4 Types Of Indicators FX Traders Must Know

Many forex traders spend their time looking for that perfect moment to enter the markets or a telltale sign that screams "buy" or "sell." And while the search can be fascinating, the result is always the same. The truth is, there is no one way to trade the forex markets. As a result, traders must learn that there are a variety of indicators that can help to determine the best time to buy or sell a forex cross rate.

Here are four different market indicators that most successful forex traders rely upon.

Indicator No.1: A Trend-Following Tool

It is possible to make money using a countertrend approach to trading. However, for most traders the easier approach is to recognize the direction of the major trend and attempt to profit by trading in the trend's direction. This is where trend-following tools come into play. Many people try to use them as separate trading system; while this is possible, the real purpose of a trend-following tool is to suggest whether you should be looking to enter a long position or a short position. So let's consider one of the simplest trend-following methods – the moving average crossover.

A simple moving average represents the average closing price over a certain number of days. To elaborate, let's look at two simple examples – one longer term, one shorter term. (For related information on moving averages, see Exploring The Exponentially Weighted Moving Average.)

Figure 1 displays the 50-day/200-day moving average crossover for the euro/yen cross. The theory here is that the trend is favorable when the 50-day moving average is above the 200-day average and unfavorable when the 50-day is below the 200-day. As the chart shows, this combination does a good job of identifying the major trend of the market – at least most of the time. However, no matter what moving-average combination you choose to use, there will be whipsaws.

Figure 1: The euro/yen with 50-day and 200-day moving averages
Source: ProfitSource

Figure 2 shows a different combination – the 10-day/30-day crossover. The advantage of this combination is that it will react more quickly to changes in price trends than the previous pair. The disadvantage is that it will also be more susceptible to whipsaws than the longer term 50-day/200-day crossover.

Figure 2: The euro/yen with 10-day and 30-day moving averages
Source: ProfitSource

Many investors will proclaim a particular combination to be the best, but the reality is, there is no "best" moving average combination. In the end, forex traders will benefit most by deciding what combination (or combinations) fits best with their time frames. From there, the trend – as shown by these indicators – should be used to tell traders if they should trade long or trade short; it should not be relied on to time entries and exits. (For additional information, check out Forex: Should You Be Trading Trend Or Range?)

Indicator No.2: A Trend-Confirmation Tool

Now we have a trend-following tool to tell us whether the major trend of a given currency pair is up or down. But how reliable is that indicator? As mentioned earlier, trend-following tools are prone to being whipsawed. So it would be nice to have a way to gauge whether the current trend-following indicator is correct or not. For this, we will employ a trend-confirmation tool. Much like a trend-following tool, a trend-confirmation tool may or may not be intended to generate specific buy and sell signals. Instead, we are looking to see if the trend-following tool and the trend-confirmation tool agree.

In essence, if both the trend-following tool and the trend-confirmation tool are bullish, then a trader can more confidently consider taking a long trade in the currency pair in question. Likewise, if both are bearish, then the trader can focus on finding an opportunity to sell short the pair in question.

One of the most popular – and useful – trend confirmation tools is known as the moving average convergence divergence (MACD). This indicator first measures the difference between two exponentially smoothed moving averages. This difference is then smoothed and compared to a moving average of its own. When the current smoothed average is above its own moving average, then the histogram at the bottom of Figure 3 is positive and an uptrend is confirmed. On the flip side, when the current smoothed average is below its moving average, then the histogram at the bottom of Figure 3 is negative and a downtrend is confirmed. (Learn more by perusing A Primer On The MACD.)

Figure 3: Euro/yen cross with 50-day and 200-day moving averages and MACD indicator
Source: ProfitSource

In essence, when the trend-following moving average combination is bearish (short-term average below long-term average) and the MACD histogram is negative, then we have a confirmed downtrend. When both are positive, then we have a confirmed uptrend.

At the bottom of Figure 4 we see another trend-confirmation tool that might be considered in addition to (or in place of) MACD. It is the rate of change indicator (ROC). As displayed in Figure 4, the red line measures today's closing price divided by the closing price 28 trading days ago. Readings above 1.00 indicate that the price is higher today than it was 28 days ago and vice versa. The blue line represents a 28-day moving average of the daily ROC readings. Here, if the red line is above the blue line, then the ROC is confirming an uptrend. If the red line is below the blue line, then we have a confirmed downtrend. (For more on the ROC indicator, refer to Measure Momentum Change With ROC.)

Note in Figure 4 that the sharp price declines experienced by the euro/yen cross from mid-January to mid-February, late April through May and during the second half of August were each accompanied by:

The 50-day moving average below the 200-day moving average
A negative MACD histogram

A bearish configuration for the ROC indicator (red line below blue)

Figure 4: Euro/yen cross with MACD and rate-of-change trend confirmation indicators
Source: ProfitSource.com

Indicator No. 3: An Overbought/Oversold Tool

After opting to follow the direction of the major trend, a trader must decide whether he or she is more comfortable jumping in as soon as a clear trend is established or after a pullback occurs. In other words, if the trend is determined to be bullish, the choice becomes whether to buy into strength or buy into weakness. If you decide to get in as quickly as possible, you can consider entering a trade as soon as an uptrend or downtrend is confirmed. On the other hand, you could wait for a pullback within the larger overall primary trend in the hope that this offers a lower risk opportunity. For this, a trader will rely on an overbought/oversold indicator.

There are many indicators that can fit this bill. However, one that is useful from a trading standpoint is the three-day relative strength index, or three-day RSI for short. This indicator calculates the cumulative sum of up days and down days over the window period and calculates a value that can range from zero to 100. If all of the price action is to the upside, the indicator will approach 100; if all of the price action is to the downside, then the indicator will approach zero. A reading of 50 is considered neutral. (More on the RSI can be found in Relative Strength Index Helps Make The Right Decisions.)

Figure 5 displays the three-day RSI for the euro/yen cross. Generally speaking, a trader looking to enter on pullbacks would consider going long if the 50-day moving average is above the 200-day and the three-day RSI drops below a certain trigger level, such as 20, which would indicate an oversold position. Conversely, the trader might consider entering a short position if the 50-day is below the 200-day and the three-day RSI rises above a certain level, such as 80, which would indicate an overbought position. Different traders may prefer using different trigger levels.

Figure 5: Euro/yen cross with three-day RSI overbought/oversold indicator
Source: ProfitSource

Indicator No.4: A Profit-Taking Tool

The last type of indicator that a forex trader needs is something to help determine when to take a profit on a winning trade. Here too, there are many choices available. In fact, the three-day RSI can also fit into this category. In other words, a trader holding a long position might consider taking some profits if the three-day RSI rises to a high level of 80 or more. Conversely, a trader holding a short position might consider taking some profit if the three-day RSI declines to a low level, such as 20 or less.

Another useful profit-taking tool is a popular indicator known as Bollinger Bands®. This tool takes the standard deviation of price-data changes over a period, and then adds and subtracts it from the average closing price over that same time frame, to create trading "bands." While many traders attempt to use Bollinger Bands® to time the entry of trades, they may be even more useful as a profit-taking tool.

