Japanese Yen In "No Man's Land." When will the BOJ Intervene to stop its rise?

This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it seems that investors are growing increasingly wary of betting against it.


As I pointed out in my previous post on the Yen (“Japanese Yen Strength is Illogical, but Does it Matter?“), the yen has actually fallen over the last twelve months, on a correlation weighted basis (though to be fair, it has staged a pretty impressive comeback since the beginning of April). Unfortunately, investors mainly care about how it is performing against a handful of key currencies, namely the US Dollar. Simply, the yen continues to rise against the dollar, and it is unclear when it will stop.

Japanese government analysis has indeed confirmed that “speculators” are behind the strong yen, as the alleged wide-scale repatriation of yen by Japanese insurance companies has yet to materialize. Of course, there isn’t really much doubt: Japan’s economy is contracting, due to decrease in output spurred by the tsunami. In May, it recorded its second largest monthly trade deficit ever.

Meanwhile, interest rates and bond yields are pathetically low, and the Bank of Japan is being urged to expand its asset buying program, which would theoretically result in a devaluation of the yen. As  a result, retail Japanese forex traders (nicknamed “Mrs. Watanabes“) have resumed shorting the Yen as part of a carry trade strategy.

Alas, speculators either don’t share their pessimism or are running out of patience. While everyone continues to assume that the BOJ will intervene if the Yen rises to 80 against the dollar, no one can be sure whether the line in the sand might not be 78 or even 75. At this point, intervention seems to hinge more on politics than on economics, which means predicting it is beyond the scope of this post. In other words, “There is too much uncertainty and volatility in markets right now to make that yen trade appealing.” And sure enough, the most recent Commitments of Traders data shows that speculators have been re-building their yen long positions over the last month.


In the end, the speculators are probably right. The Bank of Japan has intervened twice over the last twelve months, and the impact has always been short-lived. Besides, given that many speculators still remain committed to shorting the yen, it remains extraordinarily vulnerable to the kind of short squeeze that sent it soaring 5% in a single session en route to the record high it touched in March.

I’m personally still bearish on the yen, but I also think it’s too risky to short it against the dollar, which seems to be declining for its own reasons. As you can see from the chart below, the yen has fallen against virtually every other major currency. Yen shorters, then, might be wise to avoid the dollar altogether and focus instead on any number of other currencies.

http://www.bloomberg.com/news/2011-06-17/japan-recovery-means-boj-can-avoid-adding-stimulus-muto-says.html

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Japanese Yen In "No Man's Land." When will the BOJ Intervene to stop its rise?

This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it seems that investors are growing increasingly wary of betting against it.


As I pointed out in my previous post on the Yen (“Japanese Yen Strength is Illogical, but Does it Matter?“), the yen has actually fallen over the last twelve months, on a correlation weighted basis (though to be fair, it has staged a pretty impressive comeback since the beginning of April). Unfortunately, investors mainly care about how it is performing against a handful of key currencies, namely the US Dollar. Simply, the yen continues to rise against the dollar, and it is unclear when it will stop.

Japanese government analysis has indeed confirmed that “speculators” are behind the strong yen, as the alleged wide-scale repatriation of yen by Japanese insurance companies has yet to materialize. Of course, there isn’t really much doubt: Japan’s economy is contracting, due to decrease in output spurred by the tsunami. In May, it recorded its second largest monthly trade deficit ever.

Meanwhile, interest rates and bond yields are pathetically low, and the Bank of Japan is being urged to expand its asset buying program, which would theoretically result in a devaluation of the yen. As  a result, retail Japanese forex traders (nicknamed “Mrs. Watanabes“) have resumed shorting the Yen as part of a carry trade strategy.

Alas, speculators either don’t share their pessimism or are running out of patience. While everyone continues to assume that the BOJ will intervene if the Yen rises to 80 against the dollar, no one can be sure whether the line in the sand might not be 78 or even 75. At this point, intervention seems to hinge more on politics than on economics, which means predicting it is beyond the scope of this post. In other words, “There is too much uncertainty and volatility in markets right now to make that yen trade appealing.” And sure enough, the most recent Commitments of Traders data shows that speculators have been re-building their yen long positions over the last month.


