Spiked

Whats the old trading adage, ‘don’t try catch a falling knife?’. Weirdly, there is no aphorism for whatever the opposite for that is. At least not one that I know of…

Massive bursts of exuberance in an upward direction don’t carry a pithy observation… they’re just referred to as spikes. Which is a lot less colorful. And somewhat sad, that they don’t get their own thing I mean…

GBP/USD spiked more than 200pts yesterday afternoon after Boris Johnson and Leo Varadkar met, and Mr. Varadkar had something positive to say about their meeting. Of course you can’t really trade this. Well… I suppose you could (with orders above and below the current price, ie in case Mr. Varadkar had mouthed off something less optimistic). Or maybe you were long on this already and you just got lucky. Or maybe you even decided to be gutsy and hopped aboard somewhere in the middle. (even though this makes me suck air through my teeth, with such crazy momentum… well… it probably worked out for you)

I was done for the day when this all happened. Its rare for me to trade late into the afternoon (because I get tired and inattentive). My last trade was at 14H22. It was a short trade and it started going against me. I closed that position just before I got stopped out for a profit of £15.40 and decided I’d done pretty well for the day and decided to call it.

Of course if I’d kept my position size, been long… without a limit… and I took it off somewhere right near the top… I would have made £3000.00 in a single trade. Which likely would have made me quite cheerful.

That’s a lot of ‘ifs’. And really, this is not how I roll. I need to remind myself of this now and then. I am like the proverbial tortoise. Slow and steady. And you need to be comfortable in your… eh… leathery skin and armored exterior.

The downside (for me at least) is that this spike has pushed the Cable into no-mans land. Which makes it harder to trade today because it needs to settle into its new location first and define new areas of support and resistance. Plus its a Friday… and Brexit stuff makes everyone a little twitchy.

My tactics today (at least initially) are to bounce off softer support and resistance and take profit between 5 and 8 pips. Hopefully that builds up a bulwark of profit that… I was going to say, that I can use to take on more risk as the day progresses. But really, I will likely play it quite conservatively today and grind out a win for the week.

Now I just need to listen to my own good advice….

Monopoly car

This a series of posts I’m doing for my kids. In case I die (ie. Go Darke) and am not around to to teach them (personal) finance when the time comes. Its mostly stuff I wish someone had taught me when I was sixteen. You can find more posts like this… 

HERE

Comments

    1. Tell that to the cutworms that just took out almost my entire pepper crop! I feel very hard done by nature at the moment…

      1. Talking of cyclical, I’ve been invited to an event about Circular Economy again, and your reply reminds me that I must make up my mind soon if I’m up for going.

      2. That’s the thing, it’s 3 hours and during lunchtime with not even snacks, but then again I could improvise and do something “Wow!” perhaps bringing out of date of the “Best Before” but still good food from [Approved Food .co .uk ] for something vegan, say a couple of OCTOBER SPECIAL Approved Food Vegan Boxes… mmmm, now how would that go down me wonders? I’d have to run it by the organiser first or not? Just walk in with one box… I’m thinking, can you hear the cogs whirring? Time to top up the coffee too. 😀

      3. Coffee makes the world go round.

        You’d be proud of me. I’ve eaten vegetarian for about a week now. (and surprisingly… I am still alive)

      4. I am proud of you and for that I think you might enjoy looking at these folks: Hench Herbivore, Earthling Ed, Bealtaine Cottage, Mark Boyle and just for the craic Rab C. Nesbit.

      1. Oh wait, we’re doing good advice now? I just read some I’ve not heard before and it’s sooooo good, but not really relevant to your post, still wadda yer think @ “Every time a jackass brays you don’t have to answer him” good innit.

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