Trimming a Stock and a Currency

On Aug. 27, I listed the reasons why the British pound was about to move higher. Just over two weeks later, the currency has gained three figures against the U.S. dollar. In that article, I set the first target at 1.5825. Yesterday, the pound reached a high of 1.5828, barely achieving its first objective.

To manage this trade, I've closed one-half of the winning position for the aforementioned three-figure ($0.03) profit. Three cents may not sound like much, but it's a decent move in the currency markets; the average daily range for the British pound-U.S. dollar currency pair (GBPUSD) is currently less than $0.01 (on the basis of a 14-day period, the default time period for the average true range indicator). This is precisely why we use a higher degree of leverage for currency trades than for stock trades....360 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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