Trading Club
To Join Click
HERE
Forex Forum
Forex Trading Blog
Economic Data Calendar
Forex Trading Tools
Trading Tips
Forex Forum
Forex Trading Blog
Economic Data Calendar
Forex Trading Tools
Trading Tips
Forex Forum & Blog is the place where traders can exchange their Ideas, give Trading Tips and ask for Help when needed. Forex Blog with Daily Updates is a growing library of everything one might need to succesfully trade.
The First Online Forex Trading Forum
The way our newly redesigned site is set up, the Forex Forum is for dynamic, real-time trading-related updates while our blog is FILLED WITH insightful articles with trading insights you can incorporate into your daily trading.
HERE IS ONE THAT WORKED LIKE A TEXTBOOK AFTER AN EARLY SESSION CORRECTION STALLED AND THE DOLLAR IS NOW BACK WITH A BID.
Actionable Forex Trading Strategy When to Fade a Correction
Mtl – Right on spot !
Using different systems that I have developed over decades of real trading, I have tried of course to come to some automated one…never did.
Even with the simplest one, it was always that last touch – HUMAN – Professional touch.
All the algorithms that one can come with are missing quite a lot – you cannot calculate in, the last moment change of heart that comes from the experience ( some call it a Gut feeling, I call it knowledge hidden deep in subconscious of our mind ).
And even if AI scam will come alive one day , it will be as good as those that programmed it – if those programmers can be as good as we are in trading ( yeah, right ), I am not sure that they would spend life coding it…but trading…
So far, what I heard within the industry is that the best they came up is around 60% of success ….not bad if the Risk management would follow the suit…but it doesn’t….they still play it more like betting , then real trading.
A look at the day ahead in U.S. and global markets from Mike Dolan
It may seem like an over-reaction to an inflation miss of less than a tenth of a percentage point, but the heated March consumer price update has jolted markets into doubting any U.S. interest rate cut before the November election.
automated programs
one example:
–
Knight Capital’s Algorithmic Fiasco
— Knight’s program ran out of control for about 45 minutes — which means the company ultimately lost $10 million for each minute the new software was running, cost the firm $440 million.
ya think it can’t / won’t happen again ?
rest assured there are folks hard at work making sure it does
(and they are part of nightmares to banking supervisors)
USDX WEEKLY CHART – LOOKING FOR EURUSD CONFIRMATION
USDX is in breakout mode above 105.03 but looking for confirmation from a EURUSD break of 1.0692 (scroll down to see a EURUSD weekly chart)
The reason I say look for confirmation is explained in this blog article
What is the U.S. Dollar Index (USDX) and How You Can Use it to Trade
automated programs
–
automated programs are
– lines of code
— subject to design AND coding errors and / or inefficiencies AND intellectual attack by other coding trader(s) / flush groups.
— still supervised by humans, still subject to nervousness, high excitablity; acute unease or apprehension because they still function under stress eminating from visuals of loss ranging from small to account evaporation dancing in their heads
The next key event risk is the ECB decision in less than 3 hours. See this link in our blog for a detailed preview of the event.
FOR THOSE WHO MISSED MY BLOG ARTICLE, THE POWER OF THE “50” LEVEL, I SUGGEST LOOKING AT A EURUSD CHART (HIGH TODAY 1.07497) AND READING THIS ARTICLE
In the world of electronic forex trading where an increasing volume is generated by automated programs, it is amazing that psychological or emotional levels still have a significant impact. It may be that my mind acts as an algo but whatever the case there are pivotal forex trading levels that I use that are as relevant today as they were when I first started trading. One of these is the “50”level…..
Forex Forum
Forex Forum & Blog
Forex Forum & Blog – Place where you can exchange your views on Forex Trading and Trading in General – Follow Daily developments on every single market around , including Stocks, Indices, Crypto, Metals…..Get tips and help that you need.
Forex Forum & Blog for all traders
Forex Forum & Blog for all traders
Forex Forum & Blog
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
Forex Forum & Blog
Forex Forum & Blog
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.
Forex Forum & Blog
© 2024 Global View