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USDJPY Weekly
We have some interesting levels to watch ;
Resistances at 156.000 & 156.750
Supports at : 153.500 , 152.000 , 151.500 & 150.000
NAS100 4 HOUR CHART – EASY WITH HINDSIGHT
It is easy to say that NAS100 had topped after looking at this chart with hindsight.
Having taken out the lows for the past 2 weeks, NAS100 is on the defensive showing a potential target at 16190. This is not a forecast, just pointing out what I see as a key level on this chart.
Given how fickle this index can be, watch the reaction to earnings later on.
THIS WAS A VERY TIMELY BLOG ARTICLE
WHEN YOU SEE TWO CURRENCIES MOVING IN OPPOSITE DIRECTIONS (JPY DOWN VS THE USD, OTHERS MOVING HIGHER), IT IS THE CLEAREST SIGN THAT CROSSES ARE DRIVING THE MARKET.
IF OTHER CURRENCIES DID NOT MOVE HIGHER, USDJPY WOULD BE EVEN HIGHER TO PRODUCE THE SAME CROSS-CURRENCY MOVES.
GBPUSD 4-HOUR CHART – REVERSAL OF FORTUNE
GBPUSD, which fell sharply to end last week on shifting interest rate cut expectations has reversed course as the market reassesses that outlook.’
This saw UK 10-year bond yield rise 9BPS to close yesterday at the highest level for the year.
Combine that with JPY weakness and a sharp GBPJPY rise, you can see why there has been a GBPUSD reversal.
GBP is also firmer on other crosses (e.g. EURGBP is lower as well).
Looking at this chart, it needs to hold 1.2497 *=(suggests 1.25 as well) to maintain a strong bid although support is seen as long as it stays above 1.2423.
AUDJPY DAILY CHART — 100.80
No change to what I posted this morning where I pointed out the 100.80 breakout level that needs to become support to open the door on the upside.
The move above USDJPY 155 has eased some of the pressure on crosses to absorb the JPOY selling but is still one path of least resistance.
USDJPY 4 HOUR CHART – A LESSON TO BE LEARNED
I learned a long time ago that you can not rely on central banks to protect your position. The trader landscape is littered with blown accounts by those who bet on central banks.
So, the question is whether this is another one of those times with the BoJ being called out on its intervention threat as USDJPY trades through the next presumed line in the sand at 155.
With 155x now taken out, this is the only level on a chart that has any meaning as USDJPY trades to a new 34-year high.
So, 155 will determine whether the market will push higher into uncharte3d waters.
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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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