…”Imagine if one of the major currencies had moves like this?”…
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degenerate traders’ heart rate and bloodpressure needles would be past the red zone in anticipation of “authorities” potential intervention against “rapid” price changes. (i.e. animal sprits gone wild)
why would “authorities” take a skewed view of such price moves in one of the majors but not in btc
one might ask …
BTC Daily Chart
Bitcoin continues to make its relentless move higher, leaving the record 68915 level as the only one left on the upside.
To be clear, I do not trade cryptos but it is hard to ignore its meteoric rise this year, up over 12% in 2 days and around +35% this year. Imagine if one of the major currencies had moves like this?
So, I will just post the chart and follow up with a monthly chart.
USDJPY 1-Hour Chart
Blue lines dominating, indicating some shift in risk to the downside or more of a two-sided market after another failure to take out 150.89
However, price action remains contained while within 149.53 and 150.89 where 150 should continue to set the bias
Supports on either side of 150: 149.93-150.01-150.12
150.54 needs to hold on top to keep the focus on 150 and away from 150.84-89
Why did USDJPY fall today?
Technicians will cite another failed run at 150.89 and market positioning that is heavily short JPY, both vs. the USD and on its crosses
Those who say news matters will cite the release of a smaller-than-expected fall in annual Japanese inflation in a market that is hypersensitive to any data that might prompt the BoJ to raise interest rates.,
AUDUSD Analysis: Sideways Move Continues, Resistance and Support Levels
The AUDUSD pair has been moving sideways within a trading range between 0.6521 and 0.6594.
As long as the 0.6521 support level holds, the pullback from 0.6594 could be seen as corrective consolidation for the uptrend from 0.6442. Another rise is still possible after the consolidation.
The initial resistance level is located at 0.6555. A breakthrough of this level could trigger another rise to test the 0.6594 resistance level. A breakthrough of this level would aim for the 0.6624 resistance level.
On the downside, a breakdown below the 0.6521 support level would indicate that the upside move has already completed at 0.6594. In this case, another fall towards the 0.6442 previous low could be seen.
NZDUSD: This is an earlier recap
NZD witnesses a quick decline as we approach this week’s central bank decision & press conference.📉
NZD falls 0.50% within the first three hours of trading and 0.65% against GBP. Investors voice concern over the struggling New Zealand economy while inflation remains higher than other regions Economists advise RBNZ to opt for a “harsh” landing scenario to bring inflation down to its 2% target.
28 Feb 2024 Wed 2:00pm. February Monetary Policy Statement and Official Cash Rate (OCR) Details.
See our Economic Calendar
NZDUSD 1-hour chart
Blue lines dominate, indicating risk on the downside.
Key support is clear at .6156-61, which needs to hold to prevent a further push to the downside. Should the support zone give way then .6150 (psychological) and .6128 are next.
On the upside, .6200 is the key resistance, minor at .6185 ahead of it.
Underperformers
NZDUSD and AUDUSD were the underperformers today,
the promise ?
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A shutdown is approaching. Biden and Johnson’s lack of relationship isn’t helping.
https://www.politico.com/news/2024/02/26/biden-johnson-government-funding-ukraine-00143206
of course !
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Policymakers are particularly focused on labor costs as a key driver of medium-term inflation. While pressure on negotiated wages eased at the end of 2023, a new forward-looking indicator signals elevated salaries aren’t yet at an inflection point.
Lagarde said last week that slower pay growth in the fourth quarter was “encouraging,” but that bargaining rounds in the following period will be vital for decision-making on rates.
ahhhh yess !
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Lagarde said wage pressures remain strong, reiterating that salaries will likely become an increasingly important driver of price dynamics in the coming quarters.
“The current disinflationary process is expected to continue,” Lagarde said Monday at a plenary debate on the ECB’s 2022 annual report. “But the Governing Council needs to be confident that it will lead us sustainably to our 2% target.”
IF you must …
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MEPs set to debate inflation and possible interest rate cuts with ECB President
https://www.europarl.europa.eu/news/en/agenda/briefing/2024-02-26/16/meps-set-to-debate-inflation-and-possible-interest-rate-cuts-with-ecb-president
Inflation, efforts to curb it, and possible interest rate cuts are set to be the focus of a debate with European Central Bank President Christine Lagarde on Monday afternoon.
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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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