First of all, Happy new year!
I didn't say that in the preview because I wanted that to be a cold kind of trailer to this blog.
But I wish you all the best of luck and much success in the trading year ahead of us and let's all score some pips and break our own barriers!
Now, let me get into my trade.
I've made a new friend, the GBP/JPY.
It is one of the most volatile pairs in history and therefore a tough ride. It's really comparable to a road filled with holes and mountains, unimaginable yes, but really that hard to master and trade comfortably.
The main reason why I chose this pair is because of that very same reason, it has so much potential and it's one of few pairs that is not tied to a standard correlation to the EUR/USD.
Example; EUR/USD goes up then USD/CHF goes down because they have a correlation of 97% (That means 97% of the time when the EUR/USD goes up, the USD/CHF will go down).
The GBP/JPY is different. It's 100% correlated to the EUR/USD. But it always decides its own direction, so one week it may go up if EUR/USD goes up, but the next it may go down if the EUR/USD goes up. Strange, but this pair is loaded with opportunities.
Now getting into the trade.
Price action was everything and everything I relied on.
As you can see, price failed to break above 133.00 for 3 days in a row, this confirmed that the upward move before was just a retracement and price will be falling.
It was time to enter with a tight stop loss.
I entered at 132.44 and set my stop loss at 133.250 (an 81 pip stop loss).
I didn't set a take profit, I figured I would watch the trade every single day at the close of each daily candle.
And if the candle convinced me that it was time to exit, I would exit.
I finally did exit 19 days later at 126.56, for a staggering 588 pips. A 1:7 ratio and simply the best ratio I have ever dealt with.
Yes, emotionally, this was a strong task for me. But I also knew I would have to get used to these kind of trades if I ever wanted to be able to purchase an actual Bugatti Veyron SuperSport one day.
If you look at the chart, you'll see a strong move upwards.
Did I enter? Ofcourse I did, so now we're driving in the long direction and hoping to score some more pips :).
I will update both the closed trade and the currently open trade on here.
I had a great ending last year and hope to have a great year ahead.
Thank you for reading my blog.
Merritt
On Wednesday January 5th, 2011 at 01:06PM by Bullpip - Like - 0 People
On Wednesday January 5th, 2011 at 02:48PM by MWynton - Like - 0 People
On Wednesday January 5th, 2011 at 03:12PM by obiwan23 - Like - 0 People
On Wednesday January 5th, 2011 at 03:33PM by butandingpanda - Like - 0 People
On Wednesday January 5th, 2011 at 04:06PM by MWynton - Like - 0 People
On Thursday January 6th, 2011 at 01:25PM by tradecraft - Like - 0 People
May your success continue.
On Monday January 10th, 2011 at 11:40PM by sassyshei - Like - 0 People
On Saturday January 15th, 2011 at 01:42AM by MWynton - Like - 0 People
Leave A Comment
Please sign in to comment.