Notícias de mercado & insights

There are few long-term successful traders that at some stage have not suffered a major capital drawdown on their account at some stage. For whatever the reason the major factor as to whether you continue and get back to “winning ways” or continue to see further drawdowns is what you do next. Unfortunately, there are “traps” that such a set of circumstances can lead to, your aim, if this should happen to you is to avoid these.

This article aims to outline these to assist in developing awareness and assist in your “what happens next” thinking and actions. Trap 1 – Abdicate responsibility It is a natural human response when things go wrong to look for someone/something to blame. This is far easier emotionally to deal with than admitting that you have behaved, through actions, in a way that has contributed to a negative outcome.

Although it may be true that certain market conditions, or “trump tweets”, or economic announcements may all contribute to a significant market price movement, the majority of major capital drawdowns in reality occur over a number of trades and of course you have made the choice to trade and as if not more importantly when to exit any trades you have taken. The reality is of course, that unless you accept 100% that trading action is YOUR choice and that YOU are responsible for your trading results then you are unlikely to move forward and may indeed see further capital drawdowns on your trading account. Accepting this reality, gives you the drive to avoid the other potential traps and put the right things in place to reduce the likelihood of it happening again.

Trap 2 – Fail to explore WHY it happened? Beyond accepting responsibility one of your first tasks is to examine potential and subsequently actual factors that may have contributed. Commonly these can all come under the following: a.

You didn’t know what you were doing due to a knowledge gap b. You didn’t have an evidence-based (i.e. you have tested it and refined accordingly) specific comprehensive trading plan that guided your actions c. You didn’t follow your trading plan d.

Your trading system is comprehensive and sufficiently specific but doesn’t work and needs reviewed i.e. a new set of entry/exit criteria The temptation is, and many traders will go straight to ‘d’ of the above, but again arguably there is an element of “finger pointing” rather than taking responsibility. The reality is that of the four factors above the latter is the most unlikely cause. Being honest in your review is critical.

Such an honest review will give you clear guidance on which factor(s) you should focus on working on. Trap 3 – ‘Revenge’ trading Although this is a term bandied around frequently, let us delve beyond the ‘beermat psychology’ and look a little closer at what this may mean. In essence, the underlying emotional motivation is to get back to where you were before in terms of your account capital.

Commonly this thinking is backed by “desperation”, subsequently influencing actions that often bear little resemblance to good trading practice. In action, you may see: • Taking trades when there is no clear set up • Partial or complete ignoring of any trading plan • Inappropriate actions further trades go against you (e.g. finding reasons to stay in future trades when there is an exit) • Trading higher position sizing that you previously had • Trading each small market move, taking a reverse position even on a trend pause. • Looking to trade tighter and tighter timeframes These of course may significantly contribute to further losses as this emotional rather than system- based trading takes a stronger and stronger hold on your actions. Logically, the following may be more appropriate: • Give yourself some breathing space to properly review …STOP trading while you complete this (As described above) • Although easy to say and not so easy to accept the reality is that your account capital is what it is now, not what it was.

There was, for many in this situation, a time in your trading where whatever your capital level, your aim was to increase whatever that level was and put actions in place to give yourself the best chance of that happening. Ultimately, even if you strayed from this, developing consistency in appropriate trading plan actions and measurement are accepted by most traders as the way to make this happen over time. So, you need to press the “RESET button”, accept it as it is, and have the goal that through returning to that good trading practice consistently, and filling the gaps you need to.

Making this your goal rather than a dollar figure, may give yourself the chance to build capital not just to its previous level but beyond. Let it go! And do the right things from here I guess is the bottom-line message.

Trap 4 – Position size according to your previous rather than current account level This final trap for discussion in this article may seem obvious on the surface, but may either be a symptom of the previous point or something that is overlooked (unless of course inappropriate position sizing was one of the root causes of a major drawdown which you will discover in your review). It is crucial, and hence why we make special reference to it here, that you have a set risk level, usually expressed as a % of your account capital. This will differ from trader to trader but is comply between the 1-3% level as an example.

