There are new companies launched every day in the forex world. Well nigh on half of them are selling products that involve getting rich quick by trading news. Trouble is, few execution services are good enough for people to consistently make money trading news. This is the case even in the world […]
Everyone talks about the smart money and the dumb money. These terms tend to be a bit silly if only because they require circular definitions. Smart money is “smart” because it makes money, but if it stops making money, it becomes dumb money. The terms, however, imply that those making money rarely […]
After bouncing off three times the GBP/CHF pushes up to a level that it hasn’t been above since 2002. Coming back down? Propriety trader Mihai Nichisoiu has an interesting view:
It has been my belief since long that most volatility blowouts are triggered during periods of rather low market liquidity (i.e. they may be a result […]
This issue is one of the more divisive in the trading world. Few traders have a middle-of-the-road view on it, and perhaps with good reason. Some of the most notorious hedge fund collapses in history, including Amaranth and Long Term Capital Management, have been partly blamed on strategies that involved “throwing good money […]
Traders are often overly sensitive to words springing from the mouths of politicians and government economists. This is no different for those tracking the New Zealand (or “kiwi”) Dollar, where last month Finance Minister Cullen talked down the country’s currency and caused a 150-pip drop. Those buying up kiwi-denominated assets for their attractive yields were […]
Central bankers, especially in the US and Eurozone, try to be as methodical as possible. The market, however, tends to overreact to near-term news and get out of line with real central bank expectations. Weeks ago, the markets had priced in that the Fed would not hike again, and might even pause prior to the […]