Moneymanagement
Top 5 Risk Management RulesTop 5 Risk Management Rules:
1. Only Trade with Risk Capital
-Risk Capital is the amount of money you are willing to lose and do not include your living capital into your trading account!
2. 2% Risk Management
-The 2% Rule prohibits you from risking more than 2% of your account equity on each trade you are entering.
3. 6% Risk Management
-The 6% Rule prohibits you from opening any new trades when your current open risks in your open trades reach 6% of your account equity.
4. 10% Risk Management
-The 10% Rule prohibits you from opening any new trades for the rest of the month when the sum of your losses for the current month and the risks in open trades reach 10% of your account equity.
5. Risk to Reward Ratio
-Only take the trades which provide you at least 1:2 Risk to Reward Ratio
EURUSD Weekly long legged Doji on massive supportEURUSD closed the weekly candle with a long legged Doji outside the bollinger band.
Not to mention the massive support zone we have around 1.0510.
This could activate a rocket correction from the last 14 days of downtrend.
Another interesting thing is the movement from November 2015.
After weeks of downtrend the price turned in the last November week at 1.0510 and made a correction of 50% in rocket speed.
Is the same thing going to happen again? If not next week is it going to happen in the first December week (Italy Referendum)?
In my opinion the parity of the EURUSD is still far away. I don't think that we will break the major support at 1.0510 which would pretty much let the EUR/USD put in free fall mode. I think we will see the 1.0950/1.1000 at least before we go further down.
This trade may fit in someones trading plan. For me are the facts above to attractive. Can't just ignore them :)
Entry Level: 1.0600 +/-10pips
Stop Level: 1.0490
Target Level: 1.0950
Good opportunity to go LONG on FacebookThe price action has hit the long-term trend, giving us 2 possible scenarios:
Blue path: The price bounces at the long-term trend and continues to go high in a 1:3 win ratio.
Red path: Less likely given the past performances of FB, the price would break the support at ~114 and will continue to go low. No SHORT entry recommended in this case given the uncertainty of the next strong support.
"The four most dangerous words in investing are: ‘this time it’s different.'" – Sir John Templeton
Golden profits - XAUUSD #AspredictedPre-BREXIT as usual I posted up some truly simple analysis for all to enjoy and hopefully profit from. My aim during this last few weeks has been to shuffle as much of my client wealth as possible away from FX pairs and into GOLD.
Fortunately it was indeed the correct decision. For all intensive purposes I "predicted the future". As for the right here and now there is a great set up for binary options traders, for forex traders, for CFD traders.... For all traders :) Have a look at my analsis here, my BUY/CALL signals have all been hit this morning during EURO open.
Currently managing funds for binary only with www.STBinary.com - Happy to chat here/skype/whatever if you want to know more :)
SP500 A serious SHORT?The FED will address the issue of interest rate % very shortly. With such a strong Dollar market the question most of us are asking concerning the S&P500 is whether or not we may finally reach up and break through the all time historical high of around 2130?
Personally we feel that is highly unlikely, and instead we will see our lower level fib lines reached and broken over the next few weeks. Big opportunity to trade and profit here. Get in touch for more info or come and check the site www.STBinary.com
NZD/JPY Wait until today's closing. Buy if price is above 76.30.Bullish momentum. Prices are about to cross up the downtrend.
If prices hold KS tonight I would buy the pair for a 2-figure movement - Target will be the top of KUMO at around 78.500.
Stop can be placed on Tenkan Sen at around 75.00
Good luck
WHAT DO I SEE ACCORDING TO PRICE ACTION ON NZDUSD?so what do we see here?
according to price action we see a nice bullish preceding trend thats gets stucked in a daily resistance area, and shows me an indecision candle ( also called dodji ) on a 8hr chart. Also we can see recent lower high, which is usually a good signal for taking a short.
Taking this trade when price goes below the low of the indecision candle. going for a risk reward of 1:2.5 ( my minimun is 1:2)
hopefully it will work.
Crash Warning For Euro STOXX 50 Equity IndexRunning Alpha Capital Markets Intelligence re-iterates its warning posted on Jan 11th, 2016 to Global Investors of an Imminent and Persistent Crash, specifically for Euro STOXX 50 Equity Index ( Symbol FEZ ) .
The benchmark European index, the Euro STOXX 50 should easily retest the crash lows of 2009; USA equity markets do not have a crash signal, but will experience heavy volatility in near term before turning euphoric with a powerful V-bottom recovery from 2016 into 2017. Euro STOXX 50 will see unprecedented volatility -- off the charts and likely accompanied by rapidly deteriorating fundamental and geo-political events.
In summary,
* Long USA Equity Leadership and Short Euro STOXX 50 Index is an opportunistic strategy for the environment upon us now through 2017.
* It is likely that no matter how significant short term volatility gets in USA over the very near term, the persistent panic selling to hit Euro STOXX 50 Index across all time horizons from the near term to the long term will be so extreme that money flows will likely create an episode of strong relative outperformance in USA markets all the way into 2017.
GBP/USD SELL SELL SELL Not the greatest setup
but one to start the week with great risk reward :)
reasons for
1.Price has come back up to previous support trend line and has shown imediate affect
pushing price down
2.price created a bearish engulfing
3.Looks like price just made a correction and now is ready for a big drop
also remember the trend is your friend :)
EURJPY: Back to Back Bat Patterns & A Video on Money Management Consolidation often breeds harmonic patterns & that's exactly what we're seeing here on the EURJPY hourly chart. Now we're still holding a partial position on yesterday's bullish bat pattern and if price action were to push up to our second targets that would give us the opportunity to put in an SAR and get involved in the bearish one that looks to be forming as well.
Also I've been getting a lot of questions about money management lately. If you haven't seen this video already make sure you check it out as it should give you a better idea of the money management strategy that I use in my trading.
youtu.be
Akil Stokes
Chief Currency Analyst & Trading Coach\
www.Tradeempowered.com