This determines lot/contract size (dependent on what you are trading) for any individual trade and combined with “stop loss” placement is a critical part of your risk management now and going forward. You need to recalculate what this is for you with reference to your NEW account size and factor this into your decision making, even if this means you are trading smaller amounts for now. In summary, major trading drawdowns are upsetting, and although not common often create additional ‘traps’ which may worsen what has happened to your trading capital.

And finally... Although perhaps of little consolation that many, many traders who now have sustained success, will have gone through this like you, the difference between what happens next and for your trading account in years to come, to your account is likely to be as a result of what you do next. You have choices to make but avoiding the above four traps described may perhaps assist in ultimately getting to where you want to be with your trading going forward.

Look, we get it… the thought of making money from the financial markets is appealing to the newcomer (and even experienced trader). Appealing enough to invest some time (often a great deal) and some money (often a great deal). At this stage, it is “interesting” (even exciting), but NOT committed.

You may even have been told it is easy if you do x,y,z or use this magical indicator, by the plethora of “gurus” simple clambering to relieve you of even more of your cash for that magical “holy grail” of approaches. We are still at ‘interesting’ not committed. The interest or motivation that drives you to this point is clear, you may even have begun to plan in your mind how you are going to spend your winnings, work less, live the dream.

Intangible, far-off pipe dreams are easy to contemplate and the market is going to pay for it!. We can imagine ourselves as some heroic ninja trader magically just making it happen (and some do magically create results on a ‘doesn’t really matter’ demo account). YES!

Still, this is still just ‘interesting’ not yet committed. However, when we commit to the daily practice of trying to put in place those micro-make-it-happen steps… this dream begins to fade. It’s replaced by the cold realization that there is some work… some hard work to be done.

That’s not what you subscribed to with that early interest is it, it should be easy to make money, shouldn’t it? What most traders do... Rather than engaging (volition) in this hard work, we choose to try to short-cut.

This has two logical outcomes: 1. Firstly, it continues to maintain our interest..no more. 2. Secondly, it is unlikely to make us any money trading.

We jump from program to program, indicator to indicator, vehicle to vehicle, read multiple articles, participate in forums, and yet the two logical outcomes above from our “interest” are still the case. There is no real point in banging on about psychology this and discipline that, we could point you in the direction of “7 things you can do to alter your trading results”, put ten other game-changing articles in front of you but nothing may change. That is, nothing will change unless you are prepared, that’s REALLY prepared, absolutely COMMITTED to making it happen..simple!

You could learn and have the system and tools to have sustainably great results, measure aspects of your trading so you can work out what might be going on with your behaviour, and yet even these may make no difference to the majority of the trading population. So, what is the difference between the “norm” who wish they had on-going positive trading results and the others who really do? Quite simply it is the level of commitment they are prepared to put in.

It moves beyond just interested. Are you ready to take this step? So, what do we mean by commitment?

Commitment is not: 1. Knowing some stuff 2. Doing some stuff 3.

Believing some stuff can happen “Some” is NOT good enough! Pe riod! Commitment is: 1.

Seeking out knowledge that will make a difference and learning it to the point where it becomes an integral part of you as a trader and the systems you develop and actually use. 2. Doing ALL of the right things on a consistent basis 3. Developing a passionate belief that something good could happen in your trading is replaced by the certainty that you can have sustained results that only evidence can provide.

So let’s cut to the chase..how committed are you? It easy to evaluate, just look at your behaviours… 1. Are you seeking out real learning that can make a difference in what you are doing or taking the short cut in the information you have (or can have access) to, and trying to replace that with a different indicator, strategy etc? 2.

Are you doing the right things ALWAYS or just when things go well (or not so well) – which starts of course by learning what the right things are? 3. Pssst! Here is a secret…You will never find the evidence to create that certainty that will keep you “safe” in those trickier market times unless you actually invest the commitment to measure what is happening and make sure these are the right things to measure (and this is not just trade profit/loss!).

There are few things more motivating than being able to provide some evidence of success. So how does what are currently doing stand up when you look at those three behaviours? The real trading EDGE We have heard all of the excuses, all of the reasons, every “my homework was eaten by the dog” story that it is possible to hear.

