The 1st week in the Month means lots of news reports, I lost my first breakout trade having been fooled into a short position. There was a manufacturing announcement at 9.30 for the UK and I believed that slightly influenced my decision to enter the trade against my better judgement.
Cable had bounced at 16750 all morning and headed south towards the low of the day. It broke below 700 and I entered the trade. The next candle was a huge shock as it retracted in a major way. I gave it some room to breath as it had been ranging all morning. But I eventually got stopped out with a 30 pip loss.
First entry was 16700 and lost 30 pips, with the announcement due I was going to leave it at that. But the pound suddenly broke through the 50 level bigger than previous attempts. I entered the long trade but was made to sweat. Very conscious of the 9.30 UK manufacturing news, but realistically I knew this was the only hope of the trade going long.
Poor trade really and I was saved by what came out later at 9.30. The forecast was + 3.4%, if ever you need an indication that the big boys have inside info this was it. It began to rise at 9.15am a full 15 mins before the news was posted. I managed to get out of the trade just before 9.30 with 15pips.
On the back of the positive results the pound rose to the highest level since October 2008. I could have made my loss up and more! So 15pips down for the week but plenty of time to recover. I want a straight 4th week in a row of profits!
Trade well!
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