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NOTHING TO LOOK AT - So many people come to trade markets with the expectation that everything needs to happen right now! It just isn't like that. So what's going on and why do we see it so much? Well, broadly speaking, this happens because we are sold a story of overnight success and get rich quick everywhere we turn in life. Naturally, this extends to the glamorous world of financial markets, where traders live like kings and own the world. It has to be this way because after all, this is how it is in the movies! But the facts are the following: 1) This is not a reality and in the movies, they aren't going to show the boring process that took that person all the time to get to the exciting parts (assuming it's non fictional). No one wants to see that, so they cut it out, leaving you with the thought that it must all happen right away! 2) Even if it did happen right away, would you really want it that way? The best things in life happen over time. They are honest and a reminder that what should be great should not be instant, but always. So that's not what we want. We trade and look at things over the course of a month, a quarter a year, not a minute, hour or day.

LEVERAGE OR LONG HALL - If I break it all down some more, and get a little less abstract with all of this, it also comes down to what's in your head as far as the motivation behind the trading. Are you thinking about the leverage or are you thinking about the trading. If you're thinking about the leverage, you're in trouble. If you're thinking about the leverage, you're thinking about making a quick Buck and you're thinking about a gamble. But you aren't here to gamble. You're here to make a living. To give yourself the opportunity to generate some income to help support you and your family on an ongoing basis. There's plenty to be made without focusing on the leverage and the moment you shift your focus to the trading and simply wait for opportunities that make sense instead of looking for opportunities that really don't. When you look for something, you might convince yourself you've found something that isn't what you're looking for. But if you wait, when it comes your way, it will be exactly what you wanted. So enjoy the process and be motivated to doing it the way you know you should but never thought you could. You can!

This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.

Editors’ Picks

EUR/USD now refocuses on the 200-day SMA

EUR/USD now refocuses on the 200-day SMA

EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.

EUR/USD News

GBP/USD extends recovery beyond 1.2400 on broad USD weakness

GBP/USD extends recovery beyond 1.2400 on broad USD weakness

GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally. 

GBP/USD News

USD/JPY marks up a 34-year high as USD returns to favor

USD/JPY marks up a 34-year high as USD returns to favor

USD/JPY rises to another multi-decade high amidst enthusiasm for the US Dollar. US economic exceptionalism and a massive US Treasury bond sale are fueling USD buying. Japanese Finmin verbal intervention warning is ignored by USD/JPY. 

USD/JPY News

Editors’ Picks

AUD/USD could extend the recovery to 0.6500 and above

AUD/USD could extend the recovery to 0.6500 and above

The enhanced risk appetite and the weakening of the Greenback enabled AUD/USD to build on the promising start to the week and trade closer to the key barrier at 0.6500 the figure ahead of key inflation figures in Australia.

AUD/USD News

EUR/USD now refocuses on the 200-day SMA

EUR/USD now refocuses on the 200-day SMA

EUR/USD extended its positive momentum and rose above the 1.0700 yardstick, driven by the intense PMI-led retracement in the US Dollar as well as a prevailing risk-friendly environment in the FX universe.

EUR/USD News

Gold struggles around $2,325 despite broad US Dollar’s weakness

Gold struggles around $2,325 despite broad US Dollar’s weakness

Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.

Gold News

Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure

Bitcoin price makes run for previous cycle highs as Morgan Stanley pushes BTC ETF exposure

Bitcoin (BTC) price strength continues to grow, three days after the fourth halving. Optimism continues to abound in the market as Bitcoiners envision a reclamation of previous cycle highs.

Read more

US versus the Eurozone: Inflation divergence causes monetary desynchronization

US versus the Eurozone: Inflation divergence causes monetary desynchronization

Historically there is a very close correlation between changes in US Treasury yields and German Bund yields. This is relevant at the current juncture, considering that the recent hawkish twist in the tone of the Federal Reserve might continue to push US long-term interest rates higher and put upward pressure on bond yields in the Eurozone. 

Read more

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