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Forextrading

Price Action Is Key!!!Price Action Trading Is A Method Of Trading Where Trading Traders Are Able To Make Trading Decisions About Trades Based On Price Movements - Price / Market Data... Without Relying On Indicators etc... #1. Price Action Refers To The UP And DOWN Movement Of A Security's Price When It Is Plotted Over Time #2. Candlestick Patterns - Candlestick Formations - Chart Patterns Are Derived From Price Action. #3. Price Action Involves The Use Of A Naked Market Chart... With The Use Of RAW PRICE DATA #4. Price Action Is Definitely Leading The Way... To Trading Without Lagging Indicators #5. Price Action Does Not Involve Those Messy Charts And Clutter That Takes Up Half The Screen
Education
by UnknownUnicorn33425005
⭐ THE HOLY GRAIL💥 There are varying concepts, strategies and ideas regarding trading. The primary objective is to stay profitable no matter the kind of strategy you use. 💥 Ironically some traders have this idea that there's one strategy that stands out amongst every other one out there. In my opinion, that's BS. 💥Anything and everything works in the market as long as it is back-tested with proven returns. Even the basic Support and Resistance can outperform the most sophisticated strategy if used properly by the trader with consistency and proper risk management. 💥 Every strategy out there has flaws and cannot guaranty 100 percent success rate. There will be losses and inadequacy with every given strategy out there. ***There's NO HOLY GRAIL in trading. Find that strategy that is in line with your trading style. Back test to measure the success rate, if good enough, stick to it and remain consistent with it. Sage Trader's Nugget
BLACKBULL:SPX500Education
by Sage_Trader
How to FIND the BEST PAIRS to trade! Examples and explanations.Here the first part of the lesson: How do interest-rates effect the market and how do I find good pairs to trade? The market offers you 5 main asset-classes: 1️⃣ Bonds 2️⃣ Stocks 3️⃣ Commodities 4️⃣ Metalls 5️⃣ Financials What we want to indeifity as a trader is the cashflow, means where big players are buying or selling. They don`t buy breakouts or an obvious momentum that already happened, instead they accumulate or distribute for days / weeks as they have a lot of capital to invest and cause support / resistance aswell as bottoms / tops. Important for them are always the fundamentals such as Economic data, Inflation and so expectations for the monetary policy of central banks they price in. Before we start the journey we need to understand the effect of Interest-Rates I explain that simplyfied and in short as I its a complex topic: The Interest-rate is the rate a central-bank lends money to privat credit institutions for. So your bank aswell as mine has a bank-account at the central bank of your country. They give them money in order to have enough capital to hand out credits to privat customers aswell as companies. The lower the interst-rate is the more demand is in the market. I mean, if you want to buy a car would you rather finance it with 5% or 2% interest-rates? You have the opportunity to buy a car with less debts at the bank. Same for companies, if you need a second office, goods, more capital for production etc. you rather take that opportunity when rates are low. Credit-business has a huge competition and banks will offer lower and lower interst-rates to attract more customers. The longer lent term the more risk is involved as you could for example lose your job and won`t be able to pay back the credit anymore, means interest-rates are usually higher due to the risk than short-term-lendings. The yields are shown in the bondmarket👉 This is why everyone talks about a "reversed rate-curve" as a sign for a recession. Because your bank gets money in the short-term from the Centra Bank on order to hand them out in the long-term to make money. If the risk of an upcoming recession is present the short-term involves more risk, thus short-term yields are higher than long-term-yields and banks can`t give out any credits anymore as they pay more to the central bank than they make. Here a quick overview of interest-rate-effects: Higher interest-rates 1️⃣ Increased cost of borrowing 👉 Reduced investment 👉 Lower economic growth and bad for stocks 2️⃣ Higher mortage interest 👉 Reduced consumption 👉 Lower economic growth and bad for stocks / house prices 3️⃣ Increased return for savings 👉 Less spending 👉 Lower economic growth 4️⃣ More demand in the currency due to higher interests / returns 👉 Lower inflation Vice versa with lower interest-rates. The lower the interest-rate, the more consume and investment is in the market. You see there is a lot to learn and to understand and to give you all information I`d have to finish a course.