A Bad Day at the Office
This morning was OK, but I should have seen the writing on the wall. Looking back on the chart for GBP/USD there was one good chance to go long today. I went long on three occasions and ended up minus £53 on the day.
Sterling’s rally yesterday evening, on the back of Merv King’s warning not to expect a panic cut in UK rates, took GBP/USD close to the recent highs. Recently it’s not been too clever to buy Sterling above $2.04, which always makes me a bit twitchy when I try it.
My first entry point was fine, if a bit late. I bought £4 of GBP/USD at $2.0421, after a confirmed break above the support and resistance line. You can see from the chart there was no looking back…..
Wrong, and it was the same old affliction. I sold half my bet for a quick £22 and, not trusting the market, brought my stop up to break even. Hidden amongst all those green up-candles was a little drop down that closed me out.
A coffee break gave me time to re-assess and I decided to buy Sterling again when it broke above $2.0450. This time I made £21 on a £2 bet and was out before
the fall.
Third time unlucky, I missed the bounce off $2.04, but a bullish engulfing candle persuaded me that there might be a further rally in US time. I bought £4 at $2.0443 and was wrong to the tune of £96.
This goes back to risk management, or lack of it in my case. Two out of three trades won, but I ended up out of pocket today. Memo to self, read Be Safe, Be Sure And Always Use One Of These.
What do you call 15 blokes sitting watching the World Cup semi-final?
The All Blacks
Happy Trading
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