Right now I’m on two pairs GBP/USD USD/JPY.
To learn how to trade different market conditions read this book: Forex patterns & probabilities, By Ed Ponsi. Great book, easy read with simple explanations and not a lot of fluff or BS. Has worked very well for me so far.
Hi Phoenix,
where can I download it?
I ordered the hardcover from amazon.com Don’t think it’s available as an e-book. At least not the actual version that isn’t an illegally reprinted rip off.
I’d like to show you an example of how I trade. I mostly trade the GJ (90%), occasionally the GU and the EU.
This is a very simple… simple… simple technique
If the pair is not trending, don’t trade it, and by this i mean on the 15 minute time frame.
The fib levels and daily pivot are just for information, not required, the stochs are just for confirmation, and looking for both hidden and regular divergence (but that is a whole other topic).
As noted, it works best during the London / US session. The chart is pretty self explanitory, but do ask questions if you have any. I would suggest that once the US session is over, be very careful, because it is very common for the Asian session to retrace.
I tend to wait for the (in this case) the bear candle to pierce the 50 EMA, then wait for the second candle to open, note its price action and then place the order. For the GJ, I typically use a 40 pip stop, and move stop to BE around +20 pips.
Profit taking!! I trade multiple lots, i always close half my position at 50pips… ALWAYS… Then I let the other half ride to TP level (for the trades on my chart i have 147.00 as my TP)
The key to trading is to take profit often, eliminate risk as soon as you can. I would rather get stopped out at BE than to lose 1 dollar.
If you are new to trading, don’t start with this on the GJ, try it out the GU first… they move in the same direction (typically).
LOL, we’re not so different after all I use virtually the same BE profit taking/ approach.
LOL, we’re not so different after all I use virtually the same BE profit taking/ approach.
This might be the best thing I ever learned or one of them, though hidden divergence and the 50 EMA might be just slightly ahead of that.
As I usually only trade the GJ, using this 15 min TF and 50 EMA approach, you can usually get off between 3-4 trades for 50 pips min, its like money in the bank. So simple and yet so effective… Not everytrade will go 3-400+ pips plus, but using the multiple lot strategy and trading with the trend gives you an opportunity to catch a few.
But since I’m a trading junkie, I tend to scalp off the 1 & 5 min TF in between as well, but that is something I don’t recommend anyone new to try out and I use a totally different approach for that.
Patience & discipline = success ($$$)
Thanks for the guidance Cdawg…I am trying to understand your strategy
that was an easy 489 pips yesterday off two trades… Been busy all morning so no trading today, but looking at the trend had anyone tried what I suggested, you could be +200 pips easy by now (by my count 5 decent trade opportunities)… It can be that simple…
It works really well on the GJ because this currency pair tends to range around 1000 pips over a week or so, sometimes more, sometimes less, sometimes in a day…
cheers
GBP/JPY right? I’ve been concetrating on GPB/USD, but GBP/JPY, holy COW looks like it’s moving pretty strong and regular, in it’s trends, just from a cursory look. Pretty high spread at my broker though. Think I’ve found a new pair to play with.
Yep the GJ is the GU’s older brother… much wilder… the spread is higher but you can bag a tonne more pips…
It tends to follow the GU, though at times the UJ (note the GU and UJ tend to go opposite direction).
Stops are a must for anyone even remotely thinking of trading this pair, cause when she breaks out its a 500 to 1500 pip run if not more.
Have fun… I was watching this morning and blinked, and she dropped a 100 pips…
I have never pay attention to any cross currency except for EJ,
but -+1000pips ranging per week is really lot of opportunities inside…
do you having hard time or not bagging 200pips a week for GJ?
do you having hard time or not bagging 200pips a week for GJ?
Not usually, I aim for about 250 pips a week (50 a day), though I just trade what I see. She been bounce off the daily pivot all morning, so I’ve been scalping on the 5 min 3xs for 68, 51, and 126 and i just got stopped out at BE on my 4th.
Of course as i writing this, shes starting to go up… lol… Might play this range till the end of the NY session, see if I can get a short in around 143.50 or higher, and hold through to asia
Cheers
I did scalp before but that almost ruined my account…
I consider myself as a newbie, looking for safer trade.
I should clarify, that if you are new to trading, don’t you dare try to scalp off the 1min & 5 min TF…
It could be one of the best ways to ruin your account. I’ve been trading the GJ for about 18 months, I probably spend 10-12 hrs a day watching the charts over that time, and I would say that only in the last 6 months have I really gotten the feel for it…
Initially she burned me for about $8k, so do be cautious. Volatility works both ways, if your on the right side… great… but if your on the wrong side… look out.
As I previously mentioned, I typically use a 40 pip SL, so entry points are key for me. Its quite easy to place a trade and have your SL hit, only to watch it turn and shoot off 100+ pips in the right direction.
So if you want to trade this beast, you really need to be patient, otherwise your setting yourself up for failure.
4 losing trades in a row and I’m out for the day… that represents 8% of my account balance (2% per trade), and yes that has happened.
There are many nuances to trading and it really takes alot of time to “get a feel” for them, and the only way to do that is screen time.
Be aware of whats happening at the time your trading, is one of the major centres closing / opening? is it just before lunch?
Baby pips breaks down trading zones into 3 major groups Asian, London, and NY, but with-in those times there are smaller trading centres opening and closing and it is worth your while to know when.
That might sound funny, but really it is something to watch what the market does just around these times.
Just be patient, and disciplined… stick to your rules
Well, i don’t think I will get the chance for 143.5, but I will short the next touch off the 15 min 50 EMA (most likely) haha.
Anyway good trading to ya
well, short off 142.88 (touched 50EMA), SL 40… lets see
SL Moved to BE at 142.70… free ride now
There we go, half off at 142.31… banked 50 pips, moved SL to BE+10
This was an example of a using the 50 EMA and the 15 MIN TF. 50 pips BANKED in roughly 20 mins, with 1/2 the trade still open, no risk left.
It looks to me to be alot of downside left, 141.5 should be the next level to clear. So the remained of the trade will either get stopped out, or continue on down. If I get stopped out I’lll look to re-short off the 50 EMA depending on price action of course.
Try it out, you’ll be surprised with the results… demo first till your comfortable.
Cheers
To [B]kohorok[/B]
You seem to be in good hands with these people right now so I will not add anything just yet.
[U]Beware of information overload.[/U]
(I am a school teacher).
As long as you are making these mistakes on a demo account you have nothing to worry about.
You have a very long way to go yet, but be persistant and you will solve your problems.
There is a way of chasing the market with a method using [B]count back lines.[/B]
But don’t you worry about that yet.
It is most important that you are using a [U]proven and tested strategy[/U], not just trading off the cuff.
You should be able to [U]name the strategy[/U] that you are using.
You can then also start practising money management even with a demo account.
[B]The only extra thing I would like to add…[/B]
If you do not know already, find out how to post charts in full on this forum.
That way experienced members here can see your trades, analyse your work and give helpful assistance.
[B]A picture says a thousand words.[/B]
