- User Case Study:Week 6 of using Forex Source - March 19, 2020
- User Case Study: My Daily Routine using Forex Source - March 13, 2020
- User Case Study: Week Four Of Using Forex Source - March 6, 2020
Hey guys. So, this week I wanna get into what is my routine during the day when I’m trading, as well as, an example of how I applied this.
In the mornings, the first thing I do is I open up my Forex Source terminal, I actually do it on mobile, which works pretty much the same. I go into the live analysis.
So everyday, at about 11:30 a.m. in London time, for me, that is 5:30 a.m., there is a live analysis webinar where the analysts from the terminal talk you through what is the risk sentiment, what important things are happening in the market these days, and also what we should be looking out for in terms of possible tradable sentiment shifts.
So, my routine is as follows. First, I will have an alarm, I wake up at 5:30. Immediately, while I tune in to the live sentiment analysis of the day. And then, after watching that, I know what to look out for in the rest of the day. And now, depending on what kind of thing is moving the markets, I have to either schedule my day accordingly to the releases of events, or if it’s more on the geopolitical side of things, politics and things that aren’t scheduled, I have to stay tuned to the market most of the day, at least whenever I have an open position.
The way I do that is I wear headphones, and I have the Forex Source terminal on somewhere in the background, I can work on other things. And whenever I hear something important come across the wires, I can either place a trade or close a trade depending on what the situation is. And of course, in the case of macro economic events, they are very clearly scheduled, so for me to do that is a lot easier. So when the thing that’s moving the market is, for example, an NFP, or some kind of employment report, or other macro economic data, which are released in a very specific time.
For example, on Friday, we had the NFP coming out of the US, so, in the terminal, you will get a report showing what the market’s expectations are. And based on this, I prepare a couple of trades saying, if it’s a very good employment report, I’ll pair it up against a weak currency. And if it’s very weak, I’ll pair it up against a very strong currency. And I’ll have these two set up there based on my analysis, like, for example, the NFP. It tells you what the expectations are.
The consensus is of a print of 164, and if it comes below 125 or above 266, it’s a clear deviation, and a very easy trade to place right in that moment.
Half and hour before the news actually comes out, I prepare all my trades. I put myself into the context, thanks to this analysis that is posted before these important events in the terminal. When the time comes along, I usually squawk in order to get the news pretty early, pretty much exactly when it does happen.
But, there are other cases that are things that are a little bit less data driven and more political, which also can be a huge market mover. For example, tensions between US and China, and the trade war.
There’s things that are released pretty much without schedule, but, if you know that these things are heavily moving the markets, you can be tuned in, just with some headphones, have it on in the background, and you can catch certain moves. For example, on the 10th of January at 8:35 a.m., the NEC Director Kudlow confirms that the US-China Phase One deal has been translated and authenticated. Everything is in place, the fact sheet will be released on Wednesday.
So, with that we say, okay, things are moving forward. Depending on how relevant this is at the moment, and how much weight it has in the market, this could be a potential trade to take. You can get it, as long as you’re tuned in to the market, via the squawk, and via the terminal, and via the context that you get from the live analysis webinar.
Another thing that does keep you in context throughout the trading session, periodically, throughout the day, the analysts release short videos. For example, this one, that tell you where the market is right now, what are some possible good entry points on the dominant currency sentiment of the day. And it really helps to put you in context as to what has been happening.
Now, I just wanna give you a quick example of something that happened this week. As we know, on Tuesday, the 7th of January, Iran retaliated against the assassination of General Soleimani. Having some missiles strike military bases where there were US personnel stationed. Now, the moment this news came along, there was a lot of chaos.
The markets were selling off thinking that it was gonna be war, but, as the news started coming through more and more, we learned that there were actually no American casualties, and that the damage reported was minor. Now, as this started happening, the market stopped selling off completely, and went more into a wait and see mode, because President Trump was going to release a statement on the following morning.
Now, I was very aware of this statement while it was happening, as well as listening to the analysts on the Forex Source terminal, talking, making some comments on what Donald Trump’s tone was, what he was referring to, what he was saying. Of course, in order to trade something like a speech like this, we need the context.
The context we got it from pretty much everything that was happening in the terminal saying first there was a strike, then there were no casualties. So, really, it was in Donald Trump’s hands to say, does he want to retaliate or not. Let’s check it out how I did that.
The moment he started talking, we can see right here that he immediately started off by saying there were no casualties. This is already a positive start to the speech and as he continued talking, he made no reference as to wanting to escalate further in the war. And he ended the statement by saying that he was willing to offer peace to whoever is looking for it. And we heard this as well, through the squawk, as something that is particularly important. So this confirmed a positive sentiment shift.
So what I did, is that I bought in favor of the US dollar and the Australia dollar, and against the risk tone, which was pretty much in the yen. And as you can see right here, we managed to secure some pretty nice profits. This is the kind of trade that you can catch if you are very in context into what’s happening.
Doing this without a tool, such as the Forex Source terminal is kind of hard, because you don’t get the news immediately, you’re not sure what are the catalysts in the market, what the market is actually paying attention to.
Other things that I do is that once a week, whenever they update here the currency research tab, we know in the week ahead, what are top trading opportunities. What are the things that are driving each currency as well as, for example, the current relative strength of each currency. This is particularly helpful in order to know what to pair your trades against, because it let’s you understand which trades are probably going to flow farther, and what moves are going to be bigger if you try to pair two currencies that are quite separate.
All in all, I’m very happy with the service of this Forex Source terminal because they really help me stay in context, they help me stay informed. What’s moving the markets, when are important things happening, and what to look out for in my day to day? Do I need to be listening to the news 24 hours a day, all the time? Not usually, but it depends, because, this week, for example, with all the unfoldings of the possibility of a war coming out, you really really have to stay in context. But if it’s just a standard whatever week, the things that move the market can be a lot more easy to just schedule into your day.
That is my daily process, that is the way I use the terminal. Let me know if you have any questions in the comments down below, and I’ll be glad to get back to them. So, thank you, and have a nice day.