The issue of Europe has completely dominated financial markets and news flow over the last 3 months. No single event, summit or meeting can determine the trend for any length of time. Until we have clear direction from politicians on the US, Eurozone and the UK, we should expect the news flow to cause us to flip from one idea to the other.

Let us imagine either a currency or an economy that is on a simple upward trend depicted by the grey line in chart 1. Around the trend is the economic cycle, shown by the red line. Of course, since the cycle moves up and down, the trend line is never obvious.

On top of this simple picture, one needs to super-impose events or news flow. These events normally obscure where we are in the cycle. Of course major news events can impact the cycle and particularly extreme events can even impact the trend. Chart 2 illustrates this “normal” picture of the world. This view was prevalent in the pre-2007 period.

News is by nature both random and haphazard. So when the news flow disappoints we suddenly think we are on the downward path, and as the news improve, we equally think we are out of the woods. Clearly it is impossible for one piece of news to decisively determine the path. However, the market often acts as though it is the case.

It will take overwhelming one-way news flow to break free from this RoRo paradigm. Another way to break out of this paradigm is for the economic data to become crystal clear. Therefore, trading and reacting to news is a risky strategy.

Article adapted from HSBC Currency Weekly Report.

We are not wired to live alone. In his book The Neuroscience of Human Relations, professor Louis Cozolino says that “without mutually stimulating interactions, people and neurons wither and die.”

Relationships gives us perspective on our unique strengths, on which trading ideas are likely to gain traction, and helps us understand how we can get moving on, and devote our best effort to, the work that really matters.

Finding fellow traders in your city may be no easy feat, despite the internet offering numerous online trading forums and twitter groups. Many of the greatest trading ideas are gathered in small groups, and the practise continues to benefit those who go to the effort to instill it.

These small group meetings can curb the loneliness which traders often face trading alone at home, and serve as a source of encouragement during periods of draw-downs. The size of the ideal circle varies. Some people prefer a smaller circle for the increased level of intimacy it provides, while others prefer to have a large group in order to leverage greater diversity of thought and experience. While the composition of your trading circle can vary, you want to invite people whom you believe you will have the ability to connect with in a meaningful way.

Having a circle of fellow traders can make your trading journey more enjoyable and fruitful.

The McKinsey Global Institute’s (MGI) recent analysis finds that by 2030, the world’s supply of capital—that is, its willingness to save—will fall short of its demand for capital, or the desired level of investment needed to finance projetcs such as new homes, transport systems, water systems, factories, offices, hospitals and schools.

Historically, as countries grow wealthier their household saving rates decline.

Indeed, household saving rates have generally declined in mature economies for nearly three decades, and an aging population seems unlikely to reverse that trend. China’s efforts to rebalance its economy toward increased consumption will reduce global saving as well.

The gap between the world’s supply of, and demand for, capital to invest could put upward pressure on real interest rates, crowd out some investment, and potentially act as a drag on growth. Moreover, as patterns of global saving and investment shift, capital flows between countries will likely change course, requiring new channels of financial intermediation and policy intervention. These findings have important implications for investors.

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Ichimoku chart trading is quickly gaining popularity in the forex trading community, although its early application in Japanese markets was confined primarily to commodities and futures trading. The newly stylized chart is actually a combination of specialized indicators that was devised back in the sixties in Japan, the land that gave us candlesticks many centuries ago. Forex traders picked up the mantle some years back, and began to tinker with its various attributes to match their personal needs.

Steeped in Japanese terminology, the primary components consist of a “Kumo Cloud” that represents support and resistance levels, both present and future, and various lines that act like moving averages, coupled with a market sentiment indicator. Many forex traders have discarded the latter items, but have retained the “cloud” and added a few other indicators to support their individual trading needs. The “line” components tend to work better when volume data or exchange cut-offs are present, both nonexistent in the world of currency markets. The basic application is readily available on Metatrader 4 platforms supported by most forex brokers.

Many experienced traders have used variations on this theme over the past five years, arriving at a forex strategy that focuses on taking what the market is prepared to give without attempting to pick perfect market bottoms or tops. When all conditions are met, positions are initiated. A sample chart “template” is displayed below:

The “Kumo Cloud” has been retained and augmented with two exponential moving averages (50 and 100 period settings), along with Slow Stochastics and ATR indicators affixed. This trading system works best with hourly charts, thereby eliminating much of the “noise” in shorter timeframes. Trade set-ups appear whenever the candlesticks are fully below or above the cloud and EMA combination.

