Exchange rate fluctuations influence economic activity not only via the standard trade channel, but also through a financial channel, which operates through the impact of exchange rate fluctuations on borrowers’ balance sheets and lenders’ risk-taking capacity. The paper explores the “triangular” relationship between (i) the strength of the US dollar, (ii) cross-border bank flows and (iii) real investment.
Demystifying bollinger bands and why traders should always combine the Bollinger Bands with other technical indicators to improve market timing.
The concept of diversification is based on the concept that a trader can reduce his risk exposure by entering several positions at the same time. The success of a traders portfolio is therefore based on reducing risk rather than maximizing returns.
We gonna show you something really interesting and when done correctly it can be exploited. We are talking about imbalances. You can basically do this with any time frame and any contract especially those with rising volatility and severe directional price changes for a prolonged period of time.
How to get the right trading mindset for success ? The first thing one must realize that this is an internal search. One must learn what is holding you back in being a successful trader. only when we have such an awareness we are able to change.
Two aspects of your trading system should be monitored one is your risk and the other one is the volatility. Effectively implement this strategy and reduce your portfolio swings. Incorporate the number of directional price changes into this equation and you can come up with even better models for position sizing.
How would you feel if your $100,000 portfolio went down to $90,000 in a single day ? How much heat can you handle pal ? Let’s have a look at how you can implement proper risk management in your trading system.