Category Archives: Articles

In-Depth Analysis About Different Financial Assets

What do you know about the financial products? Do you know the importance of it? If we cite a few examples which are tracked by the financial product they are such as S&P500, NASDAQ-100 index, Dow Jones and more. When you are planning to purchase a share of the financial product you will be able to track the native index. If you compare the financial product and the other funds this specific product doesn’t try to perform better than another or doesn’t compete with the market. It tries to improve in performance to become the market. This financial product has been introduced to the financial market around in 1980’s and they have achieved popularity easily due to many reasons. Even the Singaporeans traders are interested in trading the financial product which we are discussing as it benefits them more than the other index funds. It has the feature of simplicity so most of the traders wish to trade it. Especially, the Singaporean traders are successful in trading it. If you want to trade it you should learn it well so then you will understand the ways to deal it. Let us read the article to learn more about the financial product.

Business Graph with arrow and coins showing profits and gains

Different types of trading indexes

Do you know how it happens in the market? Do you know how this dynamic market works? Actually, it is a list of stocks which are related to one another along with the aggregate value which is represented in the list (statics). These are used to show the value of the component stock and mutual funds hold the positions in such stocks. The indexes are of various types of stocks and they are usually known as the market index. There are different indexes which are based on the markets such as financial, foreign, tech and etc. there is a lot to learn about the indexes so you should never stop learning as it will improve your knowledge. The investors and the market players noticed that the trend in indexes have increased positively and they focused more on it. The major types of indexes were performing better to manage the portfolio funds. Anyways, the investors believed that the market index was far better than managed funds. So, likewise, the popularity of the financial product improved to a better state.

Benefits of online trading

As we stated above this specific fund does not try to outperform the other funds so the costs incurred are lower than other funds. Administrative costs are lower due to having less maintenance likewise; there are many benefits which you can gain from the exchange traded funds. Along with the above-mentioned benefit, you will also be able to enjoy tax-efficiency. You will find passive management because of the tax-efficiency. This financial product can be used for multiple investment purposes as the costs are incurred less than other index funds.

Flexibility is the best feature

If you consider the best feature in the financial product it can be the flexibility. This financial asset is traded similar to stocks. You do not have worry about pricing as it is done throughout the day. You will be able to purchase it on margin, sell short, and hold it for a long time as you do for the stocks. The main reason for this is the underlying value of the index. You will be able to enjoy more benefits they are such as diversification even more than share in just one company and the flexibility in many markets. If you want to trade the financial product you should practice more and more so you can become experienced in the field. And always keep yourself updated with the latest market news. Without learning the fundamental analysis you won’t be able to maximize your profit by trading the trending market. Last but not the least focus on your trading discipline.

Author Bio

Taylor Z. Jordan is working as a content manager at The Saxo Group which is the leading investment banking and technology company looking back at over two decades of growth and success. As Saxo helped drive the revolutions that shifted the business time and again, it has always been energised by the same notion that moves us today. Saxo strives to facilitate multi-asset investment and trading by providing access to global financial markets, cutting-edge technologies, and industry-leading expertise.

Mixed Reaction of the USD in the Market

Without any serious news hitting the market today, the USD is currently losing some lustre after its strong run for weeks and it is down against major currencies. The GBP and commodity currencies are the best performers. The relative appeal of the USD seems to have hit a level of saturation in absorbing the pressure from counterparts. Its incredible rally was capped at a 12-day consecutive advance as Tuesday opened lower. The uncertain turn is because the Fed rate hike expected on 14th December is still buoyant. With that said, here are the winners and losers.


Commodity currencies

The S&P 500 index is up by 0.6%, rising to record high, exceeding the last mid-August peak in response to the strong gains for the energy sector. The oil prices are going up by over 5% as OPEC agreed to cut production at the end of this month. The Iraq’s Oil Minister said that he would put a new suggestion on the table to push for the production cut. The high oil prices have supported commodity prices in general, with the commodity price index for Bloomberg up by 2% on Tuesday.


