10-yr 4.206% Yield | 3:38 AM EDT
yellen watch
(Bloomberg) March 13, 2024 — US Treasury Secretary Janet Yellen said it’s “unlikely” that market interest rates will return to levels that prevailed before the Covid-19 pandemic triggered a wave of inflation and higher yields.
“I think it reflects current market realities and the forecasts that we’re seeing in the private sector — that it seems unlikely that yields are going to go back to being as low as they were before the pandemic,”
The yield on 10-year US Treasury notes averaged 2.39% in the decade through 2019 — low by historical standards. It spiked above 5% last October after the Federal Reserve raised rates aggressively to combat inflation, and now sits just below 4.2%
USDCAD Analysis: Breakdown Below Support and Potential Price Movements
USDCAD has recently breached the support level at 1.3466, signaling a resumption of the downward movement from 1.3605.
A further decline towards testing the 1.3419 support level is anticipated in the upcoming days. Should there be a breakdown below this level, it could potentially trigger an extended downward move towards the 1.3340 area.
The initial resistance to monitor stands at 1.3490. A successful breakout above this level could lead to a retest of the 1.3525 resistance level. Surpassing this level would suggest that the downward movement from 1.3605 may have concluded at 1.3419, with the next target likely at 1.3560, followed by the previous high at 1.3605.
EURUSD Daily
Supports at 1.09300 & 1.08700
Resistances at : 1.09650 , 1.09800 & 1.10500
For the pair to continue Upwards and target 1.10500 , it has to stay Tomorrow above 1.09300. Any break bellow would lead it to Channel Support at 1.08700.
1.09650 is a Major Obstacle on the road to new highs .
In the case it shows as a tough cookie, EURUSD will start the Inevitable deeper correction .
Buying it above 1.09300 , with the very tight stop just bellow it is the strategy if you feel the need to be involved.
The other approach is wait and see, and if 1.09300 taken out, Sell for the run to 1.08700 area.
XAUUSD 1-HOUR CHART
With the retracement holding the pivotal 2150 level, XAUUSD is trying to make another run at the upside.
However, to challenge the high, 2182-86+ needs to trade. Otherwise consolidation within 2150-2195 until eirther side breaks.
In the meantime expect support as long as 2161-66 and the trendline holds.
Since we are discussing trading approaches in a 5 pip market, it may sound silly to some, it surely does to me, I kid you not I went on a run years ago trading macd on a 1 minute chart, taking 3 to 5 pips a trade, 10 to 15 times a day with accuracy. Thought I was Joe Montana. And then………the inevitable 30 point market pounce against me. Important to have a sense of the bigger picture. It caused me to trade with no indicators for quite some time.
A CTA told me many years ago the only reason other CTA’s trade Fibo levels is because they know other market makers do, therefore there will be liquidity and possible start/stop areas. Nothing else. No other reason. I found that trading certain percentages of gain/decline from the start of the Asian session is strong.
IF 5 pips move makes one nervous if not outright panicky – just as you enter a trade in the negative due to dealer spread – you have no business trading.
You need to have the cohones to be in the red for a few minutes without having to consult your emotional support dog for help deal with anxiety / emotional distress
11:31 Belgrade Bobby: tks for the glimps into part of your trading /
I am not a fan of elaborate, complex, multi multi-conditional parametric trading, especially IF it is demanding way of trading, both physically and psychologically that ultimately has to rely on having to use very simple techniques
It sounds to me that a simple (i.e. no martingale) scalping robot including a programmed dynamic spread conditionals (fixed is not a guarantee of execution) might make for an easier trading day including opportunities for yoga / meditation and screw the coffee in favor of a satisfying celebratory sip of Russian Standard vodka
OnlineBroker.Fr is the best resource for French language information on the best online trading platforms and crypto exchanges in France.
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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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