TUG of WAR in the form of VOLATILITY

The financial market arena is where 'Bulls & Bears' do battle for every trade position or settlement that presents itself for investors / traders to take advantage of.. As the 'Tug of War' has always been present in the form of Volatility. Unexpected Price Action will always occur. Be on the guard!
Adapt to changing market conditions, Define Risk / Reward Ratio and Execute each Trade both on Entry & Exits in a Timely & Controlled manner. Watch for Inverse Relationships of instruments traded; as the market will not provide it to the traders in a silver platter.

Comparative Risk & Leverage Analysis

WHEN DO TRADERS USE THIS STRATEGY?

Being able to properly use the extra leverage on an account may seem to be expensive for others because of the additional funds to maintain two (2) or more positions in the market at any given time. However, it is more important as to why such additional positions should be made is clearly vital in meeting the investors financial objectives.

Comparative Risk & Leverage Analysis

MegaTrade101 Defines - The Art of Trading

Numerous times we have been asked why -The Art of Trading?
So its about time that we clearly define Megatrade101.com - The Art of Trading.
Simply, it is the.....

•  Attitude - and the approach towards market analysis in dealing with any market such as the Foreign Currency market, Commodity Futures or Stock Markets.
• Rationality - in analyzing the risk/reward  factors of any investment instrument in a specific period of time and amount of exposure. Is it worth the risk?... has always been determined with a predefined strategy in any trade position before final execution.
• Timing - is one of the most critical levels where serious due diligence should always be made before properly executing any trade position in the market within the three (3) major markets of Asia, Europe & the US trading sessions. 

This has been the process and trading methodology that MegaTrade has timelessly been applying in every aspect of trading activity. Having to pay a high tuition fee in learning these volatile markets. We hope that by sharing our simple trading philosophy and trading experience would be useful for other investors and traders alike to define and would reach a certain comfort level & trading style that best suits them. Remember, there is no one size fits all, as there is no real "Holy Grail" or a sure fire strategy of winning in any speculative form of investment trading specially the foreign Currency market. Please refer to SUMMARY GUIDELINES...

ONLY THE BEST FOR YOUR TRADES!

  

FOREX: 10 KEYPOINTS

How to Analyze the Analysis

Analysis from market reports can sometimes be confusing for others. The credibility of such reports should well be categorized in their simplest form.

News reports of actual events can and will always be easily related to, since they are indeed actual current events. Being able to relate information compiled or read through while comparing them with actual working graphs that depicts the reason or reasons why prices reacts from these reports is another side of the equation.

In most cases, analyst or financial writers/ traders for that matter would then summarize their respective view points on how they perceive the markets and react accordingly towards it by way of positions taken or not in the market place. Equally more important are for investor/ traders who uses these information alongside their knowledge of interpretation and tools of the trade, to be able to gain from the market movements in exchange for the risk/ tolerance that they are willing to take while literally exposing their investment funds on trade at a given period of time.

However, trading the forex market considers a little more due diligence since the correlation with one another would have to weigh together with other fundamentals that affects the prices worldwide. The ever growing retail broker's coverage of the expanded major currency pairs viewed and summarized by more than a hand-full of currency analyst, strategist and quant analyst making their point across the wires especially coursed-through the Internet channels can equally be compounded.

Therefore, as a matter of guide we have listed below at least 10 key-points to better understand in simplest form; how not to over analyze the analysis whenever taking into consideration related articles on analysis either they be technical orientations in nature or fundamentally related reports. The ultimate decision would have to be totally independent and not be influenced with how an analysis is best presented intellectually or with sophistication. It still boils down to clear transparency in content substance. There are only two positions to choose from which is either to buy or sell.

Link: 10 KEY POINTS: (Not necessarily in order)

Market Timing in Forex Trading - MegaTrade101

This has always been the case for most traders and strategist whenever trading the Foreign Exchange Market. It would be nice to share some of the successful trades made specially these current market conditions. As they would be very useful for some who may be starting to feel how the FX market really moves when major economic numbers are released. However, there are a lot of worldwide reports to consider within a given period of time and to be able to cover all of them would be quite demanding for a trader.

As correlation in the currency market in particular are as important to every trade position marked in the market. The degree of trading difficulty is ever increasing by the day as uncertainty and unpredictability of wider price fluctuation will always be present. But in recent market conditions, the most impressive price reaction is a currency who has made a dramatic price movement either way and stalls.

This is when traders are contradicting either a follow through or a pullback would be made causing the trader's reluctance and patience to be tested. This also applies to those who are too eager or for those who happens to wait for a confirmation of a price break/confirmation signal. If this were true to the fact, then everyone would be considered a winner.

But the total opposite does happen and the next question would be ...where did I go wrong?

In the Foreign Exchange market, to improve market timing would really depend in developing a keen eye in spotting trade set-ups combined with identifying market behavioral patterns for each currency related trade, focused only on entry & exit price range. Naturally, this would only follow once a strategic trade plan has been established. A certain degree of elimination and process of deduction would always be in place before any trade execution is made. And that is being able to draw an informed and reasonable decision from the due diligence whether such trade plan is worth the risk/reward ratio given a specific period of time exposure in the market.

