Risk Sentiment Examples: 3rd Party Advertisement Dubai World Lehman Brothers Moody’s possible downgrade for UK NFP & Retail Sales (U.S.) Other high impact news releases…
Understand Risk Sentiment: When there is a significant risk of loss, traders will seek for safe-haven protection, such as USD, JPY, and CHF. When there is a strong sense of optimism in the market, traders seek more return on their investment, therefore they demand AUD, CAD, GBP, NZD… Consider the Interest Rate Differentials: USD […]
Risk Appetite Sentiment – FEAR Worse than expected earnings report. Worse than expected high impact economic releases. Dovish central bank announcement. Surprise Negative Release. Geopolitical Uncertainty.
Risk Appetite Sentiment – GREED Better than expected earnings report. Better than expected high impact economic releases. Hawkish central bank announcement. Surprise Positive Release.
Definition: Risk sentiment trading is based on market wide sentiment of “risk appetite” or “risk aversion”, taking a trade in the direction of these sentiments as the market is likely to exaggerate.
In Conclusion Consider Positive & Negative Framing: The pain of losing $100 in a trade & gaining $100 in a trade… The 80/20 Experiment with $3000/$4000… The evidence in your own account of small wins and huge losses… The key is to have a daily goal, have a good R/R ratio, and build your […]
What is Risk to Reward Ratio? A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. Example: If you bought EUR/USD: BUY EU @ 140.00, SL 139.70, TP 140.30 Risk = 30 pips, Reward = 30 pips, ratio 30/30 […]
Good Money Management Consists: Set Goals – Have a plan Get Organized – Maintain a detailed record Cut Your Losses Short – Lose less and win more (Risk to Reward) Get Balanced – Risk / Reward Ratio Protect Your Money – Move SL to BE Grow Your Account – Take it slow, take […]
What is Money Management? deals with the question of how much risk a decision maker should take in situations where uncertainty is present.
Last Live Webinar for my FNTA (forex news trading academy) I talked about the 5-golden rules to news trading, which not only helps you to understand fundamental analysis, but also shows you how to read the market. I believe one of the most important missing links to Forex trading is understanding the market. It may […]
Fundamental Sentiment Trading – What is it? Fundamental Sentiment Trading is probably the most profitable trading strategy that I’ve ever developed and it’s single handedly responsible for generating majority of profits in my account, since 2008… The idea behind this strategy is actually quite simple, as all Forex traders are futures traders, anything that is […]
Live Mastermind Mentoring Forex trade room trades discussing Swiss National Bank and affected Swiss franc trades.