Many things that happened in 2020 appear to be counterintuitive, especially when it comes to the stock markets.
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Friday, 25 December 2020
Top Trading Lessons: A Lesson on Irrational Exuberance and Trader Psychology
You might have heard the aphorism "the market is not the economy" before. The phrase surfaced quite a bit this past year largely owing to COVID-19 and the economic fallout caused by the pandemic.
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Top Trading Lessons: Trade More of What Is in Play, Less of What Isn’t
2020 was filled with extremely high levels of volatility across just about every asset class. The S&P 500 had one of its most volatile years on record, the WTI crude oil front-month contract went n...
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Top Trading Lessons: History Doesn't Repeat Itself, But It Often Rhymes
The quote ‘history doesn't repeat itself, but it often rhymes,’ which is largely attributed to Mark Twain, comes to mind as COVID-19 has made 2020 an unforgettable year.
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Top Trading Lessons: Don’t Fight the Tape and Don’t Fight the Fed
2020 proved once again that you should always follow two of the commandments laid out by Wall Street legend Marty Zweig in his 1986 book titled “Winning on Wall Street”: don’t fight the tape and de...
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Top Trading Lessons: Be Confident – Don’t Listen to Noise
A recurring theme this year has been the huge amount of trading advice, commentary, opinion – aka ‘noise’ – around a majority of my trading decisions in 2020.
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The Basics of Technical Analysis
This beginners guide will introduce you to the basics of technical analysis, and how it can be used to trade FX.
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Top Trading Lessons: Ignore ‘Market Lore’ and Focus on the Evidence
Seemingly one of the most stubbornly durable bits of “market lore” is that traders treat gold as some sort of ultimate safe haven. Tellingly, the financial news media is often filled with hand-wrin...
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Top Trading Lessons: A Classic Adage and Weakness: Let Your Winners Run
I have been trading and analysing the markets for approximately two decades, so there have been many lessons learned long the way – most of them with a meaningful degree of pain.
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Top Trading Lessons: Steer Clear of Speculative Mania and Be Patient
The second half of 2020 was filled with symptoms of excess and disregard for risk management in many markets, particularly in US equities.
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Thursday, 24 December 2020
Top Trading Lessons: Try to Avoid FOMO
I think an important aspect of markets in 2020 has been trying not to get FOMO (Fear of Missing Out) when volatility was shooting up and “easy profits” could be seen flying around.
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Top Trading Lessons: It Pays to Be Nimble in a Crisis, Be Confident in Your Knowledge
As a self-styled central bank Kremlinologist, I pay close attention to what policymakers say, when they say it, and how they say it. But to take central bankers’ statements and turn them into actio...
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Top Trading Lessons: Technicals Hold All the Weight, Not the Click-Bait: Covid-19 Edition
I've often advocated that traders remain disciplined to price action staying aware of but not beholden to the headlines. This year was no different.
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Top Trading Lessons: Covid Stock Market Pandemonium or Calm Waters, Wait for Breakout Confirmation
2020 brought with it a challenging trading environment, one that likely pushed many investors, including myself, to the edge, testing our capabilities.
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Top Trading Lessons: Don’t Fear Missing a Trade, There Are an Infinity More Ahead. Be Flexible
Remind yourself that you will miss a trade, however, there will always be another trade, so if you miss a trade, accept it and move on.
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Top Trading Lessons: Euro and Sterling Shrug Off Brexit Talks Between EU and UK
This past year was meant to be the one when both the Euro and especially the British Pound suffered from the tortuous negotiations between the EU and the UK on their post-Brexit relationship.
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Top Trading Lessons: Pandemic vs the Central Banks
In a year when so much went on, I think one of the more surprising items is how little economic pain actually showed in global equity markets, particularly in the US.
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British Pound Rallies as EU-UK Reach Brexit Deal
After four-plus years of negotiations over the terms of Brexit, the EU and the UK have reached an agreement.
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Sterling Q1 2021 Forecast: Starting to Look a Better Prospect
The first quarter of 2021 looks set to be an intriguing, and volatile, three months for sterling-denominated assets and traders
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South African Rand Forecast: USD/ZAR, GBP/ZAR,EUR/ZAR Price Setup
New coronavirus strain weighs on risk sentiment, muting price action
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ECB Leaves Rates Unchanged, Rate Cut Looms, EUR/USD Steady Ahead of Press Conference
The European Central Bank left all three official rates unchanged as expected. Traders are now focusing on the press conference for any clue...
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Fundamentals can seem overwhelming, but identifying and isolating the key driver behind a currnecy or capital can help refine our evaluation...
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The US Dollar is firmer ahead of the FOMC rate decision. Expectations is for the Federal Reserve to raise interest rates by 25bps to 2.00-2....