Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

CURRENCIES

Gold Forecast:

• Gold (XAU/USD) dropped sharply on Wednesday, holding above support at $2,375.
• Bulls need to defend this level to prevent a deeper retrenchment towards $2,360.
• Continued weakness could shift focus to $2,335, the 38.2% Fibonacci retracement of the 2024 rally.
• A bullish reversal could push prices towards $2,420 and potentially $2,430.
• Overcoming $2,430 could lead to a rally towards the all-time high around $2,450.

EUR/USD Forecast

• EUR/USD declined on Wednesday, nearing key support at 1.0810.
• To maintain a bullish outlook, the euro must stay above this threshold.
• Losing this floor could lead to a retreat towards the 200-day simple moving average at 1.0790.
• Further weakness could spotlight 1.0725.
• A bullish turnaround could target resistance at 1.0865, intersecting with the 50% Fibonacci retracement of the 2023 decline.
• A successful breakout may aim for 1.0980, the March swing high.

USD/JPY Forecast

• USD/JPY rose on Wednesday, nearing horizontal resistance at 156.80.
• Bears must defend this barrier to prevent a climb to 158.00 and eventually 160.00.
• Advances to these levels risk intervention by Japanese authorities to bolster the yen.
• A bearish swing could find initial support at 154.65.
• A breach might lead to a descent towards the 50-day simple moving average at 153.75.
• Further losses could expose trendline support just above 153.00.

STOCK MARKET

Demand and Supply Issues:

• Nvidia (NVDA) CEO Jensen Huang faces strong demand but insufficient supply.
• Following Nvidia’s first-quarter earnings report, Huang addressed concerns about a potential demand lull amid transitions between AI chip generations.

AI Chip Transition:

• Nvidia is moving from its current Hopper AI platform to the advanced Blackwell system.
• Despite analysts’ concerns, Hopper demand has grown even after the Blackwell announcement.

Demand vs. Supply:

• Demand for both Hopper and Blackwell platforms will exceed supply well into next year.
• The complexity of Nvidia’s chips contributes to supply constraints.

Financial Performance:

• Q1 results topped Wall Street forecasts with adjusted EPS of $6.12 on $26 billion in revenue, marking a 461% and 262% increase from the previous year.
• Non-GAAP operating income was $18.1 billion.
• Nvidia expects Q2 revenue to be around $28 billion, exceeding analysts’ expectations of $26.6 billion.

Stock Split and Dividend Increase:

• Nvidia announced a 10-to-1 stock split, effective June 10 for shareholders as of June 7.
• The quarterly dividend increased to $0.10 per share from $0.04.

Market Reaction:

• Nvidia stock rose as much as 6% in extended trading on Wednesday.

AI Training and Inferencing:

• Huang discussed transitioning from AI training to AI inferencing.
• Nvidia’s chips are expected to remain powerful for inference due to their complex software stack and model capabilities.

Broadening Customer Base:

• Beyond major cloud service providers (Microsoft, Google, Amazon), companies like Meta, Tesla, and pharmaceutical firms are increasingly purchasing Nvidia chips.
• Automotive industry, excluding cloud companies, is a significant user of Nvidia’s data-center chips.

Future of Autonomous Vehicles:

• Huang highlighted Tesla’s lead in self-driving cars.
• He emphasized that all cars will eventually need autonomous capabilities.

Click here to open account and start trading.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

CURRENCIES

EURO (EUR/USD, EUR/GBP) technical analysis:

• Fed speak to dominate today’s scheduled event risks (Williams, Waller)
• EUR/USD drifts lower in search of a catalyst
• EUR/GBP eyes support ahead of UK CPI print

Fed Speak to Dominate Today’s Scheduled Risk Events:

• Quiet day on the economic calendar in a generally quiet week.
• Euro PMI data on Thursday is the next notable event.
• Last few days of the month feature US PCE and EU inflation data.
• Fed speakers continue to promote the idea of maintaining high interest rates to control inflation.
• Afternoon speakers: Fed Governor Christopher Waller and New York Fed President John Williams.
• Williams previously hinted at potential rate hikes if inflation does not improve; current focus shifts to timing rate cuts.

EUR/USD Drifts Lower in Search of a Catalyst:

• EUR/USD shows a slight downward trend after bouncing off channel resistance.
• Quiet week favors higher-yielding currencies like the dollar.
• The pair reversed before reaching overbought conditions, similar to the trend in March.
• Resistance at the upper limit of the ascending channel; support at channel support, 1.0800 psychological level, and 200-day SMA.
• A catalyst may emerge towards the end of next week with US PCE and EU inflation data.

EUR/USD Key Data:

• Mixed Sentiment: Data provided by clients are net short.
• Daily Changes: Longs +15%, Shorts -1%, Open Interest +5%.
• Weekly Changes: Longs -10%, Shorts +8%, Open Interest 0%.

EUR/GBP Eyes Support Ahead of UK CPI Print:

• EUR/GBP started the year within a defined trading range, showing bullish momentum after breaking out.
• Bullish advance struggled, facing resistance at the 200-day SMA.
• Current selling shows fatigue, with potential support from trendline.
• UK CPI data tomorrow could influence the pair’s direction.
  • Expectation of a notable move lower from the prior month.
  • Disappointment may lift sterling if data fails to meet low expectations.
  • April data might surprise the upside with price rises and index-linked increases.
  • If CPI meets or falls below consensus, EUR/GBP may rise as markets anticipate a BoE cut sooner.

STOCK MARKET

Expectations for Nvidia’s Earnings:

• Traders are anticipating a significant move in Nvidia’s shares post-earnings on Wednesday.
• Nvidia’s options suggest an 8.7% swing in either direction by Friday.
• This implies a market cap change of $200 billion, exceeding the market cap of about 90% of S&P 500 companies.

