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APAC should be hogging most traders’ attention in the first half of the coming week. China and New Zealand take the spotlight up to Wednesday. A sprinkling of US and European data helps to round out the offerings.

*Please note; Author is working from UTC +13 when determining the timeline of data releases.

What Will Traders Be Watching This Week?

22 Nov – 26 Nov, 2021

Monday, November 22:

China opens the week and reveals its 1Y Loan Prime Rate. The People’s Bank of China (PBoC) has kept the 1Y Loan Prime Rate at 3.85% for the past 18 months. No change in the rate is expected on Monday. However, looking to a long-term change, China’s Premier Li Keqiang noted on Friday that China is facing “many challenges” in managing the downward pressure on its economic growth and rising commodity prices.

Tuesday, November 23:

New Zealand releases data on Retails Sales (Q3) in the lead up to the country’s Central Bank Interest Rate decision on Wednesday. Retail Sales in the last two quarters rose 3.3% and 2.8% respectively. A projected -0.5% is expected in Q3 as the country’s largest city has been in lockdown for the entire Q3 period.

European and Great Britain Markit PMI Composite data (NOV) is also released on Tuesday. Aggregating the data from the economies’ Manufacturing and Service sectors, the PMI is a broad indicator of economic expansion or retraction. Although still firmly within an expansionary range, a slight pullback in the PMI values is expected for both economies.

Traders

 

Wednesday, November 24:

US Markit PMI Composite data (NOV) is up next. Unlike Tuesday’s PMI data, US PMI is expected to lift ever so slightly from 58.4 to 58.8.

As mentioned above, the Reserve Bank of New Zealand (RBNZ) will be updating the market as to its Interest Rate decision. A 25 basis point hike to 0.75% is all but guaranteed at this point. Speculation of a 50 basis point hike has emerged in reaction to Inflation Expectation in the country, reaching 2.96% in two years. Although, such a significant hike is unlikely and deviates from RBNZ precedence.

 

Thursday, November 25:

Thursday is all about the United States. For October, durable Goods Orders, New Home Sales, and Personal Spending data are released in quick succession. Any beat or miss in the slightly optimistic forecasts for these data points should be pounced upon by traders.

The FOMC minutes are then released later in the morning. Fed representatives have been vocal about their stance on inflation, employment, and the need to keep a loose monetary policy for the short term, all last week. These notes should be reflected in the FOMC minutes.

Traders

Friday, November 26:

A quiet Friday closes the week. South Korea’s Interest Rate decision should be watched closely. A 25 basis point increase is possible, which would bump the Interest Rate to 1% from 0.75%. Analysts are split as to its likelihood as the South Korean Government has other tricks up its sleeve to curb rising prices (such as removing fuel taxes).

USD index range possibly narrowing in near term

The USD index is currently ranging in between 90.0 and 93.0 and has been for the past six months. Moving forward, the adequate economic data coming from the US should help the weak Dollar regain some of its status, but not a ton. I expect the range to narrow, with the 91.5 level serving as a new support level.

Read the full analysis at fxstreet.com

USD Index 1W

5 Tips For Forex Trading With A Full-Time Job

If your aim is to create a second income through forex trading, then you will know the difficulty of fitting trading in around a full-time job. We are all on the verge of a time management crisis. Luckily, with the right approach, the amount of time required to trade can fit easily into a busy schedule.

In this article, we go through five tips to help get you started. But first, it is important to be clear on your motivation for trading.

For most people, spending a few hours a week learning to take charge of their financial future should be considered essential. Think of it like getting a master’s degree. You are studying a craft that you will be able to carry with you for the rest of your life. The initial sacrifice of a few hours a week will seem minuscule in the grand scheme of things, and the benefits can be significant.

Truth be told, you need to take control of your own financial future. Nobody else is going to do it for you. Make the commitment and share it with others who will hold you accountable. It is you in the driver’s seat, but an audience will keep you on track. Start small, and if you do not like it, there is no pressure to keep going. With that in mind, let’s get into our top five tips for a trader with a full-time job.

You do not need to watch the markets 24/7

No matter how much you do it, staring at the screen does not make the prices change. Nor do your trades require constant attention. As famous trader Jesse Livermore said, “The money is made in the sitting”.

Look to build a forex trading strategy that is either:

Of course an approach where you monitor the markets more often than that is certainly doable. The key is to know that you can structure your trading around your lifestyle and that it does not have to take up all your time. There is another big benefit to not watching the markets 24/7. By separating yourself from the markets, you avoid making emotionally driven mistakes. Instead, you trade your plan, leaving your orders to enter and exit the market while you are away. This is a big – yet somewhat unappreciated – advantage for the trader with a full-time job.

The crucial role of organisation

A disorganised trader is a bad trader. And needless to say, one of the greatest challenges the trader who is also holding down a full-time job has is to get organised. You want to make sure your forex trading routine is well structured. Have a set list of activities that you conduct each time you go to trade.

This should include (but not be limited to):

How long should each of these activities take? It does not have to take long at all. You need to divide your allotted time amongst each of these activities. If you don’t have time to conduct all these activities, it probably means you are placing too many trades. If that is the case, then cut back to something more manageable.

Focus on your top strategy

One of the challenges traders face is they have too many good ideas for trading strategies. Not only does this result in their best ideas not getting the attention they deserve, but it is also very time-consuming. Instead, be ruthless. Choose only your very best strategies to focus on. This could be your highest quality set-ups or the currency pair where you feel you have the greatest edge.

