Posted: 19 Jul 2010 10:40 PM PDT

Guest post from www.visionsofaffluence.com

Trading to suit your personality

There are many reasons why people decide to start trading maybe they view it as a challenge or perhaps they just want to earn extra money on the side. There are plenty of reasons why people trade, but it has been my experience that people get into the trading business for one reason above all others, freedom. Sure the potential to make a lot of money is a great but what really motivates people to start trading is the promise of freedom. The freedom to be able to support themselves financially with out having to give up their time to the 9-5 grind. This freedom is great and with it comes a lot of choices, choices like what market to trade , what time frame, and when to trade, and it is these choices that help to make trading such a great business, because these choices plus more all add up to make trading completely customizable to the individual. There are a million and one ways to profit in this business and people have more than enough styles to pick from to find a method that suits them perfectly. Unfortunately most traders don't realize this and as a result their trading suffers.

You see most people give little thought to the role that personality plays in trading and that is a big mistake. If you were a shy and introverted person then you wouldn't get a job as a door to door salesman, and if you were a person that craves excitement then you probably wouldn't want to work as a librarian, so why then do so many people choose to trade in ways that don't suit their personalities. If your method of trading doesn't suit your personality you are doomed to failure. You need to ask your self what you are like and then use that to decide how you are going to trade, for example if you like fast paced action and having to make quick decisions then day trading may be for you. If on the other hand you would rather be off enjoying your day instead of sitting in front of a computer then swing trading may be your best bet. Regardless of what your personality is there is a trading style that will suit you, all you have to do is find it .So get out there and find the trading style that most suits you and own it. And remember don't trade a market or method just because you think it will make you money , because if it doesn't fit your personality then your chances of profit are slim, and you can take to the bank .

If you want to discover what it takes to be able to trade for a living? Then visit visionsofaffluence.com

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Fundamental Overview – Market Movers This Week – 7/19/2010

Posted: 19 Jul 2010 04:03 PM PDT

Guest post by ForexTraders.com

European debt markets recovered somewhat last week after some relatively successful debt auctions. Also, commodity prices eased, with gold closing the week below the psychological $1,200 level, with a predictably negative effect on the Australian and Canadian Dollars.

Nevertheless, last week saw investors' unease about the U.S. economy grow considerably, especially in the wake of dovish comments contained in the FOMC Meeting Minutes released on Wednesday which indicated that a sustainable recovery in the United States was likely still years away.

Market Concerned About Double Dip After Disappointing FOMC Minutes

Most of the United States economic numbers out last week continued giving signals of a double-dip recession, which was supported somewhat by the Fed's disappointing FOMC meeting minutes for June released on Wednesday.

Furthermore, given the notably dovish comments in the FOMC minutes and the uncertain state of the United States economy, the U.S. Dollar is increasingly becoming more and more of a hard sell as the economic numbers released last week amply illustrated.

Basically, it seems like only risk aversion and the unwillingness of major USD asset holders like China to see the currency depreciate is saving the Greenback from a real thrashing at this point.

Dollar's Response Mixed Versus European and Asian Majors

Furthermore, the U.S. Dollar's performance last week was generally softer versus other major currencies. Greenback sentiment got notable weaker after Wednesday afternoon's release of the U.S. FOMC meeting minutes for June.

Overall, by the market close at end of last week, the Greenback had lost 2.2% against the Euro, 2.3% against the Yen and 1.5% against the Pound Sterling.

Dollar Rises Against Commodity Dollars

Also, the commodity dollars generally declined after the previous week's dramatic run up against the Greenback, despite otherwise negative U.S. Dollar sentiment. This was partly attributed to softer commodity prices, as well as to growing signs of a slowdown in the Chinese economy.

The U.S. Dollar gained 2.0% against the Canadian Dollar, which was the primary mover among the commodity currencies. The Greenback was also down 0.9% against the Australian Dollar at the weekly close, but off only 0.1% versus the more resilient New Zealand Dollar, which closed the week virtually unchanged.

Weekly Recap and Outlook for the U.S. Financial Markets and Dollar – 7/19/2010

The U.S. Dollar turned in another week of mixed results against the other major currencies. The Greenback fell notably against the Euro, Yen and Pound Sterling, although it did manage to rise versus the Canadian and Australian Dollars, and it remained virtually unchanged against the New Zealand Dollar. Read full report

Weekly Recap and Outlook for EURUSD – 7/19/2010

EURUSD continued its uptrend last week which began on Monday with a series of 10 cooperation agreements struck between China and Germany worth approximately $4.4 billion. The agreements, which included a €124 M green fund, and an M.O.U. on the establishment of Chinese-European eco-parks, were for building a "comprehensive strategy partnership." On Tuesday, EURUSD made its weekly low of 1.2522 as German ZEW Economic Sentiment came out at 21.2 versus an expected 25.2 and Eurozone ZEW Economic Sentiment, also lower than expected at 10.7 versus 16.8 expected. Also on Tuesday, the Eurozone Trade Balance came out with a deficit of -42.3B versus a -39.3B consensus. Read full report

