Step 4: Manage Orders
What if price comes down to open up our short position and then moves directly back to prior resistance to trigger us in a long position?
For traders in the United States, where first-in/first-out (FIFO) execution is the standard, it may close out our short position at a loss. So going into the trade, you have to know how you would want this situation handled.
If you would like the entry order to go long to be canceled as soon as the short position is entered (or vice versa), you can set a One Cancels Other, or OCO order. That way, when the short position is entered into, the long entry gets canceled. This can be done very easily from the FXCM Trading Station platform (and most every currency trading platform out there).
After all orders are entered, you can click on the tab for “Trading” on the platform, then choose “Orders,” followed by “Complex OCO.” Doing so will bring up the following box:
Initially, all entry orders will show in the top box. We can simply highlight the orders we want to be part of the OCO order (or clicking on “select all” will select all available orders), followed by the button below the top box and to the left for “Add.”
Step 5: Add Stops/Limits
Because we are anticipating volatility during a fast-moving environment, it benefits us to add proper risk management parameters in our trades.
We have to keep in mind that the number-one mistake forex traders make is risking too much to make too little. Despite lofty winning percentages, that type of inverse risk/reward ratio doesn’t allow for much long-term success.
Directly from the Traits of Successful Traders series compiled by DailyFX, David Rodriguez states:
“Traders are right more than 50% of the time, but lose more money on losing trades than they win on winning trades. Traders should use stops and limits to enforce a risk/reward ratio of 1:1 or higher.”
Because we have identified support and resistance previously when setting up our entry orders, we can look to place our stop on the other side of the range. So, for the short entry looking for breaks of support, stops can be placed slightly above resistance. And, for the long entry hoping for breaks of resistance, stops can be placed slightly below support.
Also, profit targets or limits should be, at minimum, 100% of that amount. If you are risking 50 pips on the trade idea, look for a minimum of 50 to make sure that is worth your time. Many traders will actually look for much more than the number of pips risked, seeking a much higher risk/reward ratio, such as 1:3 (50 pips risked, 150 pips sought) or even 1:5 (50 pips risked, 250 pips sought).
See also: Make Sure Risk/Reward Is on Your Side
By James Stanley, instructor, DailyFX.com
Forex focus: let's not kid ourselves about the pound - Daily Telegraph
With the the Olympics following hot on the heels of the Queen's Diamond Jubilee, he thinks UK consumers will start spending again. "Ticket sales alone for the Olympics are going to add 0.2pc to the GDP in the third quarter of the year. Things are set to get a lot better in the UK."
Simon Smith of FxPro is cautiously optimistic, pointing to the low yield on UK gilts and saying: "There's little doubt that the pound has benefitted from events in the eurozone. I would expect the pound to continue to appreciate vs. the euro as this effect continues, pushing EUR/GBP to new lows for the year."
However, many consider it is just a race for the bottom between the two currencies with the single currency definitely winning.
"We should be clear that this is not due to any inherent strength in the pound – just the euro's abject weakness," believes David Kerns of Moneycorp.
The pound is also being talked down. Christine Lagarde, head of the International Monetary Fund, has suggested the UK base rate should be cut further below its current record low of 0.5pc while the Bank of England is yet again considering pumping more money into the economy.
Jeremy Cook of World First thinks the Bank could bring in more quantitative easing as early as this month but he doesn't believe it will have much of an impact.
"We would prefer to see the Bank take on some form of 'credit easing' – the purchase of corporate debt as opposed to that of the government. The fact is that the liquidity that the banks are receiving is not making it through to businesses and consumers."
The UK certainly can't afford to be complacent and imagine we can get away with sitting on the sidelines.
Charles Purdy of Smart Currency Exchange says: "There is a great possibility that the UK could run into trouble. The UK has been masterful in its management of international investment sentiment as it convinces the international market to finance our debt at a fraction of the cost of that of Spain or Italy. If this changes then we are in the same position as the southern states of the eurozone."
