- News trading system sold GBPUSD at 1.3262 with a 30 pip stop following the UK CPI data. GBPUSD declined 100 pips!
2. BOE’s Ramsden and Tenreyro testified before BOE Governor Carney and both of them were dovish. Decided to sell GBPUSD when Carney began speaking; the thinking was if his two underlings and talking dovish is likely Carney will as well; and when the market hears it :from the horses mouth” the GBP will timble; which it did; it dropped 96 pips!
3. The daily TRADFINDER trad idea was to buy USDCAD; USDCAD opened 1.2518pair reached its 1.2581 daily target
What Smart Forex Traders Do
- Bet enough to make their winnings meaningful
- Get in on news that moves the market
- Tweak their systems to allow for one time market peculiarities
- Take action and make money when they have a good trade idea
Bet enough to make their winnings meaningful
If your trading account is $1,000 you can’t limit your losses to 2% of your account because that’s only $20; how much can you realistically expect to win (profit) from a $20 bet?
A bet size of $50 would at least give you a chance to make a meaningful profit.
Get in on news that moves the market
Market moving news offers outstanding opportunities to risk a little and make a lot. The trick is to not be afraid to get in right away even if the pair moved a lot in the first few seconds following the news.
Tweak their systems to allow for one time market peculiarities
The attractiveness of exact trading systems is understandable; what’s not understandable is letting a great trade get away because it’s a pip or two outside your systems parameters.
Take action and make money when they have a good trade idea
Just do it. If you’ve done the research and analysis and everything looks good don’t let it get away by making excuses for inaction.
Perhaps Trumps jawboning about US trade deficit got traders thinking…
USDCAD had a huge reaction from a worse than expected CAD trade balance today…