Profit through Discipline

WEAKEST LINK - I've been on the go and running around and can't believe how much we've been growing here at JKonFX. We're very lucky to have such wonderful clients who understand what we're trying to do here and what trading is about for us. Trades don't come every day and we just stay focused on doing what we believe gets those results, in the best possible way. Transparency is also so important to us, as we want you all to be able to see what it is that I'm doing, so that it can help you see the process and the way in which trading can be the most amazing way to earn an income. We had a tough 2017 year and even through that, our support has grown and we are moving forward with great momentum. They say you are only as strong as your weakest link, and if 2017 was our weakest link, we should be very optimistic about the future. We were just nominated for some awards and I am most grateful for the recognition. We are already off to a fantastic start in 2018 and while I know many of you are waiting for a February trade, we can't force it and it will come when it comes.

THINGS TAKE TIME - There is a lot going on out there in markets in 2018 and the fact that we have so much going on, and on such a high level as far as implications go, it makes sense that it is taking time for things to play out. I do believe this latest downturn in risk sentiment and reversal in equities, could be the start to something much bigger. This time round, that buy on dips for fresh record highs, isn't even remotely compelling. The big changes going on are about a path forward that shows monetary policy normalizations kicking into gear at a more predictable rate, all while inflation works its way back into the picture. In years past, it was about the start to policy normalization and possible implications. But clearly, that alone wasn't enough to trigger the capitulation that I believe is forthcoming. Now that we are seeing things materialize more as far as rate hikes and inflation signs go, this should keep that pressure on risk assets and should lead to a much deeper and more intense rotation.

THE DOLLAR - I have said the Dollar outlook is more complicated these days with the US administration off promoting a soft Dollar policy, but even still, the outlook does paint a picture where the Buck may have another decent run ahead, especially against the commodity block and emerging market currencies. The Euro and Pound could perform better as alternative diversification assets, and the Yen and Swiss Franc might (for a short time) benefit as well from the traditional correlation with flight to safety. But overall, if we see risk liquidation and inflation running up, we should expect the Dollar to hold up well against the non-major currencies. I'm waiting for something to present that lets us take advantage. But I'm waiting and will not be forced into something I don't really want to be in. Remember this - any time you make a decision when it comes to trading that involves erring on the side of discipline, you're already profiting big time! This is a skill that pays dividends extending well beyond the monetary.