I may be having a bit of fun talking about the pound but these are serious times for traders and their accounts.
What we've had is a big event. It may not be life changing for the market but it's going to have reverberations.
Before the FOMC there was a lot of talk about when the next hike would come. We had already heard that in some quarters expectations had pushed back for the rest of the year. What happened yesterday was confirmation for those, realisation for others and a rug pull for many more.
Traders are scrambling around trying to understand what it means. After something like the FOMC, that translates to much higher volatility and thus big and choppy moves. That's dangerous for many of you short term traders, not all but many.
Now is not the time to be a hero. The market doesn't just flick a switch to a new train of thought or trend. The sea is choppy with different views all competing in the price action. It needs time to settle down. If you're rocking a big move in a pair, pat yourself on the back but then get back to concentrating on protecting those profits, as you don't want them going up in a puff of smoke as quickly as you made them.
I've already seen some of the readership pulling back to let things calm down and that's a great move. The market will be here tomorrow, next week, next month, next year, and so will the opportunities.
These are just some thoughts on keeping our feet on the ground