😆 Let`s start with the corona-crises: The FED has just started to raise interest-rates after the financial crisis in 2008. And as you probably understand now, they lowered them back in the days to provide more money to the market and to boost consume / investment to rescue companies. After the raise corona came and shocked the market. The first reaction of the FED was to lower interest-rates. They do this because they want you not to keep your money on your bank-accound and instead spend it to boost the economy and of course to use the chance to get a credit for better conditions. Additionally they have raised their total balance-sheet, continued with quantative easing (printing money to buy bonds) and we`ve got the stimulus-package. Demand and Supply regulates a price ... now we have tons of supply and fear of inflation. Now ask yourself: What is the best trade here? Probably to short the US-Dollar and to BUY stocks! What currency has the strongest weight in the US-DOLLAR-BASKET? 👉 Euro with ca. 57%. Euro will have the strongest rally due to the weak US-Dollar. What is asked when the stockmarket pumps? Australian Dollar aswell as New Zealand Dollar 👉 Both will fly, but even more than EURO because of the USD weakness. Most attractive pairs: 1️⃣ AUD/USD long 2️⃣ NZD/USD long Also good pairs: 1️⃣ EUR/USD long 2️⃣ GBP/USD long We know AUD and NZD are both stronger than EURO due to the risk-on in the stockmarket means: 1️⃣ EUR/AUD long 2️⃣ EUR/NZD long Whatlese do we know? We know Crude OIL pumping due to risk-on in the market. It goes up as a pre-indication for inflation and a healthy economy. Who exports OIL? Ah yeah... CANADA. So if there is more demand in OIL and the market buys in CANADA investors have to exchange their currency into the Canadian Dollar. USD falls due to low interest-rates 👉 Canadian dollar moves up due to pumping OIL 👉 USD/CAD SHORT Just a few examples here how to think. Central-Banks are independed institutions and have the following task: 1️⃣ Provide economic growth 2️⃣ Price-Stabillity Central Banks aim for an Inflation of 2% a year (compared the year before) because they consider this as a healthy level. They basically define this as a fine line of "prices are not going crazy" and "companies make more money." A little bit of inflation, or higher prices increase earnings of companies that can as a result expand, offer more jobs etc. 👉 Which defines the first task economic growth. The problem is.. they can provide money to the market in case of fiscal support is needed, but they can`t take it back and SAY GUYS WE NEED OUR MONEY, its too much floating and inflation is too high. 1️⃣Healthy economy: Rising inflation and a growing economy "Rate hikes getting likely as economy doesn`t need fiscal support" 2️⃣Unhealthy economy: Stable inflation but a stagnation of the economy "Rate hikes getting less likely as economy needs fiscal support." Now we have a dilemma here..... 3️⃣ Disaster and current situation High inflation but a stagnation or even a slowdown in economy "Rate hikes are tricky as the economy needs fiscal support while inflation is already HIGH." Either price-stabillity or the economy suffers❗️ Now keep this in mind: Jerome Powell promised Biden to fight the inflation at all costs in order to get his second term in office. It is tricky to know what he is gonna say, but we know he promised it to the President. This is why the market is so shaky. The market hopes to see a dovish Jerome after the Sell-Off in stocks. At the same time the market knows we will see a year with rate-hikes. What do you think will be the best pair to trade after the FOMC?!
FX:SPX500Education
by Trading2ez
3
WHAT IS MARGIN? Traders must know this📚 ✅Significant investments are required to gain access to foreign exchange markets. Not everyone who wants to try their luck in the world of trading has such funds. However, thanks to brokers that act as intermediaries and provide loans to traders, trading has become available to everyone. Thus, the essence of margin trading is to conclude transactions in financial markets with the use of borrowed funds provided by a broker. 🟢The second name of margin trading is trading with leverage. Leverage is the ratio of your deposit to the amount of the working lot. To obtain this kind of credit, the trader's account must also have his funds. The minimum of the initial deposit is different and depends on the requirements of a particular broker. 🟢The margin on the stock and foreign exchange market is a pledge that is blocked by the broker on the trader's trading account during the opening of the transaction. In margin trading, the broker can issue a loan both in cash and in the form of securities. Margin is usually expressed as a percentage, showing what proportion of own funds must be deposited to open a position on a particular instrument. For example, a margin requirement of 20% means the possibility of opening a transaction with financial instruments if there is a fifth of their total value on the account. And the margin requirement of 50% allows you to open positions for a certain amount, having 50% of it on deposit. ❗️Margin trading allows a trader to sell the market, entering short