We are traders and masters of risk. When you become pro you stop over analysing and all you do is sit there, and wait, and wait, and wait some more until you find the perfect trade. What I am saying is that the market makes all the decisions. Our only decision is to listen, feel, and respond to the market’s siren. Always and without exception. Remember, the market never lies. It is only we who lie to ourselves.
Sunday, June 10, 2012
Looking Ahead: Week of June 10 through 15
Bottom line
The week was dominated by central bank activities as investors fretted about slowing economic growth. The festering problems with Spanish banks also put investors on alert. Economic data in Europe disappointed while data from Australia surprised on the positive side. Tensions will build as investors await the June 17th Greek election. But they will also be awaiting the results of France’s parliamentary elections scheduled for June 10th and June 17th to see if President François Hollande will get a majority. The Bank of Japan meets at the end of the week.
Looking Ahead: Week of June 11 through 15
The consumer, manufacturing, and inflation news are highlighted this week. With sluggish employment, retail sales on Wednesday will get extra attention along with sentiment on Friday. Durables orders have been soft, so traders will closely parse industrial production and Empire State. Lower oil prices may be boosting discretionary income so the PPI and CPI reports will be closely watched.
Sunday, June 3, 2012
Looking Ahead: Week of June 4 through 8
The recovery currently is wobbly but still positive. The consumer appears to be more optimistic than businesses as spending is moderately strong even though hiring has slowed to a crawl. Manufacturing and housing are still expanding but at a sluggish pace instead of moderately strong some months ago. But inflation is softer, giving consumers more spending power and the Fed more room to remain very accommodative.
After the past week’s deluge of data, the upcoming week is light. Tuesday’s ISM non-manufacturing report likely garners attention for signs of whether the economy is as weak as Friday’s employment report. Similarly, traders will parse Wednesday’s Beige Book for the direction of growth and the possibility of QE3. At week’s end, the international trade report will give indications of the impact of Europe on exports and whether businesses are optimistic enough to boost imports on their shelves and in their showrooms.
Sunday, May 27, 2012
Looking Ahead: Week of May 28 through June 1
Everything leads up to Friday’s jobs report for May. Traders hope to see improvement from last month’s meager gains. However, before Friday, a slew of reports covering the consumer are posted, including ADP employment, confidence, income, personal spending, and motor vehicle sales. Housing updates include pending home sales and Case-Shiller home prices. For updates on manufacturing, the ISM, Markit final PMI, and Kansas City surveys will be released.
Sunday, May 20, 2012
Looking Ahead: May 21 through May 25, 2012
Stocks swooned last week as risk aversion took hold and sent investors scurrying for safe havens. Economic data were mixed globally.
The Bank of Japan meets this week — no policy change is anticipated. Further detail will be available on Eurozone growth statistics as well as flash manufacturing and services PMI indexes for May are on tap. Investors will continue to monitor conditions in Greece, Spain and the other ‘peripheral’ members of the Eurozone.
Housing is this week’s focus, starting with existing home sales on Tuesday and new home sales and FHFA at mid-week. Manufacturing updates post with Richmond Fed on Tuesday and then the key durables orders report Thursday along with the Kansas City Fed survey. The week closes with Friday’s consumer sentiment report.
Reasons Why Pro Forex Traders Make Money
Most traders who can’t seem to make any consistent money in the markets already know what they need to do to become successful, but they don’t make proper use of this knowledge. All traders have the motivation to make money in the markets, but most are focusing that motivation on the wrong things. If I can boil down the primary differences between professional traders and amateurs, I would say this; pro traders are motivated by the long-term outcome of their interactions with the markets, whereas amateur traders are motivated by the short-term outcomes. Once you learn that you can only make consistent money in the markets by dropping the impulsive desire to “make money now”, you will cross the threshold into thinking and trading like a professional, and eventually you will become one.
Saturday, May 19, 2012
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