I’m sure you’ve heard the news by now – in a surprise move the BOJ introduced negative interest rates, which caused for some interesting spikes across all JPY crosses. And I may I add that Kuroda was quoted by Reuters just a week ago that he had no plan to adopt negative rates now. Well, in his defense – he did explicitly say ‘now’ – by which he only could have meant ‘right now, this second’. Nobody asked him about the following week, did they?
Bear markets in particular have a way of wearing on you. Sure they look great in hindsight, leaving little doubt about how you one could have easily banked millions. And quite frankly there is actually some truth in that (we’ll cover that later), but in reality most traders usually get chopped to pieces trying to time the endless preceding gyrations, only then to watch the tape run away without them.
In my time running this blog I have gradually shifted away from posting long winded tutorials as people’s attention span seems to be inversely correlated with the amount of information they are being exposed to. So today let’s look at two very simple ways [...]
I had the right ideas yesterday but for some reasons various entries didn’t trigger. So let’s try this one again, shall we? On the equities side I missed out by just a matter of ticks but there is a reason why I’m being such a hard ass with my entries.
We’ve seen a ton of intra-day volatility in the past few weeks and I don’t expect things to quiet down anytime soon. So a more disciplined entry afford me a stop with higher odds of survival. Keep in mind that the stop distance affects the amount of contracts I need to fulfill my R size. The wider my stops the smaller the amount of contracts. That not only affects my leverage but more [...]
I’ve said it before and I’ll say it again. When in doubt always choose the scenario that screws with the maximum amount of market participants. Mrs. Market may be evil down to the core of her raven black heart but at least she’s consistent. So Soylent Orange it is apparently, now let’s see what we’ve got to work with here.
The drop in equities yesterday should have cleaned out the majority of the longs. Quite frankly Soylent Red is still on the table and I’d give it about 30% at this point. Although I doubt I’ll catch this entry I would be long near 1867, so perhaps I get my fill after the bell.
The EUR/USD is [...]