In the end, the speculators are probably right. The Bank of Japan has intervened twice over the last twelve months, and the impact has always been short-lived. Besides, given that many speculators still remain committed to shorting the yen, it remains extraordinarily vulnerable to the kind of short squeeze that sent it soaring 5% in a single session en route to the record high it touched in March.

I’m personally still bearish on the yen, but I also think it’s too risky to short it against the dollar, which seems to be declining for its own reasons. As you can see from the chart below, the yen has fallen against virtually every other major currency. Yen shorters, then, might be wise to avoid the dollar altogether and focus instead on any number of other currencies.

http://www.bloomberg.com/news/2011-06-17/japan-recovery-means-boj-can-avoid-adding-stimulus-muto-says.html

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Weekly Forex Technical Analysis (Sep 23 — Sep 27, 2019)

EUR/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.0881 1.0936 1.0977 1.1032 1.1073 1.1128 1.1169

EUR/USD - Floor pivot points as of Sep 21, 2019

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.0932 1.0971 1.1028 1.1067 1.1125

EUR/USD - Woodie's pivot points as of Sep 21, 2019

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.0966 1.0992 1.1001 1.1010 1.1028 1.1036 1.1045 1.1072

EUR/USD - Camarilla pivot points as of Sep 21, 2019

Tom Demark’s pivot points

Support Resistance
1.0956 1.1053

EUR/USD - Tom Demark's pivot points as of Sep 21, 2019

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.0990 1.1013 1.1027 1.1038 1.1050 1.1086

EUR/USD - Fibonacci retracement levels as of Sep 21, 2019

GBP/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.2189 1.2291 1.2379 1.2480 1.2568 1.2670 1.2758

GBP/USD - Floor pivot points as of Sep 21, 2019

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.2287 1.2372 1.2477 1.2562 1.2666

GBP/USD - Woodie's pivot points as of Sep 21, 2019

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.2363 1.2415 1.2432 1.2450 1.2484 1.2502 1.2519 1.2571

GBP/USD - Camarilla pivot points as of Sep 21, 2019

Tom Demark’s pivot points

Support Resistance
1.2335 1.2524

GBP/USD - Tom Demark's pivot points as of Sep 21, 2019

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.2392 1.2437 1.2464 1.2487 1.2509 1.2581

GBP/USD - Fibonacci retracement levels as of Sep 21, 2019

USD/JPY

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
106.23 106.86 107.21 107.84 108.19 108.82 109.17

USD/JPY - Floor pivot points as of Sep 21, 2019

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
106.79 107.06 107.77 108.04 108.75

USD/JPY - Woodie's pivot points as of Sep 21, 2019

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
107.01 107.28 107.37 107.46 107.64 107.73 107.82 108.09

USD/JPY - Camarilla pivot points as of Sep 21, 2019

Tom Demark’s pivot points

Support Resistance
107.03 108.01

USD/JPY - Tom Demark's pivot points as of Sep 21, 2019

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
107.49 107.73 107.87 107.98 108.10 108.48

USD/JPY - Fibonacci retracement levels as of Sep 21, 2019

AUD/USD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
0.6596 0.6678 0.6720 0.6802 0.6844 0.6926 0.6968

AUD/USD - Floor pivot points as of Sep 21, 2019

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
0.6668 0.6701 0.6792 0.6825 0.6916

AUD/USD - Woodie's pivot points as of Sep 21, 2019

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
0.6695 0.6729 0.6740 0.6751 0.6774 0.6785 0.6797 0.6831

AUD/USD - Camarilla pivot points as of Sep 21, 2019

Tom Demark’s pivot points

Support Resistance
0.6699 0.6823

AUD/USD - Tom Demark's pivot points as of Sep 21, 2019

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
0.6760 0.6789 0.6807 0.6822 0.6836 0.6884

