Volatility

We spent yesterday driving around a circuit in a Ferrari and Lamborghini. What an awesome day! Only issue is unless you have a similar type of car, after driving these any other car seems so boring.

On the driving track there are numerous signs telling you went to brake and turn and head towards. We were tested on our ability to drive the car around the circuit and follow these instructions and I am happy to say I got 88%. Anne was tested by a different person who deemed it appropriate to give her a score of 95%. Anne informs me driving around a circuit is very similar to trading, you need to follow rules. So, if you want to test out your trading skills I recommend you spend the day driving around a track in a supercar. It is an amazingly fun and exhilarating day out. A more sedate yet equally fun day is 4X4 driving which we did last week so if speed is not your thing then consider 4X4 for the day. We are actually going the 4X4 experience again next week so looking forward to that.

Anyway, on to trading. Simple for today. Don't place any trade prior to NFP being released. Expect volaitilty when the news is released and if you are going to trade it make sure you use a stop loss.

Happy trading and have a good weekend.

Sterling consolidation

I mentioned on Monday the Pound may find some consolidation or may bounce slightly. Since Monday it has done both and is now quietly continuing its consolidation.

For those of you that are aware, The USDCAD was due for a reversal yesterday or today and has today provided us with a nice £1400 gain with very little risk. Support level at 10557.

Not much else to say but to look out for the news due out Thursday and Friday.

Tomorrow we are off driving Ferraris and Lamborghinis courtesy of Mr and Mrs Shah so there will be no update tomorrow.

Happy trading.

News

The market is awaiting the UK interest rate decision and NFP this week so we should expect some volatility then.

I have been asked about day trading and if it is a good way of making an income. I wont answer that question in full because I am not a day trader as such. A couple of reasons for not day trading is I cannot be bothered to spend my days in front of a computer awaiting set ups to trade. I am not interested in the stress and worry about trading for small profits. Personally I rather take positions on the basis of being swing trades but once I have been triggered in to a trade if the circumstances have changed then that swing trade can easily transform into a day trade. That is usually my extend of day trading.

The above chart shows one of my strategies and I am showing it on todays GBPUSD 5 minute chart. I havent traded with these signals today but if I had I would have been in good profit today. My suggestion is if you want to day trade then dont fill your screen with a dozen different indicators where you have no idea what is really going on, take a cool methodical approach that is mechanical and stick to it. A good strategy with absolute money management will be more rewarding than a messy screen filled with indicators.

Happy Trading.

Quiet bounce

It's a quiet day today regarding news and subsequently we may see some consolidation or small bounce on the GBP USD and some other pairs too.

Right now I am flat and am not looking to take any trades today. Will come back to the markets tomorrow and look for trades then. Today I suggest we all enjoy the glorious weather.

Usually weekends for me are boring because the markets are closed but the last couple of months they have been even more boring due to the football season that had ended. At last football is back on the weekend agenda so weekends wont be all that bad anymore and apparently our summer weather is here for a while (or so we are told) so that makes it well worth looking forward to the weekends.

See you tomorrow.