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Wednesday, December 18, 2013

Forex Brokers for US Traders

I would like to start my post by stating that I feel really sorry for every US citizen as well as resident who is forced to operate a forex trading account from inside the US. Those who are familiar with how the US has left no stone unturned to create the least competitive trading environment in the global financial system will nod in agreement, newbies who are clueless will scratch their foreheads and ignorant traders will rush to defend the borderline unconstitutional moves enforced by US regulators.

The CFTC, which some also refer to as the Nazis of the financial world, are basically clueless about forex trading and are angered over the lack of control they have over the largest and most liquid financial market in the world. In an attempt to flex a muscle which does not exist they have created trading rules which makes trading forex an unattractive option for US traders and US forex broker have to comply with them.

The set of rules has send waves of US traders to search for quality off-shore forex brokers who do accept US clients as there is a growing number of forex brokers who refuse to cater to US clients and let them drown in their own misery. Then there is a new brand of off-shore forex brokers who do accept US clients and their deposits in order to cheat them out of it. Before every US based traders gives up hope the third breed of off-shore forex brokers does not care about nationality and only cares about providing all traders with a professional trading environment.

It is very important for US based traders to locate an off-shore broker who accepts US clients and offers them the trading conditions they need in order to be on par with the global competition. While US regulators are as moronic as self-proclaimed professionals can be, US traders should not be forced to carry the brunt of regulatory stupidity.

Why should US forex traders evaluate their broker and decide to switch?

Every forex trader needs to answer this question for them as there is no right answer. This post is not meant to encourage every US based trader to flee the country, but rather to think about what is going on before accepting it.

Look at your trading portfolio and determine if you are satisfied with your performance trading inside the US. Should you like your strategy and trust it fully then you could potentially earn ten times as much by simply switching to a proper forex broker who accepts US clients and offers a competitive trading environment.
US regulators ensured that every US trader operates in the forex market at a disadvantage. There is a reason why every major US financial institution has moved their trading desk outside the US in order to compete and enjoy a truly professional trading environment.

Think about it!

Most serious and successful institutional traders do not want to run their portfolios from inside the US regulatory misery so what makes you think you should?

One forex broker who accepts US clients and maintains its integrity as a company is PaxForex. They do not care about where traders are from; they care about providing the same professional environment to all traders. Tight spreads and deep liquidity with fast execution which means you can actually get your orders filled at those tight spreads.

Friday, December 13, 2013

Did Glenn Stevens kill the Aussie?

Alright, before you guys scramble and scratch your head about the headline and what it means stick with me for a few more moments and let me explain. As a forex trader you should always be aware of developments like this as it will impact your forex trades. I am not suggesting to trade fundamental news reports as you all know I am a technical trader and get all my trading info from the charts as I trade price action.

Let's back up a few notches here. Did you notice the big sell-off in the Aussie yesterday? 

You have no idea what I mean when I say Aussie, great. The Aussie is a nickname for the Australian Dollar and not some beardy bartender in New South Wales. When you hear people talk about the Aussie or read about it and it has anything to do with financial content then it usually refers to the Australian currency.

Now back to my first question, those of you who trade must have noticed it. Those who trade and did not, check your charts again and you should see a heavy sell-off towards the end of the US trading session. Bears took this currency pair and slammed it through the floor. 

You may have wondered why this happened as prior to the heavy selling pressure, which resulted as institutional traders dumped the Aussie, the AUDUSD for example was trading it very good support levels. I myself went long at 0.9000, but had my hedges kick in at 0.8960. I closed them already earlier today for a good 50 pips in profits and entered additional longs at 0.8910. I managed to caught the bottom with precision this time, at least for now.

The reason why the Aussie was punished yesterday and earlier today prior to its reversal which was partially due to an expected short-covering rally was Glenn Stevens or rather the comments he made.

Who on earth is Glenn Stevens?

He is the Governor of the Reserve Bank of Australia.

What damaging thing did he say that caused the Aussie to be punished the way it did?

He stated that the RBA favors a lower Aussie over cutting interest rates and that the preferred exchange rate for the AUDUSD would be closer to $0.85 than it would be to $0.95. 

The issue here is that he more or less ruled out interest rates cuts which is bullish for the Aussie, but prefers to see a lower Aussie which is bearish to a degree. Keep in mind the RBA has little influence over the exchange rate other than cutting interest rates or printing money. Overall traders may be a bit confused and if the RBA does not engage into idiotic money printing like the US Federal Reserve or the Bank of Japan than overall the Australian Dollar is likely to strengthen regardless of what Stevens prefers.

Monday, December 9, 2013

How close is US Fed to Taper?

It has been a rather hectic month last month and we has a work overload which almost crushed everyone at the office. There are times of relative calm and there are times of extreme rush and pressure, but that is what we signed up for and before you get the impression that I am complaining I want to clarify that I am doing the exact opposite. 

Busy is good, the busier the better. So as you may have noticed we had two monthly non-farm payroll reports out of the US and are on the verge of a lack of leadership change at the US Federal Reserve. Basically one idiot out and a bigger idiot in. This has been the pattern over the past few decades and I am always humored and surprised that the next generation of Fed abuse is always worse than the previous one. 

NFP data pointed two two consecutive months of above 200K new jobs created, but the data is not as rosy as dumb money media outlets and analysts have you believe in order to keep the fake bull rally alive. The underlying data shows fundamental weakness in the reports and while some have run around like a chicken without a head screaming taper they simply mimic the crowd mentality without even fully understanding what they just said.

How close is the US Fed to Taper?

Not as close as the US Dollar bulls want them to be. The two reports released simply confirm that the economic picture was a bit more stable six months ago than expected, but during that time the doofus at the helm of the Fed did not realize that and maintained the current stimulus.

Wait a second, the doofus at the Fed not realizing an economic development until after the fact it happened? Does that remind you of something? 

Yes, Janet Yellen. She said the same thing about the financial crisis. Janet Yellen - The joke is on you!

So, what about the current economic climate?

Well, it may be much worse than expected or at least not as strong as begged. Combine that with the next era of monetary idiocy which will soon grasp the Fed and you are not even close to a significant taper by the Fed. 

Tuesday, December 3, 2013

December 2013 Hot Forex Trade



December 2013 Hot Forex Trade: AUDCHF

Forex Outlook: Bullish Bounce from Double Bottom 

Entry Level: 0.8200 - 0.8250

Take Profit: 0.8550 - 0.8600

Stop Sell: 0.8100 - 0.8150

Second Entry Level: 0.8000 - 0.8050

Monday, December 2, 2013

PaxForex Trading Recommendations December 2013

PaxForex Trading Recommendations are published every day over at PaxForex and I want to bring them right to you as well. Follow them if you want to get on board and earn over 1,000 pips every month. Feel free to give your feedback and share your success stories here.
Monday, December 2nd