Woke up at 630am today. No idea why as I hate early mornings. Anyway. Cup of black tea, Listen to the radio. And watch a few charts. Standard morning. But I digress. 0715. Huge spike on the Aussie. Stopped dead by the upper swarm of day traders down under. Then …. nothing happened. Flat swarm No movement. So we pulled the trigger on a short, right before the UK forex market opened.
Here’s the chart. Initially, we set the target for 0.7820 but many of our traders refined it down to a trailing stop of 10 points. Gorgeous trade. Check out the chart.
Next up were a few nice trades, leading to some profits to add to the total.
Next up the UK Banks of England statement. WOW. They indicated that maybe interest rates would rise faster than expected. A perfect illustration of buy on rumour – look at how the pound edged up on the way to the announcement, then exploded afterwards. Once the fact was out there though. Nothing. Ran flat for nearly 4 hours until the swarms caught up with the fact. Digested it. And spat out the price. But on rumour. Sell on fact. Perfectly illustrated.
Total for the day? Would have been 60+ points apart from one sneaky trade. It’s advanced but was called in the room anyway. I had a limit order n to seel HALF my position at a price that I felt we could make a massive jump. It was hit. Then I sold my other half position when the price went to the craziest level EnigmaSignal had predicted. Then, we waited. Four long hours later we binned the trade for a 20 point profit to take us to 80 points for the day.