When the markets almost defeat you

As I write this I am still emotionally exhausted.  That has spilled over to physical exhaustion, as it often does.  So.  The day?  It was mixed but ended up in a profit but only after a massive struggle.

It all started so well with a quick 11.9 points (but at a 50k half position so only really 5.9) before Trump spoke at Davos.  Perhaps we should have left it there as The Donald was bound to excite the markets, and we do best in boring markets (which is over 80% of the time).

Anyway we didn’t.  Isaac and I went to the local shopping centre where he looked at new stuff for his baby.  I was watching the market on my Trader Tablet (one of the main ways our traders trade on the move, at work and at home).  I received the alert from our trade monitoring centre and kicked into action. Long on both GBP/AUD and GBP/USD.  Splitting the risk, but still a GBP trade.  We lost signal on 4G before I could get a stop in on one of the positions.  Nervous.

 Happier once we had signal in John Lewis.  Good old wifi.
Happier once we had signal in John Lewis.  Good old wifi.

Anyway.  The day moved on and neither position moved much until the AUD suddenly gapped down and hit our stops in brutal fashion, leaving us with a net loss of 100k @ 42.3 points on the GBPAUD.  Now that’s a big ouch.  On the flip side, the GBPUSD trade went in the opposite direction and was stopped for +62.4 points – but only because I had placed a slightly larger trade on one leg of the GBP trade.  Total for the day:  5.9 + 64.4 – 42.3 = 28 points on the day.  

Lessons of the day?  Same ones I knew already.  GBPAUD is very volatile and must be treated with huge respect.  GBPUSD almost always follows our numbers and doesn’t jump so much.