Money Flow Trading Method along with Risk Management

Dear Benj.
it would be helpfull if you simply say at what price you Buy or sell
B. 1 $/Yen @ 123.000
OR
S. 1 $/Yen @ 123.000
Regards

People stop being Sheep . . . .



When do you think this will happen...???

I want to post this chart of USD/JPY so everyone can visually see what happened today in both the stock market (Dow) and the USD/JPY.

http://finviz.com/forex_charts.ashx?t=USDJPY&tf=m5

http://finviz.com/futures_charts.ashx?t=YM&p=m5

Everyone can see that based on the results of the Italian referendum of yesterday it was originally expected the markets would be Risk Off however for whatever reason the Dow went up for part of the day until it reversed which you can see from the 5 minute chart that I linked here of the Dow. You can see that as the Dow reverses so does the USD/JPY almost 160 PIPS. This was my whole POINT of MONEY FLOW TRADING. You can see the money flowing out of the Dow and some of this flow causes money to go into the Yen. Knowing this you have an EDGE in putting on a Trade Plan. If anyone reading this is not 100% clear please post a question for me.

At 7:48 AM this morning I shorted my third position of USD/JPY at 114.321 and I will hold my position overnight and my unrealized profit is now $476.36 with USD/JPY at 113.77.

Imagine not needing to plan a trade solely on the technical indicators and the FUNDAMENTAL becomes the Money Flow caused by the movements of the various Asset Classes such as Gold. As the US Dollar Index went down because of the unexpected strength in EUR/USD and since the Euro makes up 57.6% of the US Dollar Index then this has caused the US Dollar Index to go down and usually Gold would go up so you could also have a Trade Plan of going Long Gold. I will also link the 5 minute chart on Gold so you can see in pictures with your own eyes my strategy which ALWAYS WORKS !!! That is one of my edges.

http://finviz.com/futures_charts.ashx?t=GC&p=m5

With regard to Gold based on volume there seemed to be two large interventions at the start of the Europe open and the Dow open. When I find a review of that I will post it later here by editing and adding.

I found if not an explanation that makes sense at least a review of the insanity which could only be Planned Intervention by a powerful source.

Snippet: You have to wonder "who" stepped in at the European open and panic-bid with both hands and feet for Euros and US and EU equities...? As one trader mocked earlier, Brexit took 3 days to recover its losses, Trump took 3 hours, and Italeave took 3 minutes.

Snippet:
Finally we leave you with this...from Rhino Trading's Michael Block who offers the following perspective on why European stocks spiked the most since the Trump victory last month (largely a black swan event), courtesy of Barron's:

…[Apparently] the pattern of fading a potential crisis and then scrambling to cover and get long when everyone takes a breath and realizes that this time is not the apocalypse either still holds more than ever. I can’t justify any of this. The lesson investors and traders are getting is that everything is a buying opportunity and you need to not miss the boat. Brexit? Bullish. Trump winning the election? Bullish. Italy saying no to the referendum and the Prime Minister handing in his resignation? Bullish. Heck, all we need is a coup d’etat in India and the entire Belgian banking system to go kablooey and the S&P 500 will be at 3,000 by Christmas Eve.

http://www.zerohedge.com/news/2016-1...ops+to+zero%29

At F.g

Enough is enough. In Europe, the single currency has totally failed because it required a single debt. The refusal to consolidate the debts has been the death of the Euro.

What this means is that there is one common currency yet each country has major debts unique to that country however the debts are outside of the common currency so that creates an impossible situation as we can see. I hope that answers your question.

Hello again F.g Your point is noted and I will do that to make it easier to follow. However PLEASE KEEP in mind what the main point issue that I am discussing is Money Flow Trading and I have included an explanation of that above in a recent previous post.

