Convince Markets Of Their Worth

THE 8 MOST DANGEROUS MISTAKES OF FOREX (AND HOW TO AVOID THEM) INTRODUCTION With my little years in FX Trading, I sat down one day to cross check the causes of my SUCCESSES & FAILURES. The personal determination to reflect on this was driven by my desires to improve on my performance in the future. I now ask the Question “what makes a good Investor?” pondering on that question I discovered that the 8 most dangerous mistakes of FOREX that I am about to write on are what they totally avoided in the course of their trading experience. I discovered that their no.1 ingredient is PATIENCE. Often, beginners to the game always hope for annual returns in hundreds and thousands of percents and then you will see many snake-oil sales men that are willing to encourage them with impossible promises. ...

Forex News and Events: The headline event of the past 24 hours has undoubtedly been the ECB rate meeting. As expected, the governing council left rates unchanged at 1.00%, but the real fireworks came 45 minutes later in the subsequent press conference. Governor Trichet began by highlighting that risks to the inflation outlook had moved to the upside and that incoming data showed positive underlying growth momentum – accordingly, official forecasts for EU inflation and growth were revised upward, but all of this had been largely predicted by the market in advance. The real surprise was Trichet’s statement that “strong vigilance” was warranted going forwards – a phrase that strikes a very significant chord with observers familiar with the “traffic light” system that the ECB used during the ...

(Reuters) - Unrest sweeping the Middle East could squeeze OPEC's precious spare oil capacity for the long term as well as the near term as fearful governments delay reforms needed to tame galloping domestic fuel use. The disruption of much of Libya's 1.6 million barrels per day (bpd) of production already threatens to make a serious dent in the less than 5 million bpd of OPEC oil that can be swiftly added to markets in times of shortage. Saudi Arabia, the world's leading exporter, with total capacity of around 12.5 million bpd, holds the bulk of the world's spare capacity -- defined as oil that can be brought onstream within 30 days and sustained for 90 days. A senior Saudi source said on Monday it was producing about 9 million bpd and still had roughly 3.5 million bpd to hand. The ...

(Reuters) - Stuart Bray, a City of London financier turned environmentalist, is using his fortune and skills to develop novel ways to fund conservation, starting with teaching tigers to hunt in the South African bush. "The tigers have taken over my life," Bray said, describing the wonderment of the first chuffs, or friendly snorts, he had communicating with a tiger. "It intellectually convinced me to work to save the environment. But I made my life in the markets and I am convinced I can do this through the markets," he said over tea recently in Beijing. Eight years ago, Bray, an American working in the upper echelons of London finance, made an 11th-hour rescue of his Chinese-born wife's eco-tourism efforts to save the South China tiger after an acrimonious split with her business ...

Events in Egypt have created a cautious trading mood this Monday morning. Images broadcasted from Egypt over the last few days have had markets contemplating further contagion in the region. In particular, fears that transit through the Suez Canal might be disrupted have filtered though into oil prices, pushing WTI crude down nearly 4% on Friday. In a relatively anticipated move, Moody’s downgraded Egypt’s sovereign debt to Ba2 from BA1; outlook negative. Regional equity markets fell across the board on Sunday which put pressure on Asian indexes. USDJPY declined steadily to 81.92 as traders moved back into safe-havens (although flows have been light). Although Egypt has the largest population in the Middle East and is a critical barometer of social and political sentiment, we are ...

Well… The rally for the euro (EUR) didn’t have strong legs yesterday. Seems that a strong Factory Orders number here in the US got everyone thinking once again that the all-clear horn has been sounded for the US… The dollar rallied, commodities sold off, and gold lost $34 (as I left for the day). I’ll just say this about the all-clear horn being sounded… If things were so rosy, would the Fed/Cartel/Bernank, be leaving interest rates near zero? Why would the same crew be carrying out their implementation of quantitative easing? And… If you read the Top Ten Currency Stories of 2010, last Friday, you’ll recall that about this time last year, some people (who should know better) were talking about a “recovery”… And the Fed/Cartel/Bernank was talking about removing emergency measures… And by ...

(Reuters) - Angela Merkel was so determined to kill off the idea of issuing common European bonds that, having tried to squelch it, the German chancellor reversed over it several times last week to make sure it was dead. French President Nicolas Sarkozy, anxious to stay in Germany's slipstream and avoid any threat to France's top notch credit rating, joined her in swatting the suggestion, for now. But the "E-bond" proposal championed by Jean-Claude Juncker, the chairman of euro zone finance ministers, and Italian Economy Minister Giulio Tremonti won't go away because it makes sense. "I'm convinced we'll end up doing it, because it's obviously the most effective solution," said Jean-Herve Lorenzi, president of the Cercle des Economistes, a French economic think-tank. "Everyone thinks it' ...

The start of the new week with the final approval of 85 billion euro aid package to Ireland seemingly failed to convince markets of the measures worthiness as the euro dwindled further south to a two-month low versus the dollar. On Sunday the EU finance chiefs ended their talks in Brussels and agreed to grant Ireland the package which was inline with the expected tag at 85 billion euros with an annual interest of 5.8%. The jitters are clearly seen in the market especially as the euro declined to the weakest traded versus the dollar at 1.3157 and also versus the yen to record the lowest of 110.68. We can sense the market tensed and unconvinced with the measures adopted as eyes continue to be fixated on Portugal and Spain while also weighing negatively on the recovery prospects for the ...

As the sun rose over Asia - traders were bracing themselves for an escalation on the Korean peninsula. While reports of North Korean artillery shelling have subsided, US President Obama was able to throw fuel on the smoldering ashes by announcing joint US & S. Korea military exercises on Nov. 28th. Any risk recovery that FX traders were looking for failed to materialize. Asian regional stock indexes were able to bounce back slightly from yesterday’s sell off, although today’s “rally” was tepid and mixed. Shanghais was able to climb 1.12% while the Nikkei fell -0.84% (given Japan’s exposure to Korea and JPY strength). EURUSD was able to trade off the 1.3360 floor back up to 1.3419 however the pair still feels heavy. For the Euro, Ireland & the EU just can’t catch a break with continual ...