AUD/USD - Fibonacci retracement levels as of Sep 21, 2019

USD/CAD

Floor pivot points

3rd Sup 2nd Sup 1st Sup Pivot 1st Res 2nd Res 3rd Res
1.3112 1.3161 1.3213 1.3261 1.3313 1.3362 1.3414

USD/CAD - Floor pivot points as of Sep 21, 2019

Woodie’s pivot points

2nd Sup 1st Sup Pivot 1st Res 2nd Res
1.3162 1.3214 1.3262 1.3315 1.3363

USD/CAD - Woodie's pivot points as of Sep 21, 2019

Camarilla pivot points

4th Sup 3rd Sup 2nd Sup 1st Sup 1st Res 2nd Res 3rd Res 4th Res
1.3209 1.3237 1.3246 1.3255 1.3274 1.3283 1.3292 1.3320

USD/CAD - Camarilla pivot points as of Sep 21, 2019

Tom Demark’s pivot points

Support Resistance
1.3187 1.3287

USD/CAD - Tom Demark's pivot points as of Sep 21, 2019

Fibonacci retracement levels

0.0% 23.6% 38.2% 50.0% 61.8% 100.0%
1.3210 1.3233 1.3248 1.3260 1.3272 1.3310

USD/CAD - Fibonacci retracement levels as of Sep 21, 2019

If you have any questions or comments on this technical analysis, please feel free to reply below.

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Japanese Yen In "No Man's Land." When will the BOJ Intervene to stop its rise?

This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it seems that investors are growing increasingly wary of betting against it.


As I pointed out in my previous post on the Yen (“Japanese Yen Strength is Illogical, but Does it Matter?“), the yen has actually fallen over the last twelve months, on a correlation weighted basis (though to be fair, it has staged a pretty impressive comeback since the beginning of April). Unfortunately, investors mainly care about how it is performing against a handful of key currencies, namely the US Dollar. Simply, the yen continues to rise against the dollar, and it is unclear when it will stop.

Japanese government analysis has indeed confirmed that “speculators” are behind the strong yen, as the alleged wide-scale repatriation of yen by Japanese insurance companies has yet to materialize. Of course, there isn’t really much doubt: Japan’s economy is contracting, due to decrease in output spurred by the tsunami. In May, it recorded its second largest monthly trade deficit ever.

Meanwhile, interest rates and bond yields are pathetically low, and the Bank of Japan is being urged to expand its asset buying program, which would theoretically result in a devaluation of the yen. As  a result, retail Japanese forex traders (nicknamed “Mrs. Watanabes“) have resumed shorting the Yen as part of a carry trade strategy.

Alas, speculators either don’t share their pessimism or are running out of patience. While everyone continues to assume that the BOJ will intervene if the Yen rises to 80 against the dollar, no one can be sure whether the line in the sand might not be 78 or even 75. At this point, intervention seems to hinge more on politics than on economics, which means predicting it is beyond the scope of this post. In other words, “There is too much uncertainty and volatility in markets right now to make that yen trade appealing.” And sure enough, the most recent Commitments of Traders data shows that speculators have been re-building their yen long positions over the last month.


In the end, the speculators are probably right. The Bank of Japan has intervened twice over the last twelve months, and the impact has always been short-lived. Besides, given that many speculators still remain committed to shorting the yen, it remains extraordinarily vulnerable to the kind of short squeeze that sent it soaring 5% in a single session en route to the record high it touched in March.

I’m personally still bearish on the yen, but I also think it’s too risky to short it against the dollar, which seems to be declining for its own reasons. As you can see from the chart below, the yen has fallen against virtually every other major currency. Yen shorters, then, might be wise to avoid the dollar altogether and focus instead on any number of other currencies.

http://www.bloomberg.com/news/2011-06-17/japan-recovery-means-boj-can-avoid-adding-stimulus-muto-says.html

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EUR/USD Declines as Markets Wait for ECB

EUR/USD declined on Wednesday. Market analysts speculated that the decline was a result of anticipation of monetary stimulus from the European Central Bank, which it is expected to announce on Thursday. US macroeconomic data released over the trading session was decent enough to give the dollar additional boost against the euro.