Figure 6 displays the euro/yen cross with 20-day Bollinger Bands® overlaying the daily price data. A trader holding a long position might consider taking some profits if the price reaches the upper band, and a trader holding a short position might consider taking some profits if the price reaches the lower band. (Refer to The Basics Of Bollinger Bands® for more information.)

Figure 6: Euro/Yen cross with Bollinger Bands®
Source: ProfitSource

A final profit-taking tool would be a "trailing stop." Trailing stops are typically used as a method to give a trade the potential to let profits run, while also attempting to avoid losing any accumulated profit. There are many ways to arrive at a trailing stop. Figure 7 illustrates just one of these ways.

The trade shown in Figure 7 assumes that a short trade was entered in the forex market for the euro/yen on January 1, 2010. Each day the average true range over the past three trading days is multiplied by five and used to calculate a trailing stop price that can only move sideways or lower (for a short trade), or sideways or higher (for a long trade).
Figure 7: Euro/yen cross with a trailing stop
The Bottom Line

If you are hesitant to get into the forex market and are waiting for an obvious entry point, you may find yourself sitting on the sidelines for a long while. By learning a variety of forex indicators, you can determine suitable strategies for choosing profitable times to back a given currency pair. Also, continued monitoring of these indicators will give strong signals that can point you toward a buy or sell signal. As with any investment, strong analysis will minimize potential risks

Source: 4 Types Of Indicators FX Traders Must Know: www.investopedia.com

Top 5 Things to Know in the Market on Monday

Source: Investing.com

U.S. stock futures pointed to a lower open, as Treasury yields resumed a move higher and investors waited for another big week of earnings to get underway.

Treasury yields continued higher, with the benchmark 10-year note reaching an intraday high of 2.998%, a level not seen since January 2014.

After the bell on Monday, Google parent Alphabet (NASDAQ:GOOGL) is expected by analysts on average to report a 22% increase in revenue to $30.3 billion, with net income rising 21%, equivalent to $9.28 per share on a non-GAAP basis, according to Thomson Reuters data

Investing.com - Here are the top five things you need to know in financial markets on Monday, April 23:

1. Treasury Yields Continue Higher; U.S. 10-Year Nears 3%

U.S. Treasury yields continued higher, with the benchmark 10-year note reaching an intraday high of 2.998%, a level not seen since January 2014.

It was last at 2.990%, up 3.9 basis points, or 1.3%, inching closer to the psychologically important 3%-threshold, as strengthening inflation prospects added to expectations of a more hawkish approach from the Federal Reserve.

The 10-year yield has not been above 3% - the point at which strategists and fund managers say equities will really hurt - since early 2014. It started the year at 2.4%.

And it's not just the 10-year yield which has been shooting higher.

The 2-year note yield hit a high of 2.478%, its strongest level since Sept. 2008, while the 5-year yield touched a peak of 2.828%, a level last seen in June 2009.

If yields continue to breakout, that will certainly start weighing on equities again, like they did earlier this year.

Rising bond yields can crimp demand for assets perceived as riskier, such as stocks, particularly when those yields are higher than those of equities.

2. Dollar Jumps To 1-1/2 Month Highs

The increase in U.S. bond yields helped underpin the dollar, which jumped to a more than seven-week high against a basket of major currencies in early action.

Expectations that the Federal Reserve would raise interest rates three more times in 2018 was also supporting the greenback.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.4% to 90.44, the strongest level since March 1.

The dollar rose to more than two-month highs against the safe haven yen, with USD/JPY up 0.4% to 108.10.

The euro slid to two-week lows, with EUR/USD down almost 0.5% to 1.2230.

Sterling was also lower, with GBP/USD slipping 0.2% to 1.3971.

On the data front, the Chicago Fed national activity index for March is scheduled for release at 8:30AM ET (1230GMT).

Preliminary readings of the manufacturing and services purchasing managers’ indexes for April from Markit are expected at 9:45AM ET (1345GMT), followed by data on existing home sales for March at 10AM ET (1400GMT).

3. U.S. Stock Futures Point To Lower Open

U.S. stock futures pointed to a lower open, as Treasury yields resumed a move higher and investors waited for another big week of earnings to get underway.

The blue-chip Dow futures fell 38 points, or about 0.2%, the S&P 500 futures dipped 3 points, or nearly 0.1%, while the tech-heavy Nasdaq 100 futures fell 7 points, or roughly 0.1%.

U.S. stocks fell on Friday, as a decline in technology stocks and worries about the impact of rising U.S. bond yields weighed, though the major indexes still managed to end the week with a slight gain.

In Europe, the continent's major bourses edged lower, as results from Switzerland’s biggest bank, UBS (SIX:UBSG), disappointed investors.

Earlier, in Asia, most markets in the region closed mostly lower, tracking a pullback in U.S. equities late last week.

4. Alphabet Kick Off Busy Week Of Earnings

This week will be the busiest week of the first-quarter earnings season, with more than a third of the S&P 500 set to report.

Most of the focus will be on the FAANG group of stocks.

After the bell on Monday, Google parent Alphabet (NASDAQ:GOOGL) is expected by analysts on average to report a 22% increase in revenue to $30.3 billion, with net income rising 21%, equivalent to $9.28 per share on a non-GAAP basis, according to Thomson Reuters data.

Results from Facebook (NASDAQ:FB), Twitter (NYSE:TWTR), Qualcomm (NASDAQ:QCOM), eBay (NASDAQ:EBAY) and PayPal (NASDAQ:PYPL) are due on Wednesday, followed by Amazon (NASDAQ:AMZN), Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT) and Baidu (NASDAQ:BIDU) on Thursday.

Among non-tech names, Boeing (NYSE:BA), Caterpillar (NYSE:CAT), 3M (NYSE:MMM), United Technologies (NYSE:UTX), Verizon (NYSE:VZ), AT&T (NYSE:T), Comcast (NASDAQ:CMCSA), Visa (NYSE:V), Ford (NYSE:F), General Motors (NYSE:GM), UPS (NYSE:UPS), Starbucks (NASDAQ:SBUX) and ExxonMobil (NYSE:XOM) are some of the names on the docket for this week.

First-quarter profit at S&P 500 companies are expected to have recorded their strongest gain in seven years. Of the 87 companies that have reported so far, around 80% have topped profit expectations, according to FactSet.

5. Oil Starts The Week In Negative Territory

Oil prices started the week in negative territory, as market players continued to weigh a steady increase in U.S. production levels against ongoing efforts by major global crude producers to reduce a supply glut.

U.S. drillers added five oil rigs in the week to April 20, bringing the total count to 820. That was the highest number since March 2015, underscoring worries about rising U.S. output.

New York-traded WTI crude futures lost 40 cents, or about 0.6%, to $68.00 per barrel, while Brent futures slumped 39 cents, or roughly 0.5%, to $73.68 per barrel

GBP/JPY: Bearish Confirmation Or Bullish Breakout?

Investing.com

GBP/JPY is trading at a very interesting level right now. After breaking below the ichimoku cloud and 55/89-day simple moving average combination two months ago, the pair continued to take out support after support with relative ease, creating quite a bearish outlook in the medium term.