The breakup of the Eurozone might take as much as two more years as it depends on many things. For example if Italy loses the oldest bank in the world because there debt cannot be taken care of with additional investment or a bail in and their loans from other European banks does not get paid then the whole house of cards will collapse upon itself. Stay tuned as 2017 will be a very exciting year.

https://dailyreckoning.com/italy-jus...y+Reckoning%29

Snippet:
Is Italy’s vote the tipping point that sends its banks into a downward spiral? Perhaps… or perhaps not

As CNBC guesses:
The market’s fear is that a “No” vote would stymie any attempts to restructure the country’s banking system as the cost of financing the rescue through issuing bonds could prove prohibitive for the Italian government. This instability and uncertainty could spread to the rest of the eurozone economy.

And does the momentum from this Italian referendum continue to the French elections in early 2017?

Brexit then Trump then Italy’s referendum then what exactly? How far does this wave go?

Don’t get hung up on not having all of the answers right now. It’s exciting to watch the system take an enema it clearly does not want.

The worst-case scenario for the EU is that this vote sets off a chain of events ultimately leading to an Italian banking collapse, a subsequent Italian exit from the eurozone, and an “about time” collapse of the entire EU.

Analysts yack on that this is highly unlikely. But Brexit and President-elect Trump were supposedly black swans.
Hold on. If political black swans are happening all the time, they are not black swans!

The only thing we do know at this moment is that the Italian referendum could open up a bigger can of worms in Europe than anyone expects… or that the EU can handle.


The bottom line is the New World Order is rightfully being turned upside down right before our eyes.

My friend,
your last line [only] worries me...

to believe that something happens not being scheduled or provided for by NWO [before our eyes]

is the supreme Naivity. Think about it.
Regards.

On Topic for your information and others who are now reading my thread I came across a excellent analysis from Of Two Minds which I share here.

http://www.oftwominds.com/blogdec16/cycles12-16.html

Snippet:
A Disintegrative Winter: The Debt and Anti-Status Quo Super-Cycle Has Turned
December 5, 2016

With this list of manifestations in hand, we can practically write the headlines for 2017-2025 in advance.

How would you describe the social mood of the nation and world? Would anti-Establishment, anti-status quo, and anti-globalization be a good start? How about choking on fast-rising debt? Would stagnant growth, stagnant wages be a fair description? Or how about rising wealth/income inequality? Wouldn't rising disunity and political polarization be accurate?

These are all characteristics of the long-wave social-economic cycle that is entering the disintegrative (winter) phase. Souring social mood, loss of purchasing power, stagnating wages, rising inequality, devaluing currencies, rising debt, political polarization and elite disunity are all manifestations of this phase.
I have covered the cyclical nature of human social orders many times, most recently in We've Entered an Era of Rising Instability and Uncertainty (July 18, 2016)

Now Is the Winter of our Discontent: Our Era of Rising Discord (November 16, 2016)
How The Seeds Of Revolution Take Root: the Middle Class Loses Upward Mobility (February 26, 2016)


As for rising wealth/income inequality, the apex controls the money and thus the power:
http://www.oftwominds.com/photos2016...yramid2015.png
Gordon and I also discuss the many different cyclical analyses that are now overlapping. Cyclical analyses based on demographics, socialeconomics, debt, wages and prices are all issuing the same conclusion: we're in the Disintegrative Winter phase of a multi-decade socio-economic cycle.
Here's our discussion of Cycles: Anti-Globalization and the Debt Super Cycle (30 minutes):

WTF????? Another FX genius or fuckwit?

Excuse me !!! What exactly is the purpose of your remarks ? WTF - Who are you ? Your message contributes nothing and to end my comments on a positive note. Please enjoy your evening and you are welcome to post here civil and productive commentary as I am sure you understand.

THE WRAP UP - NIGHTLY

Thoughts from Stratfor

https://www.stratfor.com/geopolitica...4-00aa4d62e631

Snippet:
But even if it defuses the threat of early elections, a new government will not solve Italy's problems. Meager growth rates, high levels of unemployment and general skepticism toward the country's traditional institutions could give rise to populist and protest movements, whether an established party such as the Five Star Movement or an emerging political force. Low growth rates and political uncertainty will also put a damper on Italy's banks, which are struggling to find new capital and free themselves from the heavy burden of their nonperforming loans. Unless the country can implement structural reforms, private companies may be loath to lend a hand to Italy's banks. At the same time, if Italy were forced to bail them out on its own, it would likely invite a confrontation with the European Union, and with Germany in particular. Rome would then have to choose between rescuing its banks at the expense of investors, in keeping with EU rules, or diverging from Brussels' regulations at the risk of damaging the credibility of the entire system.

