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USDJPY 4 HOUR CHART – TRAPPED FOR NOW
With Japan (and S Korea) discussing the strong dollar with the US, the intervention threat stays on the table. This suggests tacit approval should Japan choose to intervene on its own.
However, given the fundamentals (i.e. interest rates) and a generally strong USD, intervention would likely be a questionable strategy and seen as a stopgap.
With that said, it pays to be on alert after the IMF/World Bank meetings end.
Lookjing at the chart, the current range is 153.87-154.77 but 155 is clearly the market line in the sand,
THIS IS ONE OF OUR CLASSIC BLOG POSTS ON WHAT IT TAKES TO BE A WINNING TRADER RATHER THAN A LOSING ONE
A look at the day ahead in U.S. and global markets from Mike Dolan
A sharp retreat in oil prices and a rare joint warning from major economies against excessive dollar strength have helped calm restive markets just as Big Tech earnings start to hit.
Morning Bid: Recoiling oil and dollar sow calm as tech earnings loom
EURUSD 4h
Resistance at 1.07000 & 1.07250
Support at 1.06700 & 1.06500
Told you that this is going to happen. So what now ?
Two options:
– Break above the EMA 50 and test of 1.07500 & even 1.07750
– Meeting with 1.07250 and sudden drop , followed by the break of 1.06000 and continuation of the steep downtrend
Watch for Initial Jobless Claims today and bunch of other US data tomorrow
XBRUSD 4 HOUR CHART (Brent CFD)
Let’s look at the price action in crude following the spike high on geopolitical events and subsequent retreat despite ongoing concerns..
With the focus on interest rates and sticky inflation, the price of energy will play a role as central bank decisiosn on when or how much to cut interest rates.
This chart shows potential for an exhaustion on the upside but would probably have to take out the $85 level to suggest more scope on the downside.
Reminder this is a CFD price feed and levels may differ from what your broker shows. So look at the chart patterns and line them up with your charts.
EURUSD 4 HOUR CHART – JYST A CORRECTION?
As I pointed out, there appeared to be an invisible hand protecting 1.06, which in turn has seen EURUSD correct.
The question then is does the correction have more legs?
On one hand, what has changed is there are no key stops to go after until below 1.06, currently protected by 1.0630.
On the other hand, as the chart shows, the next key level is not until 1.0756, leaving the high of the day at 1.0690 as a key intra-day level which would need to be taken out to extend the retracement.
So, where does this leave us?
It leaves us with a focus on yesterday’s breakout level at 1.0665 needing to hold to keep a bid. Otherwise, look for 1.0650 to exert its magnetic pull.
WASHINGTON, April 17 (Reuters) – The United States, Japan and South Korea agreed to “consult closely” on foreign exchange markets in their first trilateral finance dialogue on Wednesday, acknowledging concerns from Tokyo and Seoul over their currencies’ recent sharp declines.
US nods to ‘serious’ Japan, S.Korea concerns over slumping currencies
April 18 (Reuters) – A look at the day ahead in Asian markets.
Amid a flurry of commentary from global financial leaders at the International Monetary Fund and World Bank Spring meetings in Washington, and with many markets having undergone huge moves in recent weeks, investors are taking a bit of a time out.
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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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