Recent Resistance

The last month has seen the pair trim some of those losses and we now find ourselves at a key level. Price has run into resistance over the last week between 150.00 and 151.00, where the 55/89 DMAs once again cross the ichimoku cloud, something that did not end well last time. The fact that this combines with the 50 fib level – February 2 swing high to March 2 swing low – makes this an increasingly noteworthy level.

GBP/JPY

This time, though, rather than powering through them, the rally has stalled and the momentum indicators don’t give the impression of a pair that’s about to break down the barriers right now. While oscillators are not a primary indicator – that will always be price – a divergence between price action and the stochastic and MACD can be a useful signal of an impending bias shift. For the last month, the trend has been nicely bullish, but is that about to change?

From a technical standpoint, a rotation off the current level would be very bearish. Aside from signaling a continuation of the medium term bearish move, it would also act to confirm the initial breakout.

None of this is to say price can’t and won’t break above here. And if it did, that would be quite a bullish signal. The important thing is we should get a clear indication of whether the market is bearish or bullish very shortly. As it stands, the pair looks bearish and the break of the 200/233 DMAs last month supports that (although it did turn out to be a false breakout back in August).

Source: https://www.investing.com/analysis/gbpjpy-bearish-confirmation-or-bullish-breakout-200303489

Trading for Various Currencies

Trading for various currencies.

Hi this is my Feb 20, 2018 few of my trades. I have not recorded other trades and I am using my live practice. What I mean by live practice is that this is a live account for purposes of practicing because I using very small accounts (small positions) per trade just to practice feelings and psychology of trading.

WMA, EMA, AO in Action

Position Trader

A position trader is someone who holds a position, usually stocks, for the long term; from weeks to months, even years. They are less concerned with short-term fluctuations and the news of the day unless it impacts the big picture behind the stock they are trading. Position traders do not trade actively and the fewer trades they make in a year, the closer they are to becoming buy-and-hold long-term investors.

Source: Investopedia Position Trader

Swing Trader

Swing trading has been described as a kind of fundamental trading in which positions are held for longer than a single day. Most fundamentalists are actually swing traders since changes in corporate fundamentals generally require several days or even a week to cause sufficient price movement to renders a reasonable profit.

Source: Investopedia

Cohn Shocker

Source: Market Pulse
By: Stephen Innes
Head of Trading APAC at OANDA

Cohn Shocker
The morning Whitehouse shocker is that Gary Cohn is resigning as head of the White House’s National Economic Council. His resignation increased the risk tenfold that President Trump will follow through with far-reaching trade tariffs given that Cohn was said to be remaining in his role to convince Trump to reverse his trade policy views, or at least temper them.
Predictably USDJPY is wearing the initial brunt of the move, and in general, the Cohn announcement is reversing the positive risk sentiment from the unexpected news from North Korea after reports that North Korea is open to denuclearisation if the safety of its regime is guaranteed.
While the world appears to be in a safer place this morning due to the denuclearisation olive branch offered by North Korea, the market is no less safe from the wrath of Trump’s trade policies.

Gold Prices
Gold was trading positively overnight on the back of the softer USD trend BS continues to perform exceptionally well on that narrative. But prices will remain firmly supported on the tariff tail risks from Cohn departure as the tariff gambit hits the market again with blunt force.



Oil Prices
What goes up must come down or the opposite in the case of US oil inventories data. The American Petroleum Institute (API) reported a considerable build of 5.661 million barrels for the week ending March 2, e doubling up analysts expectations. Early trade WTI prices remain tentatively supported by the weaker dollar. But with the overhang from the Cohn resignation yet to filter through market’s, risk aversion could see OIl prices move lower during today session.
Overnight long USD hedges were unwound as on the news from South Korea that North Korea was willing to hold talks with the United States on denuclearisation

Currency Markets
Japanese Yen
A bit of a topsy-turvy 24 hours for USDJPY spiked on the Korea headlines from 105.90 towards 106.40, which was pips shy of the significant 106.50 support. But is back plumbing the depths this morning as Tariffs are back in play on the back of Cohn’s resignation.
US politics is an absolute mess inspiring little confidence in the President, and this real-life political melodrama unfolds it hard to avoid parallels with Tumps for TV show The Apprentice.

The Malaysian Ringgit
Decision day for the BNM but the market is expecting few if any fireworks. Regional currency sentiment received a boost after surprising news that North Korea is open to denuclearisation if the safety of its regime is guaranteed.
The prospect of trade tariffs is raising their ugly head again, but when all is said and done, these tit-for-tat tariffs are not significant enough factor to weigh on MYR sentiment let alone derail the buoyant global growth narrative.

GBP/USD – British Pound Edges Higher, Investors Eye ADP Employment Report

Source: Market Pulse
By:   Kenny Fisher
        Currency Analyst at Market Pulse

The British pound has posted gains on Tuesday, continuing the upward movement seen on Monday. In North American trade, GBP/USD is trading at 1.3884, up 0.26% on the day. In economic news, there are no major indicators in the US or the UK. In the US, Factory Orders were unexpectedly soft, with a decline of 1.4%. This was well short of the estimate of -0.4%. On Wednesday, the US releases ADP Nonfarm Employment Change.




Tensions are growing between London and Brussels as the Brexit deadline of March 2019 looms ever closer. Last week, there were sharp exchanges between the two sides after the EU releases a draft of the legal framework of the Brexit agreement. On Friday, Prime Minister May outlined her vision of relations between the EU and Britain after Brexit. May sought to lower the recent sharp rhetoric surrounding Brexit, saying that both sides needed to show flexibility in order to reach an agreement. May said that she was seeking a free trade agreement with the EU that included financial services. The response from Brussels has been lukewarm, with some policymakers saying that Britain continues to operate under the illusion that it can leave the club but still enjoy the benefits.

Over in the US, the “tariff tussle” shows no sign of being resolved anytime soon. US President Trump appears set on applying stiff tariffs on steel imports, much to the consternation of the European Union and other US trading partners. However, there is plenty of domestic opposition to Trump’s plan, as Republican lawmakers, including House Speaker Paul Ryan, have come out strongly against the move. If Trump doesn’t back down, the Republicans could even resort to legislation to limit Trump’s authority on tariffs. The announcement of the tariffs last week sent the dollar broadly lower, and if the tariffs are introduced, negative investor sentiment could send the greenback to lower levels.

USD/JPY – Japanese Yen Ticks Higher, GDP Next

By: Kenny Fisher
Currency Analyst at Market Pulse

The Japanese yen has posted small gains in the Tuesday session. In North American trade, USD/JPY is trading at 106.17, down 0.03% on the day. On the release front, there are no Japanese indicators on the schedule. In the US, Factory Orders were unexpectedly soft, with a decline of 1.4%. This was well short of the estimate of -0.4%. On Wednesday, the US releases ADP Nonfarm Employment Change and Japan publishes Final GDP.

