So last night I take th gbp/usd short at 2.0799 for 50 pips....The low for the day was 2.0749....The ***&&^% spread kept me in the trade...I should learn by now...That is twice in a week that has happened. But it is the price you pay when you decide to walk away from the screen and let the Forecast do the watching. I saw my trade down as much as 31 pips which really burns me, however that is the nature of the beast and maybe I was a little aggressive.

So why did I take the trade in the first place. I believe in psychology of the markets. We really have little control on what movers are doing behind the scene that can possibly jack us for our money. Just when you think you have it all figured out some Russian oil interest decides to dive bomb a currency. I have said it before, the more you think you know the less you really do.

But there is Human nature which is a very visible driving force in the markets. It pops up after major news events that we saw yesterday, and will more than likely pop up again on Friday with the NFP's.
I took the short gbp/usd trade in anticipation of the "hangover" after the wild party. Remember we are day trading the Forecasts. I did not take a short position because I thought there was weakness present in the pound. I took it because I have seen so many times a significant retracement after a run up.

My trade was confirmed and I feel right in my decision. I was protected by the Forecast which gave me a spread to work with. If I had of stayed to my plan of 30 pips a day I might be writing a different blog comment

I am planning on getting out of this trade prior to the NFP's on Friday.

For those of you interested in trading this volatile piece of news, this is a technique that I use which is pretty much 90% bang on.:
Use a 5 minute chart on your favoured pair. (Use candle sticks). The direction the candle is going after the first 5 minutes (this would be the 2nd candle) will be the direction the pair will go for the rest of the day. Not always , but most times.

Good luck and be careful out there.