GBP/JPY Equity Building Profitable trading strategies

[rrram2]

That's exciting. I am still at 3% margin dragging along almost feeling like I should be at 33% but that would be certain disaster. Never underestimate the power of this beast to swing 700 pips in a day.

[alpine4133]

Where is the support and resistance?
Looks to me like it is still trending down.

[rrram2]

Originally Posted by alpine4133

Where is the support and resistance?
Looks to me like it is still trending down.

Haven't figured S & R today, S& R reaLLY DOESN'T AFFECT US.

s/T IT IS TRENDING DOWN NOW from 204.50

Like I said yesterday it was rangey betweek 203 and 204.50.

I also said it would move down before sunrise EDT and it did.
I got in as low as 202.99 it hit a low of almost 202.80 or so.

All this is off the top of my head from memory.

Basically all my dreams came true last night price wise.

I was up several times in the night and happy with what I saw.

All my longs got sold for a profit WHILE I was sleeping except for 2.

I am still figuring we are in for another leg up.

GU shocked me and only got down to 194.50 aND EXPLODED.

UJ is holding 103.95 and should hit 105 before week end. GJ has jumped another leg up this morning, now a little slide then at NY open we are headed up again perhaps into 206. Even though we havn't broken the range I previously defined, GU surge has jacked GJ all up and when UJ jumps up into 105 you can bet GJ will jump higher faster than it did this morning.

[rrram2]

I want to talk about this again this morning BECAUSE I CANNOT overemphasize the importance of this.

Most think of it as smart money management. But I like to call it smart margin management.

I know I have said before and will say again ideal margin useage is at 1-3%
some experts even say 2-5% is good. Realy there isn't much difference between the 2.

Yes I could have had a crapload more orders in last night and made much more on this mornings ride up, BUT that would be foolish as we could have ran down another 200 pips from 202.80's Then where would I be? In deep.
And margin mismanagement would have had me holding TMTH (too many too high).

Keeping your margin low is critical to living through a mad run down.

Once you have been through a run down, and sold your longs all the way up and banked hundreds of pips in one day, you will understand the extreme excitment GJ brings to those patient smart manageing margin freaks.

Your goal shoudl be to increase your account balance by predefined goals.
I have had a hard time setting goals with a meager $600 in my account.

You can get rich in forex overnight. but you can also lose everything you have overnight as well.

AND unless you KNOW what you are doing F$ROM experience I do not recommend going to bed with OPERN GJ LONGS WITH NO STOP LOSS ORDERS.

MY uncle swears my mind is gone (laugh) by NEVER using SL's. BUT
my stats for the last 9 days
5/11 sunday to today 5/20 I am looking at 168 RT trades
166 yielded a profit, 1 yielded a loss ( $.0.10) and 1 yielded a wash ( $0.0)
so I may be at less than 99% profit ratio on all trades for the last 9 days,
but it has been a sucessful 9 days.

I am going to be working on modifying my system, so that risk decreases and profits per lot sold increase. Right now my average is just over 10 pips
but at .10 cents a pip thats only $1.

Yes I only made less than $250 in 9 days but it is well over 2000 pips.
I need to get somemore cash in my account before I raise my lot size from 1K lots.

Smart margin managem,ent is 90% of this trading system WITHOUT IT,
you are more likely to lose in the long run. Even if in the short run you are making money. Improper margin management will lead you to getting sold out by yoru broker on a margin call.

The big boys, I know you are all reading (wink).
No sense changing for little old us. I Have been studying your MO
and frankly I think it is quite funny. And you know what I am thinking?
NO sure you don't!@ But I am going to tell you. I hope this doesn't scare you. I have been studying your big boy ways and this market works the same for the guy making 10 cents a pip as it does the guy making $1000 a pip. If I was playing $1000 a pip I would have made 2,000,000 USD this week. I wouldn't know who to help with all that money. But maybe I can becoime like Bill Gates and just go around helping people and giving away money to those less fortunate than me.

Anyways back to you big boys, since you are obviously reading this (you know who you are) (AND so do I!) and you know what I am going to do?
I am going to profile your trading and your mind and I am going to start playing against you! Forget this letting my drawnddown run down hard,
forget this selling off my longs with small profits. I am going to adapt
and instead of shooting for 3000 pips a week I am going to start shooting for 5000, which won't make a difference at 10 cents a pip, but once I go back to $1 a pip, $5000 a week profit is much more exciting.

And guess what? I am NOT going to use stop loss orders as usual,
So I encourage you to TRY to run it down, and when you do, careful or you will get caught with your pants down.

A fool and his money are soon parted.
The more things change the more they stay the same.

[grader]

Hi Rrram

I agree, now that I understand the system it is so much easier to space my orders and therefore limit the risk. By using a simple calculator one can work out how far down you can go before having a margin call. I was lucky enough to make it thru that huge drop a few weeks ago, I still have quite a bit of draw down but I have been making up on all new orders, plus the interest is looking good. If you mangage it properly as you have said before, you can watch your equity rise. Thanks for all your insight and advise it is much appreciated.

Grader

[rrram2]

S/T R is up at 204.75 S/T S is at 204.20

And if you look at the charts we keep making higher highes and lower lows.

It is trending up NOW MT and LT while ST is dipping so I can buy more long.

But as of right now I am holding one at 205.00 And quite frankly I can hold this one for the rest of my life and make $1.50 a month interest.

I at times do hold longs for months before they hit their TP, and this is OK as it gives me a target up higher.

