Special words for gold trading
We often see these words when trading. If you understand them, trading will be easier.
Including "deposit, withdrawal, position, closing, take profit, stop loss", etc.; they mean:
Deposit: remit personal funds to the trading account for trading;
Withdrawal: transfer part or all of the balance in the trading account to a personal bank account;
Position: the name of the trader buying and selling contracts in the market; establishing a trading order is called "establishing a position", a buy order is called a "long position", and a short-selling order is called a "short position"
Closing: ending a held buy order or sell order;
Take profit: the trading order finally achieves the profit target and leaves the market with a profit;
Stop Loss: When the order loss reaches the maximum tolerable amount, admit the loss and leave the market;
In addition to the commonly used terms, there are also some special terms involved in the trading market;
For example: heavy position, light position, carry order, lock position, liquidation
Heavy position: Most of the funds in the trader's account are involved in order transactions
Light position: The trader only uses a small part of the funds in the account to participate in the order;
In trading, there is a most basic principle that "don't put all your eggs in one basket"
There are always risks in the financial market, and traders should remember one sentence:
Avoid risks, trade with light positions, and never hold heavy positions.
Light position standards:
Total loss of holding positions ≤ one-tenth of the account amount
The number of lots for a single transaction of 10,000 US dollars is not more than 0.5-1 lot
Carry order:
When traders encounter losses, they have no stop-loss strategy, do not know how to stop losses and choose opportunities to start over, but always hold losing orders and bet everything on the rise and fall of the market. This is a behavior that should be avoided in trading.
Locking:
Similar to "carrying orders", when traders encounter losses, they do not implement stop-loss strategies, but establish reverse orders while holding loss orders. Locking can only allow traders to temporarily stop further losses, but cannot get rid of losses. If the net value is not enough, a "black swan event" will occur, and the short-order spread will increase instantly, which will also lead to a margin call.
Margin call:
When the funds in the trader's trading account are not enough to trade, it is a margin call; margin call means the loss of all principal.
If you are a novice, these must be helpful to you! I will share trading knowledge from time to time, and you can follow me if you need it.
Globalmarket
A very long-term (Macro) Approach To US/Global MarketsAfter completing my weekend research/videos, I wanted to create something that provided an anchor for traders/investors.
This video is not focused on the short-term market trends - although it does discuss what I expect to see play out over the next 12 to 24 months.
This video is more about preparing traders/investors for the global events related to Central Banks, market trends/opportunities, and how I believe the markets will react over the next 5+ years.
After watching this video, your job will be to watch for key events to unfold. These events, described in the video, will be key to understanding where opportunities and risks are in market trends.
This is NOT the same market we've been used to from 2010 through 2021. This is an entirely different beast of a global market.
Credit/debt issues will persist, and conflicts/war may drive major repricing events.
Pay attention and follow my research.
I'm delivering this long-term research to help you better prepare for market trends and protect your capital from downside risks.
Deciphering Divergent Signals The Complex Economic LandscapeThe global economy continues to face profound uncertainties in the wake of COVID-19's massive disruptions. For policymakers and business leaders, making sense of divergent signals on jobs, inflation, and growth remains imperative yet challenging.
In the United States, inflation pressures appear to be moderately easing after surging to 40-year highs in 2022. The annual Consumer Price Index (CPI) declined to 3% in June from the prior peak of 9.1%. Plunging gasoline and used car prices provided some consumer relief, while housing and food costs remained worryingly elevated. Core CPI, excluding food and energy, dipped to 4.8% but persists well above the Fed’s 2% target.
Supply chain improvements, waning pandemic demand spikes, and the strong dollar making imports cheaper all helped cool inflation. However, risks abound that high prices become entrenched with tight labor markets still buoying wages. Major central banks responded with substantial interest rate hikes to reduce demand, but the full economic drag likely remains unseen. Further supply shocks from geopolitics or weather could also reignite commodity inflation. While the direction seems promising, the Fed vows ongoing vigilance and further tightening until inflation durably falls to acceptable levels. The path back to price stability will be bumpy.
Yet even amidst surging inflation, the US labor market showed resilience through 2022. Employers added over 4 million jobs, driving unemployment down to 3.5%, matching pre-pandemic lows. This simultaneous inflation and job growth confounds historical norms where Fed tightening swiftly slows hiring.
