Giles Coghlan LLB, Lth, MA
HYCM
One of the weaknesses in macro trading is that you have a clear bias for a currency pair, but how do you manage risk properly?
For example, one central bank is on a rate-hiking cycle and another one is on a rate-cutting cycle. In this case, the medium-term direction of the pair is simple to predict. However, that doesn’t mean that there will not be short-term movements in the pair that are against the main medium-term direction. So how do you manage this?
Always be aware of what your risk is and use key technical levels to determine that risk. You can always re-enter at better prices, so don’t make the mistake of allowing a scenario where you are in large amounts of drawdown and have no idea about where and when you would exit the trade. This will impact your trading psychology and hinder your ability to make trading decisions.
Macro, fundamental trading is a great philosophy for trading the markets, but always make sure risk is known and managed from the start of the trade.
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Editors’ Picks
EUR/USD drops below 1.0800 as USD gathers strength
EUR/USD came under renewed bearish pressure and dropped to a fresh three-week low below 1.0800. Following the mixed macroeconomic data releases from the US, the cautious market stance helped the US Dollar find demand and weighed on the pair.
GBP/USD falls to fresh weekly low below 1.2600
GBP/USD turned south in the American session and declined to a weekly low below 1.2600 on Tuesday. Following a quiet European session, the US Dollar started to gather strength and forced GBP/USD to extend the daily slide.
USD/JPY remains capped below 147.45 ahead of US data
Dollar recovery fails at 147.45 and keeps bears in charge. Speculation about Fed cuts in March is limiting USD’s upside attempts. Hopes of some BoJ monetary policy normalisation support the Yen.
Editors’ Picks
EUR/USD drops below 1.0800 as USD gathers strength
EUR/USD came under renewed bearish pressure and dropped to a fresh three-week low below 1.0800. Following the mixed macroeconomic data releases from the US, the cautious market stance helped the US Dollar find demand and weighed on the pair.
GBP/USD falls to fresh weekly low below 1.2600
GBP/USD turned south in the American session and declined to a weekly low below 1.2600 on Tuesday. Following a quiet European session, the US Dollar started to gather strength and forced GBP/USD to extend the daily slide.
Gold extends slide, more pressure seen under $2,010 Premium
Following Monday's decline, Gold struggled to stage a convincing rebound and retreated below $2,020 in the second half of the day on Tuesday. Although the benchmark 10-year US Treasury bond yield is down more than 1%, renewed USD strength doesn't allow XAU/USD to limit its losses.
Top 5 tokens trending alongside Bitcoin: ORDI, STX, LUNC, PEPE, CFX
Bitcoin price crossed the $41,400 level early on Tuesday. The largest cryptocurrency by market capitalization extended its gains and continued its rally, after yielding 12% weekly gains for holders. The anticipation surrounding Spot Bitcoin ETF approvals is one of the key catalysts fueling the hype among BTC holders.
Nio Stock Earnings: NIO holds onto 3% gain despite Moody cutting China outlook
Nio (NIO) stock's initial 5% gain on Tuesday has transitioned to a 3% gain near $7.55. The Chinese electric vehicle (EV) manufacturer released third-quarter earnings that showed sales of higher margin SUVs surged 258% from the most recent quarter and 64% from a year ago.
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