Furthermore, the rocky outlook for Italy's economy, and especially its high levels of government debt, could be an important consideration in the European Central Bank's policy meeting on Thursday. Recently, a case has been building for the ECB to consider tapering its quantitative easing program in 2017 to keep inflation in check and prevent asset bubbles from forming. Scaling back quantitative easing, however, would expose Italy's bond yields — which have risen over the past few weeks — to market forces that could drive them too high. In the months to come, the issue will likely emerge as a battleground between EU members, such as Germany, lobbying for tighter monetary policy and ECB factions trying to preserve overall stability by protecting the eurozone's peripheral members.

Morning Thoughts - Daily

I will do this on a daily basis. I usually wake up around 5:00 AM notwithstanding checking in for an hour or so at the Europe Equity open at 3:00 AM EST in case there are trades that I want to do before going back to bed for a few hours. I read and review many things between the hours of 5 AM to 8 AM and so today there are 3 important matters that I share here.

(1) The vote in Austria on Sunday was a vote against the left yet not for the extreme right at this moment. The trend still continues for social change.

(2) The referendum results in Italy left great uncertainty and the oldest bank in the world in Italy I have read this morning might get a bailout as soon as this weekend.

The ECB meets on Thursday and the fallout concerning the Euro has only just begun so for the moment I would not go long EUR/USD and will stay with my 3 short positions.

(3) The MOST IMPORTANT thought that I share here this morning is the uncertainty as to who will be the 45TH President of THE USA. What ? Are you serious ? Yes , I
am and as it becomes a main topic in the MSM, great uncertainty will hit the markets in my opinion. I will now link the article that I read that put me there.

http://theeconomiccollapseblog.com/a...rs-to-join-him

Snippet: Donald Trump has already lost one of his electoral votes, and there are indications that a number of additional electors may be prepared to abandon him. Prior to the election, I warned my readers that we would not officially know who the next president would be until December 19th. On that Monday, the 538 members of the Electoral College will gather in their state capitals in all 50 states to formally elect the next president. Throughout U.S. history electors have voted according to the will of the people more than 99 percent of the time, but in 2016 there is a concerted effort to persuade Republican electors not to vote for Trump. If 37 Republican electors can be convinced to vote for someone other than Trump, that would keep Trump under the 270 vote threshold needed to win and it would throw the election into the House of Representatives. Most people had considered this to be a longshot, but on Monday a Republican elector named Christopher Suprun publicly announced in the New York Times that he will not cast his vote for Donald Trump. On the other side, there are at least 8 Democratic electors that have already publicly pledged to switch their votes from Hillary Clinton to a compromise Republican alternative to Trump.

So we already know that there will be quite a few “faithless electors” on December 19th. The question will be whether or not they are able to rally enough electors to their cause to deny Donald Trump the presidency.

What Christopher Suprun has chosen to do is really unprecedented in the history of modern American politics. Not only has he publicly announced that he is not voting for Trump, he is also attempting to convince other Republican electors to join him. He explained his reasoning for this move in his editorial for the New York Times…

Fifteen years ago, as a firefighter, I was part of the response to the Sept. 11 attacks against our nation. That attack and this year’s election may seem unrelated, but for me the relationship becomes clearer every day.

George W. Bush is an imperfect man, but he led us through the tragic days following the attacks. His leadership showed that America was a great nation. That was also the last time I remember the nation united. I watch Mr. Trump fail to unite America and drive a wedge between us.

Mr. Trump goes out of his way to attack the cast of “Saturday Night Live” for bias. He tweets day and night, but waited two days to offer sympathy to the Ohio State community after an attack there. He does not encourage civil discourse, but chooses to stoke fear and create outrage.

