Bullard said the rise in the unemployment rate rising to 3.9% will “get people’s attention.” That’s the highest unemployment rate in just over two years.
If the unemployment rate ticks up over 4%, it will give comfort to the Fed officials that they’re achieving “a soft landing in the labor market,” he said in an interview with MarketWatch
NFP (the finer details do not matter as much as player reaction)
–
according to RTRS:
Fed gets another reason not to rush on rate cuts
Employers added a robust 275,000 jobs last month, a Labor Department report showed on Friday, handily beating the 200,000 that economists expected.
EURGBP 1 Hour Chart
If you trade EURUSD and/or GBPUSD you should keep an eye on EURGBP.
Currently, blue AT lines are dominating, indicating either GBP strength or EURUSD is not as strong as charts show (same for other EUR crosses) and pointing the risk to the downside
Whatever the case, EURGBP .8500 is the current line in the sand.
I have a video on file how to use crosses to trade spot. Contact me if you would like a copy.
BTC 4 HOUR CHART
I am not sure why I am even trying to analyze BTC as it feels more like a video game than a tradable instrument.
The bounce from a 15% retracement just set a new high above 70000 and then a quick 2000 pip retreat (about 3%)
So just look at the chart, needs to close and stay above its former high just broken while on the downside the 59081 low keeps the risk on the upside.
US Embassy in Moscow warning of imminent terror attack by Islamic State in Moscow against Jewish targets, with one being thwarted the other day. Hence my post yesterday where I noted I like having a trailing sell stop order in USD at all times at the mid-level point of any 100pip range the pair is currently in while price is above the mid point (50).
Believe the 10yr yield gapping down Monday to open at 41.64 was one of the 1st clues for the Usd for the week. Have been eyeballing the yield to fill the gap but no dice. Yield looks destined to fall to 39.60/70 with this activity, and if so that is the first area of contention followed by 39.69 and if compromised 37.80 in my view.
Long Usd vs Singapore Dollar and Mexican Peso filled almost at absolute bottom post data, will hold for fun. At times I trade crosses approaching data to stay out of wild activity. I’m riding a Gbp/Chf from Wednesday at 1.2225 and am likely to exit any time here, see it settling around 1.1250 around end of day likely. Light positions. Bailed last night on Aud and Gbp sells with a squeaky gain, didn’t look good at all, those were testers. Still see Usd pulling up a bit overall but obviously the dynamic has shifted to the sell side.
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.
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