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Breaking news

Fed Leaves Rates, QE Unchanged, FOMC Sees 2 Rate Hikes in 2023

Real Time News
  • Fed's Powell: - The fundamental factors that have weighed on inflation for the past quarter-century remain unchanged - If inflation rises to a degree or persists long enough, we will be prepared to use tools to counter it
  • one of the few trends that hasn't yet turned around - the $USD, still pressing higher $DXY https://t.co/iEW04U3dVE https://t.co/siOzTtNk2H
  • Fed's Powell: - 2022 will be a really good year, with substantial job development as a result of growth - Forecasts show that next year will be a fantastic year
  • Fed's Powell: - Inflation will be higher by 2023, according to the Fed, due to high jobs - For next year, we are looking at an economy that will not have the same degree of fiscal support
  • Fed's Powell: - Inflationary pressures are expected to increase in the near future as the economy reopens - By 2023, inflation forecasts would more accurately represent increased resource use
  • Fed's Powell: - It would be premature to call the pandemic "defeated" - Clearly, since the March meeting, FOMC policymakers have become more optimistic about the economy's prospects
  • Fed's Powell: - We expect the current high inflation readings will begin to decline - In inflation expectations increase, contrary to our base case, we will take steps to reduce them
  • rally started about 15 mins into the presser but stocks are really liking what Powell has been saying $NQ hasn't quite clawed back the entirety of the move but, its been a one way train past half hour $NAS $QQQ https://t.co/npB1zLrDyr https://t.co/MWOGdfXsTi
  • If you're watching the Dollar, keep an eye on $USDBRL with the Brazilian central bank rate decision due in a little with an expected 75bp rate hike
  • I think Powell is right about a stronger labor market coming down the pipeline: - UI ends - schools reopened fully - vaccination rates increase - lockdown/distancing measures lifted
Top Trading Lessons: Not Letting My Profits Run to Target

Top Trading Lessons: Not Letting My Profits Run to Target

Nicholas Cawley,

Rather annoyingly this is something that I regularly talk about when doing presentations and webinars but on more than one occasion this year I didn’t implement. It is easy when trading, especially if it is your main source of income, to focus too hard on your daily P&L. I learnt, in hindsight, that if I had made a loss on a trade - or if my daily/weekly P&L was in the red - that I would cut profitable positions before they reached target, to try and balance out my losses or to make a profit for a certain timeframe.

While taking a profit is not wrong, the reason that I cut these positions certainly was wrong as I did not let my trade play out. When you enter a trade, you have defined prices – entry, stop-loss and target – and if you change one of these then the others are wrong, as all three prices are inter-related.

For example, if your minimum risk/reward ratio is 1:2 and by exiting a trade early you cut this ratio down to 1:1, your overall chance of making trading a profitable, long-term, business is cut back drastically. The reason you are in a trade is that you fully believe in it and once you are in the position you must back your view.

In 2020 I am going to re-focus on letting my profits run to target and not scalping for short-term profit in a longer-term trade. In short, I’m going to back myself and the reason/s I am in a trade – if I’m not confident about being in a trade, or I am worried about my current P&L, I’ll re-set before I put another trade on.

You can contact the author at nicholas.cawley@ig.comor via Twitter @nickcawley1.

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