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AUDUSD 1 HOUR – WILL IT FILL THE GAP?
Brief break of .6615 not following through (.6646-61 above it)
Opening week gap to ,6559
Amazing Trader Directional Indicator (2 blue lines) shows potential for a top but only a break of .6585 would confirm and put the gap in play.
Key event risk: RBA decision… see PREVIEW
US500 DAILY CHART -ELECTION DAY IS FINALLY HERE
Once the dust settles, I would ask the question which is better for the stock market, Trump or Harris?
This is not as clear cut as it appears, as Trump comes with a risk/reward while Harris seems more of the status quo, assuming there is a divided Congress.
In US500, a firm break of 5700-5800 will dictate the eventual tone. Support in the 5600s, key resistance is at the record high.
Otherwise, hold on to your seat belts in a market where how it ends the week may be more important than what happens in between,
BTCUSD DAILY CHART – BRACING FOR THE US ELECTION
BTCUSD may be setup to have the most volatility given Trump’s support of cryptos while Harris has not made it an issue.
So, let’s pick a range and ask whether 60K or 75K (7500 pips from the current price) are safe in any knee jerk reaction to the election result.
Going strictly by the charts, key resistance is the record 73840 high and support 65233 and 58893.
USDMXN WEEKLY CHART – Holding its Breath
The Mexican Peso is seen as one of the currencies that could see a sharp reaction either way following the US election. The other, to a lesser extent is the CAD.
Why?
If trump gets elected with a Republican sweep, he could look alter USMCA, the United States-Mexico-Canada (free trade) Agreement that started in July 2020 in order to place tariffs on goods from both partner countries. Harris is seen as maintaining the status quo. Note USMCA replaced the North American Free Trade Agreement (NAFTA) gthat exited from 1994-2020.
So you can see why technicals matter little until the dust settles on the US election result, especially the MXN. We will also see the extent to which a rik of a Trump presidency has been factored into weakness in each of these currencies.
XTIUSD (WTI CFD) 1 HOUR CHART – ANOTHER MIND THE GAP
There are so many gaps today that I feel like going into a Gap store and buying some clothes.
Opening week gap to 69.71
Back below 70. 65 would put the gap in play, caps the downside while above it
Resistance at the 72.11 high, key levels at 72.50-85 lie above it.
Crude reacting to OPEC+ but pre-election poition adjustments likely a factor as well. .
USDCAD 1 HOUR – ONE MORE UNFILLED GAP
Opening week gap to 1.3951
Back above 1.3927 would put the gap in play, caps the upside while below it
Support at 1.3890 tested, below it is 1.3875 and then a void.
Price action more likely the result of pre-US election position adjustments as it is hard to see big bets given the uncertain outcome.
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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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