NZDUSD. Reserve Bank of New Zealand Meeting (Rate Decision) 21 September 21:00 GMT

New Zealand’s economy is going through the opposite. The country’s economic stats are continuously improving, which is backed up by the latest GDP data, which – although still at a high level – is gradually slowing down.

Over the course of the last year and a half the NZRB have already cut the rates several times, and experts believe the practice could continue.

Dynamics of interest rate of New Zealand change between 2012 until now:

Should the refinancing and the interest rates indeed get cut, it might have a negative effect on the New Zealand dollar.  

NZDUSD chart:

Last week the rate broke the bottom line of the upward trend and according to the indicator of technical analysis “Awesome Oscillator” further downward rate movement is possible as the zero-line was breached.

What is more, there will be plenty of fundamental reports which might have an impact on the national currencies of these countries and the downward trend might accelerate.

8 uncommon ways to become a disciplined trader

Many of you have been asking about the ways to control your emotions and be in charge of the situation. We have gathered 8 tips that you might not heard of before but you will definitely agree with us on their effectiveness.

1) Do not play the money game

Are you playing the money game? You need to stop and start playing the game of discipline. Switch your attention to the self-control. Play the game of checking yourself and having the control in your hands. Watch your discipline grow and not the account (it is good with the demo funds for sure). Let the others go greedy, you are stronger and you can handle it!

2) Skilled trader is watching

Have you heard of any famous skilled traders? Like Richard Dennis, for example. So imagine Richard Dennis sitting next to you and watching you trade. He has carried out so many trades, conqured the market and has become a trading icon and now he is behind your back, eager to see how well you can manage, will you save your face?

Once you realize the responsibility you bear, the emotions will go away, you will cool down and weigh every deal you conduct. Analyze, let your mind think ahead of the trade. Surprise him with your skills!

3) Talk to yourself

“Do I want to be like everyone else and trade without any strategy or discipline? No way, I will do my homework, get ready and make the right choice. As a result of this deal I will get $10 000!” Yes, make promises to yourself, step by step you can assure yourself of your future winnings and encourage the inner trader.

4) Write it down

Why do you trade? What do you wish to achieve? Think of these, write them down. Shape the aim and what needs to be done to achieve the goal. If you can not think of anything particular, then why are you here?

5) No stress

Discipline should not be a burden to you. You must not fight yourself to get organized. You must love the state of being disciplined, as it is your choice to be the winner. Create your own plan and follow it, the process must overwhelm you and make you realize that this is the only right way. Once you love it, you will achieve it!

6) Do it for your family

Do you have someone close to dedicate your victories to? Think of someone inspiring, become disciplined for them, if you can not do that for yourself. Promise them you will do that for them (in mind or in the real life) and imagine bringing them down if you do otherwise.

“Oh, what would dad think of me now?!”

7) Procrastinate

Postpone being emotional and undisciplined. Promise yourself to be disciplined today only but then start the new day with the same mood. This is a great human trait, putting off things for some other time (which often never comes  )So use it in your favor. Cheat your brain and become disciplined on a daily basis.

8) Process VS result

Many traders trade for the result and not for the process sake. Try to see your trading succes not through the profit prism but through the growth of your discipline.

After each trade you can ask yourself: “How disciplined I was this time, where did it take me?”.

If you were 100% disciplined and yet the deal got closed with no profit, you have still done well, praise yourself for the diligence. The error was with the system and not on your side. Yes, it is not what you expected but it is an experience you will be able to use and implement it in your strategy.

Australia’s GDP Report (7 September 01:30 GMT)

The economy of the Pacific region continues going through a tough time: GDP growth of China – the main trading partner to Australia and New Zealand –  is slowing down, tradable commodity prices remain low, domestic demand is showing no signs of improvement.

That’s why the Bank of Australia had to cut the refinancing rate by 25 basic points (from 1.75% to 1.50%) to stimulate the country’s economy.

Should the GDP figures turn out to be disappointing as well, it will have a negative effect on the Australian dollar.

What is more, this Tuesday at 07:30 GMT +3 representatives of Bank of Australia will held a meeting and they will consider whether the rate should should be changed or not.