The EUR broke its more than 10-days losing streak against the USD, up by 0.2% at 1.0630, although that is subject to change before the trading markets close. Economic analysts are cautious about the European political risk controlling the path of EUR over the next few months, and that could easily make EUR/USD sub parity. Currently, the EUR/USD trades remain unchanged at 1.0630, testing fresh season low posted last minutes under 1.06. Although the resurgence attempt remains minimal in EUR/USD, as the USD wipes-out losses and appear to recover its strength across the major currencies, tracking a slight recovery seen in the European treasury yield won’t be enough. Moreover, the European Central Bank president said that he is ready to employ more stimulus packages whenever required, which is likely to keep prices stable.

There is nothing significance in the EUR calendar today, so the CMC Markets are looking forward to the release of US data for extra incentives. However, in terms of EUR/USD technical levels, the pair finds the abrupt resistance at 1.650, daily high. A break beyond the daily high is expected to test 1.0690 and from there to 1.0700.


GBP is the best currency performer of the day against the dollar, which is up by 1.1%, going through to 1.25% at some stage. The strong rally caught traders by surprise on, November 22 as many were expecting the USD dollar to dominate the market ahead of the midweek Autumn Statement. The British Prime Minister stole the show with her comments, suggesting that there would be no high point when it comes to Brexit. The economists perceived that she was suggesting that the traditional single-market is more likely to prevail.

So, the much speculation about the strong gains of sterling pound against the USD overnight may be due to the anticipation of a fiscal boost in the UK Autumn Statement or by the statement of May, the UK PM that she will look for a “traditional deal” for the Brexit to evade the “cliff edge” that every business fear. This reaction to the statement of May serves to remind traders how tricky it is to trade with a politically-driven currency. The GBP current resilience, especially against the USD and EUR is going to be tested in the coming days after the fiscal boost.


The USD/JPY pair rose to high of 111.37 on Monday only to slide and end the day at 110.78. The pair extended the slid to 110.35 on speculation that the dip will increase in the event the earthquake lead to a considerable damage. However, the Japanese government intensified the Tsunami warning, which help the JPY to recover losses and traded largely unchanged on Tuesday around 110.75 levels.

Besides, Trump through a video message said that he will quit the TPP trade deal on his first in office. According Trump, this will help his administration bring jobs to Americans. Remember, this deal was signed by 12 large economy countries, which cover about 40% of the global economy. The remarks may not be received well by the CMC Markets, because it may increase fears of trade wars. If the financial markets in the US and across Europe respond negatively to the remarks of Trump, the JPY is likely to strengthen.

Forex: Explaining the Importance of Time-frames

Forex trading is not only about learning the meanings of forex terms. Do you know that most of the new traders fail to reap dividends primarily because they are unable to select the right time frame which suits their personality? In a rush to make money, most of them end up consistently avoiding the long term approach – mainly because they believe that this approach takes up a longer time to yield profits. However, as experts suggest, this is one of the most common misconceptions existing in the currency market today. Let us delve deeper into the significance of the right time frame in forex.

One-hour Trading Charts

It mostly turns out that trading with short term charts is more difficult than with the comparatively longer ones. Most of the new traders (as already mentioned, in their bid to earn quick money) opt for 1-minute or 5-minute charts that are difficult to analyze, resulting mostly in disappointment.

The one-hour trading charts, on the other hand, turn out to be suitable for most of the traders- since they give them substantial amount time to read the market but are not too long to test their patience as well. These charts turn out to be the preferred option for most of the traders out there since they offer right quantity of signals (neither too few nor too many to confuse traders).

Quite interestingly, it actually takes longer for traders to develop their strategies when they are trading with short-term charts. Come to think about it. The candlesticks in the short term charts receive less information when compared to those in the long –term charts. So, ideally all the new traders must trade with long-term charts so as to make the best use of as much information as is possible. They can gradually shift to the short term charts as they start gathering more experience in forex.

