Forex Crunch Forex Weekly Outlook – May 24-28

Forex Crunch Forex Weekly Outlook – May 24-28

Forex Weekly Outlook – May 24-28

Posted: 22 May 2010 02:00 AM PDT


GDP releases from the US and Britain, housing figures from the US are among the major market movers expected this week. Will the markets stabilize? Or will the crazy trading continue? Here’s the weekly outlook.

The Greek crisis was not only far from over, but it turned into a global issue. The latest news is the German’s parliament’s approval of the latest bailout package. Fresh news from Europe will continue shaking the markets, as well as the indicators. Let’s start:

  1. American Existing Home Sales: Published on Monday at 14:00 GMT. The housing sector is an important element in the economy. Existing home sales are the vast majority of sales, so this figure always has a strong impact on forex trading. Last month saw 5.35 million sales, significantly better than expected. Another improvement is predicted this time – 5.61 million. Note that this release comes on an empty calendar.
  2. British GDP: Published on Tuesday at 8:30 GMT. According to the initial release, Britain’s economy grew by only 0.2% in Q1. This figure was a blow to the Pound. In this revised version (not final yet), an improvement to 0.3% is expected. This will rock the Pound.
  3. American CB Consumer Confidence: Published on Tuesday at 14:00 GMT. The Conference Board showed a great result last month – 57.9, the highest in 18 months. Another improvement is predicted in this major indicator – a survey of 5,000 people.
  4. Ben Bernanke talks: Starts speaking on Wednesday at 00:30 GMT. The Chairman of the Federal Reserve flies to Japan amidst the big crisis in Europe. In a speech about central banks, Bernanke will be asked questions by the audience and might rock the markets.
  5. American Durable Goods Orders: Published on Wednesday at 12:30 GMT. This figure was confusing last month: orders saw a drop of 0.6%, while the core figure was totally different – a rise of 3.5%. These numbers will shake the markets again. A rise of 1.4% is predicted in orders, and 0.5% in core orders.
  6. American New Home Sales: Published on Wednesday at 14:00 GMT. Completing Monday’s release of existing home sales, this figure will probably continue the positive trend from last month, when new home sales leaped from 324K to 411K, rocking the markets. A rise to 420K is expected now.
  7. American GDP: Published on Thursday at 12:30 GMT. This is the second release of GDP for the first quarter of 2010. Also here, more good news is expected – the annual growth rate is expected to be revised from 3.2% to 3.5%, getting closer to the outstanding growth rate in Q4.
  8. American Unemployment Claims: Published on Thursday at 12:30 GMT. This important weekly release disappointed last time with a jump to 471K. Jobless claims are expected to return to 446K this time. A similar leap in April was followed by a return to the 440Ks. Note that the this number failed to drop below 430K – which seems a very strong barrier. This must be broken for the unemployment rate to drop as well.
  9. Japanese Tokyo Core CPI: Published on Thursday at 23:30 GMT. Japan’s biggest problem is the drop in prices – deflation. This indicator from the capital is the earliest and most important of all inflation numbers. After showing an annual drop of 2% in prices for quite some time, this figure is expected to show a smaller drop – 1.5%, the lowest in 11 months. This could boost the yen, that already enjoys risk aversive trading.
  10. Swiss KOF Economic Barometer: Published on Friday at 9:30 GMT. The former “safe currency” enjoys a strong economy. This major composite index edged up in the past months, and is now predicted to rise from 1.99 to 2.04, showing the stability and strength of the economy. Will it help the currency?

That’s it for the major events this week. Have a great one!

Further reading:

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

Forex Links for the Weekend

Posted: 21 May 2010 07:08 PM PDT


After another exciting week, the weekend arrived and it’s time for some long term articles. Here are my favorite picks from the web. Enjoy:

  • Kathy Lien is interviewed in CNBC and discusses the long term direction of the Euro.
  • James Chen provides a fresh video about forex multiple timeframe trading.
  • Adam Kritzer asks when the focus will shift back to the dollar, now that Europe is in the limelight.
  • Arnaud Jeulin uses Google Adplanner to analyze global statistics for forex sites. The results are quite interesting.
  • Casey Stubbs discusses forex discipline and offers accountability as a solution.
  • Michael Greenberg reports that forex.com will fine inactive forex accounts. Not so friendly…
  • Francesc Riverola brings news about FXCM lending cash to its IBs, and says it’s a smart move.
  • James Wooley breaks down the different trading hours and supplies his favorite hours for trading.
  • Jay Norris discusses the fine line of success.
  • Larry Greenberg dives into inflation in various countries and its impact on forex trading.

That’s it for now. Have a great weekend!

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.

4 Hot Tips That Will Kick Your Forex Trading Career Into Overdrive!

Posted: 21 May 2010 06:31 PM PDT


Guest post from Jason Madison of beatwallstreetnow.com

1. Develop a trading plan and stick to it.

Trading is just like any other business if you don’t have plan of action you are destined to fail. A trading plan is a necessity because without one you are just gambling. A good trading plan will have defined rules that tell you: when to take a trade, how much to risk, and when to exit a trade. It is important that you develop a trading plan and adhere to its rules if you hope to be a successful trader.

2. Learn To Accept Losses.

Losing is a part of trading and you will never escape it. As human beings we seek perfection we want to believe that if we can just find the right method we can trade the markets flawlessly and never take a loss. Unfortunately that is not the case as even the best traders in the world take losses it's a part of the game. The key however is to not fear these losses but to simply expect them to occur and to manage your risk accordingly

3. Use Proper Money Management.

The key to lasting in the world of forex trading is to control your risk. You have resist the temptation trade to maximize gains and to instead trade to minimize loss. You have to treat your capital as you would a loved one. You wouldn’t risk a family member's life would you? So don’t risk your capital unnecessarily because your capital is the life line of your trading career. Keep your maximum risk to between 2-3% per trade and you will ensure that even if you suffer a string of losses you will live to trade another day

4. Don’t Be Greedy

When you open a trade and the market does exactly what you thought it would do you are going to be tempted to hold on to the trade because you figure its going to keep moving in the same direction making you more money. This however could backfire as the market could quickly reverse and wipe away all your gains. To avoid this you need to take profit once the market has given you a certain amount of profit. This amount should be defined in your trading plan and should be strictly adhered to.

Forex Trading may seem like an impossible thing to learn but with these tips you will be well on your way to a successful forex trading career.

Do you want to take your trading to new heights? Do you want to become one of the 5% of traders that actually make it in this business? Do you want to discover the revolutionary price action techniques that will allow you to trade for a living? Well then visit beatwallstreetnow.com

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.
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