And since I am trading cash, as long as I hold pound long against yen I will win in the end.

And in case I haven't mentioned it before
"there is always justice in the end" And everyone ALWAYS gets what they got coming.

And a funny thing I heard the other day
"if you want to change your life, you are going to have to change some THINGS in your life" AND thoughts are "things". Be careful what you focus your mind on as that is what you will get.

I am going to get rolling on the loan club so if anyone is interested email me
or call me. I think we are going to just get to the point where we give away $100 to anyone. I am already like that..."willing to give anyone $100 for any reason"

Why you ask? Wen I give with the correct intention of helping another
and generously it creates a bigger space in my life (metaphysically)
to receive something bigger.

[rrram2]

This would be a good time to get long!
S/T target 205.00 M/T target 206.00

[alpine4133]

Are you looking at the 4hr chart, or 1 day chart?
I'm looking for the higher highs and lower lows

[rrram2]

To enlighten others and open up their minds to the fact that they could trade almost probably opposite of everything they ever learned that made sense and consistantly make a profit.

It really is ALL about the money management. Every time I got sold out
I have to admit it was my own fault due to foolish margin management.
Those days of high stress and riding at 50-100% margin useage is madness.

Even now I am up 2000 pips since May 11th, Ive got almost 200 pips of drawdown at .10 cents a pip! (laugh). But $200 is $200. It is not like I have really been sitting here much.

And I may go the way of the EA and use that just to make money and still trade manually. I know someone could make an EA to my parameters,
and MAKE 100% profit.

See who cares if I only make $200 a week. It is sad that forex has turned more into an obsession with GJ and an addiction even and not as a money making business, like it shoudl be treated.

Even at $135/hr I can't really turn away any service calls, but that sure isn't making me much richer. No matter how much I make I spend.
SO even if I was making 30K a week in forex I would somehow spend it.
But that amount would get challenging real qucik as to how to spend all thaT MONEY.

It is no secret that land with rental houses on them is what makes me richer
daily and is the ultimate hedge against inflation. Dad is buying gold and I am looking at another 10.8 acres for 130K with 883 FT of frontage on the state road zoned A1 but that could easily be changed down the line.

True you will be able to trade the gold for beef or whatever you need at some point if you need too. But forget that. I will raise my own cows and grow my own food if need be.

The only thing I am missing to be totally self sufficient is my own electricity generator.

And after driving into Culpepper VA this morning, north on rt 522 I can tell you someone has alot of money to spend. There are monster hosues being built, there are some monstor houses being foreclosed too. But culpepper is booming. There is a new Lowes, Staples, everything is there. Huge money is being spent.

So I don't believe the lies circulating in the media, news, and forex news type reports.

I paid 3.93 a gallon for some premium gas in Culpepper 36 cents of each gallon
about 50/50 split goes to the state and feds for road tax and then heck there is all sorts of federal tax under that. But Gas is way up and that's one of the major things killing us in the USA.

Even my honda was over $60 to fill up. And to me it doesn't matter if Gas goes to $5 a gallon, I will keep filling my SUV up. The sad fact is that many folks will have to forgo food for gas so they can get to work.

So maybe I do need to start making 30K a week on GJ and ripping some big boys. That way I will mave massive reserves so I can help those in need in troubled times.

I have tried best I can to communicate this trading syytem I trade by being as transparent as possible. I am very appreciative and thankful that you
weere awakened with this trading system and were able to make it your own
and build some confidence and get some very valuable experience under your belt. Now you can play with the big boys in gj and not get burned and actually it seems I have taught you well enough to get the best of them.
Good JOB!

Originally Posted by grader

Hi Rrram

I agree, now that I understand the system it is so much easier to space my orders and therefore limit the risk. By using a simple calculator one can work out how far down you can go before having a margin call. I was lucky enough to make it thru that huge drop a few weeks ago, I still have quite a bit of draw down but I have been making up on all new orders, plus the interest is looking good. If you mangage it properly as you have said before, you can watch your equity rise. Thanks for all your insight and advise it is much appreciated.

Grader

[rrram2]

Those are the charts the big boys look at! The daily and hourly then they sneak a 4H in there. I trade ALWAYS the 2 minute chart. I trade in the now.
Then I walk away set my orders and TP targets and forget about it for a while and check back later. IT is crazy walking away while you have longs open with no SL's but if it can run down 700 pips and I am still going to be under 25% margin useage I won't be so scared. But it just works.
I really am not concerned with what the trend is. That changes with the wind. As I adapt my system to hold trades longer and grab more pips obviously I will get into the MT and LT trend. But right now my trading is mostly mechanical and if I had the margin I would probably buy one lot long
at EVERY 9 and set a TP on every order for 21 so selling every one of those on the 0 21 pips up. SOmeone is actually developing an EA for this 100% mechanical, and I have made the trading my own and others who have hung around me and read my posts long enough are starting to catch on and learning to capitalize on the principles have made it theri own as well.

SOmetimes I look at the 5 minute and sometimes even the 15.
And I like looking at RSI on the 30 rarely. But I almost exclusively use the 2 minute. As to where price has been...I know...I study GJ price from Sunday at 4pm until Friday at 430PM SOmetimes I even study GU and UJ since if something is going on there obviously it will translate to GJ.

Like this morning when GU exploded up it shot GJ up pretty good.

Originally Posted by alpine4133

Are you looking at the 4hr chart, or 1 day chart?
I'm looking for the higher highs and lower lows