And Smith adds: "The eurozone crisis is ultimately a banking crisis. We remain a nation still very much reliant on banking and financial services. Therefore, it can't be dismissed."
The situation in the eurozone is creating a vortex threatening to suck everyone into it. It is hoped that the drawn out debacle in Athens has bought sufficient time to work out how to limit the damage.
"Hopefully the time spent will have allowed the authorities to build up an adequate firewall to protect the other 16 members of the euro," says Alistair Cook of Currencies Direct. "If not, then we're in real trouble."
Somalia government money 'goes missing' - BBC News
Large sums of money received by Somalia's interim UN-backed government have not been accounted for, a World Bank report says.
The report, seen by the BBC, is being circulated at talks in Turkey on how to end Somalia's decades of anarchy.
It alleges a discrepancy of about $130m (£85m) in the accounts over two years.
UK foreign minister William Hague told the BBC that an international board to oversee the distribution of aid funds needed to be established urgently.
Somalia's transitional government mandate expires in August when it is due to hand over to an elected president.
'Big question mark'The revelations in the World Bank report come as several hundred Somali politicians meet representatives of more than 50 countries in Istanbul to try to win new funding for the long-term reconstruction of country.
The report stops short of making specific allegations, but does not rule out corruption as a possible explanation for the missing government revenue funds.
"There is a discrepancy in what comes in and there's a lack of accounting of how money has been spent," the report's author Joakim Gundel is quoted by US broadcaster Voice of America as saying.
"So that opens naturally a big question mark for sure."
The report, which looks at the years 2009 and 2010, also says the transitional government has no real accounting system nor does it publicly disclose financial statements.
Contacted by the BBC, Mr Gundel said he would not make any comment about the report until later on Friday.
But VOA reports him as saying that the missing millions could significantly bolster Somalia's security without relying on foreign donations.
The conference in Istanbul is the second major international gathering this year about Somalia's crisis.
In London in February, at talks hosted by the UK government, it was agreed that a financial management board to oversee aid should be established.
"The details of this need to be finalised with the government of Somalia - and frankly I was hoping it could be done by now, by this conference in Istanbul - if it is not signed here, well then it needs to signed in the next few weeks," Mr Hague told the BBC Somali Service.
Last month, leaders of disparate Somali factions agreed to a timetable that will elect a new president by 20 August, ending the transition period of the interim government.
The Horn of Africa country has had no effective central government since 1991, and has been wracked by fighting ever since - a situation that has allowed piracy and lawlessness to flourish.
Mr Hague said it was important that those at the conference understood that deadlines were met and that the 18,000-strong African Union force in Somalia was properly funded.
"I hope it [the conference] will keep up the momentum, particularly towards a successful and legitimate political process in Somalia, towards making sure that development money can be spent properly and transparently in Somalia... And we'd like to see, of course, the continued success of African Union forces," the UK foreign secretary said.
All Somalia's rival groups have been invited to participate in the Istanbul talks, expect for the Islamist al-Shabab group, which joined al-Qaeda earlier this year.
Despite facing pressure on a number of military fronts, its fighters control much of the country.
In recent months, troops from Ethiopia and the African Union force, as well as pro-government militias, have helped government forces gain territory from al-Shabab but the militants continue to stage attacks in the capital, Mogadishu, and elsewhere.
Jurors say evidence fell short in Edwards' campaign money trial - Reuters UK
WINSTON-SALEM, North Carolina |
WINSTON-SALEM, North Carolina (Reuters) - Three jurors who acquitted former U.S. Senator John Edwards on one count of taking illegal campaign money for his failed 2008 presidential bid said on Friday there was not enough evidence to convict him of five related federal charges.
A mistrial was declared on those five counts on Thursday after the 12-member jury in Greensboro, North Carolina, said it was deadlocked on its ninth day of deliberation.
Three of the jurors, including the foreman, said on NBC's "Today" show they believed Edwards was guilty of at least some of the charges brought against him by the government.
