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FOMC leaves rates unchanged as expected; SEPs show Fed to keep rates on hold through 2020

Strategy Video: Trades, Strategy and Markets - Everything Changes

Strategy Video: Trades, Strategy and Markets - Everything Changes

2014-07-03 00:39:00
John Kicklighter, Chief Currency Strategist
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Talking Points:

• After finding a good strategy - an 'edge' - traders will look to filter through the markets for setups

• Yet, as we have seen market conditions change, which necessitate a change in our strategy and approach

• On an even larger scale, the markets themselves inevitably change and we must adapt to thrive

See volume behind the majors during the NFPs and ECB rate decision to gauge your trading approach using the free FXCM Real Volume and Transactions indicators.

Over a long enough period, no strategy will go without losing trades. Yet, a robust approach to the market will prove profitable over time. That said, even the best strategy needs to be adapted as certain aspects of the marekt change. Fundamental event risk and technical developments are a short-term realization of this issue. On a larger time frame, more substantial changes in liquidity and participation (a few aspects of what we define as 'market conditions') require more substantial adjustments and maybe even a new strategy. Furthermore, those who have been in the market for a longer time or naturally have a bigger picture view further recognize that there are even larger change, systemic changes in the market - new assets, regulations, a rise or fall in popularity, etc. And those that recognize this grand scheme are often the best prepared and most profitable. We discuss this 'high-minded' topic in today's Strategy Video.

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