Some of you made big pips today using my methods, unfortunately I didn’t ! I missed a 130 pip gain on euro gbp by 1 pip, explained below. grrr
I mentioned in my email this morning to be careful with cable before the news. I managed a short at 8am bst (1.5 hours before 1st lot of news). It was a pullback after break of over night asian low again
cable break out Then pullback of asian range
on the 1st part of the trade +43 pips
2nd part got taken out on pullback 0 pips
My 3rd part euro/gbp closed me out overnight with a profit
euro/gbp 3rd lot balance from yesteday +27 pips
Nice start, then it started to go wrong !
This is what i said in this mornings analysis “chf/$ this could be the big mover of the day. “However it is prone to fake outs”
Yep it faked out on me. I have no idea why I took it. I really don’t like it when its ranging & i had 2 losses with it the other day. Doh
Bought 2 lots , faked out -18 x 2= – 36 pips
Then THE BIG ONE. I had a feeling that gbp news wasn’t going to be good & the markets were not going to like it. However the movement could be very volatile (spikes just before major news can lose you 50 pips in a heart beat).
So my thinking was to keep my eye on the euro/gbp for signs of a change in direction near to the news. The moves are normally less jumpy and more defined on this pair (its a good pair for beginners to start with). Anyway back to the tale of woe,
I was watching price come down towards the semi psych level of 0.8850. There was also a whole load of emas there on 15, 30min & 1 hour charts, but it was risky so i only placed short stops.
I bought 2 lots at 0.8850 with stops at 0.8830 (5 pips below an important fib and a 9am low). I had to go out. Price came down and took me out by 0.0004 of a pip and promptly bounced up 130 pips.
I am going to try appear calm and collected here, but in truth i was spitting feathers !! In retrospect I should have bought 1 lot with a bigger stop, but hey ho, nobody died !
Thus on a day of tremendous movement i ended up with the grand total of ……………………………. – 6 pips
On a serious note, about trading big news. Although you can kick yourself when it went the way you predicted, it could just as easily have shot tthe other way. The biggest un-predictable news trade is nfp on the 1st friday of the month. I don’t trade it. See my article on news trading and why I avoid it;
Hasta mañana. Until tomorrow. If you have not filled in the email box, do it now and I will include you in the morning analysis e mail,
regards, marc
I love posts like that!