GVI 10:26 / only one talking about it – and then I saw the post go POOF!
–
arguably rebalancing time is a sensitive time for those needing to be in the market
and hail calendar-based and induced “must”s by degenerate traders
FX has its achillie’s heels and opportunities
hedges rebalacing is one such heel
A look at the day ahead in U.S. and global markets from Mike Dolan
May Day for Wall Street comes with the daunting prospect that the multiple interest rate cuts once expected from the Federal Reserve this year might now just be just one – if any.
9208, high 9244ish
new day after yesty’s month end rebalancing fx hedges
Looking just at USDCHF price action and concidering that most rebalancing occurs +/- 5 minute window around the fixing time and only a small portion starting maybe an hour prior, there should be something else / more than month end rebalancing of fx hedges that continued to drive the DLR up
Which makes me think … about what would be needed to push the dollar higher still
SEE THE CHART BELOW AS ANOTHER EXAMPLE OF
My Favorite Trading Secret: The Power of the “50” Level
EURUSD 30-minute chart – Low of the day (so far) at 1.0649
While we wait for the Fed, there are US data releases that could spark some volatility.
ADP EMPLOYMENT’
JOLTS
ISM PMI
BTC DAILY CHART – BREAKDOWN?
BTC is down over 5% today and if this was a traditional currency, headlines would be going nuts. But this is a crypto, not a currency so it is just another day at the office.
I prefer to look at 10K ranges for BTC although as the chart shows, it does trade technically.
In this regard, the key focus is on 60000 for if stays below, it will break a pattern of closing within 60-70K.
As the chart shows there is now a void until around 50000 so for me the question is whether the new range is 55-65K or 50-60K.
To be clear, I don’t trade BTC but keep an eye on it as it can be indicative of a general mood.
A look at the day ahead in European and global markets from Kevin Buckland
The marquee markets event for the week is almost upon us, and needs little introduction: The outlook for U.S. interest rates continues to be the elephant in the trading room for all asset classes, responsible not only for recent peaks in Treasury yields and the dollar, but also forming the backdrop for record runs and subsequent declines in the likes of gold and bitcoin.
EURUSD 4 HOUR CHART – CLASSIC EXAMPLE
MONDAY-EARLY TUESDAY WAS A CLASSIC EXAMPLE OF A CURRENCY FEELING BID IN AN OFFERED MARKET.
EURUSD BREAK OF 1.0674-86 MAKES THIS THE INITIAL RESISTANCE,
ON THE DOWNSIDE, SUPPORTS AT 1.0638-23-01 ARE TARGETS WHILE BELOW 1.0674-86.
LOOKING AHEAD, LONG WAIT UNTIL THE FOMC DECISION… SHOULD KINIT THE DOLLAR DOWNSIDE AHEAD OF IT..
AFTER A DAY LIKE TUESDAY THIS ARTICLE HAS A TIP YOU SHOULD PAY ATTENTION TO
Global-View Trading Tip: Change Muscle Memory and See the Difference in Your Trading
Global-View Trading Tip: Change Muscle Memory and See the Difference in Your Trading
OnlineBroker.Fr is the best resource for French language information on the best online trading platforms and crypto exchanges in France.
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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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