TradersClass

Superior Trading Skills through Education

 
BlogSection
What's the Yield Curve Invertion? Print
Written by Site admin   

What's meant by the Inverting Yield Curve?

 

The blogosphere is full of the impending collapse of the Dow with some pundits talking of 14,000 in 2019, a modest 10,000 points lower. Right or wrong, the fuel that has kept stock markets forever bubbling, an endless wall of money and a strong economy, will eventually end. Is the yield curve telling us the economy is about to fall of a cliff?

Normality

Government and corporate bonds are issued with different maturities. The standard US bond is the 30 year, but there are many different maturities, typically 3, 5 and 10 year, etc. Some run for just a few months to maturity, whilst some whacky corporate bonds have been issued with maturities way out at 100 years!

Read more...
 
The UK's Crown Jewel Print
Written by Site admin   

The UK's Crown Jewel

The Jewel in the UK's crown is, and has been for the last four+ decades, the City of London. City bankers and banking can do no wrong, as we discovered in 2007/8. Banking and finance delivering the largest tax yield of any sector of British industry.

The City of London is a dominant centre in world and European finance. If Europe really wanted to cause a problem for the UK leaving the club of 27, quashing a deal on financial cross border services is where they could do most damage.

Last Thursday a rumour gathered momentum.

Leaks dripped out from the 'secret' meetings with Brussels. The City could continue to operate as before across the Eurozone. It was later denied, of course, but the rumour was enough to collapse the EURGBP, reversing two weeks of Euro gains in just four days.

Last Thursday was the time to reverse the a-b-c trade and ride the EURGBP down for another 150+ pips.

 
Another 150 pips.... Print
Written by Site admin   

Another 150 pips - Was last Thursday the day we've been waiting for?

 

None of us need reminding of the relentless grind of Brexit headlines which have been battering the Pound and the EURGBP exchange rate over the last few months.

Traders also had other things on their minds, with the Euro tumbling through late September and October. It was those Italians in revolt who dared to ignore edicts from their European masters.

The headlines in September suggested a Brexit deal was no more than days away and the Pound gave us a tradable 180 pip run against the Euro in a fortnight. Everything looked rosy....

Then the carpet was tugged away by Barnier and crew. Theresa was sent away with nothing but a red face and more homework to do on the Irish border.

That set up the next move as the Euro ran up against the Pound in the opposite direction. An a-b-c move, good for another 150+ pips....

 
How to be a professional trader Print
Written by Site admin   

How to be a professional trader

The world we inhabit is dominated by the 80-20 principle.

Vilfredo Pareto changed the way we looked at many things, specifically micro-economics which he linked to social factors which went on to become popularised in recent years. Pareto observed the "law of the vital few". Approximately 80% of the effects come from 20% of the causes.

Nowhere is this more apparent than a glance at the small print at the bottom of every spreading betting website. They are now required to publish how many clients lose - you guessed it, around 80% of their customers lose money.

So, what of the remaining 20% or so?

There are is no shortage of horror stories from the 80%. Many have been there. This article describes the spiral into despair which results from marketing hype and personal hubris, the Superman effect, following modest successes. 

Reality? A recent research report from Psyquation indicated that fewer than 20% become profitable after two years and only 1.2% are successful enough to make trading their career. Sobering stuff for those new to the game, but is it gambling? Thanks go to long term investor Gary Scott for the article below:

Trading and Investing is gambling.

Until we admit this, we cannot invest like the pros. However, once we recognize that every investment is a bet, can we become a professional investor instead of a stock and bond gambler?
The fact is professional gamblers are not really gamblers. They are investing pros who cash in on the imbalances of gamblers. They invest in bets instead of stocks and bonds.

Read more...
 
Why do we do it.... Print
Written by Site admin   

Why do we do it,

letting small losses become big ones?

Warren Buffet was known to answer the question: What are the most important trading rules?

His standard answer was: Rule one - don't lose money. Rule two: Never forget rule one.

It's all in the interpretation. Did he mean 'Don't lose money on trades' which some may translate as

(A); 'I may have a losing trade on but I'll hold it because it may bounce back into profit and then I've followed rule one'.

Or, (B) perhaps it was just an off the cuff quip, meaning that to survive as a trader or investor we need to make more overall then we lose?

Letting winners run and cut losses short

This is the self evident rule we need to achieve to ensure we can make profits overall. The only problem is that the

Read more...
 
<< Start < Prev 1 2 3 4 5 6 7 8 9 Next > End >>
Page 1 of 9

From the blog

Now we know why...!

A picture tells a thousand words.

Lat month the Fed and Janet Yellen's comments, led the market to belive we were on the hawk trail to higher interest rates, 'normalistion' they called it. With that, commentators were falling over themselves to call the end of QE, actual tapering would be just a few months away...lardy dar, etc. Read more, plus the charts...

Read more...

Check these links

  • JoomlaWorks Simple Image Rotator