How Does Gold Relate To Currencies:
Just a short article on Gold, (Xau) One thing I love about financial markets is that there is so much that one can trade except for the major currencies, traders can find what works for them, take for instance S&P500 and Dow Jones, those two are highly correlated, when one is down the other one is down as well and when one is up, so is the other one, there is power in understanding such relations, knowing how currencies, indices, and commodities relate to each other can save you from doubling up your risk in case your trade goes against you and you have unknowingly traded the”same”thing. Any Forex trader can learn how to trade gold and Usd.
There are few things though that we need to keep in mind when trading gold, firstly we need to understand how it correlates with the currencies like Eur and USD, meaning how it relates to those currencies. Gold is denominated in Us dollar but widely used in global markets and by central banks of foreign countries. As the price of dollar weakens, the price of Gold increases, simply because investors tend to dump the dollar in favor of gold during the times of economic stresses. Most Forex traders know that Gold and Us markets tend to move against each other, strong and reliable correlation right there, they form opposite signal almost all the time, when gold gives a buy signal the Us dollar gives a sell signal, and the signal that is formed ahead of the other one, can also be used as an indicator to trade the other one, when Us Dollar sells off heavily, gold rises, and so is Eur, it rises as well since Eur and gold are known to be “anti dollar”, in many cases a support/resistance level breakout in gold is often followed by resistance/support breakout on Us dollar. Understanding these correlations is very powerful and can have great impact in trading gold successfully and profitably. What you can do is, open both gold chart (same time frame) and USD chart at the same time, study them both and you will eventually see or confirm this correlation, it is not as difficult as you think, see images below. If you want to start trading Gold today, REGISTER HERE. Thank you for stopping by, please do share the post using the share buttons below. For private lessons, you can check HERE.
I think all of us would like to be patient, but just simply do not, because for us that means we would have to behave well even when we are not getting what we want or even when things aren’t going our way. And for that reason patience become a very difficult trait to posses. But it is extremely important for people who want to succeed in Forex trading and enjoy life to the fullest, i mean the people who really want to make it. When we are impatient, the situations we face in life will certainly cause us to have bad emotions such as giving up and feeling depressed. Now we all see how important it is to possess this trait. As much as we can possess patience we need to start by seeking Forex education before we can think of jumping to Forex market.
WE CAN ONLY STRENGTHEN PATIENCE BY EXERCISING IT:
The problem with many of us is that we kind of know what we really want and where we want to be, we have a clear picture of what is needs to be done to achieve that goal, we have it all clear, we know all the right phrases from famous and most influential business people, we watch Forex videos from successful Forex traders, we listen to all the right motivational audios, we attend all the seminars out there, we read all the right books and we are still missing the point, something is lacking, but what exactly are we lacking here?. We might be asking ourselves this question a lot of times and the answer to that question is simple, ACTION PLAN. One thing that we need to know and understand is that no one can actually get rich or financially free just by reading all the relevant books, blogs and magazines or subscribing to all the online daily Forex/news, even watching the economic news channel everyday. Same applies to Forex trading, one can only learn this skill by actual doing and getting proper Forex education. The only way is to find the real person who has gone through that path and learn from them, find that person who is a Forex trader and learn from them. Gaining knowledge is always the first step, try doing this 3 things below:
1. Identify roadblocks (those things that you think are keeping you from reaching your goal).
2. Find solution.
3. Develop action plan.
once that is done, make sure you find the right teacher, and i mean THE RIGHT TEACHER and do not focus on finding the right opportunity because the right opportunity without proper education is just as bad, since no one can just dive into water unless they can swim. In finding the right teacher, rather go for the kind of person who is willing to make you smarter, the person who is willing to instill confidence in you other than to prove to you how smart they are, because a teacher like that knows very well that by teaching others he/she is actually learning more as well on that particular subject. Stop”driving in the fog” and step out in the sun just find a good teacher and the rest shall follow, thank you for stopping by please do share the post using share buttons below.
SEEK EDUCATION NOT ONLY ADVISE BECAUSE EDUCATION CLEARS UP “ROADBLOCKS” THAT ADVICE DON’T.
Forex news -Canadian dollar:
Central bank : Bank of Canada (BoC)
Interest rates :0.75%
Commodity : Oil
From previous articles I mentioned that if you really need to know the Forex news surrounding the currencies that we trade, here on this blog you can find it all broken down into pieces in a way that is easy to read and understand, hopefully reading about those Forex news here is not as complex as reading from other sites, I have tried to make it as easy as possible. This post is mainly focused on Forex news canadian dollar, all the news listed here are specifically for Canada, therefore directly affecting the Canadian dollar. Canadian dollar otherwise known as the ”loonie” is the 7th most traded currency, this currency is also referred to as the commodity dollar (comdolls) because oil is most influential to the performance of the currency, its performance depends on raw material.