positions in case of forecasting a decline in the price of a particular instrument. Let's consider the principle of opening a short position on the example of stocks. ❗️Expecting a decrease in the price of Vesta shares, a trader takes ten shares from a broker on credit and sells them on the stock exchange at the current price. After the predicted price drop, he buys ten shares at a lower cost. By returning them to the broker, the trader remains in profit. The lower the stock price falls, the more profit the trader will get. ⚠️The above transactions are actually carried out much easier. Technically, a trader does not need to sell securities and subsequently buy them again. To do this, you only need to instruct the broker to open a short position. If the trader's forecast turns out to be correct and the forecast price decreases, the trader will close the deal, fixing the profit. Otherwise, if the price increases, the trader will receive a loss. ❤️ Please, support our work with like & comment! ❤️
OANDA:XAUUSDEducation
by SignalProvider
16
Market Trading AffirmationsAn Affirmation Is Defined As An Assertion That Something Exists Or Is True. An Affirmation Is Designed To Help Remind You And Encourage You That Something Must Be Done And It Must Be Adhered To As The Saying Goes... As A Trader “You Cannot Change The Markets... You can Only Change Your Response To What They Do.” Trading Affirmations Are Very Important And Very Much Needed Whenever You Attempting To Trade The Markets • Pre-Trade Affirmation #16- I Believe In My Trading Edge And My Trading Strategy Completely And Wholeheartedly. And I Am And Will Act Upon It Without Any Fears – Any Doubts – Any Worries And Most Of All Any Hesitations • Pre-Trade Affirmation #17- I Am Able To Easily Relax Myself As I Wish At Any Given Time. I Need To Harness And Use This Ability To Help Conserve My Energy, Because When It Comes To Trading I Need To Save My Strength • Pre-Trade Affirmation #18- I Will Pre-Define And Pre-Determine My Risk On Each And Every Trade That I Place. I Will Completely And Positively Accept That Risk. And I Am Able To Completely Let Go Of That Trade Once It Is Active • Pre-Trade Affirmation #19- I Will Make All Of My Trading Decision And Contemplate And Formulate All Of My Trading Ideas Prior To The Market Open. I Will Execute Trades When There Is Only A Price Action Signal / Setup Present • Pre-Trade Affirmation #20- I Have To And Need To Carefully Manage And Measure My Trading Progress Towards My Desired Trading Results Each And Every Day. It Is Crucial That I Learn To Manage Myself And My Emotions Accordingly • Pre-Trade Affirmation #21- I Need To Trade According To What The Market Is Doing And How It Is Behaving. I Cannot Trade The Markets On What I Think It Should Be Doing. As The Saying Goes “Trade What You See… And Not What You Think” • Pre-Trade Affirmation #22- I Will Only Take / Place Trades When I See My Trading Edge Present Within The Markets. I Will Only Place Trades Or Consider Trading Only When I See My Trading Strategy Present Within The Market And Only Trade When There Is A PRICE ACTION SIGNAL / PRICE ACTION SETUP Present And Visible Within In The Market. Pre-Trade Affirmations are very important. You would never want to start your day much less your Trading Day without your Pre-Trade Affirmations. They are very important and a very crucial part of your Trading. (You Should Always Read These Each And Every Day Before You Trade)
Education
by UnknownUnicorn33425005
Market Trading AffirmationsAn Affirmation Is Defined As An Assertion That Something Exists Or Is True. An Affirmation Is Designed To Help Remind You And Encourage You That Something Must Be Done And It Must Be Adhered To As The Saying Goes... As A Trader “You Cannot Change The Markets... You can Only Change Your Response To What They Do.” Trading Affirmations Are Very Important And Very Much Needed Whenever You Attempting To Trade The Markets • Pre-Trade Affirmation #1- I Am A Successful And Profitable Trader • Pre-Trade Affirmation #2- I Objectively Define My Edge Within The Market • Pre-Trade Affirmation #3- I Am Going To Spend My Time Wisely And Meaningfully • Pre-Trade Affirmation #4- I Am Positive And I Will Pour Happiness Into All That I Am Doing • Pre-Trade Affirmation #5- I Understand That Consistency Is More Important That Being Right • Pre-Trade Affirmation #6- I Will Constantly Reward Myself As The Market Makes Profit For Me • Pre-Trade Affirmation #7- I Am Patient And Let Trading Opportunities Present Themselves To Me • Pre-Trade Affirmation #8- I Love Myself Enough To Allow Me To Experience The Success Of Trading • Pre-Trade Affirmation #9- I Am Absolutely Clear About The Specific Results That I Want And Need In Trading • Pre-Trade Affirmation #10- I Make Money In The Markets And This Is An Affirmation Of My Self-Mastery – Self- Learning And Professionalism Pre-Trade Affirmations are very important. You would never want to start your day much less your Trading Day without your Pre-Trade Affirmations. They are very important and a very crucial part of your Trading. (You Should Always Read These Each And Every Day Before You Trade)
