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.