I'll begin with a tale of my destruction to illustrate my problem.
I got killed today shorting USD/JPY, my pair of choice. I took a large position at 93.80 late last night. I thought it was ranging and if anything would resume it's decline barring any sort of intervention from the BOJ. If you look at the chart today, you can see that is clearly not the case.
The USD/JPY had a substantial rally today. The interpretation I'm reading at dailyfx.com (http://www.dailyfx.com/story/tophead...206285321.html) says that traders are jumping back on the dollar, considered a safe currency, because of very poor consumer confidence data released in the US today. Excuse me? I thought poor consumer confidence data would cause currency price to drop? Why did it react to the news by increasing in this particular instance? Isn't the JPY considered also a safehaven for risk averse traders? What is going on here? The bigger issue at hand is how to improve my skill and knowledge so I can better interpret market moves in the future.
There's so much information out there. What can I (and other traders) do to get only the most useful information and interpret it in the correct way? I'm open to any suggestions you may have. Any books you read? Websites you read? Any economic commentary you read on a regular basis? Am I think about this in the completely wrong way? Please discuss, critisize, etc...
Thanks.
I got killed today shorting USD/JPY, my pair of choice. I took a large position at 93.80 late last night. I thought it was ranging and if anything would resume it's decline barring any sort of intervention from the BOJ. If you look at the chart today, you can see that is clearly not the case.
The USD/JPY had a substantial rally today. The interpretation I'm reading at dailyfx.com (http://www.dailyfx.com/story/tophead...206285321.html) says that traders are jumping back on the dollar, considered a safe currency, because of very poor consumer confidence data released in the US today. Excuse me? I thought poor consumer confidence data would cause currency price to drop? Why did it react to the news by increasing in this particular instance? Isn't the JPY considered also a safehaven for risk averse traders? What is going on here? The bigger issue at hand is how to improve my skill and knowledge so I can better interpret market moves in the future.
There's so much information out there. What can I (and other traders) do to get only the most useful information and interpret it in the correct way? I'm open to any suggestions you may have. Any books you read? Websites you read? Any economic commentary you read on a regular basis? Am I think about this in the completely wrong way? Please discuss, critisize, etc...
Thanks.