Sterling causes excitement
Those who were watching Pound Sterling, would have seen some excitement recently. The Prime Minister, Theresa May, called a snap election on 8th June 2017. This caused the fainthearted to dump GBP for about 15 – 30 minutes. Snipers knew this was just a short high breeze. Then GBP rose like a phoenix for the next few hours. The first screenshot shows that if you were positioned to catch the activity, you could have gained much equity.
Ideas that this is ‘all luck’ will be dismissed instantly!! You who reads this saw nothing of the effort that went into finding those positions. This was the perfect sniper attack. Some were stalking Sterling for two weeks before, and fired 4 shots bang on target. Where’s the luck in that? Get real! If a person positions themselves to catch a fast moving ball – like in cricket or baseball – does it mean they were lucky to catch the ball. Come on!!
Does it matter if it’s a paper trading account you’re looking at? If you could do the same on a live account then it matters not.
History has shown that GBP unlike NZD or NOK, is not a fickle currency. The chart below shows a composite of GBP pairs. GBP is definitely in a breakout. The issue for trend followers is not ‘when will it end?’. The only issue is trailing a stop loss at an appropriate distance from price, as long as a trend will continue. There are no fixed exit points in trend following. If the market reverses, that’s fine. This post is not a prediction of anything.
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