It could very well be best that you only trade one or two of your favourite currencies. Apply the KISS (Keep It Simple, Stupid) approach, use a simple set of indicators, and don’t overcomplicate things. This will save you a ton of time and keep your trading manageable.

Program a robot (EA) to do your trading

Automating your Forex trading ideas is not as hard as it seems, yet the benefits can be significant.

By using a robot you can:

The good news is you don’t have to program the forex trading strategy yourself. There is a large community of developers that can program your ideas and an even larger number of strategies available that you can pick from. A more recent innovation has been the advent of social trading. Social trading allows you to automatically follow the strategies of other traders around the globe.

You simply connect your account to a social trading provider and then select the strategy you want to follow. You can check out these providers:

Note that there are several factors for you to consider when selecting a forex trader to follow.

Free yourself with alerts

These days trading platforms come complete with alerts that will notify you in a variety of ways.

In your trading platform, you can configure alerts based on:

Alerts can be delivered to your desktop and email. These tools can make your trading life much easier, so be sure to use them.

These alerts can be set in your forex trading platform or you could use a service like TradingView.

What’s next?

It is very easy to find excuses not to make the changes that matter in your life. If you want to be a trader, don’t let them get in your way. Keep your eyes on the prize and take the steps you need to take to see this through. If this requires re-organising or restructuring your life, then do it. Don’t let the excuse of a busy life get to you. If you truly want something, there is always a way.

Start by testing a Demo Account and you can set one up with BlackBull Markets here: old.blackbullmarkets.com/en/demo-account/  and when you are ready, try it out with a small Live Account. We are always here to help, so feel free to contact our friendly support team by phone or email at support@blackbullmarkets.com.

Is There Such Thing as the Perfect Trading Strategy?

Every trader has thought about coming up with the perfect trading strategy. Many spend night after night trying to produce a strategy with a win rate over 90%, and after planning and tweaking it in a demo environment, eventually try to take it live.

However, what actually ends up happening is that things might start off well for the first few trades, but eventually they get stopped out. And then instead of taking the loss and moving on, they go back to the drawing board, thinking that the strategy is at fault. This continues on and on, and can eventually become enough to drive any trader insane.

Here’s the thing: the perfect trading strategy does not exist. If it did, then everyone would be using it, right? Unfortunately, many choose to ignore this fact and continue chasing a pointless path.

Solid Setups

While there is no way to have a perfect trading strategy because of how unpredictable the market is, the most important thing to learn is to understand the strategy that you are implementing, and what impact it will have.

Here are some solid setups to consider:

  1. Volatility Breakouts

This is a strong and reliable strategy that is popular and utilised by many experienced traders. It revolves around locating areas of shallow consolidation where volatility drops, and then playing the breakout of the tight range that has developed.

While this is by no means a perfect strategy, it is an option you can consider.

However there are nevertheless factors to watch out for:

They also don’t provide the following details:

Unfortunately, many trigger finger traders find these considerations boring. So what usually occurs is this:

  1. They buy and sell volatility breakouts.
  2. Having run out of them, they then search the markets for any situation that resembles that setup
  3. They risk 5% or more on each setup
  4. They lose a lot of money
  5. They keep trading to try and win back the money until they have none left
  1. Trend Following

This is a setup that revolves around cutting your losses when required, and letting profits run. Strategies include playing pullbacks that don’t violate the structure of a trend.

However, patience is key to the success of this strategy. For example:

You identify a new price trend starting in February 2020. You have a plan in place to quickly highlight good pullbacks that would enable you to engage the trend. The daily peak structure is in place so you make a move to “nail the entry”. Then things start to turn sour as you identify several “trouble” zones. You lose course of your initial strategy to play a pullback in a daily trend and end up engaging in a potential longer term trade.

The above example shows why its crucial to watch out for the following:

A common misconception amongst traders is thinking that being patient simply means waiting for the perfect price. In this instance, perfect is determined by a price pattern or a certain indicator. Unfortunately, the perfect price is nearly impossible to determine and therefore we cant stalk perfect entries.

Certain “all in, all out” strategies may work under certain conditions, but when it comes to trend trading, you’re better off looking to instead scale in and scale out. Sitting and waiting for the perfect entry will result in missing out on other golden opportunities.

Another thing to consider is confusing timelines. When trend trading, it’s recommended that traders select one timeframe to view the trend in question. A daily chart is a good example. This means that when the daily is pulling back, you’re able to drop into lower timeframes to attempt a better entry.

Confusing your timeframes and trends will only negatively affect your performance.

Embrace Imperfection

By now you should understand that by trying to create a “perfect” trading strategy, you move away from the core concept of trading itself.

As a trader you will always experience losses, but its how you manage and handle them that is important. What you should do is cut your losses as soon as you can, and take your profits as far as you can. Even if you make one unsuccessful trade, if your overall strategy is solid, your overall balance will be positive.

By staying flexible and being open to making adjustments, you will be much more confident and ready to adapt when shifts inevitably do happen.

If you would like to learn more about trading, we have guides which we publish every month here: https://blackbullmarkets.com//en/support/trading-guides, as well as daily market reviews, which are available here: https://blackbullmarkets.com//en/market-reviews