EarnForex.com Monthly Newsletter
| | | | Welcome to the latest issue of EarnForex.com newsletter — November 2018. In this issue of EarnForex.com newsletter, I will remind you about the most important Forex-related events of the last month and will also show you the list of the site's latest updates. | | EDITORIAL: Resisting FOMO in Forex 😰 | | Every now and then a seemingly great opportunity would arise in the Forex market - be it a tumbling stock market that should allegedly spur this or that currency or be it some nearing controversial political election, which is bound to wreak havoc on the nation's economy, or other events like this. What unites these opportunities is that all of them: - Are unplanned — they can be based on some unconventional assumption or be firmly grounded in traditional theories, but they are still not a part of your usual trading plan. You did not do regular analysis of the prior situation, you did not have some basic forecasts on your mind for the near future. You have just found out about some fact that looks easy to trade on.
- Require immediate participation — normally, the earlier you jump into such an opportunity, the more promising it looks. Of course, the sooner you get in, the less analysis you can do and the less probability that you will find enough strength to get out in case it goes wrong.
- Promise huge gains — if they did not offer potential rewards far exceeding the trader's normal gains, such opportunities would not induce a feeling of immediate need to participate.
Together, these three factors act strongly on the emotional level, pushing a trader into impulsive trading. This is caused by a behavioral trait commonly known as a fear of missing out (or FOMO), resulting in unnecessary losses and stress. It does not mean that you should never act on such once-in-a-lifetime (or more precisely, once-in-a-while) events. You just need have a sound trading plan prepared for assessing them appropriately and for setting up your entries and exits with prudent risk and money management policies in mind. For example, opening a huge long USD trade after you have seen the S&P 500 falling 3% in a day is not a trading plan. Chasing an opportunity to go short the Turkish lira based on a recent catastrophic speech by the country's president is also not the right attitude for a professional trader. Yet, detecting and monitoring long-term fundamental trends and incorporating new unexpected and influential developments into your expectations is a normal process that will likely result in enhanced overall results in your trading. This process should be guided by calculations and reason and not by the fear of missing out on the next large movement. | | Overview of the major currency pairs' performance in October | | EUR/USD — if we do not count a small uptrend near the middle of the month, the currency pair was in a steady decline in October. It was at the maximum at 1.1623 on October 1, at its minimum at 1.1302 on October 31, finishing the month at 1.1314. GBP/USD — after rallying initially, GBP/USD fell significantly lower than its opening level. The highest monthly rate was at 1.3257 on October 12, while the lowest — at 1.2695 on October 30. GBP/USD finished October trading at 1.2768. USD/JPY — saw a decline turning into an expanding sideways range. The pair rose to as high as 114.54 on October 4, reaching a bottom at 111.37 on October 26 and closing the month with the 112.93 rate. AUD/USD — fell first and then switched to sideways movement for the rest of the month. The monthly high was at 0.7237 on October 2, the monthly low — at 0.7020 on October 26. Trading ended at 0.7076 for this currency pair. USD/CAD — rose steadily in October. maximum level for this pair was 1.3169 on October 31, while the minimum — 1.2781 on October 1. The month's trading ended at 1.3158 for USD/CAD. | | Fundamental background of the past month | | Interest rate changes in October | | Canada | 1.50% | +0.25% | 1.75% | | Chile | 2.50% | +0.25% | 2.75% | You can see the current interest rates by the world's central banks in our interest rates table. | | No new MetaTrader indicators have been added to EarnForex.com since the last issue of the newsletter, but one indicator received a major update: You can always view the previously uploaded Forex indicators. | | Four new Forex brokers have been added to EarnForex.com since the last issue of the newsletter: - WCX — an unregulated crypto/FX broker claiming to be from Switzerland. They have a very minimalistic website and offer trading in multiple markets via Bitcoin-based accounts. Maximum leverage for currencies is 1:300.
- FXLinked — an offshore broker from Seychelles with 1:400 leverage and two trading platforms — MT4 and MT5. Trading can be started with just $5 and multiple assets are offered.
- UBFX — another offshore broker, this time from Vanuatu. They offer 1:400 leverage on Forex pairs and allow trading with as little as $1. Only MT4 platform is available.
- TradeFW — a CySEC-regulated European broker with a maximum leverage of 1:30 on currency trading. Their ECN standard account can be opened with $250. The only available trading platform is MetaTrader 4.
You can always view our full list of Forex brokers. | | Top five Forex brokers of the last month | | There was the following important Forex industry news since the last issue of the newsletter: - ESMA published a small report on its CFD/Forex measures along with a decision to prolong them through February 1, 2019.
- The ban on binary options in the EU spurs related offers from Forex brokers. IQ Option began offering short-term vanilla options to European traders in October.
- Other brokers continued to add offshore or otherwise non-EU-regulated subsidiaries to offer higher leverage to the EU residents.
| | Until the next newsletter issue! | | That is all for the November issue of the EarnForex.com newsletter. If you have questions, comments or just want to see something else in the next monthly issue, please let us know. | | |
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