Edwards, 58, was accused of masterminding a plot to funnel more than $900,000 from two wealthy supporters to conceal his pregnant mistress from his cancer-stricken wife and voters during his bid to win the Democratic nomination four years ago.
"I think he definitely had some knowledge of the money, where the money was going," said juror Ladonna Foster.
"But he was just smart enough to hide it," said juror Cindy Aquaro, later adding, "The evidence just was not there for us to prove guilt."
Jury foreman David Recchion said the government's case took a hit due to the lack of credibility of its chief witness, ex-campaign aide Andrew Young, who once falsely claimed paternity of the child Edwards had fathered with Rielle Hunter.
The defense showed that Young made inconsistent statements, benefited financially from a tell-all book about Edwards' affair and pocketed more than $1 million from the cover-up.
"I think unfortunately that was probably the key part of the miss for the prosecution," Recchion said of Young's testimony.
The jurors said emotions sometimes ran high as the deliberations dragged out, but they started each day with calmness and tried to put their personal feelings about Edwards' character aside.
"We actually prayed together as a group," Recchion said.
A law enforcement source said late Thursday that Justice Department prosecutors were unlikely to retry Edwards, but no final decision had been made.
Foster said she thought the government should try again, while Aquaro said she did not think the first trial was money well spent.
But juror Recchion said the campaign finance law itself was flawed. "I think there needs to be some change in campaign finance law before you go through this process, and kind of nailing down what really is and what really isn't a campaign contribution."
(Reporting by Colleen Jenkins; Editing by Jackie Frank)
Forex: GBP/USD rebounds from session lows - FXStreet.com
Grieving family's anguish as conwoman makes money 'collecting' cash for their two-year-old's gravestone after he fell to his death from moving car - Daily Mail
- Levi Brailsford died after apparently unbuckling his harness and climbing out of the moving car
- A woman claiming to be a 'family friend' has been going door-to-door asking for cash, homeowners have claimed
- The boy's father Kevin said: People shouldn't give this woman any money because we don't know who she is'
By Rob Cooper
|
Tragic: Levi Brailsford, aged, 2, who died after falling out of his grandmothers car
A conwoman has been going door-to-door pretending she is collecting 'donations' for a two-year-old's gravestone after he fell to his death from a moving car.
Levi Brailsford's grieving family claimed the woman has been calling at houses across Bristol using the ruse to trick people into handing over cash.
The boy died in Stockwood, Bristol, on May 11 after unbuckling his harness and apparently opening the door of the moving vehicle.
The family, who recently held the boy's funeral, said they have not asked anyone to collect money on their behalf.
Residents living in Redland, Bristol, said they had been called by a woman claiming to be fundraising for Levi's funeral and headstone.
The boy's family have been contacted by friends with similar stories about a mystery woman asking for donations.
Levi's father Kevin said: 'If it was legitimate and the proceeds were coming to us for our son, there would be no problem with it.
'But we haven't asked anyone to do it and for anyone to make any money in my poor boy's name is very upsetting for us all. People shouldn't give this woman any money because we don't know who she is.
'I've had a lot of phone calls about it and I was so worried I told our family liaison officer at the police.'
Fresh agony: Levi's parents Kevin and Andrea were hit by the news that a conwoman has been falsely claiming she is collecting money for their dead son's headstone
Tribute: One of the bears that was left at the scene of Levi's death holds a message to the tragic two-year-old
Among the messages was a note from Levi's parents, Kevin and Andrea, who have been left devastated by the accident
Grief: The dead boy's family have been rocked by fresh claims that a conwoman has been going door-to-door claiming she is collecting money for them
The 33-year-old from Stockwood, Bristol, said: 'We will be raising money for the air ambulance with a sponsored walk in June, but that is still being organised.'
Jo Broome, who lives in Redland, said: 'A female, reporting to be a "family friend" of the Brailsford family is scouring the Redland area asking for donations to help pay for the funeral and headstone.
'She was very thin, had blondish hair tied back in a very tight ponytail and a very gruff voice. Her complexion was very white looking and she was about 5ft 4ins.