The Japanese yen continues to look strong, and last week, the dollar dropped close to the 105 line, its lowest level since early November. The yen received a boost on Friday, as Bank of Japan Governor Haruhiko Kuroda said that the BoJ would consider exiting from its ultra-accommodative monetary policy if its inflation target of around 2020 was reached in early 2020. Kuroda’s remarks were unusual in that they mentioned a possible “exit” from its stimulus program, and this caught the markets off guard. The BoJ has been lagging behind the Fed and other central banks in winding up stimulus, but Kuroda added that the Bank would normalize policy if “economic conditions become favorable and our price target is achieved”. Although inflation remains well below target, any further hints about normalization from the BoJ could strengthen the yen.

The “tariff tussle” shows no sign of being resolved anytime soon. US President Trump appears set on applying stiff tariffs on steel imports, much to the consternation of the European Union and other US trading partners. However, there is plenty of domestic opposition to Trump’s plan, as Republican lawmakers, including House Speaker Paul Ryan, have come out strongly against the move. If Trump doesn’t back down, the Republicans could even resort to legislation to limit Trump’s authority on tariffs. The announcement of the tariffs last week bolstered the yen, and if the tariffs are introduced, negative investor sentiment could send the greenback to lower levels

Source: https://www.marketpulse.com/20180306/usdjpy-japanese-yen-ticks-higher-gdp-next/

Election Result Could Have Significant Meaning For Italy’s Relationship With EU

Italy’s election result showed a seismic shift in the country’s political scene with both the anti-establishment Five Star Movement (M5S) and right-wing Lega party seeing strong gains in the vote Sunday.Meanwhile, parties like Silvio Berlusconi’s Forza Italia and the ruling Democratic Party (PD) fell short of expectations, prompting PD leader and former Prime Minister Matteo Renzi to resign.Italy’s former Foreign Minister Giulio Terzi di Sant’Agata told CNBC Monday that the vote had “significant meaning” for Italy’s relationship with its neighbors.”It’s been a clear indication that the majority of Italian voters want a change. They want a change that is significant in relation to a number of issues which are considered a high-priority now by at least 60 percent, and perhaps more, of Italian voters.”

Source: https://www.marketpulse.com/20180306/election-result-could-have-significant-meaning-for-italys-relationship-with-eu/

Marketpulse: EU Targeting Iconic US Brands in Retaliation to Trump Tariffs

The European Commission has reportedly proposed tariffs of 25 percent on imports of U.S. steel, clothing and other industrial goods in retaliation to President Donald Trump’s proposed tariffs on steel and aluminum.The executive arm of the European Union reportedly plans to target $3.5 billion of goods imported from the U.S., including T-shirts, whisky, motorcycles and ladders, if Trump decides to implement international duties on steel and aluminum.The list of goods was revealed in a report by Bloomberg on Tuesday, which cited a draft list drawn up by the commission. According to the report, the commission discussed the retaliatory levy on U.S. goods with representatives of EU governments on Monday evening

Investopedia: Trump Faces Pushback on Tariffs but Says He Will Not Back Down

U.S. President Donald Trump faced growing pressure on Monday from political and diplomatic allies as well as U.S. companies urging him to pull back from proposed steel and aluminum tariffs, although he said he would stick to his guns.

Inside the White House, there still appeared to be confusion about the timing and extent of the planned tariffs, which would hit allies like Canada and Mexico hard.

Efforts by Trump and U.S. trade negotiators to link the NAFTA trade pact talks to the duties received short shrift from Ottawa and Mexico City.

Leading Republicans turned up the pressure on Trump, with House of Representatives Speaker Paul Ryan leading the charge. Ryan's home state of Wisconsin would be hit by proposed European counter-measures on Harley-Davidson Inc motorbikes.

Representative Kevin Brady, another top House Republican, called on Trump not to hit America's closest allies.

Business leaders are pressing for a meeting with Trump to brief him on the negative repercussions of the tariffs on companies that use steel and aluminum, a source familiar with the matter said.

A meeting had not yet been set up, the source said. The White House had no comment.

The planned tariffs have roiled world stock markets as investors worried about the prospect of an escalating trade war that would derail global economic growth. Stocks across the globe rose on Monday, however, after four days in decline as investors saw the tariff threats as a U.S. negotiating tactic and not a done deal and as pressure grew on Trump to back off.

"We're not backing down," Trump said during a White House meeting with Israeli Prime Minister Benjamin Netanyahu. "I don't think you're going to have a trade war," he added, without elaborating.

Canadian Prime Minister Justin Trudeau called Trump on Monday to tell him the tariffs would be an impediment to talks on updating NAFTA, a Canadian government official said.

Canada is the single largest supplier of steel and aluminum to the United States. In the call, Trudeau "forcefully defended" Canadian workers and industries, said the official, describing the conversation as constructive.

Earlier comments from Trump had stoked talk of a global trade war as he described them as easy to win and issued a threat to German carmakers. One of those, BMW, runs a plant in the United States that is the largest single autos exporter in the country and has created thousands of jobs.

Most responses to Trump's proposed tariffs have been targeted. The European Union said it would hit Harleys, bourbon and jeans, iconic American products. It did not threaten to ramp up the issue.

China has been largely mum, urging caution, and both Canada and Mexico have stressed the targeted nature of any response.

STRESSES INSIDE THE WHITE HOUSE?

Trump was expected to finalize the planned tariffs later in the week, although some observers familiar with the process said it could occur next week. The initial announcement by Trump last week came as a surprise.

The United States, Mexico and Canada have been holding talks over changes to the North American Free Trade Agreement, a pact that Trump has threatened to abandon.

Six months of tense talks have produced little in the way of progress and a move by Washington to link the steel and aluminum tariffs to progress on NAFTA was rebuffed by Canada and Mexico.

U.S. Trade Representative Robert Lighthizer also attempted to drive a wedge between Canada and Mexico when he suggested the United States would be willing to hold bilateral, rather than trilateral talks. The two countries again stood firm.

In Washington, aides scrambled to meet Trump’s demand for the paperwork to be completed for a formal announcement. The exact timing was unclear as the tariff documentation had to be drafted and go through a variety of reviews, a process that takes days, an administration official said.

There was always a chance that Trump ”could amend his initial announcement” to take account of the concerns expressed about it, said a source familiar with the internal debate at the White House.




TRUMP'S TRADE TRAIL

Trump has frequently talked tough on trade, although his actions have not always matched his words. On his first day in office in January 2017, he withdrew from the 14-nation Trans Pacific Partnership agreement, a deal that was dead on arrival in the U.S. Congress in any case.

He has frequently tweeted and said that he would pull out of NAFTA, which he has called a jobs killer. But a year after taking office, the 1994 deal remains intact.

Trump has approved a series of small-scale trade actions, of which the steel and aluminum duties would be a part. Taken together with actions on washing machines and solar panels, the proposed move accounts for just 4.1 percent of U.S. imports. In terms of global trade, they are just 0.6 percent, investment bank Morgan Stanley said in a report.

The head of the World Trade Organization warned of a real risk of triggering an escalation of global trade barriers and a deep recession, even as financial markets and many economists started to discount the risk of a global crisis.

"We must make every effort to avoid the fall of the first dominoes. There is still time," WTO Director General Roberto Azevedo told the heads of WTO delegations at a closed-door meeting in Geneva.

