Thursday, November 5, 2009

GBPUSD—Fast Move

In what I first thought was a data spike on the part of my broker but instead turned out to be a kneejerk reaction to the Bank of England holding the interest rate steady at .50% (Huh?), my little GBPUSD long that I entered into thinking it might inexorably drift back up to the top of its little range, made it up there in one spike. I bought at 1.6514 and the trade hit the profit target at 1.6582 for 58 pips profit.

The thing is that it hasn’t closed above 1.66 so I wonder what’s to come. The answer, dear Brutus, lies not in the stars but in ourselves, but only after we analyze the charts. Well, maybe it does lie in the stars. There are a lot of people who study the movement of planets as they relate to currency prices. Some of them seem like nice people and not crazy at all.
I’ve marked the range in blue on the one-hour chart. The little green circle is where my trade hit its rather modest profit target
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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