Education
by UnknownUnicorn33425005
Trading on Financial Markets | Your Guide to Trade Planning 📝 Hey traders, In this post, we will discuss 6 crucial things in your trade planning and the main elements of trade results assessment. 1 - Before you open a trading position, make sure that you analyzed the chart. You should identify a market trend and spot major key levels. 2 - Once the chart is analyzed, you should identify the safest trading areas for your strategy (preferably the zones of supply and demand). You should patiently wait until one of these zones is tested. 3 - Once the zone is reached, you should look for a confirmation. You can either look for a reversal candlestick/price action pattern, some fundamental trigger, or some indicator. The point is that you should rely on a trigger that is backtested and that proved its accuracy. 4 - Getting your confirmation, you should have a precise entry strategy. Some traders prefer aggressive entries on spot while others are waiting for a retest of some major/minor level. 5 - You must set a stop loss. Remember that your stop-loss defines the point where you become wrong in your predictions. Be extremely careful on that step and give the market some space for fluctuations. 6- Know your exact target level(s). Know the point where you start protection of your position, where you start profit-taking. Be very strict and don't let your greed and fear intervene. Only then a trading position is opened. No matter what will be the end result of your trade, you should assess it: 1 - You should journal the trade outlining its end result, trading instrument, and your entry reason. 2 - Note any peculiar thing about this trade that you noticed. 3 - Record your gain/loss percentage. 4 - Identify whether any mistake was made and if so, learn from that. Here is your minimum plan to follow. Of course, as you mature in trading your trade assessment plan will be more sophisticated. Do not underestimate its importance and treat it as the main element of your trading routine. Do you plan your trades like that? ❤️Please, support this idea with like and comment!❤️
Education
by VasilyTrader
27
HEAD AND SHOUKDERS PATTERNWhile we get ready for the holidays we thought we would post some chart patterns for our newbies over the next few days. The head and shoulders pattern is a formation of 3 peaks with the head being the highest peak (Lowest on inverse). The entry should be below the neckline (Above on inverse). The measure of take profit can be taken by measuring the peak of the head from neckline and using this range, as an indicator of the take profit level. Please do give us a like, comment and follow to support us. GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
5
RISK ON vs RISK OFFI tried to show you in this example what is the difference between risk on and risk off, what financial instrumnets rise during times of finacial stress aka risk off and what instruments rise during time of financial optimism aka risk on. RISK ON - is when investor are looking to multiply their money, they are looking for RISK. MORE RISK - MORE MONEY RISK OFF - is when investors are looking to keep/save their money, they are looking to protect more than to RISK. MORE PROTECTION - LESS MONEY P.S - Where do you think CRYPTOCURRENCY market goes? Into a RISK ON or RISK OFF financial instrument ? Comment below
TVC:VIXEducation
by AnonimFXRO
3
TAKE THAT NEXT TRADEHi Friends, This post is for Educational Purpose only!! Time Frames : 5 mins, 10 mins, 15 mins Instruments : All Forex and Crypto Pairs Market Session : All Sessions Strategy Considered : Price Action Shift (PAS) TAKE THAT NEXT TRADE From my personal research i have seen that for a trending market, break of structure or shift in price action often leads to a big price movement moments later. Before i go into a trade, i normally ask myself a couple of questions; 1. How much is my balance? 2. How much do i want to risk? 3. Does the setup have a high winning probability? 4. Am i following my checklist? if yes, have i checked at least 4/6 of the items on the list? 5. What are my exit plans if i should take the trade? If i am able to respond to Q3-Q5, then i will not miss that trades. PAS Strategy Explained - Citing CADCHF (15m) Price did not break first swing low, attempted to break the second one but failed. It eventually broke the third swing low then headed back to retest the order block that pushed price to that break. It makes sense to go in right at this point since 6/6 of my checklist have been ticked + Q3,Q4,& Q5 response is yes. PAS Strategy give investors/ traders the opportunity to expose their capitals to low risks but highly profitable trade (in this case RRR of 1:8). Take some time off to look at my checklist and the confluences which i have listed on the chart. DO NOT FORGET TO LIKE, COMMENT AND FOLLOW ME.
