Forex Crunch Forex Daily Outlook – January 28th 2010 |
| Forex Daily Outlook – January 28th 2010 Posted: 27 Jan 2010 02:00 PM PST
Yet another busy day awaits forex traders. Economic indicators might be overshadowed by many political events today. Here’s what’s expecting us today: Apart from scheduled events, US President Barack Obama will make an important speech in his “State of the Union” address. He is expected to talk about the economy after one year in office. This will prbably include a special tax reduction. Almost a year ago I wrote that Obama’s stimulus plan weakens the dollar. The World Economic Forum continues in Davos, and headlines continue to flow from there as well. Two more political events are due in the US: Timothy Geithner continues to talk about his actions during the fall of Lehman Brothers. The confirmation of Ben Bernanke’s second term is also pending approval. German Unemployment Change will move the Euro. In the past few months, this important indicator exceeded expectations and helped the Euro. Tomorrow we have the all-European unemployment rate. For more on the Euro’s events, see the EUR/USD forecast. Also in Europe, Consumer Confidence is expected to edge up to -15. Casey Stubbs sees EUR/USD consolidating and waiting for a breakout. American Core Durable Goods Orders are predicted to rise by 0.4% after a surge of 2% last month. Durable Goods Orders are predicted to keep turn from negative to positive, jumping 2.1%. American Unemployment Claims are expected to get back to normal, after a rise to 482K last month. A drop back to 451K is now predicted. In New Zealand, Building Consents and Trade Balance are both released together, with the latter expected to show a squeeze of the deficit to 115 million. Australia’s CB Leading Index might help the Aussie after the good CPI result. This comes before next week’s rate decision. In Japan, Household Spending is expected to rise by 1.6% (annually) but the Tokyo Core CPI is expected to remain deflationary at annual rate of 1.8%. In the Japanese rate decision, the BOJ talked about less deflationary fears. Traders of the Yen will get to see the insights of the meeting with the release of the Monetary Policy Meeting Minutes. Also note the Japanese Prelim Industrial Production which is expected to rise by 2.5% this time. That’s it for another busy day in forex trading. Want to see what other traders are doing in real accounts? Check out Currensee. It’s free. |
| Golf, Trading and car accidents? Now that’s a Story Posted: 27 Jan 2010 06:00 AM PST
Guest post by Jason Stapleton (ForexGuy) 4xtraderslive Have you ever been driving down the highway and see a car accident? Of course you have. We all have. You know you shouldn't look. You should just keep driving. But inevitably, almost unconsciously, your foot comes off the gas pedal. You eyes begin to narrow as you search the scene. You just can't help but look in the hopes of seeing something that will give you a good story to tell later. "What happened?" you wonder. "Is anyone hurt?" The next thing you know you're doing the old 'bird neck' as you slowly roll past the crash site. You have now become what you hate most, the guy who's holding up traffic as he gawks at the carnage on the side of the road. Golf, my friends, is my car accident. I love to play. There's something about being on the course, on a perfect fall day with no wind. Enjoying nature, the finely groomed fairways and quite tranquility that seems to take me so far away from all my struggles and responsibilities………..then I tee off. For the next several hours I spend my time zigzagging my way from one side of the fairway to the other as I attempt to chop my way through the front nine. Make no mistake; there's not a sand trap, deep rough or water hazard that will escape my quest for mediocrity. I have become an expert at avoiding any area on the course that would lend itself to an easy lay-up. Some of you might wonder what any of this has to do with trading. Well I tell you this short story because I think it has incredible value to you as a trader. You see, I don't practice playing golf. I just play. You won't find me out on an afternoon hitting balls at the driving range. I don't work on putting or chipping. I just get out on the course with my buddies and play. I'd like to become a better golfer. I just don't want to invest the time and money necessary to achieve that goal. I'm content to shell out the $60 green fees and swing a club. Over thanksgiving I took the family out to visit my grandparents. My two daughters has an absolutely wonderful time as they helped my grandmother make dinner and pick flowers outside their beautiful home in Kansas. Their house sits right off the 13th green on one of the finest golf courses in the Midwest. My grandfather loves to golf and we spent several days out on the course. It's might not surprise you that he still has no problem beating the socks of me. He's is truly an exceptional man in more ways than one. My grandfather was a farmer for most of his life. He was very successful through the years and now lives a life most of us would find envious. I remember as a young boy spending the summer at their farm where I would see him hit golf balls for what seemed like hours on end. He had a 3 acre plot of land adjacent to his home and during his free time he would hit the balls from his driveway to a flag he'd posted on the far side of the field. He'd hit an entire bag of balls, and then spend the next half hour collecting them up with one of those old hand shaggers. His office was littered with golf magazines. He was up to date on all the latest equipment. He knew all the players and watched all the golf tournaments on TV. He even spent time working with professional golf pros so he could improve his play. For him golf was not a fleeting fancy. It was an integral part of his life. It was a true love and passion for the game that moved him to spend all those hours in study and practice. Where is your passion? Mine is trading. I can't get enough of it. I read everything I can get my hands on. I've spend thousands of dollars on books, seminars and trading courses. I spend my free time reading market reports and writing articles like this one. I can talk trading for hours. I never, ever grow tired of the subject. For me, trading is as much a part of my life as air. I can't imagine my life without it. At the beginning of this article I talked about my addiction to golf. Although I do love to play I will never rise above the rank of "worst golfer in the group" precisely because I know I will never devote the time and energy necessary to improve my game. Is your trading a passion or a car accident? Have you committed the time, money and dedication necessary to be successful or are you wildly chopping your way through the market? You've heard me say it before. Trading is a business. It is a skill that can be LEARNED. But it's no different than any other profession. If you truly want to be great you must never stop learning, practicing and growing. My grandfather never became a Jack Nicklaus or Arnold Palmer but he did win many local tournaments and earned the respect of any golfer he played with. You may not be the next Ed Seykota, Marty Swartz or Bruce Kovner but that doesn't mean you can't have a wildly profitable carrier as a trader. But remember, FOREX trading is a game for the committed. If you are not willing to devote every ounce of your time and energy to learning the skills necessary to compete in this arena then I advise you to STOP TRADING IMMEDIATLY. Find that thing you are most passionate about and pursue it. Leave you trading account to someone who loves to trade as much as my grandfather loves golf. Until Next Time, Good Luck and Good Trading Want to see what other traders are doing in real accounts? Check out Currensee. It’s free. |
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