Free, Live Forex Webinar Next Week!
Coping With Risk Management
Hosted by: Dan Cook of IG Markets
Date: Wed, Jul 1, 2009, 15:00 GMT
As Amos Hostetter once said, €œTake care of your losses and the profits take care of themselves.€ Risk management hits on the roots of trader psychology, therefore Dan Cook, Senior Market Analyst at IG Markets, considers it to be one of the most important aspects of trading, and one that any trader can master. While risk management is often discussed, it is rarely understood. The subjectivity of entry and stop placements and varying trading time frames makes it difficult to generate consistent trading results.
During this webinar, Cook will divulge the risk management principles that should be included in any trading plan. The discussion will focus on several concepts: risk/reward ratio, risk to equity and the psychological aspects of stop placement. Additionally, Dan will discuss how currency traders can use binary options in cases where a spot forex position does not offer the best opportunity from a risk perspective.
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The pair fell over 200 pips yesterday but ultimately was stopped by the 1.3900 area and has since bounced higher. This keeps the bias upwards for today, but more news out of the US could make for a volatile day.
Upside resistance is at 1.3980, 1.4000-1.4010, 1.4050. Beyond that 1.4080 is likely to hold. 1.4140 is the resistance level beyond.
Minor support is present at 1.3940. 1.3900-13890 is a significant area for multiple reasons. There is little resistance until 1.3825 if a legitimate break occurs. 1.3800 and 1.3750 are both support levels beyond.
After breaking lower over the last couple days the pair has pulled back and is heading for the 96.30 resistance level. A push above that level would indicate a test of resistance in the 96.50-96.60 area and if that fails to hold, 97.20 beyond.
Support is at 95.60 and 95.00.
More news out of the US today is likely to make for a wide ranging day.
Analysis by: http://www.forexpros.com - Written by Cory Mitchell
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