Choice of the trading charts

The choice of forex timeframe largely depends on the personality of the trader as well. For instance, though experts suggest that one-hour charts are the best options for new traders, there are some traders who don’t even have the patience to trade with them. These traders are suggested to try out the 10- minute charts instead of the 5-minute ones since the former will still give them at least some time to work on a trading plan, which the latter will not.

Then there others who might as well find the one-hour charts find too fast as well. They prefer weekly, daily or monthly charts to develop their trading strategies.

So, basically the choice of your trading charts relies heavily on your personality. Similarly the choice of trading hours (whether you want to trade during the day or night) depends on your personality as well.

Charts, Trading Hours and Brokers

If you are not able to study your own personality and select your trading charts accordingly, then you will not be able to secure desired results. The choice of the broker will also govern your trading fortunes partially. A broker is not only your connection to the currency market but also your trading partner who assists you during your difficulties. If you’re looking for a reliable broker right now, then please visit the website of CMC Markets.

Why the Japanese Yen’s Bull Run REALLY Ended

Monetary “Yentervention” did not cause the currency’s depreciation — it only COINCIDED with it

By Elliott Wave International

Talk about “star” wars.

“Asia’s biggest action star” Donnie Yen was just cast in the next installment of the never-ending Star Wars movie franchise. Mr. Yen, in case you aren’t aware, is known as “the strongest man in the entire universe.” (Huffington Post)

It wasn’t that long ago you could say a similar thing about the Japanese yen. Count three years back, to 2012, and the yen looked like the strongest monetary unit in the financial universe, standing at an all-time record high against the mighty U.S. dollar, the world’s “reserve” currency.

Flash ahead to now (circa September 2015), and the yen is down 30% whilst clinging to its lowest level against the dollar in 12 years.

So, what changed?

Well, that depends on whom you ask. According to the mainstream pundits, one main “force” has drained the yen of its superstar status: the almighty “Light S-ABE-R.” Or, in non-geek terms, Japan’s Prime Minister Shinzo Abe, who’s been shaping the country’s monetary policy. See:

“Abenomics Propels Yen’s Weakness” (Financial Times)

And: “Japan Bulls Rest Hopes for Yen Weakening on Abenomics” (Bloomberg)

There’s just one flaw in that logic:

The yen’s record-shattering bull run ended in late 2011 — more than a year before Abe took office in January 2013!

What’s more, Abe did not implement his “three arrows of fiscal stimulus, quantitative easing, and deregulation” — the factors widely held “responsible” for the yen’s weakness — until later in his term as Japan’s Prime Minister.

Now, let’s go back to the very beginning, to late 2011, and examine the yen’s broader trend through the lens of Elliott wave analysis. Here, we come to our November 2011 Global Market Perspective (GMP), where our Senior Currency Strategist, Jim Martens, identified a historic, decades-long Elliott wave “ending diagonal” pattern on the yen’s price chart.

As its name implies, an ending diagonal is found at the termination points of larger wave patterns, indicating exhaustion of the larger trend. When an ending diagonal … well, ends, the prices reverse and carry to the pattern’s origin — or even further.

The terminal nature of ending diagonals fortified the November 2011 Global Market Perspective’s bearish yen/bullish U.S. dollar forecast:

“USDJPY has been falling since June 2007 in a thrust from a [4th-wave] triangle that would end an impulsive decline lasting at least 40 years. The thrust [lower] has been unfolding as an ending diagonal, and as such, an abrupt turn [higher — towards weaker yen and stronger dollar –] should come as no surprise.”

The rally indeed took off the 2011 low, yet took a while to warm up. But, by January 2013 — coinciding with Prime Minister’s Abe taking the office — Global Market Perspective confirmed a long-term reversal was now underway:

“The recent advance in USDJPY since September [2012] is typical of third waves. There will undoubtedly be pauses along the way but next year or so [i.e., in 2014] should easily see USDJPY in the 124.16 area.”

