CNBC Comment: Investors beware as banks go coco loco April 7, 2014 INVESTING in banks has become as chancy as having a flutter on the Grand National. False starts, stewards inquiries and the City equivalent of leaping 30 fences – all enlivened by thundering competition. But investors still harbour the hope of backing an unlikely winner. The trade in cocos, a hybrid of debt and equity, has [...]
DailyFX Tips & Picks: Sterling strength and the beggar thy neighbour strategy April 7, 2014 THE BRITISH pound has risen 10 per cent against the US dollar, 6 per cent against the euro, and 11 per cent against the Japanese yen since July of last year. While strength in an economy is generally a good thing, this time may be a little different. The trouble comes from the “what’s next” [...]
DailyFX Tips & Picks: Analyst’s pick April 7, 2014 CHIEF STRATEGIST JOHN KICKLIGHTER My pick: Euro-dollar below $1.3650, sterling-yen below ¥169.25, long dollar-Loonie Expertise: Fundamental and technical analysis with risk management Average time frame of trades: One day to one week Risk trends and relative monetary policy are two themes dominating the foreign exchange trading landscape. The best set-ups should fit both. Euro-dollar is [...]
How social trading levels the field April 7, 2014 The wisdom of crowds looks set to bridge the gap between retail and institutional investors TRADING is no longer a matter of just staying on top of major data prints and corporate releases. As this year’s emerging market crisis demonstrated, economic ripples in far-flung corners of the globe can quickly become market tsunamis. And when [...]
Are troubles in China a significant risk to the global economy? April 7, 2014 YES George Magnus AMID the market fragility of recent years, China has been an island of security. But growth is falling and a nascent credit bubble, which the People’s Bank of China (PBoC) is trying to quell with tough new measures, are starting to play on the nerves of investors. The fall in the renminbi, [...]
CNBC Comment: Why ECB currency concerns won’t last March 31, 2014 IT MAY be 1 April, but there’ll be no joking at the European Central Bank (ECB). It meets again this week, and the pressure is on. The latest inflation print showed an annual rate of just 0.5 per cent in March, below forecasts and the lowest rate since 2009. Almost instantaneously, the head of the [...]
DailyFX Tips & Picks: Analyst’s pick March 31, 2014 CURRENCY STRATEGIST CHRIS VECCHIO My pick: Short euro-Aussie, short euro-dollar Expertise: Fundamental and technical analysis with risk management Average time frame of trades: A few hours to a few weeks The euro has rallied, despite the worst Eurozone inflation report since late 2009, which showed that disinflation accelerated. The move suggests that traders remain uncertain [...]
DailyFX Tips & Picks: A simple indicator that makes stop losses more effective March 31, 2014 STRUGGLING with your stop loss? Try out the Average True Range (ATR) indicator next time you trade. The ATR is a simple tool that shows the average range of a typical trading day. If the ATR shows 83, this means that the distance between the high and low of the day is, on average, 83 [...]
CNBC Comment: Alibaba float splits investor opinion March 24, 2014 FROM advisers to potential investors, many are salivating over the forthcoming Alibaba listing stateside. Investors who dabbled in Facebook and Twitter will now have access to the champion of Chinese internet players, where e-commerce is booming. According to China Internet Network Information Center, China ended 2013 with 618m internet users, 500m of which were mobile [...]
DailyFX Tips & Picks: You can be wrong half of the time and still profitable March 24, 2014 HOW IS this possible and how can you leverage this? Well, if you gain 2 per cent of your account every time you book a gain and only loss 1 per cent on your bad trades, you will still be ahead. You will on average take two steps forward when gaining and only take one [...]