Pandemic-era stimulus and savings initially cushioned households from rate hikes, sustaining consumer demand. Early retirements, long COVID disabilities, caregiving needs, and possibly a cultural rethinking of work also constricted labor supply. With fewer jobseekers available, businesses retained and attracted talent by lifting pay, leading to nominal wage growth even outpacing inflation for some months.
However, the labor market's anomalous buoyancy shows growing fragility. Job openings plunged over 20% since March, tech and housing layoffs multiplied, and wage growth decelerated – all signals of softening demand as higher rates bite. Most economists expect outright job losses in coming months as the Fed induces a deliberate recession to conquer inflation.
Outside the US, other economies show similar labor market resilience assisted by generous pandemic supports. But with emergency stimulus now depleted, Europe especially looks vulnerable. Energy and food inflation strain household budgets as rising rates threaten economies already flirting with recession. Surveys show consumer confidence nosediving across European markets. With less policy space, job losses may mount faster overseas if slowdowns worsen.
Meanwhile, Mexico’s economy and currency proved surprisingly robust. Peso strength reflects Mexico’s expanding manufacturing exports, especially autos, amid US attempts to nearshore production and diversify from China reliance. Remittances from Mexican immigrants also reached new highs, supporting domestic demand. However, complex immigration issues continue challenging US-Mexico ties.
The pandemic undoubtedly accelerated pre-existing workforce transformations. Millions older employees permanently retired. Younger cohorts increasingly spurn traditional career ladders, cobbling together gig work and passion projects. Remote technology facilitated this cultural shift toward customized careers and lifestyle priorities.
Many posit these preferences will now permanently reshape labor markets. Employers clinging to old norms of in-office inflexibility may struggle to hire and retain talent, especially younger workers. Tighter immigration restrictions also constrain domestic labor supply. At the same time, automation and artificial intelligence will transform productivity and skills demands.
In this context, labor shortages could linger regardless of economic cycles. If realized, productivity enhancements from technology could support growth with fewer workers. But displacement risks require better policies around skills retraining, portable benefits, and income supports. Individuals must continually gain new capabilities to stay relevant. The days of lifelong stable employer relationships appear gone.
For policymakers, balancing inflation control and labor health presents acute challenges. Achieving a soft landing that curtails price spikes without triggering mass unemployment hardly looks guaranteed. The Fed’s rapid tightening applies tremendous pressure to an economy still experiencing profound demographic, technological, and cultural realignments.
With less room for stimulus, other central banks face even more daunting dilemmas. Premature efforts to rein in inflation could induce deep recessions and lasting scars. But failure to act also risks runaway prices that erode living standards and stability. There are no easy solutions with both scenarios carrying grave consequences.
For business leaders, adjusting to emerging realities in workforce priorities and automation capabilities remains imperative. Companies that embrace flexible work options, prioritize pay equity, and intelligently integrate technologies will gain a competitive edge in accessing skills and talent. But transitions will inevitably be turbulent.
On the whole, the global economy's trajectory looks cloudy. While the inflation fever appears to be modestly breaking, risks of resurgence remain as long as labor markets show tightness. But just as rising prices moderate, the delayed impacts from massive rate hikes threaten to extinguish job growth and demand. For workers, maintaining adaptability and skills development is mandatory to navigate gathering storms. Any Coming downturn may well play out differently than past recessions due to demographic shifts, cultural evolution, and automation. But with debt levels still stretched thin across sectors, the turbulence could yet prove intense. The path forward promises to be volatile and uneven amidst the lingering pandemic aftershocks. Navigating uncertainty remains imperative but challenging.
Will The U.S Dollar Collapse ?OANDA:XAUUSD
Currencies fall for various reasons and they include:
1. Political or economic disorder
2. Hyperinflation
3. War
4. A labor market decline
5. Recession, among various other reasons.
1.The United States has weathered several political and economic disorders since its formation in 1776. The country was on the brink of collapse during the Great Depression in 1929 but successfully weathered the storm in 1939. Not only did it withstand the Great Depression, but it also fought World War II with valor the same year. The will to overcome all odds is in the blood of Americans come hell or high water. Therefore, the US has more chances to overcome political or economic disorder due to this very spirit.
2 Hyperinflation
Inflation in the US is high but has not reached hyperinflation yet. The Federal Reserve managed to bring down rates from 8% to 6.5% and are rowing the boat, despite muddy waters. Hyperinflation taking over the country with daily essentials becoming 50 times more expensive might never be a reality.
