Learning To Read The Sign(s)
Keywords: greed, greed, greed, naivety, greed
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Binance Pledged to Thwart Suspicious Trading—Until It Involved a Lamborghini-Loving High Roller
Former company insiders say the firing of an internal investigator showed that the crypto exchange neglected evidence of market manipulation.
EURUSD Daily
Trendline’s Supports and Resistances
Supports :
1.06650 , 1.04950 & 1.04700
Resistances :
1.08150 , 1.08250 , 1.10500 & 1.11500
Currently in a Buy Mode – as long as we are above 1.06650 we have to treat it as Bullish.
Moving Average’s Supports and Resistances:
Supports :
None
Resistances:
1.07300, 1.07450 & 1.07650
Currently in a Sell Mode – as long as bellow 1.07650 it is Bearish
Summary
BoE expected to keep Bank Rate at 5.25%
Investors watching for hints of a rate cut in June
ECB expected to move next month, Fed going more slowly
UK inflation heading for 2% target but wage growth strong
LONDON, May 9 (Reuters) – The Bank of England is likely to take another step towards its first interest rate cut in four years on Thursday as inflation falls, but will probably be cautious about signalling that a move is imminent.
Bank of England likely to move closer to first rate cut since 2020
USDX 4 HOUR CHART – Why I look at USDX
Why am I looking at USDX if I don’t trade it?
I take a look at USDX as part of my daily routine. With EURUSD representing 57.6% of the index, it often acts as a proxy for this currency.
More than half the battle is to identify the side to trade and this index helps confirm (or not) what I see on a EURUSD chart.
Looking at this chart. USDX continues to recover from last week’s post-US jobs report fall.
It is trying to build momentum to the upside but still faces a key resistance at 106.00. It would likely need EURUSD to extend its retreat to challenge this level.
DLRCHF 9095-ish
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technically this is potentially next directionally determining price level
when it broke down the r-shoulder of the H&S formation on may 3rd (ref hrly chart) and now back to it.
Break-out N would signal that players have shifted their trading theme as suggested by neel k. Good idea to check odds (and pricing) of frequency and date expectations for FED’s inflation fighting action(s)
US 10-YR 4.516% +0.033 LAST | 4:03:32 AM EDT
on the uP …
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just as I suspected glancing at DLRCHF
maybe kashkari’s earlier yikyak about higher for longer got some concideration but only some
I think the FED has painted itself into a corner by leading players into lower at some point soon — wishful thinking.
GBPUSD 4-HOUR CHART – WAITING FOR BOE
The market is expecting a dovish tilt so the surprise would be if the BOE is less dovish.
On this chart 1.2466 on the downside, the trendline and 1.2594 on the upside are levels to watch (major support is not until 1.2298.
But toss technical levels out the door and focus on 1.25 as that will dictate the tone post-BOE
THE NEXT KEY EVENT IS THE BOE MEETING ON THURSDAY. BE PREPARED BY SEEING THE FULL PREVIEW AND ANALYSIS.
Jay – 10yr is at 4.46+ with a flat curve (mis-typed, working fast), curve is at 3.51 a year ago,, it means the curve is a higher but bit flat right now. 2yr curve is declining at 4.84 from 3.99 a year ago. So near term yields (especially monthly) are declining, the 10 is flat, the 15-20-30 are all moving up. So the market is pricing in higher yields further out, with a stagnant mid-term, and a declining near term. If I got it right.
Since its slow:
Just a note – The 6month yield is essentially flat at 5.06% and the 10yr is essentially flat at 3.51 on the yield curves. The only ones with a positive curve are the 15yr, the 20 yr, and the 30yr if I am reading the numbers correctly. I would love to hear from some of the viewers out there who never comment about what they think of that.
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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