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Us Dollar is up and I don’t think that changes unless/until 101.025 is convincingly breached. UsdJpy has been sideways since 2am PST. If AudJpy can stay above 99.40 convincingly the buy side is likely favored but if not it would amount to the market not seeing value above it yet. 10yr yield opened decidedly down, that does not mean is prohibited from pulling up.
I am just doing what the market is doing and not attempting to form an opinion.
A look at the day ahead in U.S. and global markets from Mike Dolan
Wall Street’s S&P500 (.SPX), opens new tab kicks off the final quarter of a stellar 2024 from yet another record close notched on Monday – with odd quarter-end effects competing with measured Federal Reserve guidance as labor market updates hit the radar.
Fed chair Jerome Powell cooled speculation of a second 50 basis point cut at the central bank’s next meeting, indicating the central bank was in no rush and suggesting that two more quarter-point rate cuts by year’s end was a base case.
Morning Bid: Stocks kick off Q4 at record, euro inflation undershoots
GBPUSD Daily
Supports : 1.32700 , 1.32450 & 1.31850
Resistances : 1.33450 , 1.33600 & 1.33850
Bullish angle has been lost, and only question is if this is going to be a correctional phase or full blown downtrend.
Monthly and weekly charts are more in favour of a correction and continuation of the Uptrend later on.
GBPUSD 4 HOUR CHART – Tests key support
EURUSD leading, GBPUSD following with a lag (note EURGBP)
1.3310 tested and remains key support.
Back above 1.3350-69 would be needed to deflect the risk.
As noted in our Weekly FX Chart Outlook</a>
On the downside, 1.3310 is the make or break level, keeping the risk on the high while above it.
Logic says for GBPUSD to make a serious break to a new high, EURUSD would need to establish above 1.12 and/or EURGBP would need to make another leg down.
XAUUSD 4 HOUR CHART
Having paused above the top of 2614-22 support the focus shifts back to 2650 as a bias setter.
To suggest another run at the record high, 2660-66 would need to be overcome.
Otherwise, rising Middle East tensions suggest some safe haven demand but unless the high is taken out, it may just be a period of consolidation within 2600-2700.
USDJPY 4 HOUR CHART – Retracement?
As noted yesterday, the sharp Friday-early Monday drop from 146.49-141.64 left little in the way of obvious resistance levels. above the market. This left retracement levels as potential resistance.
In this regard, the move up has so far paused below the 61.8% FIBO,(see below) which if broken would shift the risk back to 145 and Friday’s high.
Otherwise, it looks like 142-145.
USING OUR FIBONACCI CALCULATOR
EURUSD 4 HOUR CHART – Back on the defensive
Having failed above 1.12, EURUSD has tested the neutral midpoint of 1.10-1.12.
If 1.1100-03 is firmly broken, then 1.1083 and 1.1068 come on the radar with a black hole below it
If 1.1100 holds, then 1.1120-25 would need to hold on top or risk shifts back to 1.1150.
Focus now shifts to US data with JOLTS and ISM PMI next on the docket.
One thing that has not changed over the years is that the forex market continues to be driven by news. I remember when I first started out, the key report was the monthly trade report. We used to quote spreads of 200 pips wide after the report and other bank would trade on it….
Forex Trading: You Can Teach an Old Dog New Tricks
See this article in our blog
New quarter, data focused market… see what is in store for Tuesday
XAUUSD 4 HOUR CHART – Top is in for now?
Lower blue AT lines indicate risk shifting to the downside and a retracement
To suggest a retracement, needs to stay below 2643-50 to maintain that risk.
Supports at 2614-22 need to hold as well as the trendline to contain the downside but 2600 may be most important in keeping the bid.
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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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