GBPJPY straight to the bank

You’ve all head the story of the Bulls, bears , and pigs..., you’ve herd that one before I’m sure!
Bulls make money!
Bears make money!
But pigs get slaughtered!!

Here is another Forex Trading Snack.

GBPJPY along with I think every GBP pair ripped higher today in the markets. Good news on the Brexit front, or just good rumors to spark traders into positioning for what they think the future holds.

Should a Brexit deal get done the pair will squeeze higher, a lot higher!! But with moves like today, some 3 X the 15 day average range of the pair it begs to short it.

First; with a move like today the odds of it retracing some of the move is higher then more of a straight line move higher. Just my opinion anyway.

Second; we are heading into Friday’s trade and the last day before the weekend—do you think the bulls are going to hold their positions over the weekend? Is there a reasonable chance for some news to bomb over the weekend to then take away some of the move anyway? If you think so, what are the odds??

Third; usually after the New York market closes for the day we see a small pull back from the days move and then an extension of that move early into Asian markets open. It’s just an observation on my part. GBPJPY’s pull back after that crazy run higher was small by any standards. Again what are the odds, the chances, the likelihood... or anyway you’d like to put it... what direction has the greater chance of happening in your opinion?

Those are just some of the things I think about in looking at a straight line move of this magnitude.

What’s the trade?

I’m looking to take shorts ( to sell it ) if and when we get a pop up in price towards the 135.00 my stop placement is totally based on ones own risk tolerances. My targets would be if my orders get filled, I’d like to see a pullback to 133.50-1.3400 or better.

I have already traded it to the short side from NY market highs down to 134.05 banking 40 pips per lot traded. But like I say, I believe if it should pop higher it will be short lived. Bulls will be looking to take at least some profits on this move before the weekend. My trade idea is looking to take advantage of traders repositioning because of the straight line move higher.

If you chose to trade this idea the risk is all yours to assume. This is strictly my own idea and shouldn’t be taken as trading advice, but as only a look at how I trade the markets. In this way you can gain some insight and or some good training as to how other traders trade.

You either make dust in the markets or you will eat dust.

All the best my trading warriors.

Comment:

Well pop higher it did!! Wow!
If all I wanted to do is look good, or just get a few social media pats on the back telling me how much people agree with my idea, well I wouldn’t mention this...,

Yes I was looking to go short, and did some. I was run over! The why doesn’t matter. It just happened. This doesn’t mean the strategy or idea was bad—the market is never wrong, and therefore the market will do what it does.

As traders we are only in control of risk that we take! Everything else is random. It is in being wrong that we learn the most about ourselves, how we manage our trading accounts, or our growth as traders.

Yes we got that pop up in price to my short zone, I placed my trades before hand ( including my stops that equaled my previous gains. 40 pips per lot ) but I was wrong quickly! Now in full disclosure, I set my trade idea and went to bed. One needs sleep. However the market had other plans, maybe a news bomb... it doesn’t matter! I lost all of my previous gains!

Why am I mentioning this? Because traders who want to become good traders, improve their trading, or become more consistent, those traders are defined by how they trade after losses, after account draw downs, after a string of losses, and or.... I feel you get what I’m trying to say. If any of those things happen, or are still happening, or you find yourself in the middle of such right now, then how you carry on from here will define you as a trader.

Nothing wrong with being wrong! Nothing wrong with having losses either! It is all in how you adjust or readjust, rebound, or rebalance yourself after losses. This is where good traders separate themselves from the pack.

Yes I took losses here with this idea. That’s just being honest! But I also went long EURUSD, and USDNZD. Based on earlier mentioned posts or ideas published. So yes, I post or publish my trades that I take. Yes I do not run or hide or try to cover by only posting up winners! Not at all. I post up what I see are great ideas in my opinion along with my trade plan according to my risk tolerances. I do this so new traders can have a honest view of what it’s like being a trader trying to make the hardest easy money you can.

This is why I say never risk more then 1% of your trading account on any one trade. But always look for a return of 1.5-3-or more.

Nothing wrong with being wrong!
In becoming a good trader, in proving ones trading, or just wanting to be a better trader, it is all about rebalancing, readjusting, and how you plan to rebound from losses.

Let’s move onto the next trade! Let’s not allow loser trades to effect our search for our next higher probability trading opportunity.

All the best my trading warriors. Next trade!

Comment:

Sometimes you are just early to an idea or strategy implemented. This doesn’t mean you should just give up, abandoning the strategy. It is true the market is never wrong! But it is also just as true, you lose 100% of every shot you do not take!

Took this at this weeks open. The exact same strategy and trade. Friday I lost a total of 100 pips adding all lots And the pips I traded together, they equaled a loss of 100 pips.
This weeks market open just a few hours old now and I go out for a positive 120 total pips just off the early move. Now I’m sitting back waiting for market clarity to form.
All the best my trading friends.