And indeed , you have a very nice and useful website Merry christmas and best wishes for and your trading Alain. All trades have a probability of being winners or losers. We make choices about where we will enter and exit often based on broad risk multiples inherent in our strategies, among other things.
Our choice of exit determines whether we win or lose on an individual trade. These types of news events are excellent trade setups.. Incidentally at the end of , beginning of I had my best 3 days ever on a series of short term trades becasue of the fiscal cliff situation. So Rach next time you have a nightmare like this, go long the currencies that a long biased towards the stock indices.. As you know every other punter will be short becasue they are trading based upon the negative influence of the press.. I hope you get a break sometime. Thanks for the advice.
However, I have strategies that I stick to strictly but they respond quickly to any change in direction.
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I can be flipping direction while everyone else is absorbed in the news talking up the other way. Saves a lot of time too. Posted by Rachel Hunter 4 Comments. Categories: Trading Psychology. December 20, at pm. Rachel says:.
January 29, at pm. Andrew says:. Now at the moment people are liquidating all their positions and converting into cash. So, if you are looking to buy gold, wait for the VIX to drop. Recent developments by central banks and governments have however benefited gold. As calls for a short ban on stocks grow, traders who want to short risky assets could resort to Bitcoin, which means the asset is on a rough path ahead. Bitcoin volatility could persist, as the cryptocurrency continues to trade off the reactions of the global financial markets to coronavirus, rather than any crypto fundamentals.
Stock prices have been whipsawing at such a staggering speed and volume that it becomes difficult to predict any immediate direction. Central banks are scrambling for whatever stimulus measures they still have in their arsenal to deploy. The BOE for example has cut interest rates to the lowest level for years. Instead of using narrow stop losses they allow for the heightened volatility. Second, t hey do not use high levels of leverage. Chief Market Analyst, James Hughes at Scope Markets highlights the importance of education, especially at unprecedented times like these. But going from moves that once took a year to taking a day is a huge adjustment for even the most experienced of traders.
Opportunities are there, but adjusting to new levels of volatility and liquidity is a steep learning curve. Add to that the breakdown of some traditional correlations who would have picked that Gold would move lower in such a crisis and the landscape becomes an unfamiliar one. Until the investor community no longer has to sell because they have to; rather than sell because they want to, retail traders should be cautious of the current environment.
Never has disciplined risk management been more important. These are extraordinary times. At Contentworks Agency we work closely with our finance and fintech clients to deliver insightful and engaging analysis, articles and social media. The financial industry focused on the rising bond yields in the United States and other Western…. Marketing for the payments sector is huge. But so is the payments sector, with the global…. February was a relatively busy month for crypto regulations as the price of all major digital….
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