“Uh oh”, you’re probably thinking. “The title of this post is ominously negative. He’s gone and lost all his capital”. Thankfully, that is not the case!
My first few weeks of Forex trading have been very positive so far, and I have been thoroughly enjoying the ride. However, I have decided to take a short break from Forex due to the large amount of high-impact news that is scheduled to come out in December. First we had the ECB coming out with their decision regarding interest rates yesterday, which I knew would send the markets moving up and down. In light of this, I chose to not initiate any trades this week, and I’m glad I didn’t. The ECB’s decision was not as expected, which sent the Euro roaring up higher when everyone expected it to continue plummeting down.
Second, we have the USA coming out with their decision regarding federal interest rates on December 16. It is largely expected that interest rates will get hiked for the first time in nearly a decade, and, should this not happen, the US dollar will likely come crashing down and cause some crazy movement in most currency pairs.
Beyond these two crucial pieces of news, most countries have been coming out with they annual GDP figures and other such year-end metrics, which can have a tremendous impact on the market. Overall, it’s already been a pretty crazy week so far, and I have no desire to be caught in the middle of such continued volatility during the month of December. As such, I have decided to stay out of Forex until the new year or so, to allow for the market to settle down and regain a semblance of stables trends in one direction or the other. Until then, I will hold on to my profits, take a breather, and enjoy a few weeks of respite.