Of course this movement started long before Suprun made his surprise announcement. A group of eight Democratic “Hamilton electors” have been lobbying for Republican electors to reject Trump and join them in agreeing on a compromise Republican alternative for quite some time. And according to Politico, those associated with this group have been in active contact with the Clinton campaign…

Advocates of the long-shot bid to turn the Electoral College against Donald Trump have been in contact with close allies of Hillary Clinton, according to multiple sources familiar with the discussions, but the Clinton camp — and Clinton herself — have declined to weigh in on the merits of the plan.

Clinton’s team and the Democratic National Committee have steadfastly refused to endorse the efforts spearheaded by a group of electors in Colorado and Washington state. But, as with the ongoing recounts initiated by Green Party nominee Jill Stein, the Clinton team has not categorically rejected them, leaving the collection of mainly Democratic electors to push forward with no explicit public support from the failed Democratic nominee or any other prominent party leaders.
Of course the Clinton team is desperate to do something to salvage this election. Clinton’s lead in the popular vote has now grown to more than 2.5 million, and it might end up around 3 million by the time all the votes have been counted.

There are Clinton advocates that are arguing that the American people clearly chose Hillary Clinton to be the next president and that therefore the Electoral College should choose to reject Trump on December 19th. But for Christopher Suprun the popular vote doesn’t really matter. To him, it is all about “the good of the country”. Here is more from his editorial in the New York Times…

The election of the next president is not yet a done deal. Electors of conscience can still do the right thing for the good of the country. Presidential electors have the legal right and a constitutional duty to vote their conscience. I believe electors should unify behind a Republican alternative, an honorable and qualified man or woman such as Gov. John Kasich of Ohio. I pray my fellow electors will do their job and join with me in discovering who that person should be.
Fifteen years ago, I swore an oath to defend my country and Constitution against all enemies, foreign and domestic. On Dec. 19, I will do it again.

It is very interesting that he brought up Ohio Governor John Kasich, because Politico is reporting that Kasich is precisely the compromise candidate that the “Hamilton electors” are pushing…

http://www.capitalandconflict.com/economics

Snippet:
That’s the backdrop. So what is Tim looking at now for signs the situation in Italy is deteriorating? Last night he pinpointed four things. I’ll explain them in turn afterwards:

Things to watch:
1) The spread of BTPs (Italian government bonds) over bunds (German government bonds) – any meaningful widening would denote rising credit fears.
2) CDS (credit default swap) spreads of Italian bank debt – ditto.
3) The share prices of Italian banks.
4) I would personally favour owning GBP or USD over EUR. And watch the VIX index for broader macro fears.

http://finviz.com/forex.ashx

The above link is a great visual resource that I use. Enjoy !!!

Daily Visual Chart on EUR/USD

http://finviz.com/forex_charts.ashx?p=d1&t=EURUSD

FINVIZ - Charts on 2 Year , 5 Year , 10 Year and 30 Year US Bonds.

http://finviz.com/futures_charts.ashx?t=BONDS&p=d1

THE KEY US BOND CHART TO MONITOR !!!

http://finviz.com/futures_charts.ashx?t=ZN&p=d1

King Report: Market rigging strives to save disintegrating Europe
http://www.gata.org/themes/gata/imag...ting_small.gif
Submitted by cpowell on 03:23PM ET Tuesday, December 6, 2016. Section: http://www.gata.org/node/16976

From The King Report
Burr Ridge, Illinois
Tuesday, December 6, 2016

As always when a political event occurs, be alert for central bank intervention.
Someone intervened in European stocks before European bourses opened Monday. Unlike previous interventions, the Brexit and Italian referendum manipulations are intended to save the European Union, not just banks or stocks.
The severity of the situation across the pond cannot be understated. The EU and Europe itself are disintegrating. European nations are collapsing under the strain of busted banks and immigration that is accelerating the insolvency of welfare states.
Even worse, societal and cultural norms are collapsing. European elites' response to increasing crime and disorder has been to allow refugee enclaves to become de-facto sovereign states that are not policed. ...


http://thekingreport.com/

https://larouchepac.com/20161206/ita...o%20It%20Again

Snippet:
Unlike the hysteria still continuing in the United States, no one is claiming that Russia fixed the voting machines for Italians' overwhelming defeat of a referendum handing over their laws, courts, and legislature to the European Union. But the promoter of the referendum, Italian Prime Minister Renzi, is just as surely defeated and resigning.

