EarnForex.com Monthly Newsletter
| | | | Hello traders! Welcome to the latest issue of EarnForex.com newsletter — September 2019. 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: Is 20% per Month Realistic? 😲 | | Yes and no. Earning 10%, 20%, or even 100% per month is definitely realistic in Forex trading. After all, you can just bet everything on a single trade and earn twice or thrice the size of your initial risk if the trade ends up a winner. After all, it is a common recommendation among experienced traders to go for trades with the risk-to-reward ratio of at least 1:2 or 1:3. Of course, going all in or even "50% in" is a money management nightmare come to life story. No trader would like to experience even a single loss with such an exorbitant risk. And if we consider that losses may come in streaks, such a trading plan looks nothing short of suicidal. Here is where the verisimilitude of a trading plan should be assessed together with how consistent and sustainable it is. Are there traders who earn 20% per month? Sure. Are there traders that bring in about 20% consistently without similar-sized monthly losses or who do not end up wiping their account clean after a few unlucky months? Probably, but I believe the number of such traders corresponds closely to the number you would get by applying the law of large numbers to the probability of failure on a sample of millions of traders. Gambling is not a good way to approach Forex trading. So, if you want to be prepared to face reality, your expectations have to be not only realistic but also practical. You have to consider that risking 1-2% per trade will only rarely bring you that coveted monthly ROI of 20%. Moreover, it will be a practical expectation only if you are a short-term (intraday) trader. That being said, you would still have to expect losing months and probably some losing years in your trading career. And that's if you have a profitable strategy in a first place. Falling for some course or signals promising you 20% gain per month looks attractive, but you have to acknowledge how inconsistent such trading results can be in the probabilistic world of financial trading and act accordingly. | | Overview of the major currency pairs' performance in August | | EUR/USD — after going up initially, the currency pair declined significantly. It was at the maximum at 1.1733 on August 28, at its minimum at 1.1301 on August 15, finishing the month at 1.1600. GBP/USD — moved in a moderate uptrend in August. The highest monthly rate was at 1.3144 on August 1, while the lowest — at 1.2661 on August 15. GBP/USD finished August trading at 1.2957. USD/JPY — declined sharply during the first days of the month but then consolidated albeit with high volatility. The pair rose to as high as 112.15 on August 1, reaching a bottom at 109.77 on August 21 and closing the month with the 111.05 rate. AUD/USD — traded mostly sideways with a slight downward bias. The monthly high was at 0.7453 on August 9, the monthly low — at 0.7175 on August 31. Trading ended at 0.7190 for this currency pair. USD/CAD — rose but consolidated in a sort of an ascending triangle pattern. The maximum level for this pair was 1.3174 on August 15, while the minimum — 1.2887 on August 28. The month's trading ended at 1.3030 for USD/CAD. | | Fundamental background of the past month | | The US dollar was driven in August mostly by three factors: developments in the US-China trade conflict, the outlook for Federal Reserve's monetary policy, and concerns about the inverted yield curve. The euro was also reacting to the news about Sino-US trade tensions as well as to fears of a recession. The Brexit remained the main driver for the Great Britain pound, with the suspension of the parliament increasing chances of a no-deal Brexit, and thus driving the sterling down. As usual, the Japanese yen was reacting mostly to the risk sentiment, rising when it was worsening and falling when it was improving. The Swiss franc was soft in August, dragged down by the optimistic market sentiment and the outlook for dovish monetary policy and the Swiss National Bank. As it often happens, the Canadian dollar was following moves of crude oil prices. Domestic macros were also affecting the currency, with underwhelming employment data hurting the loonie and the positive surprise from GDP helping it. The Australian dollar fell at the beginning of the month on risk aversion but rebounded in the second half as the market sentiment improved. Positive employment data and the minutes of the central bank policy minutes, which showed that the Reserve Bank of Australia is not in a hurry to cut interest rates further, also helped the currency. The New Zealand dollar tanked in the first half of August after the Reserve Bank of New Zealand surprised markets by a 50 basis point interest rate cut instead of the expected 25 point cut. The currency recovered a bit later after the central bank's chief signaled that the bigger-than-expected cut means no more cuts in the near future. Gold, which often trades inversely to the US dollar, was reacting to the same news as the greenback but in the opposite manner, falling after the Fed minutes signaled about lower chances of another interest rate cut and after the trade tensions between China and the United States deescalated. | | Interest rate changes in August | | Brazil | 6.50% | -0.50% | 6.00% | | Iceland | 3.75% | -0.25% | 3.50% | | Indonesia | 5.75% | -0.25% | 5.50% | | Mexico | 8.25% | -0.25% | 8.00% | | New Zealand | 1.50% | -0.50% | 1.00% | | Republic of India | 5.75% | -0.35% | 5.40% | | Thailand | 1.75% | -0.25% | 1.50% | You can see the current interest rates by the world's central banks in our interest rates table. | | Four new Forex guides have been published on EarnForex.com since the last issue of the newsletter: You can always browse the previously uploaded guides. | | Two new Forex brokers have been added to EarnForex.com since the last issue of the newsletter: - EagleFX — a classic offshore MT4 broker with $10 minimum account size, 1:500 leverage, and a wide range of trading instruments to work with.
- TradeLTD — an Estonian Forex trading company with $200 minimum, 1:200 leverage on Forex, and a tiered account system for big traders. The trading platform is MetaTrader 4, with mobile and web options.
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: - NFA fined GAIN Capital for $50,000 for failure to "favorably adjust all customer orders adversely impacted by a recurring malfunction" affecting the broker's trading platform.
- CySEC has reached a settlement of €300,000 with Banc de Binary regarding numerous breaches of The Investment Services and Activities and Regulated Markets Law of 2007.
- ASIC (Australian regulator for Forex brokers) released its own proposal for product intervention, which lists a severe restriction on Forex/CFD trading (1:20 leverage cap, for example) and complete ban on binary options in Australia.
| | Until the next newsletter issue! | | That is all for the September 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. | | |
--
If you do not want to receive any more newsletters, please click this link: Unsubscribe
To update your preferences and to unsubscribe visit this link
Forward a Message to Someone this link 
|
0 comments:
Post a Comment