The market has been quiet so far today, and news is a little thin, so I want to write about the trade I took for my own account yesterday as it illustrates some
As New York was getting ready to open today into a relatively quiet Monday’s market, the GBP / USD currency pair, one of the world’s major Forex currency pairs, rose by almost 100 pips in value in a matter of seconds. That equates to about 0.80%.
There have been some interesting developments in the U.K. on the Brexit front.
For the first time since the U.S. election one week ago, the market has been quiet and reasonably calm for several hours, offering little potential profit to be made. The upside of that is its nice to have a few hours to relax and count profits that have hopefully been banked already!
You might have heard that buying an all-time high is a great trading strategy with a positive chance of success. I agree!
As the shock of Trump’s upset victory is slowly starting to wear off, attention is turning to exactly what kind of economic policies the new Presidential administration is going to pursue. It is a very big question, as the new administration seems likely to mount the biggest challenge to prevailing economic orthodoxy since 1980 or possibly even earlier.
Well, it is not easy to make sense of the Forex market now. There are still big swings and the swings are quite clean, instead of choppy. That makes them easier to trade. The problem is that there isn’t much of a clear pattern or logic to get hold of. There are a few things that stand out generally in the markets which have worked so far today, though:
In the biggest American political upset of a lifetime, Donald Trump has been elected President of the United States. Just in case you hadn’t heard! I confidently predicted that Hillary Clinton would win the election. I was wrong, as was almost every other election pundit. It’s a good example of why you should never bet the farm on a single trade, no matter how probable you think your predicted outcome is.