3. War
The US is technically not at war but funds wars overseas, be it Ukraine, Syria, and Yemen, among other countries. A rogue nation attacking the US since 9/11 is nil, and the country is not at war today. The US is more equipped to handle and thwart terrorist attacks today than it was ever before.
4. Labor Market Decline
The job markets remain robust despite several leading tech firms firing thousands of employees since 2020. Businesses are thriving, and jobs for small and big-level employees remain open for hire. Though the job markets remain on shaky grounds, it managed to sustain and grow, even in muddy conditions.
5. Recession
While talks of a recession are growing louder, a recession has technically not hit the markets yet. Both the stock and cryptocurrency markets are doing favorably well in 2023 and generating decent returns for investors. However, a recession cannot be ruled out, as there’s pressure on the financial markets.
Considering all the above points, the US stands in a favorable position with the only recession being its weak point. Moreover, since a recession is yet to arrive (or might not arrive), the weak point can be removed for now. In conclusion, the other sore spots can be worked upon and brought under control in the coming years.
So Will The US Dollar Collapse?
BRICS is yet to finalize a new currency in the upcoming summit in South Africa. The problem with BRICS nations is that decisions are not made swiftly and quickly due to various factors. Asian countries working with each other is not as easy as said.
The factors involve India’s broken relations with China and vice-versa. India and China have always been on the wrong ends, and the bitter political disputes could only make things worse.
Technically, the US dollar is backed as the default global reserve currency with billions worth of trades being executed each day. The US dollar has a special status globally and is considered one of the safest currencies. The United States is still the biggest economy in the world with an annual GDP of around $23 trillion.
Even if the US falters, it always has and will find a way to remain at the top and be an undisputed global leader. The Great Depression is one big example of how nothing is impossible for Americans to succeed in troubled times.
A Trader's ThanksgivingThanksgiving is a distinctly American holiday, where our nation takes pause to reflect on all the things we have to be thankful for due to the actions of a courageous band of dedicated men and women who crossed a dangerous ocean to an unknown continent for the simple hope... of freedom. As traders, I am glad that we all, regardless of our national origin, our political bent, our religious affiliation, (or most importantly, a preference of Star Wars over Star Trek), we indeed have so much to be thankful for.
In my early days of trading classes a common statement from my classmates to our instructors was "I wish I started trading 20 years ago like you did!" And inexorably the instructor would say, "No you don't... *today* it's so much better to learn how to trade... The entry level is so low... you don't have to go to an exchange every day... you have immediate access to a global market with a simple app download or a click of a browser," and the list went on...
As a trader, I am thankful that we can make money regardless of economic ups and downs, that every day can be a "green day" in our account even when the S&P, Crude Oil, or whatever it was that had a red-candle day because we have the ability to go short as well as long!
As a trader, I am thankful that we have access to a world of free information like BarChart or CMEGroup that can tell us things like what is the current contract, when are economic reports coming out, and technical analysis.
As a trader, I'm thankful to all the free tools available, like the free version of TradingView, Google Docs and Spreadsheets, YouTube, and so on.
As a trader, I'm thankful for the overall giving nature of our community, that traders generally and genuinely like helping fellow traders. Unlike Corporate America where it is dog-eat dog, or owning a business in a niche market where there is great competition to attract a limited number of customers, the opportunity for all traders are for all intents and purposes, *infinite*, and we all share in the collective success of the entire group!
As a trader, I'm thankful that I have no one to ask permission to take time for a family emergency, a medical emergency, a vacation, or anything that would normally interrupt or cripple a business owner's income or an employee's job security, and when I'm ready to get back to trading, the market will be right there waiting for me.
As a trader, I'm thankful that we have access to markets nearly 24x7 so we can work as much or as little as we like or need, and opportunity isn't governed by asking someone for the privilege to work for *them*.
Dear Reader, fellow Trader, what are YOU thankful for? Share your thoughts with our awesome community below!
Happy Thanksgiving, wherever you are!
-Anthony
Is the S&P500 at the end of a 100+ year CYCLE?The S&P500 market has started the end of a 100+ year 5 wave cycle, if this is correct we are now at almost the top of a 5 wave cycle which can end in the very near future. If this is true we are at the start of one of the biggest, if not the biggest market crash in the history of the S&P500. A correction of 5 wave cycle is usually 61.8% of the entire 5 waves, if this is correct we could see S&P500 prices of $1,100 levels. We are talking about $20 trillion wiped out. We could be going into a DEPRESSION!!!!