gbp at 2x top at 1.3239
–
YESSS unpopular decision !
Reuters
Starmer signals pain and ‘unpopular decisions’ to fix Britain
Prime Minister Keir Starmer said on Tuesday he would have to take unpopular decisions, raising the possibility of “painful” taxes on the rich and … that … Britain’s problems would only get worse before getting better.
The safer approach would be to stay on the sell side of UsdJpy and wait for the European fix to conclude before loading up too hard on Euro. I see UsdJpy continuing to pull up temporarily but on limited horizons and the opposite for Euro. It can change but the volume of calls to puts in Euro is very strong at present. Markets are apprehensive and picking little bets in stocks which is dousing enthusiasm. Nvidia will add a spark. This is where we start seeing hedging build to rebalance portfolios pre-Fed and it will continue for weeks.
USDJPY low 144.23
Posted earlier: Now needs to stay above 144.57 (suggests 144.50 as well) or risk shifts back to 144.20-25.
GBPUSD just ran some stops to a new high but still below 1.3250 and buying seems to be coming from crosses (EURGBP .8435)
Stock getting some relief from better consumer sentiment.
Sums up a market waiting for Nividia tomorrow and US PCE and month end Friday.
There is much more open interest in Eu calls vs puts. There is more extrinsic value in puts. Implied volatility is more median/stable in calls indicating structure. Gamma on puts is far greater a band and so puts are very unstable. By options contracts alone when compared to other metrics such as forwards Euro is not happy and so a pullup would be customary to 1.1180 where thy buying dies out.
My projection of Yen from NY session yesterday for 145.25 fell within 8 pips of accuracy but did not fill overnight. At times the main thing is the market is demonstrating mathematic cohesion.
UsdJpy just broke some average related (which I do not trade on but other participants do) parameters but it is not enough yet to warrant selling out on the downside and so there is still mathematical chance for the pair to hold just above 144.12.
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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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