The GBP/JPY Jerk Off

Right before my eyes, the GBP/JPY jerked off, and hit all my t/p. Been a very very exciting afternoon here, and I have earned a total of $74.76. The only crazy thing which I have done would be entering into another GBP/JPY trade at the price of 229.00. I know it sounds mad, but take a look at the hourly charts of GBP/USD and USD/JPY.


GBP/USD Hourly Chart


USD/JPY Hourly Chart

Both shows an upward movement, though with very little potential. And while typing this post, I think I should stop my self deception and close the bloody position at breakeven.

That's all for today, a 10% return in initial capital invested.

The Pyramid; GBP/JPY

H4 GBP/JPY Chart

I have just closed in half of my previous 0.42 lots of GBP/JPY, locking in a $7.80 profit. Also, I have moved up my s/l for this trade to my breakeven point at 227.10.

I'm looking to pyramid 0.53 lots more on GBP/JPY at 227.60 with a s/l at 227.10 and a t/p objective at 228.60. For now, I shall just wait for prices to hit my buy limit.

GBP/JPY, the counter trend

Hourly GBP/JPY chart

You know, I have been waiting for this trade for at least the past 8 hours. And the most sickening thing which could ever happen would be I dozed off in the morning at 7.30am after waking up and woke up at 10 to realise that I had missed some big moves.

Casting that aside and to not affect me emotionally, I have now placed a buy order of 0.42 lots at 227.10, with a s/l at 226.50 and a t/p objective at 228.10, a 100 pip profit.The maximum loss for this trade would be $22.93, exceeding my maximum trade risk by 0.8%, bringing the total risk for this trade to 4.8%. However this risk is worth taking due to high potential in this trade due to past GBP/JPY movements of at least 200 pips in each movement. A trailing stop of 10 pips would be set after a 50 pip profit.

Maximum R/R of this trade would be 1:1.67.

*While typing this post, the price hit my buy limit.

Bad Warm-Up

Just felt like clicking something, and there I was, ended up shorting EUR/AUD. Right when I shorted it at 1.6708, it hit my stop loss at 1.6758 within 10 mins. Painful warm-up. This shall remind me of sticking to the guidelines which I have set for myself and not break them.

So next the trade shall be a 4% risk on capital.

USD/CHF; Chance Spotted

Hourly USD/CHF Chart

By accident, I kind of spotted this trade. Looking to short 0.55 lots with a s/l of 50 pips and t/p of 50 pips as well. R/R of 1:1. Not exactly the best in the world but worth the trade due to high probabilities. A cross under MA(8) for MA(5) would siginify a time to enter, stochs are all pointing downwards, coupled with RSI sitting at 50. This is something to look out for.

Simply, waiting for a cross now.

Issue Solved

And yes, I am back. My "New Orders" button issue is finally solved. And thanks to Jody, I now have the arrows which will notify me when my EMA crosses each other.

My call on EUR/AUD this afternoon on the hourly chart, was kind of partially correct, and would definitely have proved profitable if a trailing stop had came into place. A profit of approximately 80 pips could have been achieved instead of the targeted 100 pips, not too bad for a few hours of monitoring.

The next call for me would be a long on GBP/USD.


Hourly Chart for GBP/USD

As we can see from the chart, there seems to be a countertrend coming up. Hence, I'm waiting for my indicators to affirm this before going long. Stochs and RSI are both at very low points and possible reversals may occur soon. A cross of MA(5) over MA(8) would surely be helpful and then I suppose it would then be a time to go long.

I'll probably be risking 5% of my capital which is 25usd in return for 40usd. Lot size would be 0.5 mini lot with a s/l of 50 pips and t/p of 80 pips. Price to enter is yet to be confirmed as I'm still waiting to catch a proper price at this moment.

Updates would come up later. Time for Bloomberg TV!

A New Trading Life

It has been pretty long since I traded with my own money since the last time I broke my account. During this period of emptiness, I decided to improve myself by going back to demo trading and not losing touch with the markets, and also to read up more and see where I could be improving myself on.

So the day before, I went down to DBS and made a USD500 deposit into my InterbankFX account, which totaled up to approximately SGD770. However up til now, there are still some issues with my InterbankFX account, which are pretty crucial, i.e. I can't click on the "new order" button.

The trade which I am looking out for this week and next week would probably be going short on the EUR/AUD.


Hourly Chart of EUR/AUD

As we can see,the hourly chart of EUR/AUD indicates a downtrend to short for the short-term. A good price to go short could be at 1.6750 with a t/p objective at 1.6650. S/l would be good at 1.6810 as 1.6800 would be a physchological number to break. With stochs pointing downwards and the MA(5) crossing below MA(8), this shows a good short. Coupled with RSI(8) falling below 50, there shouldn't be any doubt going into a short position for the short-term. This trade provides a good R/R of 1:1.7 approximately.


Daily Chart of EUR/AUD

The daily chart is indicating signs of a downtrend as well for the pair. However to be double confirmed of the short position, it would be good to wait for the MA(5) to cross under MA(8) before entering into a medium-term short position. With the stochs pointing downwards as well, this shows a good indication for a short position. However, RSI(8) seems to be hanging slightly above 50 at this moment. We could probably see it cross below 50 by next week and then we would then enter short on that position. For this trade, I would look to short the pair at probably 1.6700 with a t/p objective at 1.6200 coupled with a s/l at 1.6960, the high price 2 days ago. R/r for this trade would be 1:1.9 approximately, a pretty good trade.

For all of the trades, an optimal risk level would be at 5% of capital for the total stop losses to ensure that you would be protected against overleverage.

That's all for today! Back tomorrow.