The GBP still hasn’t given us a clear entry signal this week. Several of the majors looked good for a trade overnight and the EUR looked best to me. This is an advanced level technique but due to its low risk and no news pending – to potentially shake things up – the trade was attractive.
Be very careful if you belong to any trading groups or hear that you should be scanning 15 or 25 pairs each session. This can be the kiss of death. Instead…become very familiar with the trading nuances of 2 to 4 of the major pairs. I recommend studying the behavior of the GBP, EUR, AUD and CAD. Start with the GBP and EUR and learn them first. Expand to the AUD and CAD afterward. I highly recommend avoiding the EURJPY and the GBPJPY. I have seen more traders blow up their accounts on these two pairs than any others. Trading groups filled with newbie traders often get greedy and think they can make twice as many pips on these pairs, than with the majors. Please AVOID this newbie mistake. You can make a lot of money just trading the GBP or the EUR with proper money management. There is no need to trade exotics pairs. Forget about them.
Remember it’s the heart of vacation season and the market is not making its usual ranges. Be very selective in your trade setups as always, and be prepared to take less profit than usual.
If you would like personal coaching, please contact me. Michael@privateforexcoaching.com
Best of trading!