As Russian President Putin observed on the same day in a television interview, "We now live in different times.... The global balance is gradually being changed." Obama has lost again; another leader on whom he had lavished praise has conceded defeat by "the new paradigm."

That new paradigm rejects the old one — ultimately of British financial imperialism — which Obama has served: Sacrificing economies to global financial markets and institutions; sacrificing industries to "free trade" treaties; removing unwanted "dictatorial" governments by constant wars. Ironically it was the British electorate which began the rejection, now spreading throughout the trans-Atlantic countries, of this "globalization" paradigm.

The new paradigm is epitomized by the nearly 70 major new infrastructure projects China is involved in funding, and in building, in the nations of Eurasia, Africa, and South America — potentially, in North America when Obama is out of the way.

It could soon be expressed by the way Putin is forcing a resolution of the attempted regime-change war in Syria; and by China's New Silk Road development thrust coming into the Mideast as well. The European Union itself has bent to this "changing balance," and today offered a Plan B in which it will help fund the reconstruction of Syria and give up the demand for Bashar al-Assad's resignation.

RESEARCH

http://pricesandmarkets.org/volume-5...y-jim-fischer/

Snippet:
Conclusion

Liberty and democracy are compatible, but characteristics of democracy, particularly the premise of majority rule, can harm liberty by allowing the state to take on a greater role than the administration of justice. Income tax is an accessory to democracy in providing the means for the growth of the redistributive functions of the state. The substitution of a RST for income tax can change this dynamic significantly.

Hayek was well aware of the fact that liberty was derailed by the growth of the state and the interventionist policies that accompanied it. Rather than give in and admit defeat, he advocated assessing the causes for the derailment and trying again to establish a truly liberal economic and political order (Hayek 1994). To get back on track requires keeping a policy of freedom for individuals as the only guiding philosophy for any decisions that are made for change (262). The Friedmans recognized the intimate connection between politics and economics. In their estimation, the market allows for unanimity without conformity, a system of effective proportional representation (Friedman and Friedman 1962, 23). Capitalism and democracy were once deemed complementary, but liberalism has been eroded over time by the match. Substituting consumption tax as the means of financing the state can unite economics and politics once again in their promotion of liberty.

References
Birch, Anthony H. 2007. The Concepts and Theories of Modern Democracy. London: Routledge.
Clark, C. Scott. 2013. “We Need to Simplify and Re-focus the Tax System.” In Tax is not a four-letter word: a different take on taxes in Canada, by Alex Himelfarb and Jordan Himelfarb, 211-223. Waterloo, Ontario: Wilfrid Laurier University Press.
Diamond, Larry. 2003. “Defining and Developing Democracy.” In Democracy Sourcebook, by Robert Dahl, Ian Shapiro and Jose Antonio Cheibub, 29-39. Cambridge, MA: The MIT Press.
Feser, Edward. 2000. “Taxation, Force Labor, and Theft.” The Independent Review (The Independent Institute) V (2): 219-235.
Friedman, Milton, and Rose Friedman. 1962. Capitalism and Freedom. Chicago and London: The University of Chicago Press.
Hayek, Friedrich A. 1960. The Constitution of Liberty. Chicago: The University of Chicago Press.
Hayek, Friedrich A. 1988. The Fatal Conceit: The Errors of Socialism. Chicago: University of Chicago Press.
Hayek, Friedrich A. 1994. The Road to Serfdom. Chicago: The University of Chicago Press.
Higgs, Robert. 1997. “Death and Taxes.” The Independent Review (The Independent Institute) II (2): 325-329.
Jasay, Anthony de. 1998. The State. Library of Economics and Liberty. Accessed January 28, 2011. http://www.econlib.org/library/LFBoo.../jsyStt14.html.
Long, Roderick T. 2008. “Market Anarchism as Constitutionalism.” In Anarchism/Minarchism: Is a Government Part of a Free Country?, edited by Tibor R. Machan and Roderick T. Long. Abingdon: Ashgate Publishing Group.
Machan, Tibor R. 2010. “Taxation: The Ethics of its Avoidance or Dodging.” Contemporary Readings in Law or Social Justice 2 (2): 80-91.
Mises, Ludwig von. 1963. Human Action: A Treatise on Economics. San Francisco: Fox and Wilkes.
Narveson, Jan. 2009. “Review of Deleting the State: An Argument Against Government, by Aeon J. Skoble, Chicago: Open Court, 2008.” Independent Review (Independent Institute) 13 (4): 617-19.
Nishiyama, Chiaki, and Kurt R. Leube, . 1984. The Essence of Hayek. Standord: Hoover Institution Press, Stanford University.
Popper, Karl R. 1966. The Open Society and its Enemies. Vol. I and II. New York: State University of New York Press.

