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Trading Strategy with the Non-Farm Payroll (NFP) Indicator

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The Non-farm payrolls (NFP) indicator is the report on total salaried workers in the United States except agricultural jobs, government workers, nonprofit workers, and private domestic workers. Today it is a key economic indicator for the United States.

The publication of the NFP report causes very wide movements in the Forex market, which are among the largest movements produced by the publication of economic news. This is why many analysts, investors, speculators, and investment funds try to anticipate the result of the NFP and the movement it will cause. Due to this great expectation before the publication of this economic indicator, the market can react with wide movements even when there is no deviation between the forecast and the final result of the NFP.

In this article, we are going to discuss some trading aspects related to this economic indicator, especially to avoid the exposure to excessive risks due to the high volatility that the release of the NFP can cause.

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The coronavirus crisis slows the world economy and collapses the stock markets

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Historical falls for the stock market due to the coronavirus crisis. The health crisis has been joined by an economic crisis. Governments have to decide which one they prefer to focus on. And they are hardly going to stop both at the same time.

Let’s focus first on the thermometers of the global economy. The S&P 500, which accounts for almost a third of the world market capitalization, this week had its fifth largest drop in the stock market (-11.5%) since the Second World War. The MSCI World has also fallen by -11.12%. This in economic terms represents losses of almost 10 trillion dollars in the accounts of investors, that is, the sum of the GDP of Germany, the United Kingdom, France and Spain. Not bad for a single week.

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Bull Trap and Bear Trap – Traps in the markets

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In this article, we are going to explain the most common traps in the markets, known as bull trap and bear trap, how we can avoid them and, above all, how we can take advantage of these market conditions. Pay attention, because this article is going to take you from the losers side and put you on the side of the smart traders.

The traps can be bullish or bearish. The traps for buyers are called bull traps and the traps for sellers are called bear traps. Generically, we sometimes refer to a trap as a swing trap.

First of all, we will look at how a market trap is formed. After all, it is simply a thing that is not what it seems to be. The price goes in one direction and we, as rebound hunters, wait for the right moment to open a new position in the opposite direction. However, it is a trap! Now that we are inside, the price continues with its previous movement, destroying our idea of making money.

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Know Sure Thing (KST) indicator for Metatrader 4

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In this article, we are going to present a modified indicator for Metatrader 4 which shows the technical indicator KST (Know Sure Thing) in a window below the main price chart and in any time frame. We include this indicator for free download at the end of the article.

Before explaining how works this indicator for MT4, let’s talk a little about the generalities of the KST.

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Internacional Trade & Trade Balance of USA

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US Trade Balance

General definition and importance

The “International Trade & Trade Balance” is an economic report that measures the difference between imports and exports of goods and services in countries like United States. Imports and exports are important components of accumulated economic activities. Furthermore, representing 14 and 12 percent of the gross domestic product in the United States, respectively. Normally, increases in exports are positive for corporate profits and also good for the stock market. Changes in the trade balance with particular countries may have implications in the monetary policy with respect to those countries for which this report is important for investors who are interested in diversifying their investments globally.

Valutrades – Regulated Forex Broker of UK

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Review of Valutrades

Valutrades – Forex Broker Review

Valutrades is a Forex and CFD broker founded in 2013 which has its headquarters located in the United Kingdom. It is an ECN/STP type broker, which means that it does not act as the counterpart in the transactions of its clients and offers tight and variable spreads, since it acts as an intermediary between its clients and other market participants, including large financial institutions such as banks (liquidity providers). In addition, as an ECN broker, Valutrades accepts all types of trading strategy, including scalping and HFT (High Frequency Trading).

The trading accounts of this broker use ECN technology to offer rapid execution of milliseconds against the best Bid / Ask prices. Valutrades servers are hosted in the Equinix NY4 data center. This is the largest data center for currency trading. This is the ideal location for servers to provide fast execution of orders and free VPS servers.

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What types of indicators do I need in my trading strategy?

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As traders that we are, or pretend to be, we will spend most of the time looking for the best time to enter the market in a certain direction. In this search, we will use some tools such as technical indicators. From my point of view, any trader who bases his trading on technical analysis should use at least 4 types of indicators.

Well, rather, you should use those indicators that respond to the 4 basic trading needs: recognize the prevailing trend -> confirm the trend -> find the best entry -> find the best exit. These needs can be covered with the information of 1 or several indicators. Thus, I will classify the indicators into 4 categories according to the need they will cover, although this classification is for illustrative purposes only.

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Financial Conduct Authority – FCA

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The Financial Conduct Authority (FCA) is a quasi-governmental agency of UK which was created as a successor to the Financial Services Authority (FSA). This body is responsible for regulating firms that provide financial services for consumers of all types (including investors and individual traders) and to maintain the integrity of the financial markets in the UK. Basically the FCA focuses on the regulation of the conduct and integrity of the companies that provide financial services in the country (including those that are subject to supervision by the PRA). Like its predecessor the FSA, FCA is structured as a company limited by guarantee.

This entity is also responsible for the prudential regulation of small firms of the financial sector that do not fall under the jurisdiction of the Prudential Regulation Authority (PRA), such as Forex brokers.

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The main stock indexes in the world and the funds that replicate them

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Investment in the stock markets has historically been very profitable. During the twentieth century in almost any decade buying equities proved to be a good strategy to preserve purchasing power. However, very few investors in that period will have obtained exactly the results that the market averages show.

When we talk about the evolution of the stock market and markets in general, we almost always refer to some index. This index is usually made up of a number of companies and aims to represent an important segment of the market. For example, the S&P 500, one of the most followed indices in the world, represents the equity of large companies in the United States. Its evolution is closely linked to the evolution of the US economy and companies.

Today we live in a very globalized world, and financial markets are increasingly interconnected. In the same way, more and more investors are observing global indices that seek to reflect the evolution of the economy worldwide.

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