
German DAX reaches a record high as oil futures slump Read More »
The coming week’s fundamental policy decisions and high impact news events that could affect sentiment during the week are dominated by housing data from the USA, UK and Australia. Whilst durable sales orders and retail sales from the USA and Germany have the opportunity to surprise. The UK’s latest estimate of GDP is published, whilst
Trend trading analysis for the week beginning Sunday November 24th Read More »
The headline Ifo reached 109.3 in November, its highest level since April 2012, rising from 107.4 in October. Both current assessment and expectations improved, with the latter at its highest level since April 2011. Hans-Werner Sinn, president of the Ifo Institute, said: [quote] After falling in October, the Ifo Business Climate Indicator for the German
Recently we covered the use of the most widely held indicators and how adjusting them and using them in a counter intuitive way to their accepted use, can provide a very simple ‘one indicator’ method to enter and perhaps more importantly exit the market. We illustrated how to adjust the settings on indicators such as
Trading with basic moving averages Read More »
The DJIA rose more than 100 points and finally closed above 16,000 for the first time in history. The index crossed that psychological milestone earlier this week, but then sold off for three days as the index closed in the red. The S&P 500 also closed up, while the Nasdaq rose more than 1%. The
Dow closes above 16,000 for first time as dollar yen rises above 101 Read More »
At 51.5, down from 51.9 in October, the flash estimate of the Markit Eurozone PMI Composite Output Index remained above the 50.0 no-change level for a fifth successive month in November, but signaled a modest easing in the rate of expansion for the second month running. Output growth in manufacturing stabilized at a robust rate
Euro-zone PMI signals slowing growth for second successive month Read More »
One of the most apt phrases in relation to news trading that has stood the test of time is; “don’t trade the news, trade the reaction to the news”. Nowhere is this more evident than on the day the NFP data (non farm payrolls) is delivered by the USA bureau of labor statistics. We’ve advised
Successful news trading, how it’s possible. Read More »
Perhaps the most illuminating comment in the latest FOMC meeting minutes, published late Wednesday evening, was the commitment that; “the Committee today reaffirmed its view that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the asset purchase program ends”. This appears to suggest that even if (when) the
