Market Movers #16: Risk Reward Ratio, Digesting the Fed and Chinese wobbles

What is a risk-reward ratio and why is it important? We explain and also discuss the right and wrong way to incorporate the ratio in your system. Why did the dollar rally on the FOMC meeting? 5 reasons are provided and we look forward. Last but not least, we discuss the recent wobbles around China.

Welcome to a new episode of Market Movers, presented by Lior Cohen of Trading NRG and Yohay Elam of Forex Crunch.You are welcome to listen, subscribe and provide feedback.

The topics:

  1. Risk reward ratio: This is actually quite simple, but do you apply it on every trade? What is an optimal ratio and what is an acceptable one? In order to apply the ratio to trade, what are the pitfalls? We run through the scenarios that too many traders neglect.
  2. The dollar rally on the FOMC: The statement was generally dovish and interest rate hikes are not coming too soon, so why did the dollar rally? It’s the accumulated gains of small tweaks, that could mount in the next meetings. Market reactions varied and will likely continue varying on the different monetary policies.
  3. China: The world’s No. 2 economy is slowing down as desired, but is it too much? We dive into the different forces around the economic giant, and the implications for the Australian dollar.

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