You’ve all heard of the saying “Just go with what your gut says.” Or “Don’t overthink the situation.” There’s been numerous times in history where overthinking a decision ends up leading to a poor result or missed opportunity.
Although the recent volatility remains comparatively low in the FX market, many critical events happened this past week, especially in the scope of technical analysis. The U.S. dollar index closed the week at the highest level since May 2017 as EUR/USD re-tested the multi-year low at 1.0920.
The term “Hedging” has been so misused over the years that most traders today don’t know its real definition. The word hedge is defined as “a way of protecting oneself from future financial losses or adverse circumstances”.
On a recent trip to Malaysia, I had the chance to meet several clients and was asked one question over and over- “How do you separate your emotions from trading?” One of the first rules anyone learns in trading is to stay disciplined and stick to your strategy. Regardless of how long you’ve been trading, this is age old saying.