Good Morning. Octopuses have three hearts and their blood is blue. Two hearts pump blood to the gills, while one sends it to the rest of the body. When they swim, the heart that sends blood to the body actually stops beating. Oh, and their blood is blue because it uses copper instead of iron to carry oxygen
-Jonathan Kibbler, Jordon Mellor, Shaun A
MARKETS
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Prices supplied by Google Finance as of 4:00am ET - stock prices as of close. Here is what the prices mean.
TRADER INSIGHTS
Boring Forex Habits That Make You a Better Trader
What if the secret to your trading success is not to trade more, but to be more patient?
You see, most retail forex traders crave excitement. Quick moving charts, massive winning trades, ‘trader’ lifestyle. But what if the real secret to success lies in the boring stuff?
I believe most traders fail because they are unwilling to do the ‘dirty work’. I know this because it was once me.
I was chasing every strategy under the sun, trying to chase no losing trades and ultimately failing. Until I sought direction, and did the work.
Here are some boring things to do that could help get you to the next level.
1. Stick to one thing
This one is tough, but this can help massively.
Now, when I say stick to one thing, I mean stick to one consistent way to enter the market. Or one consistent way to analyse the market.
I do believe in being flexible and adaptable in the markets, but you have to have something that you can measure.
For me, I follow the three-step process of Why, Conditions, and Strategy.
The why is flexible as narratives and macro drivers can shift. The conditions and the strategy remain the same. This helps me to remain consistent in my approach.
It doesn’t work all the time, but it keeps me composed.
Repeating the same setup week after week, day after day can feel like you’re standing still, but in fact, you’re progressing.
2. Journal
This one is boring to most traders, but here is where you will gain valuable insight into your trading habits, mindset and strategy.
Being able to monitor your trades is so important.
I don’t mean writing down your entry, stop and target level. That’s not important and you can get that information at any point.
Instead, monitor:
Why did you get in the trade?
What conditions the market was in?
What strategy did you use?
How it made you feel.
How did the trade play out?
What happened after the trade closed?
3. Focus on risk management
Stop focusing on the rewards, and focus on the risk.
Some may say this is boring but risk is everything. If you can manage it and not blow up, even mitigate losses then you will be in this game for a long time.
Use your data to your favour and identify how managing risk could change your outcomes.
Final Thoughts
Making some small changes can make a big difference. Try to dive into the boring side of trading and get your hands dirty in the work. You may be surprised at how your trading and mindset begin to evolve.
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MARKET ANALYSIS
CPI Made Simple
If you’ve ever wondered why your gold trade got slapped mid-week or why the dollar suddenly ripped 100 pips, chances are the CPI print just dropped.
Welcome to the world of Consumer Price Index, the one number that makes central banks sweat, traders jump, and algos go full berserk mode.
This isn’t your econ professor’s take. This is for traders who want to stop getting blindsided and start trading CPI with clarity.
Here’s What You Actually Need to Know About CPI:
1. CPI = The U.S. Inflation Scorecard
CPI stands for Consumer Price Index. It’s released once a month and tells us how fast prices are rising (or not) across a basket of goods, think food, energy, housing, healthcare.
There are two main numbers:
Headline CPI: includes everything
Core CPI: excludes food and energy (because they’re volatile)
Markets watch core CPI more closely, since it reflects “stickier” inflation.
Why does it matter? Because inflation tells the Fed what to do next. Hot CPI = potential rate hikes. Cool CPI = maybe a pause or cut. So yeah, it’s a big deal.
2. Hot CPI = Hawkish Fed = Stronger USD (Usually)
If inflation runs hotter than expected, the Fed may need to tighten (hike rates). That typically boosts the U.S. dollar, while pressuring gold, stocks, and risk-on currencies like AUD or NZD.
But if CPI cools off? Rate-cut bets rise, USD softens, and gold often gets a tailwind.
Example: March 2024 CPI Print
Core CPI came in at 0.4% MoM vs 0.3% expected, markets immediately priced out rate cuts for summer. Yields jumped. USD rallied hard across the board. Gold dropped $40 in minutes.
3. The Forecast vs. The Print Is Everything
It’s not the number. It’s the surprise.
If CPI comes in exactly as expected, you might get a small whipsaw, but nothing big.
If it overshoots or undershoots the forecast? That’s where the fire starts.
Market pricing is based on expectations. CPI beats = aggressive repricing.
CPI misses = risk-on party.
4. Month-Over-Month > Year-Over-Year (Lately)
Don’t get tunnel vision on the flashy YoY number.
Traders are watching the MoM (month-over-month) data closer right now, because it shows recent trends more clearly. A sticky 0.4% MoM core CPI pace annualizes to over 5%, and that keeps the Fed nervous.
The Fed’s 2% goal? You don’t get there on 0.4% prints.
5. CPI Is a Trigger, Not a Trend (Alone)
CPI doesn’t move the whole story by itself. You need to pair it with Fed speak, employment data, and market pricing (check Fed Funds Futures).
It’s often the combo that breaks the market:
Hot CPI + hawkish Powell = USD surge
Weak CPI + dovish commentary = risk rally
CPI lights the fuse. The Fed decides how big the boom is.
Here’s the Takeaway:
CPI isn’t just an economic data point, it’s a macro ignition switch.
It fuels rate bets. It moves the dollar. It slaps gold around. It can even flip equities from green to red mid-session.
If you trade anything macro-sensitive, you better know when CPI is dropping.
Don’t guess the number, prep for the reaction.
Because when that number hits, the market won’t care about your bias.
It’ll care about the surprise.
Trade smart and cautiously. Watch the calendar. And don’t wing CPI day.
WATCH
Economics and Bread
GAMES
Trading Brain Training
You're in a room with no windows, no doors, and no way out.
There’s only a table and a mirror.
You look in the mirror, see what you saw,
You take the saw, cut the table in half,
Two halves make a whole…
And you climb out through the hole.
GET TO IT
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ANSWER
Question: How much of trading is logic, and how much is just creative problem-solving in disguise?