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Psychological Challenges of Speculative Trading

An Extract from the book of “Beat the Odds in Forex Trading” by Igor Toshchakov, published by Wiley

A successful trader’s career mainly depends on his or her psychological stability in stressful situations, which are common in the process of trading. Theoretical knowledge can be acquired by reading professional literature; practical skills and experience are acquired in the process of actual trading. The most difficult process is adjusting psychological stress, because in real life it is impossible to completely eliminate the stress factor influencing human activity. Underestimating the stress factor could play a mean trick on trader and even completely block their abilities to make reasonable decisions in real trading situations. The psychological stress of those trading in the FOREX (and any other) market is extremely high. Traders must work under permanent psychological pressure, making decisions in highly unpredictable and uncertain market situations.

Each trader goes through mistakes, failures, and losses in his or her own way, in accord with his or her personality and temper. Some might blame their failure on market’s “wrong behaviour”, which didn’t comply with the trader’s brilliant forecast and caused the failure of the magnificently planned speculative combination. Others blame themselves and their own inabilities to make right decisions in situations, which afterwards seem to be simple. It is an interesting fact that, in hindsight, traders usually find the decision that should have been made at the lost critical moment and can reasonably prove their point of view. Why can they find the right decision so easily and quickly in hindsight? Was the trader unable to do so at the right moment? I don’t think it can be simply explained by looking at yesterday’s situation from today’s point of view. I do not think it can be explained by the fact that classical technical analysis at allows for multiple explanations of almost any market situation. It is always possible to find an appropriate basic explanation for any market shift after the event takes place. In the heat of the moment, however, the trader was influence by stress, and that stress caused the error. This is proven by the fact that most novice traders show exceptionally good (and even phenomenal) results trading dummy accounts but can’t even come near those result when trading with real money.

Being permanently under stress, a trader can often make insufficiently considered, impulsive, and therefore, wrong decisions that result in losses or premature liquidation of profitable position, that is, in lost profit. Sometimes, after a few successive failures with various trades, traders become fearful of the market. They are in as state of psychological stupor, and even a simple market situation may cause panic. They cannot overcome their emotions or soberly evaluate the current situation, and they are unable to make any decision – reasonable or otherwise. In many cases when the market situation shifts against the trader’s position, they can only passively watch the growth of their losses, because they are unable to make any decision at all. Often, after the market stabilizes and traders have the opportunity to calmly analyse daily diagrams of currency fluctuations, they come to the conclusion that the main cause of failure was not the lack of knowledge or training but their own emotions. However, the situation cannot be reversed. Time has passed, money has been lost, even everything should be begun again.

Another problem that causes severe and even catastrophic consequences is the trader’s wilful thinking. In this case, treaders are sure that their forecast of market trends is solely correct. They feel the market cannot and should not give any surprises. They do not consider other options that could be helpful or they think of other options in a vague and uncertain form. Sometimes, traders consider a market shift against their positions. They acquire new contracts at a lower price in the hope that the market situation will come back, and all the positions will become highly profitable. Afterwards, as the situation worsens, they will be able to come out of the market without serious losses. Being sire they are right, traders lose the ability to critically evaluate the condition of the market and accordingly their own position in the market. In this case, they consider only those basic and technical features that justify their wishful thinking, and they discard the contradicting features. This wishful thinking costs them dearly and can lead to psychological frustration. The market’s “wrong behaviour” not only deprives traders of a certain amount of money and often ruins their trading account, but also undermines their self-esteem and their hopes of being a winner in the trading battle.

