Going ling on GBP/USD

[SAS98KGJ]

HI, a question of a newbie. Currently (as at 5.45 on 17th Sept) according to the client sentiment, 71% are going long on GBP/USD. I know the meaning of going long. But does it mean clients are holding on to their long positions in the hope the the GBP will rise on Monday, or 71% bids within a particular time period had been long and now been closed? I am holding on to my bids praying the GBP will start rising tomorrow by any miracle since I am about to run out of funds. Though I had studied the 5 year chart, the speed of decline within a one afternoon wasn't anything that was clear in a 5 year chart, and being a newbie I though ever would be possible unless something on the scale like Putin  declaring war against NATO happens. Do people think the GBP will turn back before the support level is reached or will fall below the support level 1 this evening when the Asian markets starts? 

Is buying a short position with the same number of contracts to stop further loss (in the event of the GBP falling further, and closing it as soon as the GBP reach back the opening position of my short bid) a good idea? Though my losses will be stopped at the current level, and I have enough funds to buy the same number of contracts on Short position, due to leverage I do not know (and reluctant though I want to do) whether I can do it. Can those in the know please tell me since I need to do it (if within my ability) before market start later on Sunday?

[RuffTrader]

Hi there, I hope this helps.

You cannot rely on the statistics as a basis for trading, as IG don’t provide you with details of the volumes or the age of the deals that are being used as a basis for the calculations. For instance, some traders may have held very high value positions for a long time and may be content to sit on large positions because they have hedged them elsewhere.

You have to assess your own position to see if the assumptions you made when you entered the trade still hold true based on your own risk appetite, not on the incomplete statistics that are used as a proxy for market sentiment.

Good luck!

 

 

[SAS98KGJ]

Thanks RuffTrader. Appreciate your time. Have a profitable day!