Theresa May and the Way Ahead With Brexit for the UK

Background Analysis

Theresa May is going to be the new prime minister of the United Kingdom. It is also a fact that most people know what led to her becoming the prime minister. But for the sake of those that are not so conversant with developments in the United Kingdom or current affairs in general, I will give a little background of what led to her succeeding David Cameron as prime minister.

There were calls from UK citizen for the country to break away from the Euro block in which the country was a key player. The argument from this group of citizens was that the country will be better off being alone than being a member of the euro block. While the calls were going on, some citizens not in support of the break-away called for restraining and caution.

David Cameron being the then prime minister left with the task of conducting the popular Brexit referendum to decide whether the country will remain in the block or pull out. He, however, made his decision clear to the citizens and fellow politicians of his intention to resign as prime minister if the citizens voted to leave the block during the Brexit referendum.

Brexit Outcome and its Aftermath

Following the successful conduct of the Brexit referendum and the eventual outcome of the voting result, it became clear that majority of UK citizens voted in favor of the country breaking away from the Euro block.

The attention of the world then shifted from the outcome of the referendum to wanting to know how the decision will affect not just the Euro block but the world in general economically and financial.

There were fears of how the result will affect financial markets in Europe and the world in general. There were equally fears of what will become of the Pound Sterling and the Euro when compared to other major currencies of the world.

Financial Impact of Brexit on the Pound Sterling

Following the end of the referendum, the country’s currency gained slightly against the United States dollar and the euro. The currency also gained against other major world currencies. But there were fears whether this gains will be sustained or not following the change of power in the country, as a result of the resignation of David Cameron as prime minister and the coming to power of Theresa May.

This is due to the fact that she may likely introduce new economic changes and financial policies which could affect the country’s currency positively or otherwise.

 -See more at:  https://www.hiwayfx.com/forex-articles/theresa-may-and-way-ahead-brexit-uk 

Can the Chinese Market Wade Through the Economic Murky Water Stirred By Brexit?

Recently, in the city of Tianjin, the Chinese PM Li Keqiang while addressing a World Economic Forum gathering said “It's hard to avoid short-term volatility in China's capital markets, but we won't allow roller-coaster rides and drastic changes in the capital markets".

He went ahead in the speech to wish the European Union and Britain a stable and prosperous future but not without ringing warning bells saying "against the backdrop of globalization, it's impossible for each country to talk about its own development discarding the world economic environment." (Reuters)

The interconnectedness of world economies today has been accelerated by the globalization of markets, goods, services and people more than any other time in human developmental history. The financial market turmoil continued into its second day after the historic Brexit vote last Thursday. 

The British pound hit all time low since 1985 to trade at 1.31230 against the greenback. Approximately $2T dollars have so far been wiped out of the market as investors repatriate their capital from risky assets in the wake of uncertainty created by the Brexit vote results.

Wall Street Journal headline reads “Next Fallout? ‘Brexit’ Tests China’s Precarious Balancing Act”.  Apparently, the Chinese Premier paid a short visit to the Central bank Policy makers bearing one message: “The Yuan must be kept stable”.

- See more at: https://goo.gl/aLjgbP

How to Figure Out When is the Best Time to Trade Forex

When we observe the trend of trades, we see that timing is of essence to the success of a trade. Many traders have faced major losses in a trade due wrong timing. They have traded currency pairs at times when the price charts are against them. 

Study the Markets

It is a fact that not all hours of the day are suitable for trading. When the market is most active and when there is least fluctuation in the market, it is the safest to open a trade. When more than one market is open, then there is greater fluctuation in price movements. It can be more than 70 pips north. However, when only one market is open, the price gets locked into a static zone with a change of around the 30 pip range. Moreover, you need to study the New York Stock exchange (NYSE) because the US dollar is involved in 90 percent of all trades and it is the biggest trading platform in the world. You also need to have an in depth knowledge of the market you are going to trade in before making a trade or you’re just handing your fate to luck and that isn’t what experienced traders do.

Overlap timing

When the markets overlap then there is an equal chance of greater risks and profits. As mentioned earlier the markets move significantly when more than one market is open. The biggest overlap in the US/ London markets occurs from 8 am to noon and as we know that the dollar and euro are the hottest currencies to trade and  this is the optimal time when the volatility is really touching the roofs , this would be the time to start a trade. The 2am to 4am time in the Sydney and Tokyo market overlap isn’t as volatile as the above market but it still gives you a higher pip fluctuation and greater opportunity in the market. The London Tokyo overlap which happens between the 3am to 4 am mark sees the least volatility in the market and lower opportunities as compared to the above two markets.

