Search More Videos About Forex Event Driven Trading Yang, The Best Way To Make Money In Forex by Khalid Hamid during Traders Fair Malaysia.
Hi I’m Khalid, a Malaysian trader with 11 years of experience. I was invited as a guest speaker during Traders Fair in Intercontinental Hotel Kuala Lumpur on 30 June 2018. Due to overwhelming request, I’ve decided to present it again in this video format.
You’ll learn about trading mindsets, 2 powerful strategies, risk management and how to control your emotion in this 45 minutes video. I’m using a simple English so that you can understand. Anyway if you can’t understand or hear what I said, you can always refer to the caption (since I’m not an English speaker by nature hehehe…).
I hope you enjoy the video and do show your support by hitting the Like, Comment or Share button. Thank you and don’t forget to share with your friends ya!
For those who wonder, our English course will be ready by end of the year. Just subscribe to our channel to get the latest update. Thank you for your support.
KHALID HAMID, TFS PRICE ACTION TRADING
http://bit.ly/tfspriceaction
Forex Event Driven Trading Yang, The Best Way To Make Money In Forex by Khalid Hamid during Traders Fair Malaysia.
Quantitative Event Trading Versus Over-Simplistic Assumptions
Spikes don’t vary a lot hereof, they simply occur over a smaller home window of time. A spike takes place in the first place since the market has simply found out new info, info which is not yet “priced in”. Depending upon the severity of the info, the spike will certainly be large or tiny, and also proceed or fail. To describe this idea a little better, I’m mosting likely to cite what numerous event-driven quantitative approaches do often:
Programmers of these event-based (spike) trading approaches are able to measure data gotten from financial data launches instead easily. They simply take the inconsistency from the actual and also predicted number, pair it with various other financial data launches that occur at that point in time (if necessary), take the typical adjustment in cost prior to and also after particular discrepancies happen, the timeframe in which these modifications occur, and also are able to maximize a strategy based on this and also any other technological aspects they want. They have a background of data (numbers) with which to work.
In all of the aspects noted above, numbers are offered, and also equipments require numbers. Yet what occurs when a spike is caused by a comment from a high ranking government official? No numbers there, simply words. Yes, words.
What about words? Words, when it pertains to shows, can be numbers. Let me describe:
Words are weights, when measured versus each other in relation to cost motions. “downgrade” lugs a various weight than “stimulation” or “safeguard” or “shield the currency”, and so on, depending on that it is coming from and also the context of various other words used at the time.
High and low ranking government officials can be weights. The high ranking government official considers more than a reduced ranking government official, and so on. A rating agency, and also the words used in their news release, can be weight. Etc. and so on.
So when you take an industry-standard information feed, appoint weights (numbers) to whatever stated above versus typical cost motions, time, various other technological aspects, and so on, you wind up with a sample of data that can be maximized right into a possibly profitable trading approach.
And also while I recognize everything may appear ludicrous at first, if you assume I’m simply drawing your leg on all of this, reconsider. While I’m offering an extremely simplified explanation of the idea, it is without a doubt used in mostly all markets by numerous individuals, and also certainly in this one.
What relocates the forex market?
The forex market is comprised of money from around the globe, which can make exchange rate predictions tough as there are several aspects that might contribute to cost motions.
Nevertheless, like a lot of monetary markets, forex is largely driven by the forces of supply and also demand, and also it is very important to gain an understanding of the impacts that drives cost variations here.
Reserve banks
Supply is regulated by reserve banks, that can introduce measures that will certainly have a considerable effect on their currency’s cost. Quantitative alleviating, for instance, involves infusing even more money right into an economic climate, and also can trigger its currency’s cost to go down.
News reports
Commercial banks and also various other investors have a tendency to wish to place their funding right into economic climates that have a solid outlook. So, if a favorable item of information strikes the markets about a certain area, it will certainly motivate financial investment and also increase demand for that area’s currency.
Unless there is an identical increase in supply for the currency, the variation in between supply and also demand will certainly trigger its cost to increase. In a similar way, an item of negative information can trigger financial investment to reduce and also decrease a currency’s cost. This is why money have a tendency to reflect the reported financial wellness of the area they stand for.
Market view
Market view, which frequents reaction to the information, can additionally play a significant duty in driving currency prices. If traders think that a currency is headed in a certain direction, they will certainly trade appropriately and also might encourage others to follow suit, enhancing or decreasing demand.
Economic data
Economic data is indispensable to the cost motions of money for two reasons it offers an indication of exactly how an economic climate is performing, and also it supplies insight right into what its reserve bank may do following.
Say, for instance, that rising cost of living in the eurozone has risen above the 2% degree that the European Reserve Bank (ECB) aims to preserve. The ECB’s major plan tool to fight increasing inflation is enhancing European rate of interest so traders may start acquiring the euro in anticipation of prices increasing. With even more traders wanting euros, EUR/USD might see a rise in cost.
Credit scores ratings
Investors will certainly try to increase the return they can get from a market, while minimising their threat. So together with rate of interest and also financial data, they may additionally consider credit report ratings when determining where to invest.
A nation’s credit scores rating is an independent evaluation of its possibility of repaying its financial obligations. A nation with a high credit scores rating is viewed as a much safer area for financial investment than one with a reduced credit scores rating. This typically enters into particular focus when credit report ratings are updated and also downgraded. A nation with an updated credit scores rating can see its currency increase in cost, and also the other way around.
Final Verdict:
Noted severe care around that preliminary pullback point. Going after the motion without any type of confirmation in regards to continuation is mosting likely to be your awesome. Quick quit losses in quick markets.
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