This is the latest release by statistics Canada which is released monthly about 35 days after month ends. It measures the difference in value between imported and exported goods during the reported month, if the actual figure comes out greater than the forecast, that is good for CAD.
This is the latest release by Richard Ivey school of business, released 5 days after month ends and it measures level of diffusion index based on surveyed purchasing managers.
It is the latest release from statistics Canada which measures change in the total value of new building permits issued. This is released about 35 days after month ends.
It is the latest release from statistics Canada which measures change in number of employed people during previous month. If actual figure comes out greater than forecast, that is good for CAD, this data is released 8 days after the month ends.
It is the latest release from statistics Canada which measures percentage of the total unemployment during previous month, if the actual figure is lesser than forecast, that is good for currency. The number of unemployed people is important for overall health of the economy, consumers spending is highly dependable on labor market conditions.
BANK OF CANADA MONETARY POLICY REPORT
It is the latest release of Bank of Canada (BOC) ,this is released quarterly, the more hawkish than expected, the best for CAD, this data provides valuable insight into the bank’s view of economic conditions and inflation.
BANK OF CANADA RATE STATEMENT
It is latest release by bank of Canada, it is also known as Interest rate statement. It is basically the primary tool for bank of Canada to communicate with the investors about monetary policy.
It is the latest release by bank of Canada that measures the rate of borrowing and lending of overnight funds between themselves. It happens 8 times a year.
BANK OF CANADA (BOC) PRESS CONFERENCE:
It is the latest release by bank of Canada where speaker is BOC governor and senior deputy governor, this is released quarterly after the release of BoC monetary policy. If the results are hawkish than expected, that is good for CAD.
It is the latest release from statistics Canada which measures change in the price of goods and services purchased by consumers. If actual figure is greater than the forecast, that is good for CAD, this data is released monthly about 20 days after the month ends.
CORE RETAIL SALES
It is the latest release by statistics Canada, it measures change in the total value of sales at the retail level. This is released monthly about 50 days after month ends.
This data measures change in the total value of sales at the wholesale level. It is also called wholesale trade.
This data measures change in inflation-adjusted value of all goods and services produced by economy, it is released monthly about 60 days after month ends.
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In Forex Trading, size does matter:
I have discovered that many people still fail i n Forex trading even with the best strategies ever. It all boils down to Forex position size, strategy might be the best, you might even be using signals which works the best but only to suffer huge losses. One thing i need to advise traders out there is that in Forex, size does matter, it plays a big role, there is no standard small lot size, it all depends on the size of your own account, what is small for my account might be very big for yours, i have used paid signals before, i don’t remember my signal provider asking me how much i had in my account, i was receiving the same signal as with everyone and the size was just standard, it is only now that i know, i can see i wasn’t supposed to use that lot size for my account, i was supposed to decrease and use what was suitable for my own balance, i lost it all and had to add more money to my trading account (talk about being naive and clueless), i don’t blame them though, it was my duty to learn, but pity this is not emphasized mostly by those teaching Forex trading. A lot of times traders who never had proper training but only trade using random information from Google, groups or forums are mostly the”victims” because when you see everyone referring to a certain lot size as acceptable size to trade, you also blindly use that size not knowing the balances on the accounts of those you follow, this is the downfall of many, i still get shocked to see people posting their statements and seeing the lot size they use for the trades. It is unfair of me to say a certain lot is a reasonable sizewhen i don’t know how much a person funded their account with.
How do you decide on your Forex position size:
Once you have decided how much you want to fund your live account with, then you can decide on your Forex position size, you can either decide on a fixed lot size (that is when you trade same lot size for every trade regardless of account size) but there is a downside in going for fixed lot size, should your account go down you might just become over leveraged, so i think the best way is choosing certain lot size but making sure you can be able to change anytime to accommodate the size of your account, if your account goes up, also increase the lot size accordingly, if you suffer some drawdown, please do adjust your Lot size (very important) to suite your current account size, adjusting Lot size according to your account is very beneficial because you will always be risking same percentage on each trade irrespective of your account size. Risking same percentage per trade takes us back to money management which play important role in you making or breaking it as a Forex trader, money management is a topic that is continuously written about, but unfortunately traders never seem to be bothered by it, hence the huge losses, however any professional trader, money manager or anyone who deals with money will agree that without sound money management system you will ultimately affect your returns or profits, i am shocked though by how the traders just gamble their way to the market, that is why they never last, making it big today only to lose it all tomorrow is the “YO YO GAME” they play, trading smaller size allows a trader to sustain far greater amount of losing trades than if they had larger lot size, try to have a set and disciplined money management strategy and stick to it.
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