(Additional reporting by Susan Heavey, Steve Holland, Eric Walsh and Susan Heavey in Washington, Adriana Barrera, Sharay Angulo, Lesley Wroughton and David Ljunggren in Mexico City, Rodrigo Campos in New York and Tom Miles in Geneva; Writing by Frances Kerry and David Chance; Editing by Andrea Ricci and Peter Cooney)

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Dow down for fifth straight day as trade war fear weighs

Full Article: Investing.com
By: Ankur Banerjee and Sruthi Shankar
Reuters

(Reuters) - The Dow Jones Industrial Average fell for the fifth straight day on Monday as concerns about a global trade war following President Donald Trump's threat to impose hefty tariffs kept investors on the edge.

Trump on Monday appeared to suggest that Canada and Mexico could win exemptions to the planned sweeping tariffs on steel and aluminum if the two countries sign a new NAFTA trade deal and take other steps.

The S&P 500 ended another rocky week on an upbeat note on Friday, but major indexes still posted their worst week of losses since early February after Trump promised tariffs on aluminum and steel and talked bullishly about "winning" a trade war economists say could decimate growth.

"The President just tweeted a while ago, sounding tough on trade with Canada and Mexico," said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

"Some of it will get passed on to consumers in terms of higher prices ... It'll add a little bit to inflation. But I think it's more an uncertainty," Brown added.

Eight of 11 S&P 500 indexes were lower on Monday, led by financials (SPSY) and information technology (SPLRCT).

World stocks and emerging markets fell for the fifth straight day on Monday, with investors also worrying that Italian voters had flocked to anti-establishment and far-right groups in record numbers and had delivered a hung parliament.



Investors dumped stocks in favor of traditional safe havens including gold and the Japanese yen, with gold touching a near one-week high on Monday.

"Markets' inability to regain confidence is likely to keep stocks defensive," First Standard Financial Chief Market Economist Peter Cardillo said.

At 9:41 a.m. EDT, the Dow Jones industrial average (DJI) was down 64.93 points, or 0.26 percent, at 24,473.13, the S&P 500 (SPX) was down 6.76 points, or 0.251184 percent, at 2,684.49 and the Nasdaq Composite (IXIC) was down 20.10 points, or 0.28 percent, at 7,237.76.

Shares in chipmaker Qualcomm (O:QCOM) dipped 1.6 percent after the Committee on Foreign Investment in the United States (CFIUS) ordered the company to postpone an annual shareholder meeting, giving it more time to resist efforts by Broadcom Ltd (O:AVGO) to force through a $117 billion merger.

Shares of Clearside Biomedical (O:CLSD) jumped 55 percent after the drug developer's eye drug met the main goal in a late-stage study, while Dermira (O:DERM) plunged 60 percent after the company abandoned its acne drug.

Europe's second-biggest insurer XL Group Ltd (N:XL) rose 30 percent after being acquired by France's AXA (PA:AXAF) for $15.3 billion.

MarketPulse.com: Dollar Retreats as Trade War Talk Escalates

The US dollar was set to end the week on a positive note after Fed Chair Jerome Powell testified twice and other Fed speakers signalled a hawkish view on the economy. The USD had appreciated on a weekly basis up until Thursday when President Donald Trump announced a 25 percent tariff on steel and 10 percent on aluminium imports. Markets reacted to the protectionist measure with Trump unfazed by criticism and tweeting that Trade wars are good, and easy to win. The decision turned a USD on the rise against major pairs into a mixed bag. The USD is up against the AUD, CAD, GBP and NZD but depreciated against the EUR and JPY.

4 central banks (RBA, BOJ, BOC and ECB) expected to keep rates unchanged
US wages could rise increasing inflation anxiety
Employment data to be released in the US and Canada

Read Full Article at Market Pulse

By:Alfonso Esparza
Senior Currency Analyst at Market Pulse

Marketpulse: USD/CAD – Canadian Dollar Slide Continues After Weak GDP

Source: Market Pulse
www.marketpulse.com
By: Kenny Fisher
       Currency Analyst at Market Pulse


The Canadian dollar has posted losses in the Monday session. Early in the North American session, USD/CAD is trading at 1.2959, up 0.58% on the day. On the release front, there are no Canadian events. In the US, today’s key indicator is Non-Manufacturing PMI, which is expected to dip to 58.9 points. On Tuesday, Canada releases Ivey PMI.

Canada’s economy slowed down in January, as GDP posted a weak gain of 0.1%, matching the estimate. On an annualized basis, growth in the fourth quarter was 1.7%, considerably lower than the Bank of Canada’s most recent projection of 2.5%. With the Fed expected to raise rates up to four times in 2018, the BoC will be pressed to match rate hikes with its southern neighbor, or risk having the Canadian currency head lower. Currently, the BoC is projecting only two rate hikes in 2018. Strong growth has propelled the BoC to raise rates three times since July, but there are some factors weighing against a rate hike before May. First, fourth quarter expansion may fall short of the BoC’s forecast of 2.5%. As well, the future of NAFTA remains unclear, as negotiations between Canada, Mexico and the US have floundered. If the US decides to pull out of NAFTA, the repercussions on the Canadian economy could be significant, and the BoC will have to delay any plans to raise rates.

Canadian policymakers continue to look with growing alarm at protectionist moves by the Trump administration. Negotiations on NAFTA have not shown much progress, as a seventh and final round of talks are underway in Mexico City. As if the headache of a possible blowup of NAFTA wasn’t bad enough, the Canadian government now has to deal with the stiff imports that President Trump is set to apply to steel and aluminum imports. With some 80% of Canadian exports heading south to the US, Canada can ill afford a trade war with its giant neighbor. Still, the government will be under pressure to respond forcefully and stand up for its domestic steel industry.

USD/CAD Fundamentals

Monday (March 5)

9:45 US Final Services PMI. Estimate 55.9
10:00 US ISM Non-Manufacturing PMI. Estimate 58.9
13:15 US FOMC Member Randal Quarles Speaks
Tuesday (March 6)

10:00 Canadian Ivey PMI. Estimate 56.3
*All release times are GMT

*Key events are in bold

USD/CAD for Monday, March 5, 2018



USD/CAD, March 5 at 8:40 EST

Open: 1.2884 High: 1.2939 Low: 1.2865 Close: 1.2959

USD/CAD Technical

S3           S2         S1       R1         R2    R3
1.2757 1.2865 1.2920 1.3014 1.3165 1.3270
Resistance lines continue to fall as USD/CAD moves higher. The pair posted slight gains in the Asian session and continues to move higher in European trade

1.2920 is providing support
1.3014 is the next resistance line
Current range: 1.2920 to 1.3014
Further levels in both directions:

Below: 1.2920, 1.2865, 1.2757 and 1.2630
Above: 1.3014, 1.3165 and 1.3270
OANDA’s Open Positions Ratio

In the Monday session, USD/CAD ratio is showing short positions with a majority (66%). This is indicative of trader bias towards USD/CAD reversing directions and moving lower.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

DailyFX: EUR/USD Weekly Technical Forecast: Euro May Be in Trouble After Bounce

Source: DailyFX
By: Paul Robinson, Market Analyst

EUR/USD Highlights:

EUR/USD found buyers late last week, but the bounce may result in a lower-high
A lower-high could be quite important after double-topping at the 2008 trend-line
Event risk comes by way of ECB meeting on Thursday, NFPs on Friday

To view the longer-term technical and fundamental outlook for the Euro, or to see our Top Trading Opportunities for 2018, check out the DailyFX Trading Guides.

