News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
EUR/USD
Bullish
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Mixed
More View more
Real Time News
  • Markets attempted pull risk trends out of their dive this past session, but sentiment (via $SPX) ultimately returned to its bearish course. Meanwhile, $EURUSD is consistent with its reversal. My video for today: https://www.dailyfx.com/forex/video/daily_news_report/2020/09/24/EURUSD-Extends-its-Dive-as-Late-Day-Selloff-Puts-SP-500-On-Verge-of-Correction.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/Q6JZKW2B1y
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.57%, while traders in EUR/GBP are at opposite extremes with 64.76%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/JHNAiIgVLv
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.11% 🇪🇺EUR: -0.02% 🇯🇵JPY: -0.06% 🇨🇦CAD: -0.08% 🇳🇿NZD: -0.22% 🇦🇺AUD: -0.33% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/im3IxxDQ3y
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.15% US 500: 0.12% FTSE 100: -0.94% Germany 30: -1.00% France 40: -1.04% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/X6mMfIY6HW
  • The US Dollar, British Pound, and Euro will all be closely watching key geopolitical developments in North America (Powell testimony), the UK (Brexit talks) and Europe (EU summit). Get your market update from @ZabelinDimitri here:https://t.co/q4AJW6PTCu https://t.co/e0rwBFOnqX
  • RT @stlouisfed: The current recession has in many ways been more extreme than the Great Depression, yet the economy is projected to recover…
  • The US Dollar is struggling against ASEAN currencies despite weakness in the S&P 500. Capital remains flowing into emerging markets, keeping USD under pressure, could this change? Find out from @ddubrovskyFX here:https://t.co/nwhy3XhE74 https://t.co/ir20IjaJFu
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.06% Oil - US Crude: -0.97% Silver: -1.60% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/H9676jm7CT
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇨🇭CHF: 0.14% 🇪🇺EUR: 0.01% 🇨🇦CAD: -0.01% 🇯🇵JPY: -0.07% 🇳🇿NZD: -0.17% 🇦🇺AUD: -0.22% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tm1u1cKErl
  • #Market Snapshot $AUDUSD sliding to fresh session-lows on the back of #MorganStanley's suggestion #IronOre prices will fall in Q4 Haven-linked $USD and $JPY pushing back to session-highs after dipping lower in early trade $Gold nudging slightly higher https://t.co/FsT9RIZYvR
Trading Lesson of 2015: A Pinch of Patience

Trading Lesson of 2015: A Pinch of Patience

2015-12-17 22:00:00
Jeremy Wagner, CEWA-M, Head of Education
Share:

Overtrading is a common obstacle for many traders. The 24 hour nature of FX means opportunities are abundant and it is easy to get excited about the trades available. However, not all trades are created equal. Some trades offer better risk to reward ratios than others. Some trades have a multitude of patterns pointing in the same direction and some do not. Overtrading is feeling like we need to jump on all opportunities now (including the poor risk to reward ratio trades) because we fear they’ll be gone tomorrow. In essence, overtrading is a result of sensing scarcity.

What a minute! We know there will be more opportunities tomorrow. We know FX trades 24 hours a day. Tomorrow will bring the same dance perhaps with a different song playing or a different DJ directing the music. Why do we act like opportunities are scarce?

Several reasons, though, with empirical observation being that we never know the results of the trade before it happens so we feel like throwing spaghetti against the wall. That poor risk to reward ratio trade might ‘stick’ and add value to our P/L.

This year, the collateral benefits of automated trading became apparent since the ‘bot’ is constantly looking for trades and doesn’t get tired. Though I have a mix of auto strategies and discretionary trades running, I don’t mix the markets running on auto with those running in discretionary.

There were several days this past summer where I was completely unplugged from the market due to some holiday time. During the holiday, I let the automated strategies continue to run. Later on, it finally clicked for me the bigger benefit from automation…the mental capacity to be patient.

It reminds me of the benchwarmer in basketball who has a great attitude. His role on the team isn’t to score a bazillion points. He’s the first one to greet you on upcoming time outs. He gives you a high five after you nailed the 3 pointer. He offers words of encouragement after you turn the ball over. In essence, he assists you to become the best you can be so the team can win.

Automation is like that player. I don’t need automation to add a bazillion dollars to my P/L (though I would take it if it happened). Help me become better with my discretionary trades! Simply free my mind of market noise. With my mental alertness fresh, I am more available to focus on finding and trading the higher probability opportunities. That is a larger benefit than the P/L contribution in my opinion.

The auto trades gave my trading recipe the pinch of patience that helped me filter out those discretionary spaghetti noodles less likely to stick.

Note: Whether you trade discretionarily or by using algos, consider the impact effective leverage has on results. We’ve researched 13 million real trades which spanned 4 different levels of effective leverage to see how trader profitability is impacted. We found that traders have control over the effective leverage and when they made this one simple tweak, the percentage of profitable traders grew from 17% to 40%. Page 10 of the Traits of Successful Traders Guide provides the details [Free Registration].

See the next Top Trading Lesson of 2015: Stop Staring at P&L

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES