FXWW News/GBP crosses/Trade Ideas

Cable: Profit target hit, now looking to re-load on deep dips

Despite getting stopped out on my first attempt at building a long position, this trade has treated me well. I sold out of 1/2 my position at 1.5900 and my sell order on the balance was triggered a little earlier near 1.6250. I still maintain that the best (and safest) way to maker money trading the FX market is through more medium-term trade building strategies. This way it’s easier to have tight risk-management policies in place yet still make some hay when the market moves in our direction. With regards leverage, I usually run a core position using around 7:1 leverage but do sometimes use more than this for shorter-term plays. Experience has taught me cruelly that using any more than this can be too hard to manage.

I’m still bullish on the cable but now the same people who were bearish at 1.52/1.53 are now bullish at 1.62/1.63, a sure sign in my book that a top is imminent. I’m hoping for an extended dip towards 1.5800 where I can re-buy for the next leg.

I remain small short of EUR/GBP, just in case the GBP bull train doesn’t stop for a breath.

  1. Agree with you Sean on the bullish side and sentiment ( wrote about latest CFTC data ). We could see a top here at 1.63 , but if it breaks through I think it will run much higher to 1.67/1.70. As for your approach to using leverage , do you have a pre-determined amount you are willing to risk ( as percentage maybe ?) or just manage it openly.

  2. privilege to read how trade sean. have learnt alot from you. Yours is definitely the best way to trade forex. hold on when u get a big fish!!!…cause these markets are unbelievably cruel. enjoy your break 😀

  3. >> With regards leverage, I usually run a core position using around 7:1 leverage but do sometimes use more than this for shorter-term plays. Experience has taught me cruelly that using any more than this can be too hard to manage.

    This is the best info out of your post 🙂 I am curious of the risk level a successful trader like you would take.

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