PPI rose by 0.1% in August. That is compared with a consensus forecast of no change and an increase of 0.2% registered in the previous month. (Event A on the chart.)

Wholesales inventories rose by 0.2% in July, the same as in June and in line with forecasts. (Event B on the chart.)

Crude oil inventories dropped by 6.9 million barrels last week and were below the five-year average for this time of year. The actual drop was bigger than the forecast decrease of 2.7 million barrels and the previous week’s decline of 4.8 million barrels. Total motor gasoline inventories decreased by 0.7 million barrels but were above the five-year average. (Event C on the chart.)

On Monday, a report on consumer credit was released, showing an increase of $23.3 billion in July from June, which exceeded markets expectations of $16.2 billion. June increase got a negative revision from $14.6 billion to $13.8 billion. (Not shown on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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Japanese Yen In "No Man's Land." When will the BOJ Intervene to stop its rise?

This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it seems that investors are growing increasingly wary of betting against it.


As I pointed out in my previous post on the Yen (“Japanese Yen Strength is Illogical, but Does it Matter?“), the yen has actually fallen over the last twelve months, on a correlation weighted basis (though to be fair, it has staged a pretty impressive comeback since the beginning of April). Unfortunately, investors mainly care about how it is performing against a handful of key currencies, namely the US Dollar. Simply, the yen continues to rise against the dollar, and it is unclear when it will stop.

Japanese government analysis has indeed confirmed that “speculators” are behind the strong yen, as the alleged wide-scale repatriation of yen by Japanese insurance companies has yet to materialize. Of course, there isn’t really much doubt: Japan’s economy is contracting, due to decrease in output spurred by the tsunami. In May, it recorded its second largest monthly trade deficit ever.

Meanwhile, interest rates and bond yields are pathetically low, and the Bank of Japan is being urged to expand its asset buying program, which would theoretically result in a devaluation of the yen. As  a result, retail Japanese forex traders (nicknamed “Mrs. Watanabes“) have resumed shorting the Yen as part of a carry trade strategy.

Alas, speculators either don’t share their pessimism or are running out of patience. While everyone continues to assume that the BOJ will intervene if the Yen rises to 80 against the dollar, no one can be sure whether the line in the sand might not be 78 or even 75. At this point, intervention seems to hinge more on politics than on economics, which means predicting it is beyond the scope of this post. In other words, “There is too much uncertainty and volatility in markets right now to make that yen trade appealing.” And sure enough, the most recent Commitments of Traders data shows that speculators have been re-building their yen long positions over the last month.


In the end, the speculators are probably right. The Bank of Japan has intervened twice over the last twelve months, and the impact has always been short-lived. Besides, given that many speculators still remain committed to shorting the yen, it remains extraordinarily vulnerable to the kind of short squeeze that sent it soaring 5% in a single session en route to the record high it touched in March.

I’m personally still bearish on the yen, but I also think it’s too risky to short it against the dollar, which seems to be declining for its own reasons. As you can see from the chart below, the yen has fallen against virtually every other major currency. Yen shorters, then, might be wise to avoid the dollar altogether and focus instead on any number of other currencies.

http://www.bloomberg.com/news/2011-06-17/japan-recovery-means-boj-can-avoid-adding-stimulus-muto-says.html

http://cdn.socialtwist.com/2009021910542/script.jsSocialTwist Tell-a-Friend

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EUR/USD Rallies on NFP Miss, Rally Capped by Wage Inflation

EUR/USD rose today after nonfarm payrolls missed expectations and were nowhere near the robust employment growth showed by yesterday’s report from Automatic Data Processing. But gains were limited as wage inflation beat expectations.