The reality is that trading success thing is within you and the level to which you are prepared to commit. The striving for a “trading edge”, which we will define as having an advantage over other market participants, is yours for the taking but only if you start by taking that interest and trade-changing commitment. It all starts with accepting what you are doing now..be honest… Removing all of the reasons “why not”, looking at your behaviour and ask yourself are you really committed?

We can do my part, give those who are committed the support, the learning programmes (see ‘First Steps’, ‘Next Steps’ and ‘Inner Circle’) that aim to fill gaps in knowledge, but with the “C-word”, which is your part, that is when good things can happen in your trading. So, Let’s finish with a mission (as it is these that are at the basis of making sure your commitment has the right focus) So ask the following questions and, of course, commit to following through on the following: 1. What can you learn that you don’t/partially know that could make the difference?

List your top three and seek out the answers (YES! We can help see ) 2. What are you not doing now that you know would contribute to your trading, even if it seems hard to start?

It may be to develop a COMPREHENSIVE trading plan, starting a journal etc. 3. What are you going to measure that may offer some evidence that you can REALLY do this! One last bit of good news…you CAN make the choice NOW whether you stay interested or becoming committed.

That the easy bit and your first vital step. Trade safe and exercise your choice to commit.

Invariably, the motivation to look at adding another technical indicator is a belief that your trading results, and the system that creates these, could be improved. As traders, we are bombarded with information relating to the use of technical indicators to guide decision making in our entry and exit decisions. Such information can be “persuasive” in making a change but as you are responsible for your trading decisions and subsequent results, it seems logical to start the process by asking the question “is it the right time for me to explore the use of another indicator?”.

The aim of this article is to highlight the FOUR critical questions you should ask of yourself first. 1. Am I REALLY trading my existing system NOW? As previously referenced, the major impetus for considering adding an indicator is to improve results when trading an existing system.

You can only make the judgement of any improvement if you both have a comprehensive system that specifies entry/exit/position sizing as a minimum AND are actually trading this. Potential trading actions The reality for most traders is that they fall down on one or both of these two CRUCIAL factors. Honesty with what you are doing now backed up with the evidence of journaling will give you the answer to this.

If these resonate with you, logically addressing these should be your priority. Without this, you are not able to make that judgement and hence adding another indicator is far less likely to impact positively on results. 2. Is adding another indicator the ONE major thing that is going to make the most difference to my trading results NOW or is there something else I should invest my energy on?

We have already specified two potential priorities in the previous point with reference to your trading plan and adherence to it. Also, we referenced the issue of evidence through journaling. As this is not only crucial for the above point, it is a vital part of your review process should you choose to investigate the use of a new indicator.

So again, could be viewed as a priority. Finally, addressing your knowledge relating to trading may be more important for you now. Not only are we referring to general trading learning but an in-depth understanding of what indicators including the ones you are using now, do and do not tell you about market sentiment.

This learning is again important in your judgement as to which NEW indicator could be useful. Therefore, again we would suggest this could be a priority over adding another indicator right now for you. Potential trading actions Prioritise your trading plan, discipline, journaling and learning, making sure these are at an appropriate level for you to invest time in exploring new indicators. 3.

Have I got absolute clarity about what another indicator should do to enhance my existing system? Previous points relating to journaling and learning should give you the ability to more ably identify what it is that a new indicator could add to your trading. The first decision in this process is to identify whether your focus is on improving entry or exit.

Once you have clarified this and If you have ticked other boxes so far, the other potential area for exploration is to look at the perimeters of the indicators/systems you are currently using as it may be that this could simply be the answer to create potentially better outcomes. For example, let’s assume you are using a price/10 EMA cross as an exit signal. You have found that one of the areas you wish to improve has not been taken out early on a regular basis by “market noise”.

It may be a simple case of testing a change e.g. to a price 20EMA cross that may make the difference you are seeking. Potential trading actions • Learn about the indicator you are using and make sure it is a fit for any gap you have identified in your existing system. • Don’t forget it may serve your purpose to look at a simple adjustment of perimeters of existing indicators you are using. This STILL needs testing before implementation. 4.