This final chart captures the full extent of the USDJPY’s three-year long, 30%-plus uptrend:

Bottom line: Abe’s monetary “Yentervention” did not cause the yen’s depreciation; it coincided with a terminating Elliott wave ending diagonal pattern on the USDJPY’s price chart, which called for an upward reversal (towards weaker yen and stronger dollar).

True story.

You’ve just seen how invaluable Elliott wave analysis can be in clarifying long-term trend changes before they occur — and regardless of the political and economic factors.

Now, you can see how equally useful our technical analysis model is in anticipating near-term trend changes in EURUSD, Chinese yuan, and more — 100% FREE!

Right now, our free-membership Club EWI is featuring an exclusive new interview with EWI’s Senior Currency Strategist, Jim Martens.

In this compelling one-on-one ElliottWaveTV interview, Jim walks you through multiple labeled price charts of the world’s leading currency pairs — including the USDJPY.

You’ll watch Jim focus on the recent USDJPY “nosedive” towards a stronger yen and give you specific price levels which, if breached, would tell you if the yen is to get even stronger.

So, here’s what you need to know:

  • This 6-minute Club EWI interview with Jim Martens is absolutely FREE to all Club members
  • Besides USDJPY, Jim also shows you the “exciting” road ahead in the EURUSD and China’s yuan.

Need a free Club password? It only takes a minute, get one now and instantly watch this exciting interview >>

This article was syndicated by Elliott Wave International and was originally published under the headline Why the Japanese Yen’s Bull Run REALLY Ended. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Forex: Elliott wave analysis helps me cut to the chase

Fresh insights from Elliott Wave International’s Senior Currency Strategist, Jim Martens

By Elliott Wave International

Jim Martens is one of the few forex Elliott wave instructors in the world and a long-time editor of Elliott Wave International’s forex-focused Currency Pro Service. A sought-after speaker, Jim has been applying Elliott waves since the mid-1980s, including two years at the George Soros-affiliated hedge fund, Nexus Capital, Ltd.

Below is an excerpt from his latest interview. To read the full interview — and get Jim’s latest big-picture forecast for EURUSD, tips on how to learn Elliott fast, and practical ideas on how to treat your forex trading as a business — complete your free Club EWI profile. It only takes 30 seconds.


Jim, thanks for joining us today. The U.S. dollar recently hit its highest level in many weeks. Were you surprised by that?

Jim Martens: The strength in the U.S. Dollar Index came as no surprise. And that’s not just me bragging. We track its Elliott wave patterns daily, even intraday. Since the dollar’s peak back in March of this year, the decline has taken a decidedly corrective Elliott wave look: The price action has been choppy, overlapping, and generally lacking direction, as you see on the circled portion of the chart below. Any time you see that on a price chart, that’s your first clue that the market must be taking a “breather” before the larger trend resumes. In this case, the larger trend has been higher, so when the dollar popped back up recently, to us it meant that the correction must be over.

For Elliott wave fans among your readers, it looks like the correction since March took the shape of a pattern called a “double zigzag,” labeled in circled green “abc”-“abc” on this chart:

As you can see, we have labeled the entire correction as a wave 4 within a basic 5-wave Elliott wave pattern called an “impulse,” with wave 5 most likely starting now. So, the USDX has higher to go — much higher, in fact, because by the looks of the Elliott wave pattern underway, the latest dollar strength is only the start of the move. We are expecting the Dollar Index to move well above 100.

And, because the U.S. Dollar Index moves inversely to the euro-dollar, looking at a EURUSD chart, we are expecting significant weakness in this key forex pair… [EURUSD chart with a forecast follows — Ed.]

