Hi i been trading 6months on us30 dax eth and gbpjpy ,i was profitable but form last monday forex is dropping hard.Why and how long it will take?
There’s been much media coverage lately concerning high oil prices, inflation (suggesting pressure for higher central bank interest rates), new European anti-covid lock-down measures and most recently the Omicron covid variant.
To be honest, I note but don’t necessarily believe all the significant news and explanations of why this currency is up and this one is down. I just follow the chart. I don’t make different trade decisions or vary my strategy according to what caused a price rise or a price fall. Do you absolutely need to go deep into economic news and factors?
A few factors you need to take into consideration:
- New year will start soon
- Gj came back in its consolidation range. You can not expect yolo vertical moves. Repricing and/or reversals will happen
- The indices dropped for the same reason. Repricing. It needs to come down, so it can be bought at a cheaper price.
- The main cryptocoins have the same reason.
GBPJPY
You are noticing things that many retailers fail to do. Good job!
It is possible that with tons of fundamental info you will be able to trade profitably, but that has to be proven. That is something I do not know. However news releases tend to be a tool for market manipulation, not a cause.
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IMO, institutional traders would be protecting their positions at the possibility that Omicron - should it be the new anti-Christ - would adversely effect global economy growth, with the richest countries suffering the most.
Also, most stock market traders would be aiming to consolidate their portfolios before the year end.
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This market is very volatile. You need to be very careful.