RISK, RISK, RISK....
Someone was commenting on Twitter to me yesterday and he/she commented "@gregmikeFX lets not quibble..give us 'trade of the day' for tomorrow..BIG day..NFP ??"
BIG day. Big Event = BIG RISK.
Looking at the last 4 BIG EVENTS.. The March Employment, the ECB meeting on April 20, the FOMC meeting on April 27 and the April employment report today has shown that BIG days - BIG EVENTS - can be dangerous to your trading health. Looking at the EURUSD chart above, each of the days had big swings up and down, with traders scrambling in each direction.
BIG RISK. Market Risk. Liquidity Risk. Event Risk
It helped prove my point, when I did not go for the bait and instead replied:
"@BANGONtrader Sleep in. Risk is too great. I am not looking to bet red or black just lean against levels where risk can be defined & limited"
Wait for the markets to settle. Wait for the liquidity to return. If you want to bet red or bet black, do to the casino. You can get a free drink at least.