Education
by Kingsley_lotanna
3
Why shouldn't we rely on others when trading?Two traders can enter at the same price, one taking buys trade, the other one a sell trade. Only one can profit, right? Nope. The price can move both ways at different points of time from the initial entry, and both traders can profit. On the other hand, a desperate premature exit can cause both traders to lose. So, it is a matter of your own trading system. Remember, it doesn't matter if your edge is the total opposite of other ones as long as, you comply with your system. The entry, as well as the exit, should be well worked out. An exit strategy that will yield profits in the short term, can give heavy losses in the long term. So, the exit strategy is quite important.
Education
by PrabuddhaPeramuna
Useful FOREX TRADING STRATEGY FOREX TRADING STRATEGY with 20MA & chandelier Stop by TIZ The BWAB Trading Strategy (LONG SETUP) - Market is in a range (80 candles or more) - The price approach the highs of Resistance and forms a tight consolidation (buildup) - The 20 MA touches the low of the buildup - Place a buy stop order above the highs with 3 ATR trailing stop loss ( chandelier Stop ) The BWAB Trading Strategy (SHORT SETUP) - Market is in a range (80 candles or more) - The price approach the lows of support and forms a tight consolidation (buildup) - The 20 MA touches the highs of the buildup - Place a buy stop order below the lows with 3 ATR trailing stop loss ( chandelier Stop ) The BWAB Trading Strategy (SHORT SETUP) Chandelier Stop settings = Trailing stop loss Look Back perio = 1 ATR Period = 22 ATR Multiplier = 3 The chandelier stop offers a logical possibility to set the stop loss. The sl is very tight.
Education
by TizTrader
How A Crazy Chart Can Make You Lose Thousands Of Dollars!"Crazy Chart" is the definition for putting so many indicators on your chart. it is one of the big reasons to have bad trades that will hit your stop loss easily. Who promotes those indicators says it helps you indicates the next move for the price, while the real truth about indicators that it follows the price only. Also It completely distracts you from seeing the perfect price action for entering and exiting any trades. The best advice for setting up your chart : "keep it as simple as possible" the more simple the chart the clearer vision you will have while chasing the price. Here is some rules you need to follow to be profitable: 1- use indicators for analyzing the history of the price. 2- don't depend on indicators to show you an entry for a trade. 3- use price action and candlestick formations to enter and exit any trade. 4- work with indicators that shows you the support and resistance area of the price. Lastly Know That ( there is no indicator that can predict the price next move ) if that indicator exists it will worth THOUSANDS of dollars and will not be available for free.
Education
by FX_Elite_Club
Managing Risk Efficiently in Six StepsManaging Risk Efficiently in Six Steps Any analyst or trading guide will tell you how important it is to manage your risk. However, how does one go about managing that risk? And what exactly do they mean by managing risk? Here is a step-by-step guide to one of the most important concepts in financial trading. 1. Determine Your Risk Tolerance This is a personal choice for anyone who plans on trading any market. Most trading instructors will throw out numbers like 1%, 2% or on up to 5% of the total value of your account risked on each trade placed, but a lot of your comfort with these numbers is largely based on your experience level. Newer traders are inherently less sure of themselves due to their lack of knowledge and familiarity with trading overall or with a new system, so it makes sense to utilize the smaller percentage risk levels. Once you become more comfortable with the system you are using, you may feel the urge to increase your percentage, but be cautious not to go too high. Sometimes trading methodologies can produce a string of losses, but the goal of trading is to either realize a return or maintain enough to make the next trade. For instance, if you have a trading method that places one trade per day on average and you are risking 10% of your beginning monthly balance on each trade, it would only theoretically take 10 straight losing trades to completely drain your account. So even if you are an experienced trader, it doesn’t make much sense to risk so much on one single trade. On the other hand, if you were to risk 2% on each trade that you place, you would theoretically have to lose 50 consecutive trades to drain your account. Which do you think is more likely: losing 10 straight trades, or losing 50? BALANCE $10,000 10% $1000 10 $10,000 5% $500 20 $10,000 3% $300 33 $10,000 2% $200 50 $10,000 1% $100 100 2. Customize Your Contracts The amounts of methodologies to use in trading are virtually endless. Some methods have you use a very specific stop loss and profit target on each trade you place while others vary greatly on the subject. For instance, if you use a strategy that calls for a 20-pip stop loss on each trade and you only trade the EUR/USD, it would be easy to figure out how many contracts you may want to enter to achieve your desired result. However, for those strategies that vary on the size of stops or even the instrument traded, figuring out the amount of contracts to enter can get a little tricky. One of the easiest ways to make sure you are getting as close to the amount of money that you want to risk on each trade is to customize your position sizes. A standard lot in a currency trade is 100,000 units of currency, which represents $10/pip on the EUR/USD if you have the U.S. dollar (USD) as your base currency; a mini lot is 10,000. Currency Trading If you wanted to risk $15 per pip on a EUR/USD trade, it would be impossible to do so with standard lots and could force you in to risking either too much or too little on the trade you place, whereas both mini and micro lots could get you to the desired amount. The same could be said about wanting to risk $12.50 per pip on a trade; both standard and mini lots fail to achieve the desired result, whereas micro lots could help you achieve it. In the realm of trading, having the flexibility to risk what you want, when you want, could be a determining factor to your success. 