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With each new trade we must believe the following:

1.  Consistent profitability has nothing to do with our predictive abilities.

2.  With each new trade we cannot place any undeserved significance (e.g. “this is the perfect setup”) on its outcome.

3.  We cannot expect the trade to do anything for us other than provide the information needed for us to either hold or exit.   The process by which we have determined our trade setup will also be our guide for exiting (win, lose, or draw).

4.  We accept that we have control over the process but absolutely no control over the outcome.

5. We accept that our current trade setup may look exactly like past opportunities, profitable or not, but may produce an entirely different result due to the collective beliefs and decisions of other market participants.

Learn to be wrong and Who cares?

1.) Learn to be wrong. Traditional education trains us into thinking that we have to be right to get the grade. With investing and trading, focusing on being right will bring assymetric risk to your methodology and will eventually lead to a blowout at least once. – Steven Place

2.) First, invest in yourself.  That is, acquire as much knowledge as possible and analytical skills in a wide variety of disciplines and develop the ability to abstract yourself from the present. Become a mathematician, economist, political scientist, psychologist, sociologist, and futurist. – Gary Evans

3.) You are not a market-timing genius and neither is anyone selling services to you! There is a long-term path to progress, with several good ways to get aboard.  Be interested, be watchful, but do not be too confident. – Jeff Miller

4.) First, understand that ultimately you are responsible for the outcome of your investments and that they shouldn’t blame bad markets, bad advisors, or bad luck if they lose money.  Secondly, always try to stay as objective and unemotional as you can about what you invest in.  And lastly, remember that discipline and risk management is the key.  You can lose all the profits from five well managed trades or investments with one poorly managed one. 

Former Fed chairs Yellen and Bernanke give Congress views on Covid 19 in response to the economic crisis

Former Fed chair’s testify on Covid 19 in response economic crisis

Former Fed chair’s Janet Yellen and Ben Bernanke are testifying to Covid 19 and response to economic crisis. There comments are appearing on the Brookings institute blog
  • in many respects this recession is unique
  • forecasting recovery is difficult
  • controlling the spread of the virus must be 1st priority for restoring more normal levels of economic activity
  • members of Congress, local leaders and other policymakers need to do all they can to support testing and contact tracing, medical research and sufficient hospital capacity.
  • They must work to ensure that businesses, schools and public transportation have what they need to operate safely
  • pace of recovery could be slow, uneven
  • the longer the recession last the greater the damage will reflect on household and business balance sheets
  • the depth of the recession may leave scars
  • depending on the course of the virus, some restructuring of the economy may be needed
  • Fed likely to give a for guidance on the lift off
  • the yield curve control possible, not certain
  • the financial system is in much better shape today than it was during the financial crisis
  • new same as measured by Congress are necessary including a comprehensive plan to support medical research, testing, contact tracing and hospital capacity, enhanced unemployment insurance should be extended, and Congress should provide substantial support to state and local governments
The full report can be found HERE

CFTC Commitments of Traders: EUR shorts increased.

Pialang forex ketuk untuk menaut 100 $ bonus mendaftar 🍀 forex forexlife pelatih perdagangan forextrading trader bisnis pengusaha pengetahuan praktek traderlife motivasi fx sinyal uang asingexcange forexsignals daytrader forexstrategy priceaction berinvestasi saham motivasi forexmentor atau grafik pengusaha perdagangan opsi biner broker investasi uang pinterest easymoneyWeekly FX speculative positioning data from the CFTC

  • EUR long 111K vs 104K long last week. Longs increased by 7K
  • GBP short 14K vs 16K short last week. Shorts trimmed by 2K
  • JPY long 18K vs 17K long last week. Longs increased by 1K
  • CHF long 7K vs 4K long last week. Longs increased by 3K
  • AUD long 4k vs 1K short last week. Position switches from short to long.
  • NZD short 1K vs 0K short last week. Longs increased by 1K
  • CAD short 20k vs 17K short last week. Shorts increased by 3K

Highlights:

  • EUR longs remain the largest position by far.  The EUR has reached the highest level since March this week
  • AUD position switch from being marginally short to marginally long
  • NZD position remains near unchanged
  • CAD shorts remain the 2nd largest speculative position.