- See more at: https://goo.gl/aLjgbP

Electronic Communications Network (ECN) and Market Makers

Within the last couple of years Forex has emerged as the single biggest name in the world of online trading.

This immense success of the system has led to an influx of a large number of brokers, who have made the trading platforms accessible to almost everyone.

In the present market the brokers working to provide trading platforms can be clearly distinguished into two categories:

Brokers that are conventional market makers and brokers that use an ECN system. There are also some brokers that are operating both ways, depending upon the customer needs and the type of the account.

ECN

Electronic Communications Network (ECN) refers to the system that the broker employs to transfer orders and receive quotes.

A broker using ECN simply provides the trader with a trading platform and then acts as a middle man between the buying and selling parties.

This system simply presents the best quotes after collecting them from liquidity providers without considering the source.

Market Maker

A market maker is a completely different experience. . A market maker makes his own market.

The broker determines the buy and sells quotes before presenting them in the market maker platform. As the market fluctuates the quotes also change according to its flow.

The choice of a Forex broker is indeed a very important one. Hence, before choosing any broker it is important to get familiar with the ways on which each of the systems operate and also determine their pros and cons to be able to make the best choice.

-See more at:  https://goo.gl/CP30gi

How to Use the Economic Calendar to Increase Profitability

A successful trader requires both, the traits of a market fighter and a keen trade analysis, which requires authentic market news. There is nothing more important for an analysis than continuous up-to-date news. And one of the best ways to grab this news is through the economic calendar of the forex market that allows the trader to collect all the important global financial news and all the up-to-date info, about the finance at the time of its publication.

The economic calendar also ranks the news in the order of importance and capacity of its influence on the market - for the ease of the traders. The economic calendar acts as a helpful guide for the trader on his road to profit. Forecasts and economic history is also taken into account. The economic calendar is published online, right before the opening of the trading week, and its data plan is constantly adjusted in accordance with the current situation.

The use of economic calendar for trading involves at least the following three meanings of the announced economic events:

1. The actual event

2. The consensus (forecast/prediction)

3. The previous meaning.

In case, the forecast by the calendar is justified i.e.  It is in accordance with the calculated values, and then the market reaction will often be small or be completely absent.

-See more at:  https://goo.gl/0tWFp9

How to Use the Economic Calendar to Increase Profitability

A successful trader requires both, the traits of a market fighter and a keen trade analysis, which requires authentic market news. There is nothing more important for an analysis than continuous up-to-date news. And one of the best ways to grab this news is through the economic calendar of the forex market that allows the trader to collect all the important global financial news and all the up-to-date info, about the finance at the time of its publication.

The economic calendar also ranks the news in the order of importance and capacity of its influence on the market - for the ease of the traders. The economic calendar acts as a helpful guide for the trader on his road to profit. Forecasts and economic history is also taken into account. The economic calendar is published online, right before the opening of the trading week, and its data plan is constantly adjusted in accordance with the current situation.

The use of economic calendar for trading involves at least the following three meanings of the announced economic events:

1. The actual event

2. The consensus (forecast/prediction)

3. The previous meaning.

In case, the forecast by the calendar is justified i.e.  It is in accordance with the calculated values, and then the market reaction will often be small or be completely absent.

-See more at:  https://goo.gl/0tWFp9

Top 6 Forex Trading Lessons

The only best way one can learn about trading is by exploiting the knowledge from the professionals in the field. No school or college is going to teach you about the trading market, you have got to self-educate yourself and get as much knowledge as you can from effective sources.

For example, this article. I’m going to share some of the important things I learned in my 15 years of experience in the trading world.

Develop a Consistent Trading Plan

The first thing you need to understand is that it’s easier to over-trade than one can imagine. I didn’t even know I was over-trading in my rookie years, it’s a very, very easy mistake to make, especially for beginners, and it’s also a very costly one. You need to have a trading strategy and trading plan criteria so that you can develop some structure and routine into your trading processes, so that way you can tell whether or not you’re over-trading.

Don’t Overuse Indicators

The next thing you need to remember is that indicators are a bootless errand. Yes, indicators may seem quite attractive and fancy but all they do is add extra burden for you to deal with. There is no use of analysing them, I started reducing variables instead of adding them and that had a huge impact on my trading outcomes.

Let Trades Play Out Themselves for you

However, if someone asks me to give them an advice on trading, this ones the first that’ll come to my mind; give your trades time and space to play out themselves for you. One has to be patient with the market and give the trade some space, this means to place wider stop-loss orders. Don’t react at every fluctuation in the market, let it prove you wrong.

-See more at:  https://goo.gl/EymSz5