Weekly Recap and Outlook for GBPUSD – 7/19/2010

GBPUSD continued its upward trend last week after U.K. economic releases indicated that the British economy may be showing some signs of recovery. The week started with Cable trading lower after U.K. GDP was released showing an expansion of 0.3% as was widely anticipated. Also on Monday, the U.K. Current Account came out showing a deficit of -9.6B which was considerably higher than the deficit of -4.5B expected. Nevertheless, the previous number was revised upward to a surplus of 0.5B from a deficit of -1.7B. Monday's U.K. economic releases also included the RICS House Price Balance which printed at 9% versus a consensus of 20% which indicates a decline in U.K. house prices, and the BRC Retail Sales Monitor which came out with a reading of 1.2% year on year, versus a previous reading of 0.8%. Read full report

Weekly Recap and Outlook for AUDUSD – 7/19/2010

AUDUSD last week gave back some of the impressive gains made in the previous week when the Aussie closed up 4% against the Greenback. The rate started the week on soft note despite Australian Home Loans which showed an increase of 1.9% versus the 0.7% consensus, with the previous number revised upward from -1.8% to -1.5%. Also, the Australian NAB Business Confidence Index declined a notch printing at 4 versus a previous reading of 5. AUDUSD then began climbing despite a report of a decline in copper and iron ore imports in China, Australia's biggest trading partner. Read full report

Weekly Recap and Outlook for NZDUSD – 7/19/2010

NZDUSD started out the week trading higher, after making its weekly low of 0.7055 seen on Monday, the rate began rising despite the U.S. Dollar's strength against other major currencies. On Tuesday, the rate continued higher as New Zealand FPI gained by 1.3% month on month versus a previous decline of -0.7%. Read full report

Weekly Recap and Outlook for USDJPY – 7/19/2010

USDJPY began the week on a solid note Monday trading off of its weekly high of 89.14 in the absence of any major economic releases for Japan. On Tuesday, Japanese Revised Industrial Production increased by 0.1% versus an expected decline of -0.1% while Japanese Household Confidence came out at 43.5 versus a reading of 42.2 expected. While the pair managed a higher close on Tuesday, the pair soon began declining as sentiment in the market turned risk averse. Read full report

Weekly Recap and Outlook for USDCAD – 7/19/2010

USDCAD consolidated after the previous week's sharp decline as the Greenback strengthened against the commodity currencies on increased risk aversion. The pair started the week on a positive note on Monday as the BOC released its Business Outlook Survey. The survey, which began in 1997, revealed that its indicators were at historic lows since the survey began. The Canadian firms surveyed expect growth to decrease over the next year. Read full report

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Forex Daily Outlook – July 20 2010

Posted: 19 Jul 2010 02:00 PM PDT

U.S. Building Permits and Housing Starts, Bank of Canada’s Rate Statement and Overnight Rate highlight today’s economic news. Here is an outlook on the market moving events.

In the US, Building Permits and Housing Starts leading indicators of economic health are released simultaneously. The housing sector is critical for the US economy. No rise above 0.57M is expected. Housing starts dropped to 590K last month, and were disappointing for the greenback. A small drop of 10K is predicted.

More in the US, Federal Reserve Governor Daniel Tarullo testifies on Financial Regulation before the Senate Banking committee, in Washington DC.

In Canada, Bank of Canada is expected to raise the rates once again – from 0.50% to 0.75% due to high employment rates.

For more on USD/CAD, read the Canadian dollar forecast.

In Europe, German Producer Price Index, a leading indicator of consumer inflation, expected 0.2% rise following 0.3% increase in May.

For more on the Euro, read the EUR/USD forecast and Casey Stubbs' latest analysis.

In Great Britain, Preliminary Mortgage Approvals a leading indicator of housing market demand expected to improve by 2K compared to May reaching 52K.

More in Great Britain, Public Sector Net Borrowing measuring the difference in value between spending and income for public corporations, the central government, and local governments during the previous month, forecasted a 2.8B decrease in deficit.

Later in Great Britain, CBI Industrial Order Expectations index based on a survey of 550 manufacturers rating the relative level of order volume expected during the next 3 months. A further dip to -25 points is expected and Preliminary M4 Money Supply measuring the change in the total quantity of domestic currency in circulation and deposited in banks, positively correlated with interest rates forecasted 0.1% decrease.

Read more about the Pound in the GBP/USD forecast.

In Switzerland, Trade balance surplus is predicted to increase following a drop from 2.02B to 0.82B in May.

In Australia, Monetary Policy Meeting Minutes, a detailed record of the Reserve Bank of Australia board’s most recent meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates.

More in Australia, RBA Governor Glenn Stevens delivers a speech titled “Some Long-Run Effects of the Financial Crisis” at the Anika Foundation Luncheon, in Sydney. His words can determine interest rates and future monetary policy.

For more on the Aussie, read the AUD/USD forecast.

In New Zealand, data on visitor arrivals is released an increase will be favorable to the country’s economy.

In Japan, Monetary Policy Meeting Minutes a detailed record of the BOJ Policy Board’s meeting, providing in-depth insights into the economic conditions that influenced their decision on where to set interest rates may have a strong impact on the market.

That’s it for today. Happy forex trading!

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