I took two blows straight to my chin early this morning and I guess I deserved it. How many times have I told myself that for any news or event related play, I need to get in before the expectation and get out before the reality. I had some nice gains sitting there with each of my EUR (Euro) and GBP (British Pound) showing over 50 pips of gains each. I could have got out last night or even early morning today before the unemployment announcement at 8:30 AM ET.
Of course, everyone seems to have been wrong. The expectation was for unemployment to come in at around 10%, but the numbers came in much higher. Seems like companies have decided they are not participating in the recovery yet. I do not blame them. I think there is still a lot of productivity to be eked out from the current staff that companies have. The overall situation seems to be rational. Companies are cutting less but also hiring less. Prudence is the name of the game.
Ok, where did that leave me? I failed in my discipline test on one account but did pass on the other one. For both the plays, I had protective stops set at 42 pips below my buy in price. So, my loss was -42 pips on both. Of course, after I got stopped out, the EUR and GBP both gained some ground against the USD. So, my miseries were extended further as I would have been OK if I had not got stopped out. But I will not crib about that. I failed in my discipline test and got punished for it.
The market never fails to punish you.
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