Nvidia’s Market Data:

• Current Price: $947.80 +23.01 (2.49%) at close, $951.43 +3.63 (0.38%) pre-market.

Historical Comparison:

• The implied move is less than the 16.4% jump after the last quarterly earnings.
• Also lower than the average 12% move priced in for the last eight quarters.

Analyst Insights:

• Chris Murphy, Susquehanna Financial Group: “Volatility and expectations were higher previously.”
• Nvidia’s stock, up 87% this year, is crucial for the AI industry with a market value of $2.3 trillion.
• Wall Street anticipates a strong quarterly report from Nvidia.

Broader Market Impact:

• AI-related gains are spreading to other sectors like power, commodities, and utilities.
• BofA strategists expect Nvidia to drive 9% of S&P 500 earnings growth in the next 12 months, down from 37% over the last 12 months.

Options Market Sentiment:

• Matt Amberson, ORATS: Implied volatility for out-of-the-money calls and puts is equal, indicating potential for both upside and downside moves.
• Traders expect up moves to be as violent as down moves.

Projected Earnings:

• Expected earnings: $5.59 per share.
• Quarterly revenue: Expected to rise to $24.65 billion from $7.19 billion a year ago (LSEG data).

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Dear Client,

Affected by international holidays, the trading hours of some VT Markets products will be adjusted. Please check the following link for the affected products:

Notification of Trading Adjustment in Holiday (Updated)

Note: The dash sign (-) indicates normal trading hours.

Friendly Reminder:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact [email protected].

Flip, eat, sleep, repeat – such is the degen lifestyle of a forex trader. While majority of people are still debating about on-site jobs, hybrid work or full remote opportunities, degens traders are thriving on market volatility in attempt to tenfold or even hundredfold their small capital, living the dream lifestyle of many. 

Or at least that is how social media portray them to be living. 

Half the time, these market enthusiasts are glued to their computer screens and following the latest market movements for the next big opportunity.  

Opportunity and risks

Even the S&P500 companies would be out of manpower if and only if everyone could easily be a successful forex trader. No one would be interested in a “job” if it is straightforward to achieve such a degen lifestyle.

While social media seems to display that life is great as a trader, the truth is that such lifestyle that demands one to possess dedication in learning and a high-risk tolerance to market fluctuation. 

Without any consistent or stable income stream at the onstart, a degen forex trader typically has a super small capital and often has the wildest dream of flipping $100 to his first million. While this is not impossible given that there are endless opportunities in the financial market, traders are often subject to certain challenges that would make or break them. 

If a market always stays quiet and flat, there would be no opportunities to for profits to be made. On another end, extreme volatility or swings would either result in a huge fat profit or wipe a trader’s account out.

It can be tricky for a newbie to figure out on the right balance to strike, and in this case may benefit from following a signal provider using the copytrading feature.  

News and information overload: To follow or not to follow?  

Staying up to date in the financial markets is a constant battle. On top of economy calendars, fundamental data, technical analysis and news articles, degen forex traders also tend to receive tips from social media channels such as Twitter.

Not only it is easy to drown in a sea of information, but traders may also struggle to filter or verify the validity of the same. It is no surprise to see some traders would rather just purely rely on technical analysis as their trading strategy instead of trading on news. 

Failure of risk management is the highway to hell 

Many degen traders are prone to take on excessive risk as they all hope to make money quickly. As such, they often trade in a speculative manner, and further amplify the risk using high leverage.  

Let’s use a trade in gold (XAUUSD) as example. 

If a trader with a balance of $4,120 decided to short one (1) standard lot of XAUUSD at $2,060 with target price of $2,000, he is using a leverage of 1:50. If things moved according to his plan, he would make a profit of $6,000 on this trade alone. That is a whooping 145.63% on his capital of $4,120 – which is impressive! 

However, XAUUSD eventually rallied in the opposite direction, past the $2,100 price level. If the same trader set a stop-loss at $2,080, his position would have been closed with a loss of $2,000, which is quite a painful loss of 48.54%. 

Now imagine how can he recover such a sum back? Only if he doubles the trades that he subsequently makes with his new balance of $2,080. Ouch. 

Pictured: Financial hell

Worse, if no stop-loss was set at all, his entire account would have been wiped out once XAUUSD moves past $2,101.20. This is exactly how over-leveraging kills a forex trading account. 

P/S: You can also check out how to trade gold (XAUUSD) if this is your choice of asset to trade. 

The moral of the story 

By setting a stop-loss too far away, not adhering to a stop-loss or not using a stop-loss at all, a forex trader is throwing risk management out of the window. However, managing risk is crucial for survival as a degen trader, as one will need to survive through series of trades before striking a big successful transaction.

In the meantime, one single mismanaged trade can wipe out an entire portfolio, sending all previously made profits back into the market. This is why it is essential to strike a balance between risk and rewards. 

Is this degen lifestyle as a forex trader really sustainable? 

No doubt the market is a place full of high risks and speculation. Although a retail forex trader cannot control the market, what he can control is his own risk management and mental state in avoiding impulsive or reckless decisions.  

With strong commitment in learning the markets and good discipline in managing risks, a forex trader will be able to achieve consistency in his trades. From there, the profits piled over time will generate a significant sum, leading to financial freedom envisioned by most. 

Trade 1,000+ assets with VT Markets 

Embark on your journey as a forex trader with VT Markets now. With 1000+ assets being offered, ECN and STP accounts, forex economy calendar, academy and analysis being made avail to you, there is nothing to stop you from living the lifestyle you desire. As a new client of VT Market, you can also claim welcome bonus on your deposits. So, hesitate no more, start today! 

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