EUR/USD is coming perilously close to carving out a bearish price sequence in the days ahead. We’ve been discussing quite a bit lately the impact of the 2008 trend-line, and as long as the euro stays below it will struggle. The struggle could turn into an outright sell-off if a bounce soon fails.



The double-top at the 2008 trend-line put into motion the notion we may be seeing a top form at an important line of resistance. And now with EUR/USD possibly putting in a lower-low from earlier last month, in the days ahead the euro may be ready to turn down from the long-term trend-line for an extended period of time.

The trend since last year is still pointed up, but a strong turn down will have important support by way of the 2017 high and trend-line from April come under fire. A solid close below 12100 is seen as a possible catalyst for a sizable unwind by large speculators in the futures market. Positioning has been hovering in record territory for a while and suggests on a turn of trend there will be plenty of fuel to drive the single-currency lower.

Looking at retail positioning, traders are net short EUR/USD (IGCS index is at -1.8), which on a contrarian basis is a bullish signal with sellers out pacing buyers by nearly 2 to 1, but should sellers show up in earnest that could quickly change in favor of lower prices as traders flips long. It’s worth keeping an eye on. Check out the IG Client Sentiment page for further details.

In terms of event risk next week, a rise in volatility could result from the ECB on Thursday and/or the U.S. jobs report on Friday. For estimates and release times, check out the economic calendar.

Whether you are a new trader building a foundation or an experienced trader struggling (it happens to the best), here are some ideas for Building Confidence in Trading

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

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You can follow Paul on Twitter at @PaulRobinsonFX

FXEmpire: Flight-to-Safety Buying Crushes USD/JPY

Source: FXEmpire.com
By: James Hyerczyk

The Yen also rallied after Bank of Japan Governor Haruhiko Kuroda surprised currency markets by saying the central bank would consider an exit from its ultra-easy monetary policy if it met its inflation target in the year ending in March 2020.

The U.S. Dollar finished higher against a basket of currencies in a week highlighted by a couple of major events that led to increased volatility. The first event helped drive the index to its highest level since January 12. The second event helped stop the rally while erasing most of the market’s earlier gains.





March U.S. Dollar Index futures settled the week at 89.906, up 0.098 or 0.11%.

Day Trader

What is Forex Day Trading?

One of the most popular ways of participating in the financial markets of the world is through a discipline known as day trading. Day trading is the active buying and selling of financial instruments within short-term, intraday time frames.

In contrast to more traditional forms of capital investment, day trading aims to achieve profitability through frequently entering and exiting a market. Instead of buying or selling a security and waiting weeks or months for capital appreciation, day traders take many small gains and losses every day in the quest for a positive bottom line.

The main goal of day trading is simple: achieve long-term profitability through executing as many winning trades as possible. To put it another way: the primary objective of a day trader is to ensure that profit outweighs loss and victories are always greater than defeats.




Elements Of Day Trading

There are three major facets of short-term trading that must be thoroughly addressed within the context of a comprehensive trading plan before an individual starts the process:

Trade selection: Depending on each trader’s adopted methodology or system, concrete guidelines governing the identification of a trading opportunity may be necessary. Ideally, trade selection is driven by a statistically verifiable “edge,” or positive expectation. Predefined criteria pertaining to trade setups enable the trader to enter the market consistently and with confidence.

Trade management: Upon entrance to the market, management of the newly opened position becomes a task crucial to the trader. The employment of protective stop-loss orders, in addition to profit targets, are basic methods of preserving capital while maximising the potential for gain. Trailing stops and proactively scaling in and out of positions are more complex examples of market exit strategies.

Money management: A comprehensive money management strategy is an absolute necessity when trading on an intraday basis. The proper use of leverage is a key part of determining the correct position size and aligning risk vs. reward. Through administering sound money management principles, a trader can avoid the many problems related to a dwindling account balance.

Intermediate-term trading, swing trading and long-term capital investment implement the use of a time horizon measured in days, weeks, months and years. Active day trading is concerned with time denominations of hours, minutes and seconds.

There is rarely ample time to craft quality trading decisions on the fly. Without first performing the necessary due diligence regarding the three key areas of day trading, an individual new to the market is likely to fall victim to many avoidable dangers.

Day Trading The Forex Market

Perhaps the most appealing venue for an aspiring day trader is the forex market. The forex market is an over-the-counter (OTC) market specialising in the trade of global currencies. The average daily traded volume measures anywhere from US$3.5 trillion to US$5.5 trillion. In comparison, the average daily traded volume for the New York Stock Exchange (NYSE) typically trades between a value of US$30 billion and US$100 billion.1)




Short-term currency trading on the forex market affords participants several distinct advantages:

Variety: In addition to pairs based upon the eight global “major” currencies, many smaller, regional currency pairings are also available for trade.

Liquidity: The daily volume of trade is enormous. Large volumes ensure that a trader can interact with the market efficiently.

Leverage: Forex currency pairings are traded heavily on margin. In forex, leverage is used to either buy or sell large quantities of currency.

Opportunity: The forex market is open for trading 24 hours a day, five days a week. Extensive trading sessions produce a greater number of trading opportunities, no matter the currency pair or approach.

Summary

The forex market is often viewed as a day trader’s dream. Frequent opportunity coupled with the availability of financial leverage are attractive characteristics to anyone interested in pursuing a career as a professional day trader.

However, common pitfalls such as overtrading and the improper use of leverage can lead to substantial capital loss. Although the development of a comprehensive trading plan can help mitigate these issues, short-term trading remains a formidable challenge not suitable for everyone.

Additional Reading

• How To Become A Day Trader
• Can You Day Trade For A Living?
• Day Trading Equipment For Beginners

Any opinions, news, research, analyses, prices, other information, or links to third-party sites are provided as general market commentary and do not constitute investment advice. FXCM will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information

Sources: FXCM 
Reference: Retrieved 16 November 2016 http://www.nyxdata.com/nysedata/asp/factbook/viewer_edition.asp?mode=tables&key=320&category=3

Scalpers

Source and read more: Investopedia: Is scalping a viable forex trading strategy?




What is Forex Scalpers

Scalping in the forex market involves trading currencies based on a set of real-time analysis. The purpose of scalping is to make a profit by buying or selling currencies and holding the position for a very short time and closing it for a small profit. Many trades are placed throughout the trading day and the system that is used by these traders is usually based on a set of signals derived from technical analysis charting tools, and is made up of a multitude of signals, that create a buy or sell decision when they point in the same direction. A forex scalper looks for a large number of trades for a small profit each time.


Forex Scalping System

A forex scalping system can be either manual, where the trader looks for signals and interprets whether to buy or sell; or automated, where the trader "teaches" the software what signals to look for and how to interpret them. The timely nature of technical analysis makes real-time charts the tool of choice for forex scalpers.

