The Secret of Successful Trading

"Successful traders have a larger edge and better money management than unsuccessful traders. Unlike popular belief however, this study shows that the smaller edge of successful traders is not the cause of their failure. Traders' failures can be explained almost exclusively by their poor money management practices."

"The Secrets of Successful Trading", Fernando Diaz

Saturday, October 10, 2009

A turning point to risk aversion theory ?

from the fundamental aspect of viewpoint, the last NFP showed us some hint of how the market might react to the existing risk aversion theory, where people will hop onto the greenback for safety in the event of economic uncertainties. In the last example of NFP we saw that the investors are now less risk averse maybe people have in the back of their minds that the economy is improving further and ugly results in NFP doesnt seem to fuel the greenback's strength this round. And the fact that the rates is tagged at 0.25% for the feds, we hv a good reason to believe as well that the smart money will find their way to higher yielding currency, hence the greenback might lose its appeal at a time like this. Well, has the market change its perception of risk? We will see in the next episode of the NFP.

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