Markets do noit like ucnertainty. Here is an article
Summary
Macron calls early election after far-right surge in EU vote
Finance minister predicts historic impact of French election
Possible hung parliament, risk to Macron’s domestic agenda
Euro and French stocks fall after far-right gains at EU level
PARIS, June 10 (Reuters) – Political parties and business leaders alike tried to figure out what a possible far-right win could mean for France following President Emmanuel Macron’s decision to call a snap election after a bruising loss in a European Parliament ballot.
France weighs up prospect of far-right power as countdown to snap election starts
EURGBP WEEKLY CHART -MIND THE GAP HERE AS WELL
THIS IS A GOOD CROSS TO USE AS AN INDICATOIR OF EUR STRENGTH IN WEAKNESS, CURRENTLY THE LATTER AFTER THE GAP LOWER OPENING. –GAP is from .8490-.8371
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With next key supports noit until the .83xxs, use .8450 as a focal point wiuthin .84-85 and a move above .85 WOULD BE needed to suggest cooling concenrs.
Geoplotiical driven markets are a different animal as you will see in this blog article
EURUSD Gaps Lower: How to Trade in a Geopolitical Market
EURUSD 15 MINUTE CHART – TRENDLINE
I scan through charts looking for whatever indicator is working. AND THEN KEEP AN EYE ON IT.
In this case, using THE Amazing Trader, note how the 15 miunte trendlkine capped the biounce off the low.
Whoever wrote this had sound reasoning and highly knowledgeable. The problem is the market doesn’t care about your all-knowing prognostications and did the complete opposite:
7:30AM EDT, 5/31/2024 (MT Newswires)—US equity and bond markets outperformed counterparts in Europe and elsewhere during May and some models suggest this is likely to lead to broad US Dollar selling as asset managers rebalance hedging ratios in North American trade on Friday.
EURUSD Daily
To add some salt to the injury 😀
1.07100 might be the first real test in front of us – from theory to reality : Resistance becomes a Support – but if not, we’re in for a wild ride then.
Gap was an overreaction to EU elections results from last night – too much fuss about nothing….yet another Liberal scare.
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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