Shall I repeat if you trade EURUSD or GBPUSD, keep an eye on EURGBP.
Currently, EURGBP is trading at .8519 vs. its earlier high at .8543
GBPUSD is better bid (tested 1.3050) while EURUSD has backed off from 1.1130 (last at 1.1113)
So once GB{USD met resistance, offsets took over and pushed EURUSD lower => Using crosses to trade SpotFX 101
New ball game shortly when jobs revisions come out.
Referencing GV and JP posts below:
1. Democrats and their propaganda arm which is no longer a FED but is the FED, will try to just ignore the almost 1 million job losses they hid from plain sight, knowing their faithful cheerleaders only hear the headline releases and not the nasty realities under the hood such as labor participation rate, and hope the matter evaporates in favor of other weighty issues on the airwaves. Some people refuse to believe they have been celebrating and glorifying con artists.
2. Perusing the mix of economic and geopolitical matters dominating the airwaves it is evident that there has been such an incredible mess across the board that it became an aimless chase of which matter of the moment is the worst/best for causation of price activity. Which has now settled into catatonia.
3. Bottom line is a highly dysfunctional cesspool of political and economic agendas and practices across continents.
What matters now is what matters to the portfolios of Goldman Sachs and SaxoBank, who were on Bloomberg last night voicing their disgust, and how they approach adjusting their risk exposure. My experience with those entities is they have already largely done that far ahead of the curve as a responsible employment of “just in case” hedging allocations.
The market is more numb now to sudden dramatic events of most kinds and is in search of legitimate prospects to chase.
USD was receiving follow up flows pre-Asian session last night to prop the Dollar which I capitalized on if you read my post from Asia last night. They are rebalancing some Dollar exposure to strengthen in spots as much has been priced in with relation to interest rate reduction in the US. Amazingly, this time the banks are behaving far more legitimately than politicians taking your money like Greta Thornburg selling a coming ice age.
Big Deal This Morning
–
DLRx 101.37 , if only miniscularly uP at least has stopped diving.
It looks like some sharp bargain-hunting opportunists on the buy side
DLR’s uPside looks very non-promising, feeble at this time
Much ado has been made of the clowns at BLS and their annual benchmark revisions to us payrolls
10:00 am – bbrg is peddling the idea of 600k-1m “revision”, commenting that revision of more than 501K
would indicate that econ conditions have been / are crappier than peddled to-date. (hahaha janet and her strong economy)
.
(I am near certain they wont be announcing any revisions to payroll at the BLS)
14:00 – july 31 fomc minutes – probably little market credibility / relevance
EURO 1.1116 – puppy’s run on pause atm
Bias: bullish
Res 1.1140
Sup 1.1075 +/- 5
Break N of 1.1150 would suggest new rally enthusiasm for 1.12++
Thinking out loud
A perfect storm for the USD bears would be BLS job revisions toward the top of the 600k-1 mln down estimates, a pop in weekly jobless claims on Thursday and a dovish Powell on Friday that would revive talk of a 50BP rate cut.
This leaves a lot of room for surprises starting with the jobs revisions at 14:00 GMT in a market likely set up short ahead of it.
USDCAD WEEKLY CHART – KEY LEVEL LOOMS
USDCAD shaking off Tuesday’s CPI report and continues to perform technically with the break of 1.3656 exposing the key level at 1.3589.
The significance of 1.3589 is that a firm break would confirm the top at 1.3977 and leave a void below it.
On the upside, there is a minor double top around 1.3624 ahead of 1.3641-56.
A look at the day ahead in U.S. and global markets by Samuel Indyk
The relentless recovery in the S&P 500 from early August’s post-payrolls trough finally took a pause on Tuesday after eight straight up days, and futures are not giving too much indication about the direction of travel on Wednesday.
USDJPY 4 HOUR CHART – KUDOS
Kudos to JP and Monege for catching the trade off of 145 as all the action has been in the JOY.
If you take a step back, the broad range is 141.69=149.39 and any stops within it do not land the punch of breaking this range.
Otherwise, the bounce from just below 145 confirms this as the pivotal level with a move above 147.34 needed to negate the current downside risk. A conspiracy theorist would say the BoJ is in covertly to prevent another run at the low.
If you narrow the range ti 145-148, then 146.50 would be a neutral midpoint.
Rode the short all day from early US and hit the bid at 155.00 even, prime t/p is 145.90 to be safe. The Asian session bias is at equilibrium at 145.25 and non-committal to breaching 145.60 or 144.90 decisively headed into the second half. Europe should be interesting.
Of interest to me is how democrats/FED are going to explain away the almost 1 million job losses they just confessed to that they hid from plain sight. Saxo Bank and Goldman just publicly voiced the same interest in an explanation on Bloomberg.
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.
© 2024 Global View