Market Update for June 10
I know I said I wasn't seeing anything yesterday, but I ended up trading the GBP/USD after UK trade balance data came out at 04:30 EDT. The data was stronger than expected and that was bullish for the British Pound.
It took a while for the trade to work out, but I was confident that the trade data would propel the GBP/USD cross higher. I always use my 5% risk rule and was able to add to my position on dips. I was buying between 04:40 EDT and 06:00 EDT. My average price was 1.5290. I exited just after 09:00 at 1.5325. However, I did miss the big move higher after 10:00. The market got excited about an upcoming speech from BOE Governor Carney. While I wasn't in for that move, I'm happy that I had a winning trade for the day.
This does happen quite often. I'll do my morning commentary then as I'm watching the markets, I'll see something and put on a trade. That's why I'll be offering a trade alert package soon and subscribers will get a real-time alert when I put on a trade for my own account.
Today the big news is that Bank of Japan Governor Kuroda said the yen has fallen about as much as it should. This sent the USD/JPY cross tumbling.
This was another move I missed and I'm kicking myself. It was such a blatant call that it's one of those trades you bet the farm on. However, I didn't know he was speaking and was out for my daily swim. It just goes to show you that there's no such thing as free exercise. This time it cost me big time.
Oh well as they say in love and trading, you can't win them all. For the rest of the day, I'll be watching the GBP/USD cross. We have UK Industrial Production and Manufacturing Production coming out at 04:30 EDT. At 10:00 EDT we get the NIESR GDP estimate for the UK and then at 16:00 Governor Carney speaks. It will be an interesting day in the GBP/USD cross to say the least.
I'm going to end today's commentary with a little bit on why I trade forex. What I like most about forex is that it doesn't take much money to get started. You can get started with as little as $1000 and open an account. If you're selective with your trades, you can leverage your account 50:1 and be playing with $50,000. If you stick to the 5% risk limit, you won't blow up and will live to trade another day. A series of winning trades will grow your account and get you on the right path. The key to remember is that the principles remain the same whether you're trading $1000, $10k, $100k, $1 million or more. And that my friends, you can take to the bank.
As always, good luck and happy trading!
