This is one of my trading tips posted in our blog. It is a timely one for today.
Complacency Can Be a Traders Worst Enemy
…I am not saying to stay glued to your screen but just be aware that it pays to stay on alert. Markets have a tendency to move when traders give up on the day and get lulled into complacency….
See the full tip in Jay Meisler’s Common Sense Trading Tips
EURGBP 4 HOUR CHART – Bid but consolidating
I am posting a 4-hour chart to show the key level at.8602
Offset GBP selling out of this cross is one reason why GBPUSD failed to test 1.2674 (cited earlier) – contact me if you want a further explanation of how this works. It also gave a bid to EURUSD, which has so far been unable to test 1.0868 (cited earlier) despite demand from this cross.
See chart for support levels.
Light calendar but some US data is coning out (Durable Goods, Ci=onsumer Confidence)
See our Economic Calendar
GBPUSD 4 HOUR CHART – Pre-Easter trading continues
GBPUSD remains in a retracement mode and as this chart shows key levels are not until the trendline and 1.2803
Immediate resistance is at 1.2675, an inviting but so far elusive target..
Support at 1.2632 needs to hold to keep thoughts away from 1.26.
EURUSD 1 HOUR CHART – BID IN AN OFFERED MARKET OR WHAT?
Having held a test of 1.08 EURUSD gas tested the pivotal 1.0850 level in a pre-Easter week, the bounce has tested the pivotal (more psychological than technical) level at 1.0850, also the midpoint of 1.08-1.09.
There seems little incentive to push too hard unless a solid 1.0850+ trades, which would put the key 1.0868 level in play.
Otherwise, range is to 1.0831, which was also a resistance from Friday with support seen as long as it holds..
USDJPY Update: Trend Line Break and Support Levels
The recent price action in USDJPY has seen a break below the ascending trend line on the 4-hour chart, indicating that a prolonged consolidation phase for the uptrend starting from 146.47 is currently in progress.
As long as the critical support level at 150.26 remains intact, there is potential for the upward momentum to resume, with the possibility of further advancement towards the 170.00 region following the consolidation period.
The initial support level to monitor is at 150.95. If this level is breached, it could lead to a test of the key support at 150.26. Only a decisive breakdown below this pivotal level would suggest the potential completion of the uptrend that originated from 146.47.
AUDUSD 4-HOUR CHART – Consolidation or Correction?
The market has started out in typical pre-Easter week fashion with some position adjustments dominating.
AUDUSD failure to test .6500 has seen a modest retracement that would need to take out .6577 to give it some legs.
Otherwise, expect some choppy consolidation trading while within .6599094 and .6577.
I filled sells in Usd vs Chinese Yuan and Signapore Dollar just before the close Friday (see post that day) which paid off nicely with the Chinese Central Bank making their announcement in Asia Sunday. I now have resting buy side orders below current market in Usd vs both, and Swedish Krone. Dollar is in sell mode but it won’t last forever in my view.
BTC 4-HOUR CHART
i was asked to post a BTC chart.
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The move up looks logical using the AT red lines, but it feels more like a video game than trading in the forex market.
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In any case, it has held off a retracement aboce 60000 but would need to take out the record high to signal a new leg up.
As I have said before, using my magic numbers (60000, 65000, 70000), they act as a good guide beyond just looking at technical levels in this crypto pair.
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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