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Dare to take this trade (Eur/Chf)?

30 Nov

eurchf 30.11

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Money Management (II)

30 Nov

As you saw in the last post that calculating right trade size is a relatively simple process.  Even so most traders don’t bother doing it until they suffer large losses and then decide to learn more about money management.  New traders concentrate on the result or the outcome of the trade, on the other hand professional traders ask themselves “how much can I afford to lose on this trade?”  The sooner you realize that outcome of every trade is different and beyond your control the sooner you would acknowledge the importance of sound Money Management.

A winning system is usually not more than 60% successful.  Even though you find one with 80-90% successful system on the paper, when you trade it usually come down 60%. In fact I think it is a blessing in disguise.  What it means is that we don’t have to wait for Holy Grail to come along before we can start making profit.  There are several systems available which works superbly if traded with right Money Management.

So if we are losing at 40% of the time it is essential that we control risk. Every time we lose we need to make sure we don’t let it run and cut the loss when we reach the risk identified earlier.  Trading with improper trade size and variable risk every time would result in account wipe out sooner than you would think.  The ability to come back next day and trade more is what creates a successful trader in long run.

 

Welcome Palestine!

30 Nov

Palestine recognitionThe UN general assembly has just voted overwhelmingly to recognise Palestine as a state. An astounding 138 nations chose to support the path of peace.
Countries such as France, Spain, Belgium and Sweden decided to vote yes to statehood for Palestine. In the end, just nine countries ended up on the wrong side of history: Israel, the US, Canada, the Czech Republic, Panama, Palau, Nauru, Micronesia and the Marshall Islands.

Calling the vote “meaningless,” Israeli Prime Minister Benjamin Netanyahu accused Abbas of spreading “mendacious propaganda” against Israel in a speech he rejected as “defamatory and venomous.”  “The resolution in the UN today won’t change anything on the ground,” Netanyahu said. “It won’t advance the establishment of a Palestinian state, but rather, put it further off.”

European Central Bank President Mario Draghi said on Friday that:

30 Nov
  • recession is still on te table (we have not left the recession)speach Mario Draghi
  • latest forecasts show that European economic recovery will begin in the second half of 2013.
  • he remained positive that Greece will remain in the Eurozone.
  • we are ready for a new intervention to maintain stability in the euro area.
  • it’s time for further efforts to strengthen the euro area.
  • the euro area needs to be strengthened across all 17 member states.
  • banking supervision should be applied to all banks.

Eurozone unemployment hits another record high.

30 Nov

unemploymentUnemployment rose to 11.7 percent in October, Eurostat said, up from 11.6 percent in September and a marked increase from the 9.9 percent level a year ago, leaving almost 19 million people out of a job.

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