Today was a big day. It always is when we have nonfarm payrolls coming out on the first Friday of a month. Market reactions were mixed and if you are not experienced you would have easily got trapped by what happened today. Dollar showed some strength initially when the news was released and pound as well as euro collapsed against the greenback. I entered a sell stop order in gbp/usd below 1.6008 five minutes before the news was released. As you can see from the charts it went beyond the level and stayed under it for some time.
However, after a few hours the dollar started collapsing across the board and closed pretty low today. It fell hundreds of pips against the majors. I do not know why it happened and I usually do not bother myself with these kind of questions as nobody can usually answer them. I just try to follow my rules and in this case I was able to put my stop at breakeven. I had some profit for a few hours, but you do not hurry to take it as your profits have always to be bigger than your pre-planned losses. So, I moved my stop and was kicked out of the market. That’s a daily bread if you do day trading and I never worry about that. The most important thing is to have a reliable trading style (profitable) and a strict discipline. It will help you to survive in this biggest financial market in the world.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.