Two trading opportunities have been highlighted with green circle pairs on the chart. A third entry point has formed at the right portion of the chart and is worthy of attention. Downtrends tend to migrate back up to and through the cloud. Once above, the cloud gives some indication of future directions. An experienced trader, however, is happy to get in and get out with 60-pip gains, as indicated. The ATR suggests adequate stop-loss margins, and the Slow Stochastics indicator is only used to validate bottom reversals.

For some traders, this customized version of Ichimoku trading may appear overly complex with too many moving parts, but, for the conservative trader that prefers to have several conditions met before entering the market, the plan offers a “step-by-step” decision-making process that satisfies their personal objectives. Adding more EMA’s with longer period settings is another option that has been tried with success, but each interested trader may wish to substitute his favored indicator of choice.

The chart choice above was taken from a current market setting in order to capture the unique property of the “Kumo Cloud” to project into the future, an attribute that few, if any, other indicators emulate. Once the template is in place, users can obviously review historical pricing behavior to observe favorable trading opportunities in the past that offer better returns than presented in this example. The recommendation is to experiment with this system until you reach a complement of indicators that suits your personal tastes and trading system requirements.

Ichimoku chart trading is relatively new in a currency setting. In order to be successful its helpful to have working capital. The basic approach may provide all you need to detect favorable trading opportunities in the market. Hourly and daily timeframes are more appropriate when using this system to eliminate noise, and customization is always an option if that is your inclination.

To learn more about Ichimoku, watch this online Ichimoku course.

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The picture is clear. Green is buy, red is sell. AUD/USD has a green support line at the moment on the daily charts, indicating a bullish trend formation.

This is double confirmed with a positive EMA ROC (Exponential Moving Average Rate of Change), adding on to the bullish momentum.

The final confirmation we are seeking is a break above the kumo cloud, a bullish sign based in Ichimoku analysis.

This simple trading strategy is available here.

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Professional traders who move large amounts of capital work at banks or trading firms. They keep regular hours, just like any other employee. They may have a family, spouse and children. This means they report to work, make some trades, then go home to their families.

So while the forex market is 24hrs, do keep an eye on the clock. Pay attention to the London open (6am – 8am London Time), the New York open (6 to 8am New York time) and the London close (5 to 6pm London time). Markets move when traders open and close trades for the day.

The UK remains the single largest centre of foreign exchange activity with around 35% of global turnover in 2007. Therefore you will want to trade during the London trading session, because many traders around the world also prefer to trade during this time. Because technical analysis is arguably a self fulfilling prophecy which works best in liquid markets, most traders regard the London hours as the best time to trade forex.

For forex traders in Singapore, this will be between 2pm to 1am Singapore Time, which is great because we are awake during this time.

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It is known to all that currency prices fluctuate in the forex market due to a variety of economic and political factors such as interest rates, inflation, political instability and many more. If you’re not an expert, you will not be able to correlate the factors that are responsible for the changes in the currency exchange rates. Thus, if you’re willing to make lucrative investment, then you have to understand these factors and their relevance to exchange rate fluctuations. You can opt for any of the many online forex training course available in Singapore which will render you proper guidance to trade successfully in the forex market. Before you opt for any of the course, you must try to know certain facts that will help you choose the right one.

 1.     Know how the course has been formulated

These courses will provide you with certain systems that has been designed to help you strategically gain quick profits. With the help of these systems, you can trade with any pair of currency in any time frame. It is advisable that you should not use time frames that are too fine grained; instead try to use the 1 hour charts that will help you gain good trading option and avoid many false signals.

The entry signals of these trading systems are totally mechanical hence you need not make any guess work to log in to the systems. But there are two exit systems available one mechanical and the other is the one that will require you to make necessary judgment. It is advisable that you should use the mechanical approach of exit. This will help you exit from the trading system if it hits the initial stop loss level or if the exit condition is met.

 2.     Does it follow the golden rules of the trading system?

You can consider a course to be apt if it follows the trading trend. Today’s traded trend follows the two golden rules of namely “boost your profit” and “curb your loses”. As long as the trade will run in the positive direction, its course will be allowed to carry on till you earn a profit.

Lastly, whenever you’ll search for a suitable online course you have to avoid the pitfalls. You’ll find that there are certain firms in Singapore who will truly not look into your interest and will try to acquire you as a client. Try to avoid them as they will initially put you onto their demo platform to give you some basic trainings on trading and then to the real platforms. There you‘ll make losses whereas the brokers will surely gain their incentives. Hence, try to search for a robust and profitable forex trading course that will help you make gainful investment.

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