Articles

The predictable 0.25% interest rate creep announced last Wednesday hit a number of sectors, notably the Banks, Retail, Building Materials and Infrastructure. The sulking response was surprising given that the expectations were so overwhelming for an increase – the only surprise was maybe that it was a month early.

The markets are at an extremely interesting point at the moment. The run up of the overall index has been outstanding and the fundamentals of the economy are continuing to show strength. At the top of markets things always seem the most bullish and the news of recent times indicates caution may be in order for the contrarian.

Swing charts represent a powerful tool in entering and exiting the market. Much has been written this year about ABC trading and the simplicity of trading with the trend. Swing charts give a very clear indication of trend and trading with the trend is the most effective way to gain profits in the market. There are other elements that an ABC trader should expand on and it comes from mastering the swing charts and understanding its subtleties. It’s really an extension of the basic concepts of ranges and direction.

With Foreign Exchange (also know as FX or Forex) trading volumes exceeding $1.4 Trillion per day it is a Market that at the very least commands the interest of any serious trader. For those yet to experience Trading the FX markets, let us take a closer look at what is the most liquid market in the World today.

Successful trading is part science and part art. If you have found a mechanical trading system that works and you are really disciplined, you can simply apply the rules and let the mathematics work. However, if you are like most of us, you will get greedy, get scared, change your mind, decide to tweak the system, etc. In addition, the market will go against even the best of trading systems. This is where most of us get into trouble. When one recognizes that a trade is not working, even following our system, we will want to repair it.