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Today's Trade: Monday 09 September

Discussion in 'Jarratt Davis- Trading Signals' started by Jarratt Davis, Sep 9, 2013.

  1. Jarratt Davis

    Jarratt Davis Special Consultant to the FPA

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    Bank of England member Paul Fisher stated over the weekend that the markets need to "read our lips, because there are no plans to raise rates". The recent sentiment on the GDP has been bullish - but the Bank of England are trying hard to push forward guidance. Look for selling opportunities today on the GDP/USD, especially as it rallies up to key areas of resistance, such as 1.5650 and 1.5700.


    - Jarratt Davis
    Fx trader, funds manager and Forex mentor
    www.JarattDavis.com

     
  2. redrag

    redrag Private, 1st Class

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    Where would you place your stop Jarrett?
     
  3. Jarratt Davis

    Jarratt Davis Special Consultant to the FPA

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    Hi Redrag,

    To be perfectly honest I generally do not use hard stops, because if the price spikes against me, but the sentiment has not changed I am happy to hold and even get in at a better price. Obviously, if the sentiment does change or something big happens mid-session then I will happily dump the position and take my loss.

    At the same time I believe it's better to take a few unnecessary losses whilst getting the hang of trading the markets from a fundamental / sentiment perspective ...And have the security that a hard stop brings. So as a general guide I would say that if you are trading from key levels such as the 1.5700 area you would be safe with a stop loss of around 30 pips on most trades.

    Hope that helps! :)

    J


    - Jarratt Davis
    Fx trader, funds manager and Forex mentor
    www.JarattDavis.com

     
  4. KarolinaK

    KarolinaK Recruit

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    As I am novice I will use STOP ;-)

    Dear Jarrat,

    Thank you for the update. As I am completely novice - I have placed the stop, and I am going to TRAIL / move it - if the trade will favor the position.
    Warmest regards Karolina
     
  5. Jarratt Davis

    Jarratt Davis Special Consultant to the FPA

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    Hey Karolina,

    I definitely recommend that you do that :)

    This trade has spiked up through the 1.5700 level and actually hit 1.5730 resulting in a loss, using the stop loss method.

    I will update this trade as soon as I have closed my position out

    Thanks!

    J


    - Jarratt Davis
    Fx trader, funds manager and Forex mentor
    www.JarattDavis.com

     
  6. KarolinaK

    KarolinaK Recruit

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    I wonder how it finish ;-)

    UPDATE - My position:

    ENTRY: position SHORT at 15724.5

    STOP now trailed to 15709.9 ( at the beginning I had placed the STOP about 23 points from entry)

    Profit for NOW: £15 POINTS SECURED by my STOP

    Now - I am at 15698.7 (points made 25.5) - note: I haven'y finish the trade

    SIZE: £1 per point (as I am NOVICE)

    The good think is I am not gambling but trading, and checking all I can.

    Karolina
     
  7. KarolinaK

    KarolinaK Recruit

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    My trade finished on....

    At night my trailling STOP has been triggered and I secured 22 points (= 22GBP).

    Jarratt, I forgot to mention that I do spread betting with IG Index.

    THANK YOU, I have just ordered your book!

    Karolina
     
  8. Jarratt Davis

    Jarratt Davis Special Consultant to the FPA

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    Karolina,

    That is fantastic! Excellent trading :)

    J


    - Jarratt Davis
    Fx trader, funds manager and Forex mentor
    www.JarattDavis.com

     
  9. Jarratt Davis

    Jarratt Davis Special Consultant to the FPA

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    Final trade update

    Hi all,

    I entered initially at 1.5650 ... Then again at 1.5700 and closed all positions out at 1.5690 for a total loss of around 35 pips (ish)

    The pair rallied after talk of a large company buy out in the UK and then slightly positive comments from the British chancellor, regarding the UK economy.

    This resulted in the pair rallying up to our 1.5700 level, which stopped it in its tracks but never really had the strength to push it down.

    I exited this morning because the bearish sentiment I was trading on basically disappeared so my conviction in the trade was lost, so I was happy to take my loss :)

    Any questions please type them in below!

    J


    - Jarratt Davis
    Fx trader, funds manager and Forex mentor
    www.JarattDavis.com

     
  10. redrag

    redrag Private, 1st Class

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    Hi Jarratt

    Really interested by your tactics. The fact that you can dispassionately take a loss like that is a clear indication of why you are so successful.

    You went short because of the bearish comments of Paul Fisher. What persuaded you that that bearish sentiment had disappeared?

    Playing Devil's Advocate:

    Aren't BOE officials going to continue to talk the pound down?
    Is the dollar not due to rise, perhaps not next week but when tapering schedule is clear?
    GBPUSD 7 month high is 1.5750. This is the third time it has been tested. Why do you think there's a real risk it will break?

    As you've probably guessed, these are the thoughts dominating my tactics re my ongoing short position!

    Many thanks.
     
    #10 redrag, Sep 10, 2013
    Last edited: Sep 10, 2013

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