Forex Trading and Miscellaneous

Traders who trade with European based FX brokers have had to adopt their trading behaviour significantly, after the ESMA ruling came into force in 2018. The rules and new framework that ESMA introduced were, in their opinion, designed to protect traders. The organisation took time out to analyse the industry and came to the conclusion […]

Albert Einstein is credited with saying; “Compound interest is the eighth Wonder of the World. He who understands it earns it. He who doesn’t pays it!” In a financial world of low interest rates, a situation that’s existed for close to a decade- the potential for using relatively small trading accounts in order to make

Trading successfully can often be described as a complete life skill and there are sections in the poem of Rudyard Kipling which relate to certain aspects of our trading; “If you can dream and not make dreams your master; if you can think and not make thoughts your aim; if you can meet with triumph

As a central bank, trying to balance the value of the currency for which your monetary policy is responsible for, is an incredibly difficult task. There’s a Goldilocks temperature; not too hot, not too cold, that’s just right for the economy. The value of the domestic currency has to: – encourage exports, – encourage imports,

“Taper tantrum” is the term used to refer to the 2013 surge in U.S. Treasury yields, which resulted from the Federal Reserve’s use of tapering to gradually reduce the amount of money it was feeding into the economy. Traders and investors may recall the phrase “taper tantrum”. The Fed was only considering cutting back on

Mario Draghi, the president of the ECB, is apparently concerned that the euro is too high versus USD. EUR/USD recently breached the 1.2500 handle for the first time in over three years, he’s concerned that at this level it may harm exports and damage the (fragile) recovery the Eurozone is in, which is only circa

Discussions have raged since the birth of internet trading and the creation of trading forums, regarding which overarching trading style/method represents the best option for both new and part time traders. Is it scalping, day trading, swing trading, or longer term investment/position trading? All have merits, none are wrong and so many times we’ll read

The U.S. dollar crashed in 2017, the reasons were two fold involving Trump’s fiscal stimulus; the tax reform programme and the suggested infrastructure programme spend. Analysts and investors quickly “did the math” and calculated that the fiscal drag on the USA and as a consequence the USD, would be significant. The ten year cost of

Whilst the Trump administration recently confused and contradicted itself regarding the merits of a low or high value USD, many analysts and economists who will be close to the USA administration, as well as the FOMC committee members and their team of advisors, will know that the USA has to find a balance for the

The general consensus opinion delivered by market analysts that sterling recovered in 2017, after suffering a severe sell off due to the referendum shock vote in 2016, deserves closer scrutiny. Many mainstream financial analysts pointed at cable (GBP/USD) to prove the recovery theory, completely ignoring the fact that the rise of the pound versus the