Tuesday 16th September
A 65 pip profit this morning on a trade that qualified on the TUllet/Barclays pair feed but interestingly not on the single feeds. I nearly didn’t take this trade because there was a news item on the EUR at 10am but seeing as it was looking like I’d have another day of no trades I decided, for the first time ever, to give the support team at TUFXP a call to see what they reckoned. I called Anthony Wright who picked up the phone in about three rings and answered my question within 30 seconds. I asked him whether we should avoid trading cable in the 30 minutes before a news item on the euro… as they are both connected. His answer was that ‘you should be aware of the news item’. I pinned him down on this and asked… ‘so are you saying we shouldn’t enter a trade on cable in the 30 minutes before a news item on EUR?’. He replied, ‘no, you can still enter a trade but just be aware that there may be some large movements due to the EUR news item. Just don’t enter any trades on cable if there are news items on GBP or USD.’.
So thats the expert advice anyway and I decided to take the trade. I do know that a few weeks ago I didn’t enter a trade on the cable when there was a news item on EUR and it saved me from a losing trade but thinking about it, all the currencies are connected anyway, otherwise we wouldn’t have forex trading, so we have to draw the line somewhere. So from now I’m going to avoid entering a trade on cable only in the 30 minutes before a news item on GBP or USD.