News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • All eyes on the Fed on Wednesday as investors weigh on chances of a taper announcement. Get your weekly equities forecast from @HathornSabin here: https://t.co/Cv06XcvldF https://t.co/I12g2YPkdE
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/KsPiWBysiR
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/iUvhLfQgcK
  • The US Dollar caught a bid in the late part of last week to set a fresh September high. FOMC is around the corner, are bulls going to be able to push for another fresh high? Get your weekly US Dollar forecast from @JStanleyFX here: https://t.co/ZkDHyV1VhM https://t.co/w5sPChKdNx
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/bde30KM8OE
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
Top Trading Lessons: A Classic Adage and Weakness: Let Your Winners Run

Top Trading Lessons: A Classic Adage and Weakness: Let Your Winners Run

John Kicklighter, Chief Strategist

I have been trading and analysing the markets for approximately two decades, so there have been many lessons learned long the way – most of them with a meaningful degree of pain. Having run the gauntlet to develop market knowledge, risk management and strategy construction it is easy to fall into a lull whereby it seems that learned shortcomings thoroughly evaluated and corrected will be avoided through instinct. However, year in and year out, my experience is that it is the basics that continue to cause problems for traders that do not actively monitor their more ‘human’ behaviours.

This past year, one of the most rudimentary of lessons in trading – one about which I read, experienced and developed a strategy to correct in my first year in the markets – ended up being the most substantial shortcoming amid my efforts to follow a tight routine: letting your winners run.

I have maintained a general ‘risk off’ view for the medium- to long-term horizon for some years. Clearly, if I had stubbornly positioned for that belief, it would have been a near constant bloodletting. The purpose of investing and trading – at least for most – is not simply to be proven correct, but rather to pursue return. Recognizing the prevailing trend but feeling that my underlying perspective remained valid, my approach was to lower my time frame and pursue omnidirectional positions (bullish or bearish) so long as they bore out technical, fundamental and conditional analysis.

That short time frame mentality was firmly in place when late February 2020 started to see the market slip against the growing reports of a fast-spreading global pandemic. With conditions starting to match my lingering systemic concerns, there was a scenario for which the big move was finally at hand. A ‘once in a blue moon’ opportunity. And yet, my routine led me to cut out very early. And while there were more opportunities to arise in the short-term eddies of the flood lower, the big picture was missed until it was over.

It is fairly straightforward to ‘cut losers’. Setting a stop loss can be made an essential part of any position, to be put on at the outset of the trade. Allowing for a sustained charge in your preferred direction is a constant battle against a desire to ‘secure’ profits. There are tools to fight this thankfully. It is time to revert back to trailed stops rather than assume a short time frame operates better with discretion.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES