May was a tough month. We had a two trades set up early on in GBPUSD and GBPCAD. The big move short GBP probably attributed to more dire economic news with over £60b additional lending forecast. This of course is relative to the currencies I’m trading against so becomes a cycle of who jumps first and how quickly the country can react to recover the potential slide. This makes for tricky long term trading environments…
Even so, I get my head down and strategise how to recover from the these situations no matter the pressure or how long it takes. I plan for these big moves and wait patiently until it is my turn to take the money back from the markets. Counter trading becomes as important as entries and it is fundamental to my money management plan; this is why I advise potential investors to realise that drawdown is inevitable and must be endured. It is easier to ask if an investor who is already sat on a cushion of profit but is particularly difficult to a new investor to experience this in the early days.
I have part of the GBPCAD trade to manage and have started an EURUSD trade for June. Eyes are also on EURCAD and NZDUSD for possible hedges.
June is going to be an interesting month for me. Darwinex is implementing a wholesale change to the platform which will have a significant effect on the Darwin WET. For now I am open minded about the changes and will update mid month when I have a better understanding of the changes.