Dxy is finally catching a little bid. Stock internals are negative even though the indices are showing very slight gains. Therefore not sold on much of a risk appetite environment (which would be long Euro) headed into the weekend. Expecting the 10yr yield to hold 44.50 and perhaps close near it, anything happen. Market is parking money and taking into consideration geopolitical and other uncertainty one might think.
Given the recent upheaval in the Prop Trading industry and reports of firms closing up, this article will be getting a lot of attention.
15 Questions Traders Should Ask Potential Prop Firm Partners
15 Questions Traders Should Ask Potential Prop Firm Partners
US500 4 HIUR CHART – BOUNCING BUT..
US5– bounce would need to at least recover above 5283 and hold there to ease the risk on the downside.
Keep an eye on US bond yields with the 10-year hovering again just below the pivotal 4.50% level
Note your price s may differ as CFDs prices can vary from broker to broker. Look for a similar pattern or line on your chart.
USDCAD 4 HOUR CHART -backing Off But…
USDCAD followed general USD moves and backed off after failing to stay above 1.3738 and not testing 1.3763.
Now needs to hold 1.3698 to keep these levels for a strong bid but expect support as long as the trendline and 1.3658 hold.
Next up: Canadian Retail Sales – See our Economic calendar
BTC 4 HOUR CHART – WATCH THE PATTERNS
As I have noted, any instrument that can move 5-10% in a day makes it hard to focus on technical levels.
I prefer to look at the patterns on the chart and as The Amazing Trader blue ladder lines show, the risk had shifted to the downside.
As I have also noted, I prefer to look at pivotal levels, which in this case are 65k and 70k, above 65k keeps the focus on 70k despite the softer tone.
EURUSD Daily
As I have said numerous times : when you see some trend lines on my charts that seem like coming from nowhere and contradicting basic trend line drawing rules – I am bringing them from the past – historical angles rules.
Combined with MA’s and Patterns / Formations I try to predict the future.
I put aside any and all Fundamental analysis and come up with few scenarios that might unfold – it is NEVER just one scenario.
Then I check out same scenarios on Weekly and Monthly .
Most of the time one of those scenarios comes through – fundamentals align, patterns clear and trade begins.
Trade is executed on smaller time frames like 30 min and lasts only one bar!
It is maybe not a rocket science, but it is really not that far away from it…
I will put together more detailed explanation for the blog edition over the weekend….
A look at the day ahead in U.S. and global markets from Mike Dolan
And then there was one.
In an extraordinary turnabout in just five months, financial markets now fully price just one quarter-point interest rate cut from the Federal Reserve this year – compared to the six built into futures prices at the start of 2024.
OnlineBroker.Fr is the best resource for French language information on the best online trading platforms and crypto exchanges in France.
You may find this useful
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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