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Weekly jobless claims, durable goods beat consensus.. USD up…sSee our Economic Calendar
Last week US jobless claims showed a surprise drop… consensus is for a modest rebound… markets are highly sensitive to US jobs related data…see our Economic Calendar
Headline overload
* Federal Reserve Board Governor Michelle Bowman and Lisa Cook both speak, New York Fed President John Williams, Boston Fed chief Susan Collins, Minneapolis Fed chief Neel Kashkari and Fed Vice Chair for Supervision Michael Barr all speak; European Central Bank President Christine Lagarde and ECB board members Luis de Guindos and Isabel Schnabel all speak
A look at the day ahead in U.S. and global markets from Mike Dolan
With quarter-end fast approaching, tech excitement returned to Wall Street overnight with another AI-driven earnings beat from Micron Technology (MU.O), opens new tab, while China’s stocks (.CSI300), opens new tab surged anew after this week’s monetary easing blitz.
The artificial intelligence theme had gone a bit flat in recent weeks as attention switched to aggressive Federal Reserve interest rate cuts – but Micron added fresh fizz overnight
Morning Bid: Micron adds fresh tech fizz, China surges anew
AUDUSD 4 HOUR CHART – BOUNCE FROM ABOVE SUPPORT
I cited ,6814 yesterday as the key level on the downside and note the pause and bounce from just above it.
There was a rationale why this was more than just a support. It is all part of The Amazing Trader logic, which not only identified the key level but also why this was the key level.
In any case, AUDUSD is in limbo while within .68-.69 with a bid if it can stay above ,6850
Fundamentally AUDUSD stands to benefit from China stimulus given its close ties to the Chinese economy
XAUUSD 4 HOUR CHART
Consolidating between 2650-2570 (record high) for 2 days… given the strength of this move, there are not likely to see a lot of stops above the high bid… keeps a bid as long a 2650 trade.
Risk on/risk off does not seem to influence gold so watch to see if can extend its record high… if not then it would need to break below 2650 to suggest anything more than a pause.
GBPUSD 4 HOUR CHART – Bounced but…
Bounce from 1.3310 helped by firmer crosses (e.g. vs EUR)
One change from yesterday is that deck is cleared of buy sop until the 1,3420 high.’
On the downside, key level is the 4 hour trendline (see chart)
This leaves GBP in sort of limbo if it stays between 1,33-1,34
Key focus in Fed speakers, Weekly jobless claims, US PCE tomorrow (typically would suggest a limited USD upside ahead of it).
USDJPY 4 HOUR CHART – 145+ tested
Following the theory that the forex market lives to run stops, a test of 145 seemed inevitable.
Now that 145 has been tested (high 145.20), it becomes the clear bias setting level.’
USDJPY 144.50 is a pivotal level as well as it needs to become support to keep the focus on 145.
Supports are at 144.44/50, 143.85 and the trendline. Intra day resistance 145.20, key is at 147.19
FIBO levels (161.93-139.58) posted below.
USDCHF 4 HOUR CHART – See the reaction to the SNB rate decision (High for the week .8518)
SNB cuts policy rate by 25bps as expected to 1.00%; prepared to intervene in FX market as necessary. Further cuts in the SNB policy rate may become necessary in the current quarters to ensure price stability over the medium term (Source: Newsquawk.com)
When I was a bank trader, I became friendly with a trader who managed a forex dealing room. He related his philosophy, which I call a professional trader’s game plan that can be used by retail traders today.
A Professional Trader’s Strategy for the Retail Forex Trader
BTCUSD Monthly
Just my 10 cents worth… To understand BTC , one should go with the biggest time frame , and then use that picture to position him/herself on smaller intraday time frames. We have very interesting situation here – 5 days till months end and possible perfect pattern for a break UP . 63.480.00 is a pivotal – if closes above , most probably will break 70K and continue to new high around 80K Only below 63K we can talk about down.
US500 4 HOUR CHART
This is a hard one with the upside showing some signs of consolidating and at least on this chart needing to clear 5750 to put 5800 on the radar.
On the downside, support is at 5670-00.
Note that CFD price feeds can differ between broker, even those using the same symbol. Ss, look at the chart pattern if the levels below do not line up with the prices on your chart.
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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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