Connect with us

Industry News

Create an Online Day Trading Routine to Avoid Mistakes

In Thailand, online day trading is booming. International brokers give access to various instruments, from currencies to derivatives. All of them can bringAdd New profit when traded wisely. Still, mistakes are inevitable. Even professionals can be wrong at times.

In Thailand, online day trading is booming. International brokers give access to various instruments, from currencies to derivatives. All of them can bringAdd New profit when traded wisely. Still, mistakes are inevitable. Even professionals can be wrong at times.

Fortunately, there are ways to prevent erroneous decisions. A lot depends on your mindset and attitude to the job. Here are a few essential tips for the everyday trader, regardless of their instruments.

online day trading

Keep Track of Big News

Important economic and political events can drive market prices in different directions. Avoid trading in the first minutes following big news. They may create slippage on stop-loss orders, which means you may get unexpected results. This is why the economic calendar is extremely handy.

Check the calendar daily before starting work. Currency traders can check DailyFX and use embedded features of MetaTrader 4 or 5. Their stock trading peers can find the necessary data on Bloomberg. Whichever instrument you prefer, have an event calendar at hand.

Corporate earnings reports can have a dramatic effect on stock prices. Generally, it is recommended you refrain from trading on the day of such announcements. Trading before them could result in a loss. Check the Yahoo! Finance earning calendar.

Start Your Platform

Online traders depend on their equipment. Start your terminal and check that everything works. Are streaming quotes accurate? Bugs or delays result in trading errors.

Account and Contract

Popular systems like MetaTrader 5 allow you to work with several accounts. Make sure you are using the right one. Some users spend hours trading with passion – only to discover that all their profit was virtual. Use the demo mode for simulated conditions, and live trading account for the real deal.

Futures traders should also check their volumes. They need to make sure the contract size is right. It is also vital to consider the expiry date on the traded instruments.

Notes to Self

Leave reminders to yourself, so you do not miss important news releases. It is easy to forget about them in the midst of hectic trading activity. This mistake can be expensive. If an event occurs later on the same day, note down the expected time, and make sure it is in front of you.

Check Automated Aids

MetaTrader users should set Stop Loss and Take Profit for every position. These tools prevent excessive losses on failed trades and allow you to collect the desired level of returns. Make sure these values are set properly.

If you use scripts, an Expert Advisor or Forex robot, triple check all settings before launching them. EAs are pieces of software that can be added to MetaTrader. Free MT4 download is available from the Forextime website.

Check Position Size

The position size can be adjusted manually. If you stick to the default setting, make sure it is correct. A single extra or missing digit could be disastrous. In the first case, you could make an excessive loss on a bad trade. In the second case, you will only be trading a fraction of your planned size.

Be careful with manual adjustment. Write down your initial account balance. Double-check your entry point and stop loss.

Remember that position size determines the level of risk you take on. Generally, traders should not go above 1% of their account capital on each trade. For example, if you have $50,000 in your account, you can only afford to risk $500. Create a reminder if necessary.

Use a Trading Journal

Every day, make notes in a journal. Keep detailed records of your failures, so you can learn lessons and improve your strategy. Review those trading thoughts regularly. Analyze problematic tendencies and think of ways to cope with them.

Market Conditions

Start each day with pre-market analysis. How does the market look? Is it calm or turbulent? Are there any special patterns or trends? This research will help you take the right path once the market opens. For instance, volatile conditions could move your target profit upwards.

Time to Stop

You may notice that failures occur during some typical segments of the trading day. For example, those who trade U.S. stocks may start losing around the New York lunch hour. If this is the case, write a note to yourself or set an alarm, so you stop trading immediately.

online day trading

Start with the Right Mindset

These tips will help you trade mindfully. Be meticulous with your pre-market research, double-check all settings, and know when to stop. This way, you can avoid preventable losses. Keep these thoughts in mind the next time you start trading. Follow your plan, be alert, and seize lucrative opportunities.

Continue Reading

Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

Continue Reading

Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

Continue Reading

Financial News

Africa’s first Fairtrade certified gold co-operative offers hope to gold miners living in poverty

Syanyonja Artisan Miners’ Alliance (SAMA) has become the first artisanal small scale mining co-operative in Africa to become Fairtrade certified, bringing much needed hope to impoverished communities who risk their lives to mine the rich gold seam that runs around Lake Victoria.

SAMA is one of nine previously informal groups from Uganda, Kenya and Tanzania which has benefitted from a pilot project launched by Fairtrade in 2013. This innovative program aims to extend the benefits of Fairtrade gold to artisanal miners across East Africa.

In that short time, SAMA has undergone training in business and entrepreneurship, as well as safe use of mercury, internal control systems, labour rights and better working conditions, health and safety and more. Previously, daily contact with toxic chemicals used to process gold meant members risked disease, premature births and even death.  Fairtrade gold was first launched in 2011, and SAMA now joins Fairtrade certified gold mines MACDESA, AURELSA and SOTRAMI in Peru.

The co-operative produces just 5 kg gold per year, but nevertheless has the potential to significantly benefit many people in the local community through better conditions through certification. It is expected that Fairtrade and organizations like Cred Jewellery will support the miners, ensuring their gold can be refined and made available to jewellers in the UK and other markets.

Gonzaga Mungai, Gold Manager at Fairtrade Africa said: “This is a truly momentous and historical achievement and the realisation of a dream that is many years in the making. Gold production is an important source of income for people in rural economies. Congratulations to SAMA, it sets a precedent which shows that if groups like this can achieve certification, then it can work for others right across the African continent.”

The Fairtrade Gold Standard encourages better practice and changes to come in line with international regulation around the production and trade of so-called ‘conflict minerals’. Under the Standard, miners are required to:

  • Uphold a human rights policy preventing war crimes, bribery, money laundering and child labour
  • Clearly represent where the minerals were mined
  • Minimise the risks of conflict minerals through robust risk assessments and collaboration across supply chains
  • Report to buyers and trading partners regarding the risks of conflict minerals

Now in its second phase, the programme will focus on supporting other mining groups in the region to access affordable loans and explore a phased approach to accessing the Fairtrade market, allowing more mining co-operatives across Africa to participate in the programme.

Gonzaga added: “Sourcing African metals from smallscale miners in the Great Lakes Region is the responsible thing to do. For a long time companies have avoided buying gold from this region, with devastating consequences for impoverished communities who were already struggling. It has driven trade deeper underground, as unscrupulous buyers pay lower prices and launder illegal gold into legitimate supply chains. That’s why we have chosen to work with these groups to help them earn more from their gold within a robust compliance system that offers social, environmental, and economic protections.”

The Fairtrade gold programme offers a small but scalable solution to sustainable sourcing of gold from the region in line with Section 1502 of the Dodd-Frank Act in the US, OECD Due Diligence Guidance and recent EU Supply-Chain Due Diligence proposals which could come into effect in 2016. This means that up to 880,000 EU firms that use tin, tungsten, tantalum and gold in manufacturing consumer products could be obliged to provide information on steps they have taken to identify and address risks in their supply chains for so-called ‘conflict minerals’.

Continue Reading