I see (hopefully) one more round of USD buying which I expect will run out of steam around or above UsdChf 9100 where I like the sell side for duration. Same with UsdJpy in kind.
Note to those of us who have limited experience in forex trading — Macd and Stochastics will remove you of your money. You are better off listening to people in here with experience.
And for the love of God if you think some youtube or facebook “guru” is going to make you money with “signals” on your cell phone you are in for a rude awakening. Monedge, for example, was formed by CTA’s and other industry professionals, GVI is frequented by real bank traders with real experience. Big, big difference.
I received the following question from a trader sitting with an underwater position.
I am long USDJPY above 155 and need some guidance. Could you give me some advice on whether to hold on or hedge it.
EURUSD Week ahead
We had some EUR positive Fundamentals last week that helped the pair to extend the gains from the week before ( or better to say USD negative )
The Nonfarm Payroll report
The Federal Reserve was less hawkish than anticipated,
EUR/USD is up for a third consecutive week but buying interest remains reluctant.
Coming week lacks any important data, so we can expect the market to behave more technically.
AUDUSD DAILY CHART – WAITING FOR THE RBA
AUDUSD will likely see a cautious start after the strong move up and ahead of the RBA decision on Tuesday (see preview)
Looking at this chart, expect support as long as .6586 holds but the key level is .6561, where the up and broken downtrend lines intersect in the coming days.
The new week starts off with a UK bank holiday on Monday as traders digest the BoJ interventions and some cooling of U.S. rate cur expectations.. There is a very light U.S. calendar so the focus in this regard will be on events overseas.
BTC 4 HOUR CHART –
The question for BTC traders is whether the new range is 55-65k or 60-70k.
As can be seen by this chart it faces some key resistance levels straddling 65k and then above 67000.
On the downside, support is likely as long as it stays above 58801 but 60000 is the clear psychological level, its importance will be whether it becomes the new floor for 60-70k or the midpoint of 55-65k.
USDJPY Daily
So let’s take a look what kind of damage BoJ did – if at all…
Taking into account BoJ’s intervention appetite so far, I am going to avoid stating some obvious levels – supports and resistances and will focus on only two indicative ones:
152 – that Horizontal line that you can see on this chart – mind you, it goes way back –particularly 20.10.2022. and you can see it now acting as a kind of Pivotal.
155 – if BoJ means serious business, they will take care not to allow market goes a pip above it.
I can only imagine what can happen if market gets idea that this was just a very good Buying Dip – there would not be enough means for BoJ to stop it rallying .
And in that case, do not bother with 162…it would be more of a 172 target.
Crazy ??? Maybe….but I never claimed to be a sane one 😀
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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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