Moral of the story is not to trade at 6am in the morning NY time and also when one has not had the chance to check the noise in the media.
I am currently in New York by the invitation of Goldman Sachs for a week.
I knew yesterday there was the UK Q3 GDP number coming out. However, I didn’t know whether the media has been drumming up the impending event or not.
Nonethless, at about 6am NY time, I decided to put on my straddle trade with the following details: –
GBPUSD – 1.5320 – 1.5340 – 1.5360
Spot was at 1.5340
As it turned out the GDP number was weak, however ,the market didn’t really move that much. Well, it did move enough to trigger my bid if offered trade at 1.5320 and then after that, it started moving back up, so before I could be stopped out at 1.5340, I decided to square off the trade at 1.5328 for a 8bps trading loss.
Moral of the story is don’t trade when one has not had the time to catch up with the noise in the media. I am in NY since Monday and will be returning to Singapore on Saturday.
Later today, will be Janet Yellen’s time, what will she do?
The Panthenon Investment Group 