In Part 2 of the ‘How to become a trader’ video, from the series ‘The Hedge Fund Way’, we discuss ‘risk’, ‘edge’ and ‘trading news trading mentor, Dr. Corvin Codirla, and Nick Batsford, CEO at Tip TV.
Risk and leverage – are two key elements which define a trader. “Look at the great traders of the last 100 years, they all started small but made big sums in the end, took risks”, says Codirla as he explains how crucial is the fine line between reducing losses and leveraging up.
You need to be a pig, a pig which reduces losses, leverages up, to become a better trader. Playing safe doesn’t work, but risk-control does.
While risk is an important part to become a better trader, finding an ‘edge’ is really a key factor. It shouldn’t be only about following other traders or systems, but finding opportunities in the market. As Codirla says, “It is not about what you can take out from the market, it is about what the market will give you”.
Defining the ‘risk’ and ‘edge’ approach in trading, Codirla continues to explain the three key FX drivers – Interest rates, Flows and Value. Watch the video for further insights.
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Editors’ Picks
EUR/USD consolidates weekly gains above 1.1150
EUR/USD moves up and down in a narrow channel slightly above 1.1150 on Friday. In the absence of high-tier macroeconomic data releases, comments from central bank officials and the risk mood could drive the pair's action heading into the weekend.
GBP/USD stabilizes near 1.3300, looks to post strong weekly gains
GBP/USD trades modestly higher on the day near 1.3300, supported by the upbeat UK Retail Sales data for August. The pair remains on track to end the week, which featured Fed and BoE policy decisions, with strong gains.
Gold extends rally to new record-high above $2,610
Gold (XAU/USD) preserves its bullish momentum and trades at a new all-time high above $2,610 on Friday. Heightened expectations that global central banks will follow the Fed in easing policy and slashing rates lift XAU/USD.
Week ahead – SNB to cut again, RBA to stand pat, PCE inflation also on tap
SNB is expected to ease for third time; might cut by 50bps. RBA to hold rates but could turn less hawkish as CPI falls. After inaugural Fed cut, attention turns to PCE inflation.
Bank of Japan set to keep rates on hold after July’s hike shocked markets
The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session.
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