Wednesday, May 1, 2013

In for a pence, out for a pound

Good evening small time traders wherever you may be. Feel free to drop a comment or question.

I haven't been able to post for a little while due to work. I wanted to share a successful trade to balance some of the bad trades that I have posted lately.

Here's 229 pips banked in GBP/USD:


For those of you that follow me on twitter @B50cal1978 I posted when I entered the trade at 1.52470 on the 24th of April (Japan time). I entered this trade specifically because of the potential for exacerbated movements based on multiple news releases.

Regardless of the movements of the S&P 500, Economic fundamentals in the U.S. are generally disappointing, while fundamentals of the U.K. are generally exceeding expectations since the beginning of the year. Here's the high importance economic releases from last week:


So, while I was chillin' in Osaka, I figured that if Cable (GBP/USD) went my way on U.K. GDP, that the move could be further extended by bad U.S. GDP data. And, in an extremely rare case for me both went my way, and I happened to get a good entry before the data by chance.

Trade management was easy. It was a single lot trade with 50 pips initial risk, with the stop trailed manually according to the Parabolic SAR dots as they appear under the 4 hour bars.

This move could also be positive for my Reverse Iron Condor options trade on FXB. More to follow.

Thanks for your time if you've read this far.
STT

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