Why is the GBP/JPY so polular with the major traders(Ex. Forex4noobs creator Nick B)? Just wondering because Im looking into different pairs to follow and this looks like it has potential.
Presswood;
This is my first post on Babypips, although I am an 8 year trader. I specialize in this pair. It is one of the most dangerous pair on Forex, if you don’t know exactly what your doing. Let me explain. Depending on your broker, spreads range from 9-10 and up to 15. So when you pull the trigger, your that much in the hole. Every move is a minimum of 4 pips. On MT4, I trade with 3 charts up.
GBP, GBP/YEN, and USD/JPY. For price direction, the GBP & Yen need to trade the same way. Also, the GBP/Yen is known as a “Synthetic Pair”.
It took me 2 years to get this pair through my thick skull. During a NFP, I have observed this pair make a 300 pip pin bar. This pair has changed drastically in the last year. Lately, I’ve been staying away from this pair because of the short trading range of of both the GBP & Yen. I have traded this pair in MT4 and on MB Trading, which are 2 different worlds. Here is a suggestion; Demo on you brokers platform. Remember that this pair is News sensitive, and now with Quantitative Easing and Bank Intervention, trading is more difficult. I can tell you when your on the right side of the trade, this pair produces a lot of pips and is rewarding. The wrong side of the trade will blow your account. Use Van Tharp’s table of position sizing.
Another suggestion; go here and watch the winners and losers. If you are intent on this pair, it will take you a while. Sign up and watch the trading room.
Auslanco - GBP/JPY and GBP/USD (news trade)
You will see 100 different trading style. You must develop your own. Another tip; This is not for a lazy trader. Do not leave the screen.
P.S. I am including a PDF based on Van Tharp’s position sizing. It’s an older PDF, but the math is still correct.
Hope this helps.
Good Trading
Thanks for the advice…I think I will stay away from this pair till I get my feet wet w/ the some other more stable pairs.
I liked the PDF you attached as well, I have created my own system that I will demo the next few months and for my loss/win ratio I can win 2 and lose 5 and still break even.
i am new comer also …
i agree gbp/jpy is the most dangerous pair…and most profitable…if you get the correct direction.
thx for your pdf