Have I got a formal process for testing an additional indicator in place that will produce the evidence to decide whether to include it within your trading plan? Ok so you have got this far, and so are ready to look at your new indicator. So briefly here are three process components you need to have in place. i.

Perform a back-test on previous trades to determine any change in dollar outcome across a critical mass of trades, Remember the purpose of any back-test is to justify the need for a forward or prospective test, NOT to change your system at this point. ii. Perform a prospective test (again deciding what critical mass of trades are enough on which to make a judgement) on a demo account using the indicator as you intend to do so in live trading. This may not only reinforce information from your back-test but adds the reality of new data coming into the market live and the tests the trades you may not have taken (if your previous entry indicators would have blocked action).

It is important that you keep ALL other trading plan perimeters the same to be able to confirm that it is your new indicator that is making any difference observed. iii. If your test produces a positive outcome, then articulate within your trading plan how you are going to use your new indicator. It is important that you ensure any statements are sufficiently specific (see an article on this HERE ) to guide action and measurement, and this should include under what market circumstances you would use it. iv.

Set a review date (e.g. 3 months) to determine how beneficial its continued use has been. Potential trading actions Ensure your process is not only clear but one you adhere to. You may use the above as a start point to developing you on process but remember to specify how many trades YOU think is a critical mass on which to make decisions.

Just over a month ago Apple became the first company to reach $1 trillion market cap after its shares closed at $207 per share. Now Amazon has become the second company to hit the historic milestone after its share price rose to $2,050 per share. In case you didn’t know, Amazon offers a range of products and services through its websites.

The Company operates through three segments: North America, International and Amazon Web Services (AWS). The Company's products include merchandise and content that it purchases for resale from vendors and those offered by third-party sellers. It also manufactures and sells electronic devices.

Not many people expected Amazon to reach $1 trillion this quickly. Back in March, Brent Thill an analyst from Jeffries stated that Amazon would reach the milestone in 2022 when the share price was at around $1585 per share. But since then, we have seen the share price increase by around 28% and Amazon become world’s second company to reach $1 trillion market cap.

With Amazon continuing acquiring new companies, we could see the share price rising in the future. The Worlds Richest Person It is worth pointing out that Jeff Bezos, Amazon’s CEO is world’s richest person with total net worth of $166 billion. He has increased his net worth by $66 billion just this year alone, according to the Bloomberg Billionaires Index.

Interestingly, if you bought $10,000 worth of Amazon shares back in September 2008 at $80 per share, they would now be worth around $253,750 USD at the share price of $2,030. You might not be the world's richest person had you made this trade, but perhaps pleased with the overall profit margins. So has the market topped out or is this just the beginning of further growth for the Nasdaq stock?

The jury is still out on this one. By Klāvs Valters ( Market Analyst) This article is written by a GO Markets Analyst and is based on their independent analysis. They remain fully responsible for the views expressed as well as any remaining error or omissions.

Trading Forex and Derivatives carries a high level of risk. Sources: TradingView, Google.

AUDNZD – Daily Despite the Australian Dollar having a strong rally towards the end of last year, it appears the New Zealand Dollar is once again regaining the upper hand against its counterpart. New Zealand is ticking many of the economic boxes of late, and from a fundamental point of view, it's not hard to envisage a return of strength for the Kiwi currency. These boxes include a combination of recent policy updates such as the steering away from negative rates and also how New Zealand has successfully managed the global pandemic thus far.

Using the Ichimoku cloud indicator on the daily timeframe, we see an array of factors contributing to the current downtrend in motion. Firstly, both price action and the longer-term lagging span (purple line) are operating below the cloud, which paints an inherently bearish picture. Next, the cloud's thickness located above the current price suggests much resistance to the upside if challenged.

That's not to say it won't fail, but it could cause problems for those looking to go long. We also see the MACD indicator maneuvering southwards with plenty of space to deepen into further bearish territory. Overall, the longer-term outlook at this stage looks rather bleak for the Australian Dollar.

Even shorter-term charts such as the hourly shown below, many indicators replicate the daily snapshot. Interestingly, the price has used the weekly pivot of 1.0673 as resistance, essentially rebounding from this level with pinpoint accuracy. In terms of potential price targets, longer-term, the pair look set to re-test the previous low of 1.0418, where the AUDNZD began the last rally in December.

