Forexpros.com Daily Analysis - 01/07/2009
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Coping With Risk Management
Hosted by: Dan Cook of IG Markets
Date: Wed, Jul 1, 2009, 15:00 GMT
As Amos Hostetter once said, “Take 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.
Click HERE to register and watch for free!
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EUR/USD for July 1
The pair is currently in a 55 pip range. A sustained break above 1.4055 would indicate a target of 1.4110 and beyond that 1.4150.
A break below 1.4000 would find initial support at 1.3980 and if that is exceeded will likely head for 1.3945. 1.3900 is the support level beyond.
There is an upward sloping trend line over the last couple weeks which will also provide support around 1.3950.
USD/JPY Still Has Steam?
After a strong run up yesterday it appears the market may try to test further resistance above 97.00. Although, this is likely fail as there is a strong resistance band between 97.20 and 97.45.
Therefore, while there is a bit room on the upside currently the bias is downwards if it gets up into those areas. If it stays in that area it would be a bullish sign but movement beyond 97.45 is unlikely today based on current averages.
On the downside support is at 96.50, 96.20 and 95.80.
Analysis by: http://www.forexpros.com - Written by Cory Mitchell
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