Wellwishers: Friends of the boy's family leave flowers at the spot where he tragically fell to his death
'She had a paper cutting of the story in a clear plastic envelope and was taking the name of anyone who had donated some money for the funeral on a scrap piece of paper.'
South Bristol Cemetery was packed last Friday as the two-year-old was laid to rest.
His father Kevin and mother Andrea, 29, released balloons into the sky, followed by scores more from family and friends.
Avon and Somerset Police spokeswoman Claire Stanley said: 'Both police and the family of Levi are aware of a woman who claims to be collecting on behalf of them for a headstone.
'None of these collections has been sanctioned by the family.'
Forex: USD/CAD back to 1.0400 - FXStreet.com
No money for brain research - Lancashire Evening Post
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Martin Lewis: how he built the Money Saving empire - Daily Telegraph
Mr Lewis was born in Manchester and grew in Cheshire. After attending the London School of Economics he worked in public relations in the City. He then attended Cardiff University to complete a postgraduate course in journalism.
Cardiff is famed for the number of BBC staff it produces, and Mr Lewis followed suit, work as business editor on Radio 4's Today programme.
It was after this, in 1999, that he joined Simply Money and then, the Sunday Express. A former colleague at the Express explained that Mr Lewis was not as popular as you might expect given his accessible television persona today, but was a "bit of a geek".
"Martin was quite intense, very ambitious and an excellent networker, I am not surprised he has done so well," a former fellow journalist said.
It was while he was at the Express in February 2003 he set up MoneySavingExpert – now the most popular consumer finance website in the UK, with 13 million monthly users and seven million people receiving the Martin's Money Tips email – for just £100.
While he was still at the Express, in 2007, he was rumoured to have been approached by Lloyds TSB who offered him £5m to buy the site. He turned it down on the basis that he "did not trust banks", and would worry about losing editorial control.
Before it was closed down last year, Mr Lewis had a column in the News of the World. He regularly appears on ITV's Daybreak programme, as well as Watchdog and a weekly slot on the Lorraine show.
Mr Lewis has a monthly column in The Daily Telegraph.
He is a best-selling author, titles include The Money Diet and Three Lessons & Thrifty Ways.
Commenting on todays announcement of the sale of his website to Moneysupermarket.com Mr Lewis said that he would be cutting down on the time he spends running the website to concentrate on his media work.
The website is being sold for £87m. Mr Lewis owns 100pc of the business and is expected to receive £35m in cash and around 22.1m shares in MoneySupermarket.com.
He intends to gift £10m to charity, including £1m which will go to Citizens Advice.
Five money-saving tips from the 1950s - Moneywise Magazine
1. DON'T BUY WHAT YOU CAN'T AFFORD
It's a simple rule but it works. If there are expensive items you want, make a list of them and work out if you really need them, and how you can realistically afford them.
2. AVOID DEBT
Debt is much more common in 2012 but if you rack up a lot of money on credit cards and loans you're probably going to have to pay out a lot in interest.
If you're in this situation try a balance transfer card to lower interest payments and if you're coming close to missing your monthly payments ask your provider if it will lower the interest or agree to an interest holiday.
3. GROW YOUR OWN
Growing your own fruit and vegetables can save money but it takes a lot of planning.
Start small, with pots of herbs for example, and try to grow products you know you'll use. The website vegswap.co.uk helps you to swap your homegrown or homemade produce.
4. USE COUPONS
Money-saving vouchers, coupons and codes can save hundreds of pounds off nearly everything you buy.
Today, all these are available online so if you sign up to specific websites, such as vouchercodes.co.uk, you can get a weekly email of the best deals. Newspapers, magazines and supermarket leaflets are also packed full with money-off vouchers.
Check out this week's top 10 voucher codes
5. HELP YOUR FRIENDS AND FAMILY
In the 1950s people knew their neighbours. Be it babysitting, dog walking or gardening, by getting to know the people who live on your street you can create a network of people who can help each other out.
The website streetbank.com, which you can register with and list the skills you have to offer, is a good place to start.
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