The Reward Risk (R:R) ratio helps a trader manage his trade – not provide a valuation of risk. R:R does not measure risk. Some strategies with “inferior” R:Rs are in fact safer (less risky) than some with higher R:Rs. A highly positive R:R ratio falsely assures many traders a risk is worth taking. If someone passing by my house tells me there is a large, hopeful gold vein in […]
Nervy Third Quarter The last quarter (June – Sep 2015) was a tragic tale with many acts. Some US$11 trillion was wiped out as stock markets were brutalized across Asia, Europe and US. Commodities accentuated their downward spirals, and funds continued their flight from emerging promised lands, (nearly US$1 trillion drained away over 13 months till July, much of it […]
Oft times I am asked where a particular currency is headed. My usual answer – I am a short term trader and have little grasp on forecasting currency direction. Some are smarter and ask whether they should buy or sell a particular currency. My reply – both are acceptable, insofar as they have identified a buy edge or sell edge […]