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Tyler Yell

Tyler Yell Forex Trading Blog

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Did the March FOMC Mark the Bottom For The US Dollar?

Monday March 24, 2014

Many Forex traders were shocked by the March FOMC meeting when Janet Yellen said that the Fed could raise the Fed Funds rates as soon as early 2015. This move allowed the US Dollar to have it's best day since Fall of 2013.  Many traders have found themselves asking the same question,  was Wednesday, March 19th, the bottom for the USD.

Today's article breaks down what happened in different markets that could shed light on what's to come for the USD. What's also helpful, you will see the preferred set-ups should the USD begin to strengthen. It's often helpful to find the low hanging fruit and not just blindly buying the USD against whatever's convenient.

How Long You Should Hold An FX Trade?

Sunday March 23, 2014

Today's article helps you to answer a key question of your trading strategy.  The questions is, how long will you typically hold your Forex trade? The answer to this question will inadvertedly reveal a lot about your personality and how comfortable you are holding risk over a period of time.

The three common designations based on how long you hold a trade are day trading, swing trading, and position holding. Each type has it's own benefits and draw backs.  Whichever method you decide on, I have one key piece of advise for you: hold on to your winners longer than you do your losers and that can make all the difference.

Part 3 of 4: Managing Your Risk Like a Pro

Thursday March 20, 2014

Traders must know how to manage risk.  One trader who I respect very much, taught me a great lesson that every trader will learn some way along their path. The lesson was that managing risk is your only edge against the person on the other side of your trade. This lesson was as liberating as it was true because there will always be a firm willing to pay more for researching the other side of my trade than I am but if I can manage risk, then I'm still in the game with a positive edge.

This article discusses two key aspects about risk. First, you will learn how to appropriately think about risk and a key mental bias that if not fixed, will ruin your trading career before it starts. Secondly, you'll learn how to manage your risk by doing the opposite of what many losing traders do.

FX Strategy Development Part 2 of 4: Objective Entry Rules

Thursday March 20, 2014

When FX traders around the world ask me to help them with their trading strategy, one common flaw unfortunately shows its head.  That flaw is a non-rigid approach to entering the market. Of course, a rigid approach doesn't guarantee success but if you do not have objective rules to help you enter into the trade, you'll have a hard time narrowing down what part of your process needs help.

Today's article will make sure you have at least two objective rules to help you enter a trade.  Of course, you can add more rules before entering a trade if you wish but I don't recommend you get too complex as that can open up a range of pitfalls on its own.

Part 1 of 4: Forex Strategy Development Series

Wednesday February 26, 2014

Trading the Forex Market isn't as easy as some would make you believe. However, it's not as difficult either. To get a good grasp on whether or not this market could be a profitable avenue for you and your investing, you first need to come up with a trading plan.

To build a trading plan, every trader should begin by determining which market environment  they prefer to trade between trending or ranging.  After that is decided, you need ot find out what type of environment we're currently in before you can work on objective entry triggers.  To find out how you can find a favorable market environment to trade, click here and enjoy!

Your Forex Trading Plan of Attack

Saturday February 22, 2014

Trading the Forex Market can be likened to a hunter in the woods. You want to be able to identify the best opportunities that can feed your account consistently without exposing yourself too much risk.  In order to find opportunities consistently, it's best to develop a trading system fit to your needs and strengths.

This article is the prologue to a 4-part series on developing your own Forex trading strategy.  Throughout this series, you will be introduced to key building blocks that make up key trading plans whether you're a brand-new trader or a managing a trading desk at a major Wall-Street bank.

 

Avoiding The Breakout That Never Was

Saturday February 22, 2014

It's so easy to enter into a bad trade. Of course, we want can never prevent all loses but any way in which we can see a trap and avoid it, the better off our trading careers and account equity will be in the future. From experience and from talking to thousands of traders throughout my career, one of the top drains of account equity is entering into a trade under false pretences.

What does he mean by 'false prences', you may ask? Quite simple, if you believe a breakout is taking shape only to fail, yet you enter thinking that all time highs are around the corner, you're entering the trade on false pretenses. If you can indentify a legitimite breakout vs. a false one where the sharp move traps new traders that may just be a last ditch effort by those in the trade to get out at a good price before the oppositiong takes over you will have a major edge.

If you're unsure how to identify those types of breakouts, this article is a great starting point to prevent you from entering a trade at the one of the worst possible prices on the chart.

If You're New To Forex Trading, You Should Start Where Others Haven't

Monday February 10, 2014

If you're like many other traders when you started out (myself included), you were probably going on a scavenger hunt as to the best trading system in the world.  The one trading system that will tell you when and where you should buy. However, the longer you're in the game and the more trading desks and strategies you're exposed to bring out one common theme.

Every trading system is built upon defining an edge while keeping as much of your trading capital as possible when the edge that you've build your trading system around doesn't pan out. This article breaks down how you should approach trading from the vantange point that many now successful traders would were they to start all over again. Enjoy and let me know if you have any questions at all.

Happy Trading!

Major USDOLLAR Moves Are Stirring, Keep An Eye on USDCHF

Friday January 31, 2014

January 2014 was the best January for USDOLLAR since 2009. As a Forex trader, you should be looking around for Forex crosses where the USDOLLAR is trading against other currencies that are weakening and finally starting to break multi-year trends.  This is where you can find exciting opportunities and one such is being described in this article regarding how to trade price channel like seen on USDCHF.

Looking at this chart which is featured in the article referenced above, it's important to see how this trend has the potential to break a multi-year price channel and continue the move higher begun off the all-time low in 2011.  The purpose for this multiyear downtrend in USDCHF which are showing relief in January of 2014 has been the Quantitative Easing program which the Federal Reserve confirmed that they were tapering on January 29th, 2014.

Beyond USDCHF, it can be helpful for you to look for similar price channels breaking to find great trading opportunities. When a channel breaks, you can see on the chart a shift of market power from the buyers to the sellers when a rising channel breaks or vice versa when a falling channel breaks like on USDCHF. As always, if you have any questions, please don't hesistate to reach out to me via comments, email or @ForexYell.

Understand How USDJPY Direction Has Major Global Risk Implications

Friday January 31, 2014

Many people don't realize how interrelated the global financial markets really are. Trader, it can help you dearly if you begin to see all markets as related and you can start with the S&P500 as well as the USDJPY.

While you may not understand at first, why markets are related, it's important to know that over the last few months, when USDJPY has risen meaning that JPY is being sold as USD is being bought, the S&P 500 has been rising. Conversely, when the USDJPY is falling like it has since for the month of January, it means that JPY is being bought, USD is being sold and the S&P 500 is falling as well.

Here is an article that will help you steer the risk of trading in 2014 through USDJPY and the S&P500. While the first month of 2014 was definitively risk-off, February will help us see if the stock market will continue continue to sell-off along with Forex market.

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