Today was another quiet session, prepared few trade ideas for CAD GDP data but the data release did not meet our criteria.
Then i basically just read news and keep eyes & ears open for any news.
Another political showdown in Britain now, and that was pretty much all we had for this week.
Then finally at 11am EST, Carney’s speech had driven GBP & EUR down.
The price dropped more than 100 pips in seconds after the Squawk, it was so unbelievable that not too long ago i was still that novice trader who traded without any instant information...
yes all these information cost money, but if you don’t even have the basic business tools to compete in this market, then what do you really expect?
Information is amazing!
I had the bloomberg TV on as well, and by the time most audiences got the news, that was already 5 minutes later.
Nowadays i don’t trade without info tools.
Anyway, the dovish tone has helped all my 3 trades, however, I made a decision to exit EUR/CHF & GBP/JPY
It’s Thursday, and weekend is coming, i definitely don’t want to hold any CHF or JPY over the weekend.
SNB has already confirmed their intervention, and last time they intervened without any notice….a lot of people went bankrupt.
Another reason is that the selling of GBP is going to push EUR/GBP higher as this is the end of month as well for EUR/GBP month-end rally.
I got out of GBP/JPY with the same reason as well, don’t want to have any jPY position over the weekend, and also don’t want to have 2 short gbp position over weekend.
Then, I got out of GBP/USD half and set the other to BE.
I”m going to trail it down every 100 pips and if nothing happen before Friday, I’m just going to exit everything.
But then after an hour of the speech, I decided to get out the other half.
Again, it’s Thursday and I have no intention to hold anything over weekend. and i don’t think there is any force that going to drive the pair down to 1.3000 from today to tomorrow ( of course i might be wrong)
We also already dropped 250 pips for the day. Most likely it might rebound and stop me out at BE.
So just get out, be flat and have a good rest of the day - until tomorrow.
The lesson I learned is really same as yesterday, everything worked out as planned, however, I could have limited my risk, increased my profit if I only i could have WAITED PATIENTLY with a better level.
Sure, the risk is that I might lose the trade all together, but in a long-term perspective, I’ll have more profit in my pocket, less stresses and better management.
Of course, it’s easier say than done, especially to face my own psychology.
SHORT EUR/CHF from 1.0850
SL @ 1.1025
SHORT GBP/JPY from 137
SL @ 140
SHORT GBP/USD from 1.34
SL @ 1.3750