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
Mixed
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
  • Want to hear my thoughts on the US Dollar? Check out yesterday's recording with #AuzBiz hosted by @KaraOrdway on 'The Trade' We discussed a #USD index, Treasury yields, $USDJPY, $AUDUSD and $NZDUSD https://t.co/yxwquL1btp https://t.co/RtWjlN6kpv
  • Gold has plunged nearly 5% off the Monthly high with the sell-off now probing key weekly support here at 1738/47- looking for a pivot here with the Fed interest rate decision on tap. Get your $XAUUSD market update from @MBForex here:https://t.co/Vnxi41lETt https://t.co/FyZuHNzsU3
  • Feels like the market has been front-running next week’s FOMC announcement, which will reveal updated dot plot projections. Expectations clearly set for a more hawkish shift in guidance. That said, if the Fed does not deliver, US Dollar bulls could be disappointed. $USD $DXY https://t.co/o2v6ibac3L
  • USD/CAD has been chopping around the past week-and-a-half, offering virtually no cues on its next direction. Get your market update from @PaulRobinsonFX here:https://t.co/eq1YkOa3mC https://t.co/V6h8BjyeGa
  • FDA panel votes 16-3 against approving Covid-19 booster shots - BBG
  • RT @C_Barraud: 🇺🇸 Americans Haven’t Been This Down on #Housing Market Since 1982 - Bloomberg *Link: https://t.co/wWFnbAwIDO https://t.co/6G…
  • US Dollar Price Action Setups Pre-FOMC: EUR/USD, GBP/USD, USD/CAD https://www.dailyfx.com/forex/analyst_picks/todays_picks/james_stanley/2021/09/17/US-Dollar-Price-Action-Setups-pre-FOMC-EURUSD-EUR-USD-GBP-USD-GBPUSD-USD-CAD-USDCAD.html https://t.co/J25MYsXCa9
  • The US Dollar is pushing up to a fresh September high after the release of University of Michigan Consumer Sentiment data. Get your $USD market update from @JStanleyFX here:https://t.co/2CDNZh2a89 https://t.co/bULXuCaHKk
  • I have this $SPX chart taking over one of my whole screens, and I just keep staring at that 50-day moving average... https://t.co/R9LQAuL2DL
  • RT @TheStalwart: Nice chart, which shows why countries in green on the perimeter, like Iran, Peru, and Turkey are known for their stability…
Avoiding Tech Tops and Bottoms as Well as Fundamental Long Shots

Avoiding Tech Tops and Bottoms as Well as Fundamental Long Shots

John Kicklighter, Chief Strategist

Talking Points:

• Prudent trading gives equal - or even greater - deference to the risks of a trade as its potential returns

• Chasing extremely volatile or dynamic events for trades is similar to picking tops and bottoms technically

• We consider this for the 'Black Wednesday', the Crimea situation and China's current efforts

See how retail traders are positioning in the majors in your charts using the FXCM SSI snapshot.

Most traders are attracted to volatility and the allure of exceptional potential returns. The risks these opportunities will incur is more often an afterthought. However, a proper appreciation of risk is crucial to longevity in the financial markets. The scenarios with the greatest potential profit most often present with the greatest potential risk - both in terms of probability and notional exposure. When it comes to technicals, picking tops and bottoms is a great example of the pitfalls of skewed trade analysis. Yet, this speculative vice can also show up in fundamental evaluations. Chasing low probability, complex or highly fluid situations can present just as many pitfalls for the market participant. We look at how the Bank of England's dropping the Euro peg, the Iraqi Dinar rebound and Russian Ruble's response to the Crimea affair all fit the bill of distorted risk in the past. We then consider how traders are being drawn into China's interventions now in today's Strategy Video.

Avoiding Tech Tops and Bottoms as Well as Fundamental Long Shots

Sign up for John’s email distribution list, here.

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

DISCLOSURES