June 12 (Reuters) – A look at the day ahead in U.S. and global markets by markets correspondent Naomi Rovnick
What a difference half a year makes. Traders started 2024 convinced that the U.S. Federal Reserve would be able to cut interest rates up to seven times by December.
Analysts now widely expect Fed officials not only to keep the funds rate at its 23-year high of 5.25% to 5.5% at the end of their monetary policy meeting on Wednesday, but also to project just one or two rate cuts this year, down from three.
EURUSD 4 HOUR CHART – HAS IT BOTTOMED?
One way or another the gap should be resolved today depending on how markets react to US CPI and the FOMC.
Using Amazing Trader logic, the second red line on this chart (1.0733) forms what is called a Directional Indicator, indicating a potential change in direction.
For this to play out, 1.0733 needs to hold as supportand 1.0774 would need to be taken out.
In any case, for filling the gap to be a risk, 1.0719-20 would need to become support. Otherwise, the downside is at risk unless the gap is filled and more.
With all that said, 1.0750 will set he intra-day tone on a day where the reaction to news will be more more important than the news itself.
Apple and AI
Includes the word “generative”. This also means “can make decisions”. Not just peruse and classify information. It means ability to generate new contents (new text, new images, decisions from a data base). Making a deal with ChatGPT – an open AI – and what is interesting is that to make use of that one will need iPhone 15+ . In this new version, there will actually be less applications on one’s phone. One will be able to imagine some scenario, verbalize it by typing it out on the iPhone and hit “go” (or “generate”) . This is the future: I ll have no application, I have done nothing, I ll have not lived anything. All I ll have done is imagined / invented something. This … is where things are heading. Talking of “fake news” : one will have invented fake memories, images, videos without having touched anything. This is where things are heading: into tomorrow where tomorrow is “just a moment ago”. It is, maybe, good for Apple’s stock. Maybe in one, two years, GVI Forex will type out A look at the day ahead in U.S. and global markets by GVI Forex and hit “go” and …
have a good day
AAPL
Apple’s shares reached a record, exceeding $3 trillion market cap following a partnership with OpenAI and new product launches incorporating OpenAI technology and Affirm payments in Apple Pay.
Apple’s stock rose 6.6% in one day, adding $194 billion to its market cap, nearing Microsoft as the top U.S. company.
BTC 4 HOUR CHART – KEY LEVEL
I hate to look at a BTC chart strictly by levels but doing so shows a risk to a key 65933 level, below which would indicate a shift in risk away from the upside.
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On the other hand, looking at what I call pivotal levels, it would take a firm break of 65K to put thoughts of 70k+ at rest for now.
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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