For you JP –
The FED matters if you are position trading. Goldman Sachs does not care about what the FED says or its dot plots other than to use it as a means to attack volatility and adjust exposure. The reason I do not trust US government economic numbers……….
In 1969 a Mars chocolate bar cost me 10 cents at EZ Freezy Market in San Francisco and today it is $1.25, yet the production-packaging-shipping-distribution is more efficient. This is not a supply/demand issue or a consumer confidence issue or a rate of change issue. People want chocolate no matter what, everything is more expensive, and profit margins matter. They can drop rates 10% and people will still gorge on chocolate.
Chocolate_1
Fed _ 0
Remaining long Usd/Jpy from lower. Buying every reasonable pause.
in the name of agrandissement ?
Five Big Questions for the Fed at Jackson Hole bbrg
There’s plenty to address beyond next month’s interest-rate move.
claims bill dudley
The AMEX Gold Bugs Index went straight up and is a mix of risk on sentiment and hedging at the same time this time. Geopolitical tension, war, failing economic structures, failing political con games weigh while ever-present demand not just to keep your girlfriend from complaining but for high end defense electronic and other solid use reasons.
And then there is speculation. Buy side internal metrics a 5 times greater than sell side this morning.
A look at the day ahead in U.S. and global markets from Mike Dolan
The U.S. economy is doing just fine and markets now accept a quarter-point rate cut from the Federal Reserve next month will be enough to get the easing cycle going as disinflation resumes.
Morning Bid: With US economy humming, a quarter point will do
EURGBP 4 HOUR CHART – Real money flow
As you can see by this chart, while we are not privy to the order flow, there is clearly a real money selling driving this cross lower.
ON the downside, .8500 is the obvious pivotal level with next chart support at .8478. Back Above .8531-50 would be needed to suggest the order is done.
In any case, EURGBP selling has been a contributing factor to the firmer GBPUSD and EURUSD lag.
USDJPY 1 HOUR CHART – 38.2%
A case can be made that the USDJPY rebound is just a retracement after the high (149.39) came close enough (149.42) to complete a 38.2% retracement.
As this chart shows, it would need to break 147.04 to suggest a resumption of the downtrend so use short-term charts to trade while above it.
In any case, 148 will now be pifotal in dictating whether the focus is on 147,.04 or 149-150.
GBPUSD DAILY CHART – OUTPERFORMING
GBPUSD is again outperforming, helped by demand from a further fall in EURGBP so keep an eye on this cross.
Daily chart shows only 1.2937 blocking the 1.4044 high
Intra-day, look for support as long as it trades above 1.2866-72, stronger if 1.2884-88 becomes support
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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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