EURUSD 1.1851 |
USDJPY 111.52 |
GBPUSD 1.3772 |
AUDUSD 0.7485 |
USDCAD 1.2406 |
GBPJPY 153.59 |
EURJPY 132.15 |
AUDJPY 83.48 |
CADJPY 89.86 |
Silver 26.23 |
Friday's $2431 high in gold consisted of a 21% rise from the Feb 14th low. Such percentage extensions from key lows or/and technical levels such as the 200-DMA, could flag crucial opportunities for partial/full profit-taking. Watch here.
Bitcoin versus Miners Performance
As many of you know 2023 was kind to members of our WhatsApp Broadcast Group who snapped up shares in bitcoin miners, while 2024 has so far been more superior to Bitcoin than most of the miners...
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btw, i got more than 10 sources long aussie next yr to 94/97.
Were your stochastics telling you to fade for long ?
RBA Governor Stevens went from a respectable central bank hawk to a shameless currency interventionist, now telling us were Aussie ought to be trading and not to be trading.
Ashraf
Once in a trade I will take some profit at 3 levels to be determined by the patterns developing. In other words I nearly always trade 3 units at entry and unit size is determined by my account size, risk control rules and confidence level in the trade set-up. Whenever I take some off the table I tighten the remaining stop and most always the first TP level will allow me move the stop to b/e for a risk free remaining trade.
I am not subscribed to the premium trade signals and analysis but I gather the audusd trade you refer to was a long entry, probably below the current price at the time of posting.
In answer to your question a good rule of thumb is to risk no more than 2% of your account on any one trade and not more than 5% of account on all open positions.
When calculating risk always assume the trade will hit the stop loss so you should reduce your normal lot size to cater for a wider than normal stop loss. If the trade starts to come into profit and the trade analysis logic is still valid you can always add at the same time as tightening the stop loss. This is how I would handle the scenario. You have to assume the market will screw you. You have to think smart with your trade management and never ever allow your account to be over exposed.
Get into the habit of trailing your stop to logical levels as pattern develops. I don't know how many times Ashraf's trades have almost hit TP target, failing a few pips shy, and then proceed all the way back to the original stop loss---crazy scenario !!!
I have a question about stop losses and position sizing in regard to Ashraf's recent comment that trades were in play before the Aussie jobs report.
He mentioned larger stop losses than normal due to the upcoming volatility.
If so how would one set position size? I can see the advantage of using the volatility to get a kick start but then position size would be lower due to the increased stop loss?
Is this still an advantage if ultimate profits might be lower?
Perhaps this is a case of increasing lotsize later on a correction if the initial momentum is successful?
Your comments please.
JD
Ashraf