Forex Scalper

The forex market is large and liquid; it is thought that technical analysis is a viable strategy for trading in this market. It can also be assumed that scalping might be a viable strategy for the retail forex trader. It is important to note though, that the forex scalper usually requires a larger deposit, to be able to handle the amount leverage they must take on to make the short and small trades worthwhile

Italian General Election

The 2018 Italian general election is due to be held on March 4, 2018. Voters will elect the 630 members of the Chamber of Deputies and the 315 elective members of the Senate of the Republic for the 18th legislature of the Italian Republic.

Country: Italy
Currency: EUR
Significance: Bullish

FOREX-Dollar touches five-week high on U.S. rate outlook

Source: https://finance.yahoo.com/news/forex-dollar-touches-five-week-155031940.html

* Fed chair's testimony read as striking hawkish tone * Weaker-than-expected U.S. data fails to tarnish dollar * Euro zone inflation slows, clipping euro bulls * Yen edges higher after BoJ trims super-long JGB buying (Recasts, adds comment, FX table, updates prices, changes byline, dateline; previous LONDON) By Gertrude Chavez-Dreyfuss NEW YORK, Feb 28 (Reuters) - The dollar rose to five-week highs on Wednesday, bolstered by an upbeat assessment of the U.S. economy from the Federal Reserve's new chairman, which raised expectations the central bank could aggressively increase interest rates over the next two years.

The greenback in February was on track to post its best monthly performance since November 2016.

Also helping the dollar was a euro that fell to six-week lows after euro zone inflation slowed to a 14-month low, underlining the European Central Bank's caution in removing stimulus in the region.



The dollar also rose to three-week highs against the Swiss franc, a two-week peak versus sterling and a two-month high against the Canadian dollar.

"The dollar has found tailwinds in America's sturdy economy and its hawkish central bank," said Joe Manimbo, senior market analyst, at Western Union Business Solutions in Washington.

Fed Chairman Jerome Powell struck an optimistic tone about the U.S. economy on Tuesday, fueling views the U.S. central bank would raise rates four times this year rather than three.

Slightly disappointing U.S. data on Wednesday - a lower-than-expected second estimate of gross domestic product for the fourth quarter and a weaker-than-forecast report on the U.S. Midwest manufacturing sector - failed to dent the dollar's rally.

Data showed U.S. GDP expanded at a 2.5 percent annual rate in the fourth quarter, instead of the previously reported 2.6 percent pace, declining from the third quarter's brisk 3.2 percent.

The Chicago purchasing management index was a weaker-than-expected 61.9 in February, compared with a consensus forecast of 64.2.

In midmorning trading, the dollar index rose 0.3 percent to 90.687, after earlier notching a five-week peak.

Meanwhile, the euro has stumbled after a strong start to the year in which investors speculated that ECB would withdraw stimulus. The euro fell to a six-week low and was last down 0.3 percent at $1.2189.

Political developments are also making euro investors cautious. Italians are preparing to vote in a national election on Sunday, while the leading political parties in Germany decide on a coalition deal that would secure Angela Merkel a fourth term as chancellor.

Against the yen, however, the dollar fell 0.3 percent to 106.98 yen.

The yen rose after the Bank of Japan on Wednesday trimmed the amount of super-long Japanese government bonds it offered to buy at its regular debt-buying operation.

The yen, a safe-haven currency that attracts demand in times of economic uncertainty, also held firm after weak factory data from China undermined investor risk appetite

What is the Best Time to Trade FOREX in Philippines

I have made a table for time of opening of the different forex markets to serve as guide for Filipino forex traders. There are no hard and fast rules to apply because every trader have their own convenient time to trade.

The table will only make you aware of the time what markets are open and what markets are closed. For forex traders you can literally trade anytime 24 hours 5 days a week. All the markets will only closed during weekends so its really up to the traders best time of the day when you think you are at your prime condition to trade.

DAY OF THE WEEK

In as far as the day of the week is concerned there are traders who prefer Tuesday and Wednesday as well as half day (AM) Friday.

Again if you are convenient to trade do it. It won't matter.

MAGIC HOUR

In forex there a magic hour we named because during this time the traders are preparing to move from near Closing of London market and the Opening of the New York market

Japan News: Tokyo stocks gain more ground, lifted by Wall St. rises

Source: Japan News

TOKYO (Jiji Press) — Stocks gained further ground on the Tokyo Stock Exchange on Monday thanks to rises on Wall Street on Friday, lifting the benchmark Nikkei average to a three-week closing high.

The 225-issue Nikkei average added 260.85 points, or 1.19 percent, to end at 22,153.63, the first close above 22,000 since Feb. 19 and the best finish since Feb. 5. On Friday, it rose 156.34 points.

The TOPIX index of all first-section issues closed up 14.28 points, or 0.81 percent, at 1,774.81, after climbing 14.36 points the previous trading day.

The Nikkei opened above the psychologically important 22,000 threshold after the 30-issue Dow Jones industrial average rose over 300 points in New York on Friday. The key Tokyo stock yardstick briefly gained over 330 points soon after the opening.

The market remained strong in the afternoon, although its topside was somewhat weighed down by the yen’s rise against the dollar, brokers said.

Stocks attracted purchases on “the U.S. market’s stability” following its tumble earlier this month, Hideyuki Suzuki, head of investment market research at SBI Securities Co., said.

Ryuta Otsuka, strategist at the investment information department of Toyo Securities Co., said buybacks after the recent falls helped the Tokyo market advance.

Suzuki noted that some players took a wait-and-see mood prior to the first congressional testimony by new U.S. Federal Reserve Chairman Jerome Powell on Tuesday.

BBC: Brexit prompts Credit Suisse to move 250 London jobs

Source: BBC News

Credit Suisse plans to move about 250 banker jobs out of London under its first phase of Brexit planning, according to reports.

Employees in areas such as trading and mergers and acquisitions were likely to be relocated to Frankfurt or Madrid, Bloomberg reported.

The Swiss bank employs about 5,500 staff in London.

A spokesman said Credit Suisse "continued to investigate its options".

According to Bloomberg, the bank had considered relocating staff to Paris but backtracked after holding talks with local regulators and government officials.

Credit Suisse is one of the biggest investment banks in London.

It is one of the few European banks yet to announce contingency plans for Britain's departure from the European Union.

Deutsche Bank has said it will move an unspecified number of jobs to Frankfurt, as well Milan and Paris.

HSBC and UBS have also said they would relocate roles, while last month Goldman Sachs said its contingency planning was reaching the point of no return.

Earlier this month, Credit Suisse chairman Urs Rohner suggested banks would have to trigger their contingency plans within two or three months due to a lack of clarity over Brexit negotiations.

A spokesman for the bank said: "Credit Suisse continues to investigate its options as to the best way to maintain access to EU clients and markets by leveraging existing infrastructure in the event of a hard Brexit."

Last year, the Bank of England said that up to 75,000 jobs could be lost in financial services following Britain's departure from the European Union.

Even so, London would remain Europe's biggest financial centre, with financial services in both the capital and other parts of the UK employing more than one million people

BBC: Jeremy Corbyn backs permanent customs union after Brexit

Source: BBC News UK
Full Article on link above

Labour leader Jeremy Corbyn has backed the UK being in a permanent customs union with the EU in a speech setting out his approach to Brexit.