..it is expected that the rate will remain on the same level, but market participants will pay a lot of attention on RBA Rate Statement report which will be published right after the meeting.

AUDUSD chart:

An upward trend still can not accelerate on AUDUSD D1 chart, as after each and every upward rate movement (highlighted with yellow lines on the price chart) there was a downward correction. It is highlighted on the price chart that there is a high probability of AUDUSD rate to start increasing yet again and the indicator of technical analysis “Awesome Oscillator” proves it. But traders have to be accurate as the strength of the upward trend is decreasing.

Trading Signals 2016-09-06

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 GBP/USD          Duration  1 h.

 AUD/USD          Duration  1 h.

7 Risks in Foreign Exchange Market

Foreign exchange market (Forex) is the biggest challenge a market can offer you. With its average traded value of approximately $383 billion per day, Forex market surpasses by far any other market out there, including the stock market.

There are many opportunities Forex puts at your disposal, but there is also a great deal of responsibility whenever you play this game. Assets are volatile 24 hours a day, so certainty has no place in this world. However, there are seven main currency risksthat you can avoid. Let’s see the stages of your Forex activity requires more caution from your side.

1. Interest Rate Risks

Your main focus in dealing with the Forex risks should be the interest rate. The interest rate is influenced by the 8 global central banks, which base their decisions on external economic indicators (The Consumer Price Index, Consumer Spending, Employment Activity, Subprime Market or Real Estate Sales). Follow Economic Calendar.

The higher the interest rate, the higher the profit. However, currency fluctuation has a volatile nature, and this is your risk point.  Predictions are not equal to certainties, and your large bet can be lost by dramatically weakened currency.

2. Country Risk

Currency risks depends a lot on the economic phenomena a country goes through. Before investing in your chosen currencies, you should research the level of stability of the country in question. Any feeble rumor which concerns the economic aspect of a country has great power. The investors can withdraw their assets whenever they want from the Forex market under the pressure of even the thought of losing them, triggering a domino effect.  More and more investors will consider retreating a safe strategy, hence a rapid decrease in currency value.

3. Transaction Risk

Due to the unpredictable fluctuation of the Forex market, the currency values can experience a sudden change any moment of the day, and it won’t take your contract regulations into account. As long as the exchange market has a capricious nature, you won’t be safe from risks. Individuals and companies must assume the risk of paying substantial transaction costs that are likely to occur between the moment their contract is decided and the moment their contract is activated.

4. The Risk of Ruin

The risk of ruin can become a reality whenever there is risk-reward ratio bigger than 3:1. That is, however, a too limited safety measure, but beyond this ratio you are hunted by great risks. For the binary options it means that if income percent goes lower 50%, you are taking big risks. The risk of ruin intervenes in any emotional activity. Thus, this makes the risk of ruin a reality in the foreign exchange market.

In order to minimize this risk, it is recommended to resort to diversification. Don’t place your assets on a single bet. This strategy allows you to cross some boundaries, but only on educated guesses also.

5. Settlement Risks

As the rules of Forex market depend on the 8 global central banks, the settlement risk plays an important role in your trading activity. The settlement risk is a side effect of the time zones of different continents. During the same trading day, the same currencies can be found at different prices. So, your success does not depend only on choosing a good day for your chosen currencies, but also a specific moment of that day.

6. Dictatorship Risk

This is when a government uses its influence to interfere directly in the Forex marketplace. It’s why it is important to also have a strong cultural knowledge of the world’s history. Even though this risk is the least probable one from this list due to the fact that all major currency markets are located in U.S., you should still pay great attention to worldwide events.

7. Technical risks

Most of the trading platforms nowadays are online to facilitate the access to anyone to the Forex market. However, no matter how many benefits the Internet provides us, we shouldn’t rely 100% on it. A low Internet disconnection or a website maintenance procedure might be the difference between winning and losing your assets.

All in all, these are the seven main risks of trading that you should take into account in your decision-making process. Once you strike a balanced connection between the risks you are facing and the opportunities you can take advantage of, you are ready to start your investment.

Indikator Relative Strength Index