Traders Log » Forex

Testing Simple Strategies: MACD Works and Futures are Rewarding

TradersLog — Sat, 21 Jan 2012 11:23:24 +0000

Traders are fascinated by indicators. But just because something is interesting, logical or mystical does not mean it works in the market. Testing is needed to be sure the indicator adds value, and we will define value as improving profits. If an indicator beats a simple trend following strategy, it

Indicators on Indicators: The Next Step in Analysis

TradersLog — Sat, 14 Jan 2012 11:03:20 +0000

Traders and analysts have been developing market indicators for decades. Many of these indicators are simply measuring the same idea in only a slightly different way since most indicators are based on the same limited amount of market information. For any given time frame, there are only four price

Forex Trading Leverage and Costs

TradersLog — Thu, 18 Aug 2011 15:01:12 +0000

Many people would like to trade for a living, but the biggest problem they face is a lack of capital. In order to make a living trading in the stock market, traders really need to plan on having an initial balance of at least $100,000. That’s possible for mid-career professionals and retirees, but

Investing in the Chinese Yuan: Appreciation Imminent?

TradersLog — Wed, 27 Jul 2011 14:51:59 +0000

With the impressive economic growth in China, many investors are getting interested in owning Chinese currency, aka the Yuan (which translates as round coin) or Renminbi. The distinction between the two is that the Yuan is the actual unit of currency while the Renminbi is name of the Chinese currenc

Using Market Internals to Improve Your Trading

TradersLog — Thu, 02 Jun 2011 14:04:37 +0000

By Tim Racette The Market Internals are similar to the instrument cluster on your car, without them you really don’t know which direction you are headed or how fast you’re moving. There are four indicators that make up the core market internals: - Breadth Ratio - Advance/Decline Line - Trin - Ti

Position Sizing and Money Management Strategies for Traders

TradersLog — Fri, 13 May 2011 13:02:09 +0000

By Michael J. Carr, CMT Blackjack players at a casino will spend a lot of time deciding how much to bet on each hand. At least the serious ones do. Often, they even have a system. Traders may be surprised to realize they might not be as well prepared as savvy card players. Position sizing, or deter

Trading Systems 101

TradersLog — Fri, 29 Apr 2011 20:55:50 +0000

By Michael J. Carr, CMT Traders buy and sell for a variety of reasons. Some traders will make decisions based upon news headlines or gut feelings. One may read that gasoline prices are at record levels and decide they have to go down, while with equal certainty another trader decides the news justif

Inflation Fighting Investment? Try Currency ETF’s

TradersLog — Wed, 20 Apr 2011 20:31:03 +0000

By Brian O’Connell Former President Ronald Reagan once defined inflation as “violent as a mugger, as frightening as a mugger, and as deadly as a hit man.” Our 40th president wasn’t exaggerating. Inflation is nature’s financial way of eating your income without you knowing it – or at

Rate hike lurking; keep a close eye on the euro!

Bryan Rich — Sun, 13 Mar 2011 21:54:02 +0000

In the short term, market participants tend to have a very narrow focus when it comes to determining what information influences their decision making. And we’re certainly seeing that now … I say that because despite all of the underlying problems in the world, the dominant focus in mark

Currencies: Seven Charts You Should See

Bryan Rich — Mon, 08 Nov 2010 15:41:28 +0000

The currency market, as well as all markets, have been heavily focused on the U.S. and the Fed’s plans for more quantitative easing (QE). And that’s had a huge impact on the dollar and on dollar sentiment. The question is: Will it last? There’s no disputing that the dollar is the k