Psychology lesson: Thursday 18 April.

With yesterday's trade still running, a word I've come across a lot this week is 'consolidating'. USD JPY is consolidating below 155. US 10year bond yield is consolidating above 4.5. Whilst market sentiment is a little nervy (due to higher bond yields, Middle East concerns and upcoming earnings reports) the S&P is consolidating before 'fresh impetus' will send it one way or the other.

Moving forward, GBP retail sales could provide volitility for an 'in the moment news trade' but aside from that. Given the markets recent habit of concerns over the Middle East on a Friday, it could well be next week before I'm comfortable in forming a conviction in the direction of the currencies.

As a trader, you'll often have weeks when the 'price action' doesn't align with your fundamental bias as the market 'consolidates'. The key is to stay patient, put those weeks behind you and focus on the next time you can comfortably say "I'm placing this trade and even if it stops out, I'll still say I should have taken it"

In the grand scheme of things, that moment is never too far away.

Feel free to email any thoughts or questions: johnelfedforexblog@gmail.com