Additionally, a DiNapoli calculation triangulating the swing highs/lows of 1.10438, 1.04181, and 1.08432 suggests 1.02175 as another possible target. Should this theory come to fruition, it would bring AUDNZD back towards pre-pandemic levels. Given how well both New Zealand and Australia are dealing with the Covid-19 situation, it seems logical for the price to return to this region.

Sources: Go Markets, Meta Trader 5, TradingView, Bloomberg

GO Markets recently announced the addition of ASX (Australia Securities Exchange) Share CFDs to the product offering, increasing the number of instruments available to its clients to over 250, which also includes Forex, Commodities, Indices. The latest addition will enable clients to trade multiple assets from one single platform. In this article, we will take a look at the top 5 largest companies (by market cap) listed on the ASX200 index.

About ASX200 ASX200 is Australia’s leading share market index and includes the top 200 ASX listed companies by way of float-adjusted market capitalization. The total market cap of the index stands at A$1.8 trillion making it the 16 th largest stock exchange in the world. Financials make up the largest part of the total market cap at 29.5%, followed by materials and industrials at 18.6% and 8.4% respectively. 1.

Commonwealth Bank of Australia Commonwealth Bank of Australia (CBA) is an Australian multinational bank with businesses across New Zealand, Asia, the United States, and the United Kingdom. It is the largest bank in Australia and the leading provider of financial services, including retail, banking and institutional banking, premium, funds management, insurance, superannuation, investment, and share-broking products. The bank has over 19.9 million customers worldwide and employs around 48,900 people.

Market cap: A$125 billion Share price: $73.29 per share Founded: 22 December 1911 (as a government bank), 1991 (as a public company) Headquarters: Sydney Australia 2. BHP BHP, formerly BHP Billiton, is a multinational mining, metals and petroleum company primarily in Australia and the Americas. BHP operates under a Dual Lister Company structure with two parent companies – BHP Group Limited and BHP Group Plc and they operate as a single entity, referred to as BHP.

It is one of the top producers of iron ore, metallurgical coal and copper in the world with over 62,000 employees and contractors. Market cap: A$113 billion Share price: A$38 per share Founded: Broken Hill Proprietary Company Limited (BHP) 1885; Billiton plc 1860; Merger of BHP & Billiton 2001 Headquarters: Melbourne, Australia 3. Westpac Banking Corporation Westpac Bank Corporation (WBC) is Australia’s first and oldest bank.

Some of the products Westpac offers include finance and insurance, consumer banking, corporate banking, investment banking, investment management, global wealth management, private equity, mortgages and credit cards. Westpac has over 35,000 employees worldwide. Market cap: A$89 billion Share price: A$26.81 per share Founded: 1982 Headquarters: Sydney, Australia 4.

CSL Limited Commonwealth Serum Laboratories (CSL) is a global biotech company, which develops and manufactures pharmaceutical and diagnostic products. CSL is one of the largest and fastest-growing protein-based biotechnology businesses and a leading provider of in-licensed vaccines. Market cap: A$88 billion Share price: A$193.03 per share Founded: 1916 (Federal government department), privatized in 1994 Headquarters: Melbourne, Australia 5.

Australia and New Zealand Banking Group Limited Australia and New Zealand Banking Group (ANZ) is the third largest bank in Australia and the largest in New Zealand. It also among the top 50 banks in the world. It operates in over 34 markets across Australia, New Zealand, Asia, Europe, America, and the Middle East.

It has around 40,000 employees serving retail, commercial and institutional clients around the world. Market cap: A$73 billion Share price: A$26.72 per share Founded: 2 March 1835 Headquarters: Melbourne, Australia It is worth pointing out that the top 5 largest companies make up a whopping 51.2% of the total market cap of the whole index. This article is written by a GO Markets Analyst and is based on their independent analysis.

They remain fully responsible for the views expressed as well as any remaining error or omissions. Trading Forex and Derivatives carries a high level of risk. Sources: ASX, Market Index, Datawrapper