He said this would avoid the need for a "hard border" in Northern Ireland and ensure free-flowing trade for business.

The policy shift could lead to Labour siding with Tory rebels to defeat Theresa May on her Brexit strategy.

But a customs union after Brexit would be a "complete sell out", International Trade Secretary Liam Fox will argue.

Mr Corbyn insisted in an interview with BBC Political Editor Laura Kuenssberg that his speech was a "firming up" of Labour's existing policy, which was to back customs union membership during the planned two-year transition period after the UK leaves the EU in March 2019.

In his speech, at Coventry University, Mr Corbyn said Labour would be "looking for a Brexit that puts the working people first".

In a shift from the party's policy at last year's general election, he said the UK should strike a new customs deal with the EU at the end of transition.

"Labour would seek a final deal that gives full access to European markets and maintains the benefits of the single market and the customs union," he said.

"We have long argued that a customs union is a viable option for the final deal.

"So Labour would seek to negotiate a new comprehensive UK-EU customs union to ensure that there are no tariffs with Europe and to help avoid any need for a hard border in Northern Ireland."




The prime minister has insisted the UK will leave both the single market and the customs union, allowing it to negotiate its own post-Brexit trade deals.

Mrs May will give details in a speech on Friday of how her plan for a "managed diversion" from the EU will work in practice, after first briefing the cabinet.

The Conservatives accused Mr Corbyn of "betraying millions of Labour voters" who had backed Brexit.
Media captionJeremy Corbyn has revealed a 'big' Brexit difference with Theresa May, the BBC's Chris Morris says.

International Trade Secretary Liam Fox said Labour's "confused policy would be bad for jobs and wages".

And in a speech on Tuesday, he will say the UK would find itself in a "worse position" than it is now if it leaves the existing customs union but negotiates a similar arrangement

Investopedia: Buffett Warns Investors To Avoid Borrowing Money To Buy Stocks

Source: Investopedia
By Mark Kolakowski

Legendary investor Warren Buffett has made it clear in his latest letter to Berkshire Hathaway Inc.  shareholders that he's no fan of margin debt, or loans used to buy stocks. And the billionaire's comments couldn't have come a minute too soon. Investors have accumulated a record $642.8 billion of margin debt, the highest level since the Dotcom Bubble, which worsened the recent correction and threatens to intensify future sell-offs, The Wall Street Journal reports. When it comes to margin debt, Buffett told CNBC , "Even if your borrowings are small and your positions aren't immediately threatened by the plunging market, your mind may well become rattled by scary headlines and breathless commentary. And an unsettled mind will not make good decisions."
Big Risks

The big risk is that stocks are pledged as collateral against these loans, and when the value of that collateral falls in a market plunge, borrowers face what are known as margin calls, forcing them to sell shares, the Journal notes. This, in turn, sends prices yet lower, setting off additional rounds of margin calls followed by yet more selling.

That's what happened during the latest market correction that has rattled so many investors. In fact, the Investopedia Anxiety Index (IAI) indicates that millions of readers worldwide remain extremely concerned about the securities markets, with worries about margin debt undoubtedly being a factor.
Dotcom Bubble Revisited

Based on data starting in 1980, net margin debt in 2017 reached a record 1.31% of the total value of shares traded on the New York Stock Exchange (NYSE), per analysis by Goldman Sachs Group Inc. cited by the Journal. The previous high, per both sources, was 1.27% during the Dotcom Bubble that began deflating in the year 2000. Just as buying stock on margin had a role in fueling that market boom, cascading margin calls had a role in intensifying the subsequent Dotcom Crash.
'Strongest Argument Against Borrowing'

In his letter to shareholders, Buffett cites own experience with Berkshire's shares as "the strongest argument I can muster against ever using borrowed money to own stocks," as quoted by CNBC. When Buffett took over Berkshire in 1964, the stock was valued at about $19.00. Its opening price was $311,240.00 on February 26, meaning that each dollar invested in 1964 now would be worth a mind-boggling $16,381.05. (For more, see also: If You Had Invested Right After Berkskire Hathaway's IPO.)

But Buffett points out this was not a smooth upward ride and that investors who bought his company's shares with margin debt got burned. In the intervening years, Buffett said Berkshire's stock has endured four periods in which it endured big declines: down 59% in 1973-1975, down 37% in 1987, down 49% in 1998-2000, and down 51% in 2008-2009. "There is simply no telling how far stocks can fall in a short period," he writes, as quoted by CNBC. Investors who had bought Berkshire on margin would have had to liquidate much, if not all, of their holdings to meet margin calls during those downdrafts, thus missing out on spectacular future gains.

"For the last 53 years, the company [Berkshire] has built value by reinvesting its earnings and letting compound interest work its magic," Buffett also writes, again per CNBC. Ever the realist, he also warned that big drops in its stock price similar to those mentioned above are likely over the next 53 years. "The light at any time can go from green to red without pausing at yellow," he observed.





Read more: Buffett Warns Investors To Avoid Borrowing Money To Buy Stocks | Investopedia https://www.investopedia.com/news/buffett-warns-avoid-borrowing-money-buy-stocks/#ixzz58Ghm7oKB
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Fundamental Analysis

Fundamental analysis is the cornerstone of investing. In fact, some would say that you aren't really investing if you aren't performing fundamental analysis.Because the subject is so broad, however, it's tough to know where to start. There are an endless number of investment strategies that are very different from each other, yet almost all use the fundamentals.

Source:
Read more: Introduction To Fundamental Analysis https://www.investopedia.com/university/fundamentalanalysis/#ixzz585slRjXe
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Types of Traders

Scalpers hold onto for a few seconds to a few minutes at the most. Their main objective is to grab very small amounts of pips as many times as they can throughout the busiest times of the day.

Day traders usually pick side at the beginning of the day, acting on their bias, and then finishing the day with either a profit or a loss. These kinds of traders do not hold their trades overnight.

Swing traders are for those people that like to hold on to trades for several days at a time. These types of traders can’t monitor their charts throughout the day so they dedicate a couple hours analyzing the market every night to make sound trading decisions.

Position traders are those that have trades that last for several weeks, months, or even years. These traders know that fundamental themes will be the predominant factor when analyzing the markets and therefore make their trading decisions based on them.


No matter what style you choose, you have to make sure that it is truly fits your personality.
Always changing your forex trading style can lead to trouble and is a sure fire way to the doghouse.

But if you try scalping and you realize after a week that it’s too fast or too draining, then be flexible enough to switch it up.

Introduction

Foreign Exchange (FOREX) trading for purposes of this material is a trading of two currencies. Later in the chapters you'll learn different types of currencies, the major traded currencies and the exotic currencies.

This series of articles will published about forex trading, the basics, the psychology of trading, the types of traders, the risk management, the fundamentals, the technical analysis, the brokers, the review of brokers and many other topics.

If you are about to learn forex and I suggest you follow articles and videos I will be sharing to you. You can subscribe to my email list, follow my page, and subscribe to my youtube channel