After such a loss, traders blame themselves, repeatedly going through the details of the unsuccessful trade. They blame the market for the “wrong behaviour” or themselves for errors in what then seems an absolutely clear situation. Sometimes, the trader-market relationship takes the form of a vendetta. Traders consider the market as their personal enemy, treat it in an unfriendly way (even with hate) and dream of immediate revenge. Doing so, they miss the fact ht at they are essentially blaming nature for changing sunny weather to rain. It is very important to be prepared beforehand for this change. Traders should always have close at hand one or few options in case of sudden change of the situation/weather, so that their foresight assures their good time or good profit.

The third main psychological problem is trader uncertainty, especially when traders are inexperienced in abilities and skills – specifically about each market position they hold. Immediately after each position is opened and a money contract is bought, treaders start questioning their choices. This is revealed most vividly in the case of a moderately active market at the moment of fluctuations close to the opening price of the position. Any moment (even insignificant) against their position causes traders to have an irresistible desire to sell the recently acquired contract to limit losses, until it is too late and the market does not shift too far away from their position opening price. On the other hand, an insignificant market shift in the desirable direction causes the same desire to eliminate the position, until it provides for any (even tiny) profit and before this profit does not turn into losses.

Sacred and trouble traders rush and race about. They open and liquidate their positions too often, and experience many small losses and gains. Within a short period of time, they turn intermittently into bulls or bears. As a result, they suffer losses on a dealer’s spread and/or commissions when there were no significant market changes, and all the market fluctuations were no more than just regular market “noise”. Such losses are typical for beginners and individual traders with small investment capital or little experience and insufficiently psychological preparation.

Not uncommon are cases of traders’ impulsive decisions on trading, without any plans or serious preliminary market analysis. The position is opened under an impulsive, invalid emotional reaction. Often, it can be explained by traders’ fear of losing a brilliant opportunity to earn money they think is being offered by the market at that moment. I have witnessed these attempts to jump onto the last carriage of a departing train, and such attempts have ruined a lot of traders. Many traders cannot calmly watch any kind of market movements. Some of my students have confirmed this reality. If they have no positions at the moment of more or less significant market movement, they consider it as a lost opportunity to gain profit. This can inflict a serious shock to them.

When they have no position, they seem unable to realize that each market movement can be considered both ways, and the opposite situation can quite possibly develop. Statistics show that, at each market movement, the chances to lose are much higher than to profit. How does it happen that reasonable people (who in everyday life, without any emotion, can watch a bank casher counting other people’s money) consider the fact of market movement as a threat to their own pockets? Why is other people’s money in the hands of a bank cashier not considered as a lost profit, whereas capital shift on the market and the corresponding quote fluctuations are causes of negative emotions? I think the answer is in the illusory simplicity of business itself, which is considered by many people as a good and simple opportunity to earn a lot of easy money. Similar notions are widely spread among novice currency traders. The soon traders abandon such ideas, the sooner they become professionally efficient traders.

The most difficult problem for every trader (regardless of their experiences) is to learn as quickly as possible how to recover quickly from losses, which are inevitable in this business. At the same time, they must learn to handle shocks and psychological damage inflicted by the losses, because there situations could negatively influence their future work.

The losses themselves and the fear of losing, both of which permanently torture traders, negatively influence their ability to make reasonable decisions in a complicated situation. These factors also undermine traders’ ability to follow their own rules about trade strategies and systems.

I have become personally acquainted with hundreds of traders and have watched their activities. I have taught many students, and have had my own experience as a trader at various steps of my career in the currency market. Therefore, I have come to the conclusion that the main causes of trader failures in speculative operations in the FOREX marker are without a doubt those associated with psychological trauma – the inability to control their own emotions and to find an adequate way to fight stress.

