Real trades, in real time
I mentioned EURGBP in the last post and this is a pair that many of us have switched to to trade Brexit or GBP without the increased noise from the USD side due to the election. Some of us have been short from up around 0.91 and we’ve been closely monitoring this 0.90 level, as it’s been a tough nut (barriers were said to be in play, which was a big consideration).
Recently some of the traders have been dropping sell stops in during the day at just under the big fig to catch any decent break. Right now the level has broken but we’ve no real follow through…yet. It could be any stops are sat through 0.8990.
Some of us had those sell stops in earlier but have now gone to market as we seem to be holding below 0.90 now. I’ve done the same but I’m also still running a sell stop at 0.8985, to see if we get something through 90. If we do, I’ll play some as an intraday play, and fold the rest into my core short. That means I’ve got a fairly tight stop on fresh shorts down here, in case this a fake out.
All day long we’re watching the prices and making decisions based on what the price action is telling us. Trading is never as simple as picking levels, entering a trade and then walking away and coming back to see what happened later. We sit though every dip and bounce calculating and recalculating how our trades are performing. Trade management is a huge part of the process in deciding whether the risks have changed or not. If we suddenly don’t like it, we may get out. That’s something a lot of traders struggle with, as they feel that when they’re in a trade, they have to see it through, irrespective of whether the market has changed and the situation has gone against them.
So, here we are in the middle of this play in EURGBP and we’ll see what happens.