Jump to content

Advertise your 728*90 px banner Here @ $249 Per Month

(All the banners and links are advertisements only. TCC dose not endorse or vouch for any advertisers.)

- - - - -

Focus On Risk Management

4 replies to this topic

    Registered User

The volatility and illiquidity of Swissy and sterling suggests traders need to use a more proactive overall approach to trading these pairs, particularly concerning risk management (i.e. position size in relation to stop levels). With regard to technical tools, the tendency for both pairs to make short-term false breaks of chart levels suggests breakout traders need to be particularly disciplined concerning stop entry levels and should consider a greater margin of error on the order of 30-35 points. In this sense, trendline analysis of periods less than an hour tends to generate more noise than tradable break points, so a focus on longer time periods (four hours-daily) is likely to be more successful in identifying meaningful breaks. By the same token, once a breakout occurs, surpassing the margin of error, the ensuing one-way price action favors traders who are quick on the trigger, and this suggests employing resting stop-loss entry orders to reduce slippage. For those positioned with a move, trailing stops with an acceleration factor, such as parabolic SAR, are well suited to riding out directional volatility until a price reversal signals an exit. Of course, placing contigent orders may not necessarily limit your losses.

The volatility inherent in Cable and Swissy makes the use of short-term (hourly and shorter) momentum oscillators problematic, due to both false crossovers and divergences between price/momentum that frequently occur in these time frames. Longer-period oscillators (four hours and more) are best used to highlight potential reversals or divergent price action, but volatility discourages initiating trades based on these alone. Instead, momentum signals need to be confirmed by other indicators, such as breaks of trendlines, Fibonacci retracements or parabolic levels, before a trade is initiated.

Posted 26 April 2012 - 09:31 AM

    Registered User

as the topic of this thread says, risk management. what actually is it referring to. is it the best way to reduce risk in our day to day business or online business. i will like to know more about this discussion.

Posted 26 April 2012 - 09:39 AM

    Registered User

It is very paramount that a Forex trader makes sure that they focus on risk control and avoid concentrating all the time on managing their Money. Risks is high in Forex and it must be controlled.

Posted 10 November 2014 - 08:09 PM

    Advanced Member

and how do we combine the risk management into this platform and what case could it be rated to

Posted 22 April 2015 - 06:18 PM

    Advanced Member

An effective enterprise risk management (ERM) program can help organizations manage their risks and maximize opportunities. Organizations in all types of industries, public and private, have observed a variety of benefits from enhancing their risk management programs.

Posted 22 June 2015 - 05:59 PM

Reply to this topic