Forex Market Hours

www.forexmarkethours.com

also

http://fxtrade.oanda.com/resources/fxmarkethours/

There are at least two reasons why you should track the major forex market trading hours:

 

1. The first hour after a major market opens is considered very important and often indicates how the session might develop.
2. In periods when market 'trading hours' overlap, liquidity tends to increase because more traders are participating in the FX market.

MAJOR HEADS UP !!!

http://news.goldseek.com/GoldSeek/1481037388.php

There will be Major Changes in the Gold Market starting shortly. Please read and understand the article.

Snippet:



Gold Demand: Grand Slam For Islam

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-- Published: Tuesday, 6 December 2016 | Print | 1 Comment

Graceland Updates
By Stewart Thomson

1. Institutional money managers move gargantuan amounts of gold market liquidity. Their fundamentally-based actions create the chart patterns that technical analysts use to try to project the next rally or decline in the gold price.
2. On that note, please click here now. Double-click to enlarge this key daily bars gold chart.
3. Note the three big fundamental events that I highlighted on the chart. The Brexit, US election/Indian fiat call-in, and the Italian referendum were all predicted by most analysts to boost the price of gold. The sad reality is that gold went nowhere or tumbled after each of those events.
4. On the eve of the US election, I warned the world gold community that gold was very vulnerable to a major sell-off, partly because it traded near major sell-side resistance at $1320. What happened?
5. Gold promptly stunned the gold community and tanked from there, as the Indian fiat call-in overwhelmed the US election news.
6. So, what now? Well, another major fundamental event is now in play, as of Monday December 5, 2016. Please click here now. The Shariah Gold Standard was just approved!
7. Please click here now. Details of the standard are being released at this weeks annual World Islamic Banking Conference in Bahrain.
8. The bottom line is that gold is set to get a major boost in demand from 25% of the worlds population who are part of the Islamic faith.
9. The world gold council estimates the boost could be as much as 500 to 1000 tons, which would make the Islam religion a major factor in gold price discovery for decades to come.
10. Champions adapt. They prosper by adapting. So, gold community citizens need to adapt to the new gold market normal. That means they need to move, somewhat, from mainly a fear trade focus to both a fear trade and love trade focus.
11. To repeat: champions adapt. On that note, please click here now. In regards to gold demand, I think that most analysts are understating the positive events taking place in India, and overstating the negative ones.
12. Top Goldman economists are predicting that India not only rebounds from the current downturn caused by the fiat call-in, but prospers from it. Goldman is predicting India will grow at a mind-boggling 8.6% GDP growth rate through March 2018.
13. I think its important that all world gold community citizens understand that the actions of the Indian government will make gold less of an overall percentage of income spending than it is now, but overall gold demand will still grow.



22. In the shorter term, the most important charts are money velocity and bank loans. This Asian bank loans chart shows a fabulous bull wedge pattern. Morgan Stanley just upgraded HSBC from an “underweight” holding to “overweight”, based mainly on loan growth prospects.
23. Where there’s a loan growth spark, there’s a money velocity upside flame. Where there’s a money velocity flame, there soon follows an inflationary fire!
24. Attention US dollar watchers, please click here now. Heavyweight Wells Fargo analyst Jim Paulsen notes that five out of five major rate hikes have resulted in a lower dollar. I’ve noted that rates rose throughout the 1970s and inflation and gold soared as that happened. Last year’s rate hike was followed by a collapse in the dollar against both the yen and gold. Please click here now. Double-click to enlarge this dollar-yen daily chart. The dollar is quickly approaching major resistance at 116. The upcoming Fed meeting could be the catalyst that launches the next gold price rally, and does so as Sharia and Chinese New Year buying come into play. The 2017 calendar year is looking very good indeed, for the entire precious metal sector!

Thanks!
Cheers
St

Stewart Thomson
Graceland Updates

THE USD/JPY CHART
http://www.graceland-updates.com/ima...16dec6usd1.png