US nonfarm payrolls rose by 130k in August, whereas analysts were expecting about the same increase as in the previous month — 159k. Unemployment rate remained steady at 3.7%. Average hourly earnings rose by 0.4%, while experts were anticipating the same 0.3% rate of growth as in July. (Event A on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

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Japanese Yen In "No Man's Land." When will the BOJ Intervene to stop its rise?

This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it seems that investors are growing increasingly wary of betting against it.


As I pointed out in my previous post on the Yen (“Japanese Yen Strength is Illogical, but Does it Matter?“), the yen has actually fallen over the last twelve months, on a correlation weighted basis (though to be fair, it has staged a pretty impressive comeback since the beginning of April). Unfortunately, investors mainly care about how it is performing against a handful of key currencies, namely the US Dollar. Simply, the yen continues to rise against the dollar, and it is unclear when it will stop.

Japanese government analysis has indeed confirmed that “speculators” are behind the strong yen, as the alleged wide-scale repatriation of yen by Japanese insurance companies has yet to materialize. Of course, there isn’t really much doubt: Japan’s economy is contracting, due to decrease in output spurred by the tsunami. In May, it recorded its second largest monthly trade deficit ever.

Meanwhile, interest rates and bond yields are pathetically low, and the Bank of Japan is being urged to expand its asset buying program, which would theoretically result in a devaluation of the yen. As  a result, retail Japanese forex traders (nicknamed “Mrs. Watanabes“) have resumed shorting the Yen as part of a carry trade strategy.

Alas, speculators either don’t share their pessimism or are running out of patience. While everyone continues to assume that the BOJ will intervene if the Yen rises to 80 against the dollar, no one can be sure whether the line in the sand might not be 78 or even 75. At this point, intervention seems to hinge more on politics than on economics, which means predicting it is beyond the scope of this post. In other words, “There is too much uncertainty and volatility in markets right now to make that yen trade appealing.” And sure enough, the most recent Commitments of Traders data shows that speculators have been re-building their yen long positions over the last month.


In the end, the speculators are probably right. The Bank of Japan has intervened twice over the last twelve months, and the impact has always been short-lived. Besides, given that many speculators still remain committed to shorting the yen, it remains extraordinarily vulnerable to the kind of short squeeze that sent it soaring 5% in a single session en route to the record high it touched in March.

I’m personally still bearish on the yen, but I also think it’s too risky to short it against the dollar, which seems to be declining for its own reasons. As you can see from the chart below, the yen has fallen against virtually every other major currency. Yen shorters, then, might be wise to avoid the dollar altogether and focus instead on any number of other currencies.

http://www.bloomberg.com/news/2011-06-17/japan-recovery-means-boj-can-avoid-adding-stimulus-muto-says.html

http://cdn.socialtwist.com/2009021910542/script.jsSocialTwist Tell-a-Friend

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Japanese Yen In "No Man's Land." When will the BOJ Intervene to stop its rise?

This, according to a hedge fund manager that has decided to cancel all of his fund’s bearish bets on the Japanese Yen. The reason: the yen is rising, and it’s unclear when – or even if – the government will intervene to push it back down. Even though the yen’s strength is fundamentally illogical, it seems that investors are growing increasingly wary of betting against it.


As I pointed out in my previous post on the Yen (“Japanese Yen Strength is Illogical, but Does it Matter?“), the yen has actually fallen over the last twelve months, on a correlation weighted basis (though to be fair, it has staged a pretty impressive comeback since the beginning of April). Unfortunately, investors mainly care about how it is performing against a handful of key currencies, namely the US Dollar. Simply, the yen continues to rise against the dollar, and it is unclear when it will stop.

Japanese government analysis has indeed confirmed that “speculators” are behind the strong yen, as the alleged wide-scale repatriation of yen by Japanese insurance companies has yet to materialize. Of course, there isn’t really much doubt: Japan’s economy is contracting, due to decrease in output spurred by the tsunami. In May, it recorded its second largest monthly trade deficit ever.

Meanwhile, interest rates and bond yields are pathetically low, and the Bank of Japan is being urged to expand its asset buying program, which would theoretically result in a devaluation of the yen. As  a result, retail Japanese forex traders (nicknamed “Mrs. Watanabes“) have resumed shorting the Yen as part of a carry trade strategy.