3. Determine Your Timing There may not be anything more frustrating in trading than missing a potentially successful trade simply because you weren’t available when the opportunity arose. With forex being a 24-hour-a-day market, that problem presents itself quite often, particularly if you trade smaller timeframe charts. The most logical solution to that problem would be to create or buy an automated trading robot, but that option isn’t viable for a large segment of traders who are either skeptical of the technology/source or don’t want to relinquish the controls. Trading Signals That means that you have to be available to place trades when the opportunities arise, in person, and of full mind and body. Waking up at 3am to place a trade usually doesn’t qualify unless you’re used to getting only 2-3 hours of sleep. Therefore, the average person who has a job, kids, soccer practice, a social life, and a lawn that needs to be mowed needs to be a little more thoughtful about the time they want to commit. Perhaps 4-Hour, 8-Hour, or Daily charts are more amenable to that lifestyle where time may be the most valuable component to trading happiness. Another way to manage your risk when you’re not in front of your computer is to set trailing stop orders. Trailing stops can be a vital part of any trading strategy. They allow a trade to continue to gain in value while the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a specified distance. When the market price moves in a favorable direction (up for long positions, down for short positions), the trigger price follows the market price by the specified stop distance. If the market price moves in an unfavorable direction, the trigger price stays stationary and the distance between this price and the market price becomes smaller. If the market price continues to move in an unfavorable direction until it reaches the trigger price, an order is triggered to close the trade. 4. Avoid Weekend Gaps Many market participants are knowledgeable of the fact that most popular markets close their doors on Friday afternoon Eastern Time in the US. Investors pack up their things for the weekend, and charts around the world freeze as if prices remain at that level until the next time they are able to be traded. However, that frozen position is a fallacy; it isn’t real. Prices are still moving to and from based on the happenings of that particular weekend, and can move drastically from where they were on Friday until the time they are visible again after the weekend. How to Trade Forex This can create “gaps” in the market that can actually run beyond your intended stop loss or profit target. For the latter, it would be a good thing, for the former – not so much. There is a possibility you could take a larger loss than you intended because a stop loss is executed at the best available price after the stop is triggered; which could be much worse than you planned. Managing Risk Efficiently in Six Steps While gaps aren’t necessarily common, they do occur, and can catch you off guard. As in the illustration below, the gaps can be extremely large and could jump right over a stop if it was placed somewhere within that gap. To avoid them, simply exit your trade before the weekend hits, and perhaps even look to exploit them by using a gap-trading technique. 5. Watch the News News events can be particularly perilous for traders who are looking to manage their risk as well. Certain news events like employment, central bank decisions, or inflation reports can create abnormally large moves in the market that can create gaps like a weekend gap, but much more sudden. Just as gaps over the weekend can jump over stops or targets, the same could happen in the few seconds after a major news event. So unless you are specifically looking to take that strategic risk by placing a trade previous to the news event, trading after those volatile events is often a more risk-conscious decision daily forex signals 6. Make It Affordable There is a specific doctrine in trading that is extolled by responsible trading entities, and that is that you should never invest more than you can afford to lose. The reason that is such a widespread manifesto is that it makes sense. Trading is risky and difficult, and putting your own livelihood at risk on the machinations of market dynamics that are varied and difficult to predict is tantamount to putting all of your savings on either red or black at the roulette table of your favorite Vegas casino. So don’t gamble away your hard-earned trading account: invest it in a way that is intelligent and consistent. MANAGE YOUR TRADES, MONEY & RISK So will you be a successful trader if you follow all six of these tenants for managing risk? Of course not, other factors need to be considered to help you achieve your goals. However, taking a proactive role in managing your risk can increase your likelihood for long term success.
XEducation
by fxpremiere
1