(To read the full interview, complete your free Club EWI profile. It only takes 30 seconds. You’ll learn: Jim’s latest big-picture forecast for EURUSD, tips on how to learn Elliott fast, and practical ideas on how to treat your forex trading as a business.

Already a Club EWI member, access the full report now >>

This article was syndicated by Elliott Wave International and was originally published under the headline Forex: “Elliott wave analysis helps me cut to the chase.”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

The 2 Most Important Keys to Successful Trading

Examples from Whole Foods Market (WFM) and Reynolds American, Inc (RAI) show you what to do (or not) to trade successfully with Elliott.

By Elliott Wave International

After 20 years of experience applying Elliott wave analysis in real markets, our Senior Analyst Jeffrey Kennedy says that it remains the only tool that will tell him — down to the tick, to the pip, even to the penny – when his forecast is no longer viable.

That, according to Kennedy, are two most important keys to successful trading:

  1. “Know where you are wrong,” and
  2. “Don’t pick tops and bottoms”

See the logic behind Kennedy’s wisdom by reviewing these two timeless lessons from his Trader’s Classroom service: Whole Foods Market, Inc. (WFM) and Reynolds American, Inc. (RAI). Then, see how you can get more free lessons during Kennedy’s popular Trader Education Week, going on now!

WFM’s forecast was right and RAI’s was wrong. While price evidence was compelling for both issues, the forecast in WFM was in the direction of the trend and RAI’s incorporated top picking. Here’s what happened:

Price evidence called for new highs in Whole Foods Market, Inc. on May 1. We had a clearly defined uptrend, a three wave move in the direction opposite the primary trend, and the move to the downside was contained within parallel lines:

Additionally, we had a double closed-key reversal when the low was made, as well as some bullish divergence on the smaller timeframes. Price evidence was very strong that this market would continue to new all-time highs, so my outlook was bullish.

The bullish outlook in WFM required the April low of $81.39 to hold. The trend was clearly up from 2009 into 2013. From an Elliott Wave perspective we knew that this was a countertrend move with an A-B-C structure (a corrective wave pattern within a larger trending market). We had the wind at our back and were not “picking a top.” We simply looked at the price evidence in support of a further rally.

Conversely, the following example in Reynolds America, Inc. did not work out.

On March 22, I anticipated a move to the downside in Reynolds American, Inc. as a five-wave decline and the subsequent advance as a three-wave move. I was looking for a tradeable selloff to the downside in wave (C) or wave (3):

Unlike the successful WFM example, I was not trading with the trend. Instead, I was looking for a “top.”

Yet I was able to prevent a losing trade from becoming a devastating trade because I could use the Elliott Wave Principle to “know where I was wrong.”

This bearish wave pattern was viable only as long as prices held below the February high of $45.17.

Once prices exceeded critical resistance, I knew not to look to the downside — that my outlook was no longer viable:

Get more trading lessons from EWI’s Jeffrey Kennedy:

Announcing Trader Education Week

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Whether you are new to trading or have years of experience, you’ll benefit from Jeffrey’s easy-to-understand style and clear presentation. He’ll cover topics such as:

  • Patterns that lead to high-confidence trade setups
  • Momentum indicators to support your pattern analysis
  • Japanese candlestick patterns that alert you to a change of trend
  • How to manage your trades using protective stops

Register now for your FREE week of trading lessons

This article was syndicated by Elliott Wave International and was originally published under the headline The 2 Most Important Keys to Successful Trading. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Social trading is here to stay for long – why?

Social media has altered the ways we used to share with each other at a globe level. Interconnectivity of the world has grown more powerful now that a major share of the global population is interacting via some form of social media on a regular basis.

Social trading changes the old trading ways

Social media has been an online revolution that has grown into a huge industry all over the globe. It has even made its way through the world of forex trading. A major segment of the global population can now explore immense possibilities across the online trading platform.
Trading has gone a step further towards democratization with the help of Social Trading.

