Saturday, 26 December 2020

USD/SGD 1Q Forecast: US Dollar at Risk to Singapore Dollar Amid Hunt for Yield in Emerging Markets

The Singapore Dollar may continue its advance against the US Dollar in 2021 as capital keeps flowing into Emerging Markets.

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CAD/CHF 1Q Forecast: Long CAD/CHF – A Combination of Risk Trends and Positioning

As the global economic outlook improves with pent up demand supporting growth, risks are tilted to the upside for oil prices, which in turn is likely to keep the Canadian Dollar afloat, particularl...

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GBP/NZD 1Q Forecast: Long GBP/NZD as Competing Sterling and Kiwi Climb Shifts in 2021

On the NZD side, the good news of a potential global economic revival has been largely priced in to the markets already. On the GBP side, there is scope for the UK economy to perform better than wi...

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USD/JPY 1Q Forecast: Can the BoJ Keep Up With the Breakneck Pace of the FOMC?

With Shinzo Abe now no longer leading Japan, can Abenomic-fueled Yen losses remain?

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Friday, 25 December 2020

Top Trading Lessons: Take Extra Caution Before Joining Popular Trades

The first quarter of 2020 turned traders on their heads as Covid-19 ripped through the global economy. Swift action from the Federal Reserve and other central banks backstopped the global financial...

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Top Trading Lessons: A Crisis May Scare Away the Crowd, But Not the Best Traders

Many things that happened in 2020 appear to be counterintuitive, especially when it comes to the stock markets.

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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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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...