GBP/USD Surprised today were you? You should not have been.
A few days ago I brought some out of the money options on GBP/USD details below. They were cheap and I was expecting a move. And its good to show now and then that you don’t need a lot of money to get trading profitably, but you do need knowledge.
The reason I brought the GBP/USD options is because it is in Rhythm 9 of 9 now in a 63 year Bear market that began when the Queen of England was coronated (same year) and the pound was pegged against the USD.
As you can see from the chart I am expecting the currency to get down to $0.35 to $0.34 US cents. Now when you think how much the dollar has been devalued by up to 98% since the 1930’s the devaluation on the pound has been far greater!
I brought some way out of the money options a couple of days ago and although its not mine shattering money it is over 100% return. These options were out of the money lowest ones on offer BUT had a March 2017 expiry! If one Buys long term options in the right direction, it gives the market time to work through its rhythms and give you a profit! AND I only brought one half of a options contract, so I was trading with very low money but the account is building and the 100% today on this trade did it some good that is for sure!
Details below. Company traded these with was IG markets, also had trades with CMC and FXCM but here are PUT options on GBP/USD. Doubled the money in 9 calendaer days… Okay I suppose for tiny trades and knowing the Rhythms. Notice none or very few of the platforms go back to 1953 for live charts – WHY ? Cause your broker don’t want you to win against them. YOU must do research!
Well if you can’t read it it says I brought PUT options at 8 and 17.7 and sold them for 13.5 and 56.8. Each had a $40.00 AUD entry broker fee. Zero to closed I think. First time I used options on this platform for currencies.