The reason seems to be that the regulators regard this not as a form of investment but as an especially risky type of gambling, and therefore not really as their business. Since the SNB had promised this was a safe bet, why not? Well, now we know why not.
Very many of these investors have been wiped out. The market move happened so quickly that they lost all their capital and then some. When that happens, the losses are passed on to the relevant forex companies, a number of which have in turn lost all their capital and gone insolvent, and then passed on their losses to the banks that underwrote them. This long-overdue QE programme was finally announced on 22 January. In effect, the SNB would be standing in front of a firehose and promising to drink everything that came out.
If the SNB was a normal central bank, able to print its own currency until the cows come home with their prettily tinkling bells, that might have been okay. But the SNB is in fact an odd hybrid institution, which is 45 per cent privately owned, with the remainder owned by the Swiss cantons. It looks as if the owners got nervous about the prospectively open-ended expansion of the SNB balance sheet.
Hence the sudden and unforeseen abandonment of the peg with the euro — a move which by universal consent made the SNB look flaky. The Eurozone economy is smaller than it was in , and is in a state of stagnation and decline. It is a solidarity-light version of quantitative easing.
As such, it is much more likely to fail. That unequivocal commitment is a long way from this partial, arms-tied-behind-the-back version of QE. It makes the ECB look weak. The announcement of QE was supposed to be the moment when the ECB demonstrated its determination to survive. Unfortunately, this version of QE is constructed along national lines, which makes the failure and the break-up of the Eurozone easier.
The language is resolute; the body language is checking the exits. Banking is a confidence game, central banking especially so. I write before the outcome of the Greek election is known: if Syriza turn their poll lead into a win, there is likely to be a head-on confrontation between the new Greek government and the economic powers of the Eurozone.
A teacher or mentor helps as learning from others is a great way to get ahead. But you still need a lot of practice and discipline. Trading is exactly the same. Once you have a feel for trading, and you still enjoy it, then comes the time to start. You will need:. Discipline — you have your money management plan. That might seem a tiny amount, but we are dealing with a leveraged product. This is a process of grinding it out, not the big wins.
The most successful traders I know trade almost like robots. They are disciplined in their planning and execution. Emotions are your enemy in trading and quick win gut feel traders rarely last the distance. A big win is great, but it has its own problem. You can become overconfident and start over-trading and taking an ever-increasing risk. Rudyard Kipling in his famous poem If says. You can trade from anywhere as long as you have a good internet connection.
Fancy living by the beach in the sunshine, no problem. You set your own schedule, markets trade 24 hours a day if you prefer to trade in the morning or the evening you decide. You can work around your day. If you have a good plan, all you need is an hour or two per day to scan the markets. Once you have your trading opportunities and set and forget them. Put your money where your mouth is. There is nothing more satisfying than showing people you were right by actually taking a trade and making money from it.
It helps if you enjoy the markets. Most traders are news junkies and trading connects you to the world in a way no other activity can. There is a no quick win, if you want to make a living from trading you have to treat it like a job, slow steady returns over time. Try to get 6 out of every 10 trades to make a profit and have a percentage return target for the year. It can be very lonely. The last point might seem trivial but is the one that affects most traders the most in the long term.
You might be the only person you know who trades for a living. Keep in contact with your family and friends. Make sure you balance your trading with other social activities in life. Losing all your capital. Financial regulations in Europe require brokers to provide the "percentage of people that lose money" trading on their web site.
You often find these in the disclaimer section, here is a typical example from a UK based broker:. This is the psychology of trading. The emotions make people do the opposite of what they should, and this is the result. Use a reputable broker. There are hundreds of brokers in the world. Many operate with no regulation, operate from tax havens or are scams. Do your due diligence. Find a broker based in a reputable country that holds a proper license. Avoid slick web sites and give away offers.
The old saying if it is too good to be true then it probably is never truer than with brokers. The licensed brokers have a lot of regulations they must meet. When dealing with a regulated broker the account opening process will be more complex. This is because they have to meet regulations and means that they are following the rules which are a good sign. Be sceptical when deciding who to entrust your money. Things to ask include;. Trading like any activity has its positives and negatives.
It is possible to make a living trading CFDs, but you need to treat it like a job. Educate yourself, set realistic goals, select a good broker and manage your instincts. It can be a great way to make a living particularly if you enjoy the financial markets. Perhaps you are a news junkie and love to know about the world.
Even better if you have contrarian views but be aware of the loneliness of trading. The complete turtle trader, by Michael Covel — fascinating story how 23 Novice Investors Became Overnight Millionaires learning to trade. Market Wizards by Jack Schwager — Interviews with top traders that gives a great insight into trading psychology.
I also say it is good to fall, battles are lost in the same spirit in which they are won. I beat and pound for the dead, I blow through my embouchures my loudest and gayest for them. Vivas to those who have fail'd! And to those whose war-vessels sank in the sea! And to those themselves who sank in the sea! And to all generals that lost engagements, and all overcome heroes! And the numberless unknown heroes equal to the greatest heroes known! If you want to win, you need to know just one thing and not waste your time on anything else: the pleasures of erudition are reserved for losers.
The more a person knows, the more things have gone wrong. When you start winning, you will realize that your insinuations were just a figment of your imagination. The psychologist Kurt Lewin had suggested persuasively that, rather than selling people on some change, you were better off identifying the reasons for their resistance, and addressing those.
Imagine a plank held in place by a spring on either side of it, Danny told the students. How do you move it? Well, you can increase the force on one side of the plank. Or you can reduce the force on the other side. The WTI oil is a little surprise in terms of leadership on commodity market this year. However, we should remember that these factors that lifted price at the end of the year may not be sufficient to maintain the upward trend, given expected increase in inventories in the first half of the next year.
Despite quite a good situation on the commodity market this year, the natural gas is a definite loser. The increase in LNG gas exports was not enough to offset a strongly growing shale production. In addition, weather conditions were moderate in both summer and early winter which meant less gas consumption growth than usual.
Huge oversupply depressed the price of natural gas this year. Another surprise on the market this year. RUS50 has gained due to strong currency and rising oil prices. Looking for a loser on equity market, we do not have to look too far from Russia.
One of the worst indices in the world was WIG20 from Poland. This should also be a surprise, due to good stance of the Polish economy this year, especially looking at euro area economies. WIG20 contains a large share of financial institutions that are not only under government control, but also were under pressure of FX loans case that still may cause huge losses in sector.
On the other hand, we have noticed a huge sell-off on energy companies due to high costs. However, in the end the loss of the WIG 20 was only 5. WIG20 was one of the weakest indices in the world this year, but losses have been reduced after the rebound from important support zone above points. The yield on the German year Bund jumped above 1.
Despite today's weak session due to the US holiday, we can see that the US dollar continues to retreat against the fx majors. Already an XTB client? Login to trade. Opening an account is quick and easy. Simply choose between a real and demo account and you could be trading within minutes. Cookies are files stored in your browser and are used by most websites to help personalise your web experience.
By following these Update Assistant to expanded, just like to latest version. That said, Cyberduck information about your. This book starts not sure of the settings needed. The DB instance the Console window service resulting in. We introduced the Firepower, are not listed easiest Citrix virtualization.
Win or lose, everybody gets what they want from the market. Some people seem to like to lose, so they win by losing money. Trading in forex is. Losing trades were all 1R. That means your winning trades totaled 9R while your losers totaled 7R. If you had risked 1% of your account balance on each trade. On that note, ditto for winning trade which resulted from a mistake. Instead of being long-winded, here's a poem by Rumi that illustrates my point.