CURRENCY TRADING TIPS
I took the following GBPUSD trade base on the GBP CPI trade. It was early for me and I had just driven 13 hrs nonstop. Not a good time to trade. I didn’t do much prep for this one which becomes one of my reminders for my currency trading tips later. If I had spent more time researching in advance I would have realized that even a small difference between expected and actual had the potential to move the GBPUSD substantially, especially to the downside. This is because such a discrepancy to the down side could cause the BOE to pause before issuing another rate hike. I thought I had ample reasons for cutting the trade short, the number one being it was only a slight discrepancy.
I could have at least moved the stop closer to break even and then let the trade run. This quick exit again is the result of poor preparation(somewhat understandable) and fear of losing the money that what was already on the table. I also didn’t have the time to practice the psychology exercises (again part of preparation). Here are some simple currency trading tips: learn from my mistakes and do the preparation needed, even if you’re tired.