Alas, speculators either don’t share their pessimism or are running out of patience. While everyone continues to assume that the BOJ will intervene if the Yen rises to 80 against the dollar, no one can be sure whether the line in the sand might not be 78 or even 75. At this point, intervention seems to hinge more on politics than on economics, which means predicting it is beyond the scope of this post. In other words, “There is too much uncertainty and volatility in markets right now to make that yen trade appealing.” And sure enough, the most recent Commitments of Traders data shows that speculators have been re-building their yen long positions over the last month.


In the end, the speculators are probably right. The Bank of Japan has intervened twice over the last twelve months, and the impact has always been short-lived. Besides, given that many speculators still remain committed to shorting the yen, it remains extraordinarily vulnerable to the kind of short squeeze that sent it soaring 5% in a single session en route to the record high it touched in March.

I’m personally still bearish on the yen, but I also think it’s too risky to short it against the dollar, which seems to be declining for its own reasons. As you can see from the chart below, the yen has fallen against virtually every other major currency. Yen shorters, then, might be wise to avoid the dollar altogether and focus instead on any number of other currencies.

http://www.bloomberg.com/news/2011-06-17/japan-recovery-means-boj-can-avoid-adding-stimulus-muto-says.html

http://cdn.socialtwist.com/2009021910542/script.jsSocialTwist Tell-a-Friend

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Can Instagram Forex Traders Make Anyone Rich? [Poll]

Except for the obvious sarcastic answer to the titular question that Instagram traders can make themselves rich by selling you signals, pitching worthless courses, or earning IB commission from brokers (or all this together), the issue at hand is rather serious and the answer to it is really important considering how widespread IG is, especially among people lacking financial literacy.

The situation with fake IG posters pretending to be affluent traders earning millions from Forex or other financial markets has been a topic of both mainstream and industry-specific journalism. Such social network accounts target newbies looking to earn a quick buck. They also tend to aim at very young people (often even younger than 18) — the less experienced is the victim the less financial knowledge they have and the more attractive is the opulent lifestyle presented by a pretending Instagram trader.

Images like this:

Bugatti from Instagram

…or this:

Lamborghini from Instagram

…and, of course, like this:

A girl, some money, and a car from Instagram

…attract young audience that is fascinated by all these attributes of the rich. Then, the Instagram trader just needs to invite them to join his or her “team” and rip them off their initial deposit, training cost, or monthly subscription fee.

Most such IG traders post their pictures with rented cars, houses, and jets. Rarely, they can afford to buy some of this stuff using their affiliate earnings or training/signals fees. In some cases, they don’t even post original content but use the stock or “borrowed” photos to lure the followers.

In more believable cases, Forex mentors and traders don’t post rich kid lifestyle photos — instead, they post lots of motivational memes, half of them with the main character of The Wolf of Wall Street portrayed as a modern day hero. Account statements showing lots of trades in the green — made up or real — are also popular posts on such social accounts. After all, what else is there to post if you are to sell something Forex-related? Photos from the course lessons? Some IG posters do that, but those are boring. Charts and analysis? Boring! Education? This sometimes happens, but IG is poorly suited for such posts. So, as a result, we have an environment where popularity is conquered those who put up the most outrageous spectacle of faux rich. In the end, it is the very structure and marketing self-positioning of Instagram as a social network for sharing lifestyle photos that leads to proliferation of phony traders showcasing Ferraris and Lamborghinis.

For me, it is hard to imagine a legit trader would degrade to this Wolf of Instagram kind of behaviour. However, all people are different and, perhaps, there are some that really earn well by trading and show their wealth off on IG without any malicious intent? I don’t know. Do you believe that such Instagram traders exist?

Note: There is a poll embedded within this post, please visit the site to participate in this post’s poll.

If you want to share your thoughts on the phenomenon of Instagram traders, please use the commentary form below.

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