GAP DLRx 100.5x
on the grander scale of charts, still looks weak.
But in the s/term, I am interested the GAP”s closing
yeah ! …”As anyone trading also knows, markets move when there is a surprise in a news event vs. the consensus forecast.”
IF you look at the Swaps pricing for wednesday u d see that playrs are leaning towards a bigger cut. but u would also notices that it is a wishi-washi conviction.
Bottom line is that
– some will get smashed on wednesday which will likely manifest itself by displays of volatility.
USDJPY 4 HOUR CHART – Time for a pause?
What caught my attention in USDJPY has been
1) The bounce from sub-140 and then staying above it… deck wiped of sell stops on the break below 140.00-20
2) Typically USDJPY is most sensitive to US interest rates but it has not reacted to the fall in bond yields.
Price action suggests a pause for now but would need to get above 141.40-50, then 142+ to put 143.04 in play and make a case that the low is in for now.
Posted here earlier… NOTE the post-data low was dead on at 1.1115 (This is another reason we call it The Amazing Trader)-
Posted earlier
On the downside, it keeps a bid as long as it stays above 1.11 with a stronger bid as long as 1.1115 holds as support
As any trader knows, it is the reaction to news (e.g. economic reports, monetary policy decisions0 that counts. This is where the saying Buy the rumor, sell the fact comes from. It also reminds me of the old trading adage, It is the reaction to news, more than the news itself that matters.
As anyone trading also knows, markets move when there is a surprise in a news event vs. the consensus forecast. In the current week, there is a full calendar where the focus will be on central bank monetary decisions from the Fed, Bank of England and Bank of Japan.
So, let’s take a look at what might produce a surprise.
(Reuters) – A look at the day ahead in U.S. and global markets from Mike Dolan
With Federal Reserve easing within touching distance, U.S. stocks are not hanging about, underlining an uncomfortable aspect of the central bank’s decision this week.
Amid a fresh rotation of sectors from megacaps to small fry, the equal-weighted S&P500, which adjusts the main index to strip away the overwhelming influence of a handful of outsize stocks, hit a record high…
Morning Bid: New highs, rotation as Fed meets with retail healthcheck
XAUUSD 4 HOUR CHART – TAKING A BREATHER
XAUUSD has taken a pause below 2600 after setting a new record high at 2589, which now becomes key resistance.
Given the sharp move up, let’s take a look at retracement levels as potential levels of support (see our Fibonacci Calculator)
EURUSD 4 HOUR CHART – BACK ABOVE 1.11
The shift in money market pricing in favor of a 50bpS Fed rate cut tomorrow is giving EURUSD support although it faces resistance at 1.1155 and 1.1190 ahead of the key recent 1,1201 high.
On the downside, it keeps a bid as long as it stays above 1.11 with a stronger bid as long as 1.1115 holds as support
Next event risk: US Retail Sales at 12:30 GMT.
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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.
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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.
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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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