It's important to put a word of caution here: plan your Maximum Drawdowns and strive to keep them between 20 and 25%. Once Drawdowns exceed this amount it becomes increasingly difficult to completely recover.
An advice would be to look at the Maximum Drawdown that your strategy has produced so far, and expect to face a new Drawdown twice as big. Why? Because a registered Drawdown is always historical and a new one can always happen. As you know, past performance is no guarantee of future results. Thus, the next Maximum Drawdown might be much greater than the historical one. If your account, your system and your psyche can stand a Drawdown twice as big as the one you experienced in the past, then you have a sound control of your capital. Read More
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REPORT: Self-Regulate To Successfully Manage Your Trade - Dr. Woody Johnson
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Editors’ Picks
EUR/USD remains depressed below mid-1.1800s; downside potential seems limited
The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.
GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data
The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.
USD/JPY falls back toward 153.00 as Japanese Yen finds its feet
USD/JPY has turned south to test the 153.00 level after having faced resistance near the 153.75 zone in Asian trading on Tuesday. The divergent BoJ-Fed policy expectations offer some support to the Japanese Yen. That said, Japan's weak Q4 GDP print, released on Monday, tempered bets for an immediate BoJ rate hike. This, along with the underlying bullish sentiment, could limit the pair's downside.
Editors’ Picks
AUD/USD eases toward 0.7050 after RBA minutes
AUD/USD inches lower toward 0.7050 in Tuesday's Asian trading, reacting little to the RBA February Minutes, which reinforced a tightening bias. The hawkish outlook, however, fails to provide any impetus to the Australian Dollar as the timing of the next rate hike is unclear. In contrast, bets for more rate cuts by the Fed keep the US Dollar bulls on the defensive and act as a tailwind for the Aussie amid the underlying bullish sentiment.
USD/JPY falls back toward 153.00 as Japanese Yen finds its feet
USD/JPY has turned south to test the 153.00 level after having faced resistance near the 153.75 zone in Asian trading on Tuesday. The divergent BoJ-Fed policy expectations offer some support to the Japanese Yen. That said, Japan's weak Q4 GDP print, released on Monday, tempered bets for an immediate BoJ rate hike. This, along with the underlying bullish sentiment, could limit the pair's downside.
Gold declines as trading volumes remain subdued due to holidays in China
Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.
Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels
Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.
The week ahead: Key inflation readings and why the AI trade could be overdone
It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.
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