It is quite easy to enter into a trade at any given time especially if and when the market has enticed the trader to get into a trade by impulse. What is equally important is getting out of the trade alive with at least a fairly good gain. But there are some traders, even seasoned ones who tries to catch the market action in either direction and subsequently would place an order to trade feeling not to be left out for a chance and an opportunity of riding with the market sentiments.
For the complete article including the process of developing 'MARKET TIMING in FOREX TRADING' visit our website: http://megatrade101.com/megatrade101/fxminar 

• In addition, please refer to MEGATRADE101 - STRATEGIC FX TRADING TECHNIQUES

US Dollar Index Market Analysis

For the past decade, with more e-trading developments and accessibility to the markets have made it easier to monitor market behavior during market holidays. The up-coming trading period before the Thanksgiving holiday would prove to be one of those times where a handful of institutional and majors players would again be in place. Although with an expected mix bag of market directional movements and the general trend developments into a bullish advance through the year end from thereon as a comparison as far back in 2008 that should not be discounted unless otherwise proven not to follow the cyclical pattern hereunto.



US Dollar Index Weekly Candlestick Chart



However,as for the US Dollar unexpected downward distortion after touching the 79.83 by dropping back down in October for a re-test of the 74.72 low was the appropriate corrective move in preparing for the 2nd leg higher where the market conditions are presently at. The backlash of news reports from both continents have been dragging this lagging recovery which should be respected from the market behavior. As price movements by market numbers doesn't lie. And the only way that we can stay unbias of any market analysis is to always trade with a level playing field in any given position(s) while in the market. For the Technical description & Analysis, please refer to our website at http://www.megatrade101.com/

The coming holiday trading conditions will certainly be a complicating factor for trading the US dollar. For the time-being, focusing our attention on the backdrop for financial strains; with the European market’s are particularly stressed; with both the EU and other major US Financial bank's exposure to the EU debt crisis have been a huge part of this global recovery. Money market funds have significantly reduced exposure to EU banks, though the ill-effects have nevertheless found their way into funding costs in the US system.

These are the underlying issues that we should consider to be critical rather than the ineffective event of risk aversion and appetite in the market place. The coming crucial reports this week; including the 2nd reading of the third (3Q) quarter GDP on TUES NOV. 22, the Fed minutes, the UK BOE MINUTES on WED. NOV. 23; US durable goods,the University of Michigan Consumer Confidence Nov.numbers and personal spending and on the EURO ZONE side would be Germany and the UK's Nov. 24 GDP figures.

All this reports would occur towards before and after the end of the trading week of the Thanksgiving holiday which would provide the market with an ever increasing volatility from lack of liquidity in a thinly traded market to position adjustments and liquidation for the rest of the month of November towards the end of the trading year. However, pay close attention to market behavior as these are the ripe times to consider.

Just a side precautionary note where we would like to quote the words of Gordon Gekko from the movie Wall Street - Money never sleeps..."bulls make money, bears make money...but pigs get slaughtered".

Only the best for your trades!

Mid-week Market Analysis 2

The market's increase volatility have shown price movements on both directions of the market place. As money flows between equities, asset class precious metals market, and the foreign currencies among institutional players. This has not been favorable with the US Dollar. As the US dollar index have now registered 75.75 low as of the Asian trading sessions towards the opening of European trading. Our opening market outlook dated the 24th of October have stated that the momentum would readily build-up as a probable break below the 75.85-76.05 range would cause prices for the EURUSD to make a follow-through heading higher when it has broken the intermediate resistance of 1.3880. Currently touching the 1.4014 high and is at the higher levels as of this writing. 

EURUSD WEEKLKY CHART
As of 10.27

Apparently, as the market prices for the EURUSD and the EURGBP cross rates would now move higher throughout the coming sessions towards the American trading where we do expect a continuation of increase market price action and volatility to be aggressive. Daily price extensions and trading range for the EURUSD would be between the current levels with 1.4080-1.4110 range and as for the EURGBP cross would be seen at the extension range levels of 0.8750-0.8870 respectively. 

These current two days of trading activity to follow will culminate higher as the upcoming report this Friday would also be the catalyst in the final direction for the US Dollar moving forward. However, a word of caution should be properly exercised from hereunto. As these are the typical market conditions where 'bait & trade' are done amongst the bigger institutional / hedge funds prior to closing of the week & turnover positions of the month.  

In essence, watch for the market sentiments and volumes from the European trading hours that may trade the major pairs to their extreme extensions, then spill-over towards the American trading session before the major report on Friday would be release. By then the total opposite would get unsuspecting main street investors what hit them only after the market has moved opposite of the current market price swing.

Notable, compare the price behavior between the USD, Gold prices and oil as their correlation may also weigh for the USDX to move towards the end and opening of the new month by next week.