Social Trading is a good option that allows traders to connect with others directly so that they are able to imitate real trades, consider market analysis and updates and communicate ideas.

Traders are said to benefit much out of social trading once they consider it within their current trading strategies. It has become important for all traders to understand what social trading is and how they could utilize it for their benefit. They must discuss a few of the risks associated with social trading and how these risks could be avoided. Prior to using a social network for trading, relying on other traders and considering their skills and experiences, it is truly important for a trader to do a thorough research just in the way they will do for other forex strategies.

Social Trading isn’t going to leave the market so soon. The financial world has rarely seen a more disruptive technology than this one. On the contrary, much of the unresolved issues that the financial world has seen till date have been addressed by it quite comfortably. Without Social Trading, it wouldn’t have been possible for us to address a few trading needs so effectively.

A few of the needs that have been addressed by social trading are as follows:

1) Transparency – There has always been a need to make financial services more transparent till the time the new regulations showed an option to address this need for transparency. These days, social trading enables us to be more transparent by imposing certain regulation on trading means.

2) Risk Mitigation – The risk that traders are willing to take can be controlled by them once they take part in Social Trading. For those individuals that wish to take part in the market trades without posing as traders will also find this a safer option.

3) Market Access – Participants of institutional or retail trades aren’t able to access all financial markets. Forex is one such market that seems tough for them to trade in; they can only participate in it as a trader. Social Trading is one good option for them to gain access to the trading market before they actually become traders.

There are a number of things that need to be taken care of before Social Trading becomes an important segment of future trading ways. All the key regulatory bodies must accept social trading as a proper form of trading. All agencies that follow social trading find it to be a long educational process. A majority of traders have turned optimistic about it. The participation cost and extra transparency are two key factors that address various social trading issues, but that can be discussed in a separate article.

How to Limit Your Forex Losses

Even the most novice or inexperienced investor should know that the idea of forex as a game of luck is incorrect. Fortune has its part to play, admittedly, but skill, time and effort have a far higher value when it comes to the determination of success. Although this means that a great deal of blood, sweat and tears must go into mastering the art of forex, this is very good news for investors, as it means that it’s entirely possible to tip the scales in our favour.

Here are three top tips to help you minimize your losses and turn your forex strategy into a roaring success…

Tip One: Choose a Suitable Broker

Perhaps the best way for any investor to safeguard their forex strategy is by selecting a suitable brokerage firm, like OANDA. The currency markets have no central trading area, and this means that the broker you choose will act as conduit, advisor, mentor and informant all rolled into one. It’s imperative, therefore, that you find one who fulfils your needs. For all but the most experienced, an advisory service will be the right way to go. Offering the opportunity to learn as you trade, your losses will still be limited by the experienced, guiding hand of an expert trader, helping to keep your account in the black.

Tip Two: Don’t Invest More than 10 Per Cent in a Single Trade

Our second tip should be self evident, yet a surprisingly large number of traders have a libertine approach to investing. It is, quite simply, this: limit your losses by capping the amount that you invest. Losses are only harmful to your portfolio if they push it into the red, and the best way to prevent this is by controlling the potential fallout from individual trades gone wrong. Setting a cap of 5 to 10 per cent on a single trade is the easiest way to do this, and even those with the highest risk thresholds should never risk more than 15 per cent of their account total in any one move.

Tip Three: Never Invest Reactively

Our third top tip is this: don’t invest reactively. Many traders, especially those lacking in experience, respond to large losses with emotion. This is not the way to do it. Rather than immediately closing your trade and trying to salvage your portfolio with new positions, take a deep breath and step back. Ask yourself these questions: If you leave your trade open, is there a possibility that your position will recover? If you had not experienced a loss, would you be making the same moves? If the answers are ‘yes’ and ‘no’ respectively, then stop, push your emotions to the side, and reassess your next move with a calm, clear head.

Follow these top tips today to limit your forex losses and turn your trading strategy into a success story.