A look at the day ahead in U.S. and global markets from Mike Dolan
World stock indexes (.MIWD00000PUS), opens new tab have shaken off a month of doubts to come back within 0.5% of record highs on signs of a loosening U.S. labor market, falling European interest rates and another Hong Kong (.HSI), opens new tab surge.
Morning Bid: May rescued by jobless jump, BoE shift, HK surge
USDJPY 4 HOUR CHART – BOJ VS. THE WORLD
Looking at this chart, it would normally suggest a run at 156.28 and above.
However, the intervention threat has so far been enough to cool speculative pressures and push USDJPY into the background.
This leaves USDJPY trapped within 155-156.
Use short-time frames if plan to trade USDJPY intra-day.
EURUSD 4 HOUR CHART
EURUSD looks set to trade with a bid as long as it stays above 1.0750 with local support around 1.0770.
Resistance is at 1.0791 with last Friday’s. 1.0818 post-US jobs report high above it (also the pivotal 1.08 level).
This has been a quiet week for US data but that will change next week with key inflation and retail sales reports..
MOST TRADERS FOCUS ON HOW MUCH MONEY THEY CAN MAKE TRADING. THIS ARTICLE FOCUSES ON WHAT IT TAKES TO BE A SUCCESSFUL TRADER.
Do You Want to be a Successful Trader?
USDJPY WEEKLY CHART – IF I WAS THE BOJ
If I was the BOJ I would have a goal to break the 145.89 level, where the major weekly trendline will also be at in the coming weeks.
From the savvy trader
They ie funds retail etc will once again buy the dip but all they are doing is creating liquidity to stop the pair from falling precipitously
68 peugeot … s a nice looking car. antique by now
I recall Daf 33 (dafodill) w/CVT … so simple.
when the belt broke a lady would take off her nylons as temporary “drive belt” fix.
man I love elegant simplicity. Especialy in coding.
can u imgaine the f-ked-up code in the french missiles ? rofl
somebody s burning the candle at both ends scrambling for a fix 🙂 🙂
THERE ARE SOME TIMELY ARTICLES DUE OUT NEXT WEEK, MAKING THIS A TIMELY ARTICLE WORTH READING
News that Moves the Forex Market
BoE stays pat at 5.25%
—
Paris Olympics defence system mistakes air conditioners for drones
Concern for the 500,000 Britons expected to attend the Paris Olympics has risen amid claims that France’s new €350 million anti-drone system cannot distinguish between unmanned terrorist and air conditioners.
personally … am not sure this was a smart idea to make it public, geezus
Forex Forum Ad Hoc Glossary
What is Risk Management in Trading – Forex Forum
For any trader, managing risk is essential to success. But what exactly is risk management? In this blog post, we’ll explore what risk management is and how it can help you become a successful trader.
We’ll also look at some common mistakes that traders make when it comes to managing their risks. After all, if you’re not managing risk appropriately, you’re just a gambler. So if you’re ready to learn more about risk management, read on!
What is Risk Management in Trading?
Risk management is the process of assessing, controlling, and managing risk within a trading portfolio. This involves defining trading goals and understanding potential losses that could occur as part of the trading process.
It also includes identifying potential risks, such as market volatility or sudden changes in the market, understanding how these risks can affect your profits, and taking steps to limit potential losses.
In general, risk management should be a priority for all traders. By properly managing your risks and using effective strategies, you can minimize potential losses and increase the chances of making successful trades.
Common Mistakes When Managing Risk in Trading
Unfortunately, many traders make mistakes when it comes to managing their risks. Here are some of the most common mistakes that traders make when it comes to risk management:
Not Setting a Trading Plan:
Many traders don’t have a detailed trading plan, which is a key component of risk management. Without a trading plan, traders are more likely to take risks that could have otherwise been avoided. It’s important to establish clear trading goals and a plan for how to reach those goals.
Not Understanding Risk:
Many traders fail to understand the risks associated with certain trades, which can lead to serious losses if they don’t take the time to research and understand the risks involved. It’s important to have a thorough understanding of the markets you’re trading in before taking any risks.
Not Taking Advantage of Stop Losses:
Stop losses are an essential component of risk management, as they help to limit potential losses in the event of a market downturn or sudden changes in the market. However, many traders don’t take advantage of stop losses and end up taking larger risks than necessary.
Over-Trading:
Over-trading is a common mistake made by many traders. This involves taking too many trades, which can lead to losses if the market turns against you. Look, all traders love the price action. It’s exciting to take a position and watch your P/L go up and down. But don’t become addicted to the price action for the sake of just having a position. It’s important to only take trades when the setup is right and avoid over trading.
Not Diversifying Risk:
Diversification is another important part of risk management. By diversifying your trades, you can spread out risk and limit potential losses if the market turns against you.
Why is Risk Management Important in Trading?
Risk management is a critical factor in success when trading in the markets. It involves understanding and controlling what could potentially impact your trades and actively analyzing scenarios that may occur.
Without proper risk management, traders are leaving themselves vulnerable to potential losses which could be catastrophic for their investments.
Good risk management also allows traders to effectively assess opportunities and make better decisions that take into account volatility or leading indicators of future market performance.
Simply put, risk management can provide peace of mind so traders can enjoy the highs of profitable investments while minimizing losses when markets start to dip.
What are Some Common Risk Management Strategies?
Common risk management strategies used by traders include setting stop-loss orders, limiting capital exposure, and diversifying investments to minimize volatility.
Another essential approach for traders is to set predetermined targets for both profits and losses to help stabilize your exposure. To further limit potential losses and maximize gains, traders should always be aware of economic news and other world events that might affect the market.
How to Implement Risk Management in your Trading Plan
Implementing effective risk management into your trading plan is incredibly important for successful and profitable trading. It can help you to control the amount of draws you take in any given trade, and it can also protect against large losses which could potentially wipe out your entire trading account.
A good risk management plan should include determining the amount of capital at risk on each trade, setting predetermined stop-losses to limit downside exposure, and having a strict, disciplined approach towards minimizing losses:
never increasing position size
never risking more than you are comfortable with, and always controlling potential risk-reward ratios.
Taking the time to set up a comprehensive yet flexible risk management plan will put you in a better position when it comes to positive returns in the long run.
Risk management is an important part of trading. It allows you to trade with less stress and more confidence. There are many different risk management strategies, so it is important to find one that fits your trading style.
Proper risk management can help you make money in the long run by preserving your capital and preventing you from making careless mistakes.
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