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 extends its optimism past 1.1900
EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.
GBP/USD hits three-day peaks, targets 1.3700
GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.
USD/JPY bounces off lows, back above 156.00
USD/JPY is starting the week markedly on the defensive, sliding back toward the 155.50 area where it has met some decent contention for now. The move lower in spot follows FX intervention chatter after PM S. Takaichi scored a landslide win in Sunday’s election..
Editors’ Picks
AUD/USD gets ready to punch through 0.7100
The intense sell-off in the Greenback underpins the solid performance of the Aussie Dollar on Monday, motivating AUD/USD to add to recent gains while challenging the key 0.7100 barrier, or fresh YTD highs, at the same time.
EUR/USD extends its optimism past 1.1900
EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.
Gold picks up pace, retargets $5,100
Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.
XRP struggles around $1.40 despite institutional inflows
Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.
Japanese PM Takaichi nabs unprecedented victory – US data eyed this week
I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.
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