GBP/USD: Trade of the Week

[New born baby trader]

Dear Friends,

Here is a trade idea as per my technical analysis. As you guys can see in my chart attached below GBP is trending up in a nice uptrending channel. Last friday GBP rallied upto the channel top and closed below. so in my opinon the GBP would pull back in the next few days as has been the case in the last few weeks.
Also the economic docket is expected to show industrial output expanding 0.4% in May after unexpectedly contracting 0.4% in the previous month, with manufacturing advancing 0.3%, and the rise in production could spur a bullish reaction in the British Pound as the outlook for future growth improves. In addition, producer prices are projected to grow at an annualized pace of 5.7% for the second consecutive month in June, while input prices are anticipated to fall back to 10.2% from 11.2% in the previous month, and the stickiness in prices could stoke a shift in the interest rate outlook as inflation remains well above the central bank’s 2% target.

So here is what im going to do. Buy GBP/USD at 1.5020 which is also 62% retracement level for the 2/7,3/7 high/low and also a strong resistance level(shown in rectangle). Stop loss at 1.4930 just below the rising channel trend line. TP1 1.520 TP2: 1.5293.
***** This Trade idea is totally based on my analysis which can go wrong totally therefore " TRADE AT YOUR OWN RISK PLSSSSS.***** COMMENTS ARE WELCOMED *****

[New born baby trader]

How to delete this thread?????????

[latintrader]

You idea sounds good but I see a lack of money management... you either didnt mention it or you are not using it...

[syk1kz]

You idea sounds good but I see a lack of money management... you either didnt mention it or you are not using it...

The answer to that question is in front of you, you say he didnt mention money management, i disgaree.

So here is what im going to do. Buy GBP/USD at 1.5020 which is also 62% retracement level for the 2/7,3/7 high/low and also a strong resistance level(shown in rectangle). Stop loss at 1.4930 just below the rising channel trend line. TP1 1.520 TP2: 1.5293.
***** This Trade idea is totally based on my analysis which can go wrong totally therefore " TRADE AT YOUR OWN RISK PLSSSSS.***** COMMENTS ARE WELCOMED *****

What i take from this is this person has a 90pip stoploss [ 1.5020 - 1.4930 ]
They are aiming for 180pips for take profit 1 [ 1.5020 - 1.5200 ] which is a 1:2 risk reward ratio, then they are aiming for a further 93pips on the second lot [ 1.5200 - 1.52930 ] for more than a 1:2 risk reward.

Now all you have to do is adjust the lotsize according to what your account can handle, each person is not the same, asking this person what lotsize they use is illogical and irrational at best. Money manegement is clearly present in this trade idea.

[Sam13]

Thank you for tat information friend...
I think money management is always in the hand of a mother....
make money online

[New born baby trader]

Thank you for tat information friend...
I think money management is always in the hand of a mother....
make money online

Hi guys,

Its very simple:

Money management is dependent upon two most important things
1. Risk to reward ratio and
2. How much money you are willing to loose on one trade out of your total a/c balance: I take 1% to 5% of my a/c in each trade depending on how confident i am for that trade.

[New born baby trader]

What i take from this is this person has a 90pip stoploss [ 1.5020 - 1.4930 ]
They are aiming for 180pips for take profit 1 [ 1.5020 - 1.5200 ] which is a 1:2 risk reward ratio, then they are aiming for a further 93pips on the second lot [ 1.5200 - 1.52930 ] for more than a 1:2 risk reward.

[1.5020-1.5930] : 273pips 1:3 risk reward. i.e. if i win one and loose three trades i am still on breakeven.