GBP/USD

[layinwood]

I thought I would give anyone a heads up if you have any money to play with in the forex market.

If(when) the GBP/USD get to 1.9495 then go short. Short term trade it down to 1.9395, if you want to hold longer then there are two levels you could trade down to and if they break then you could be in for a good amount of pips. The first is 1.9359(not to a big of a level but it could bounce off of it) and 1.9336(it should bounce off this level but if it can break thru it then you will be looking several hundred pips.

The first trade down to 9395 is for 100 pips, one standard lot would pay 1k on that move. If it gets down to 9495 it shouldn't take more than a few hours to get down to 9395.

FYI, please don't invest with money you can't afford to lose. Nothing is 100%.

 

[layinwood]

Well, it took a little longer than I thought but not too long. I was in the trade for 5 days(2 of those were the weekend). Used 5k and made 1k on the trade. If I would have held on it did exactly what I thought it would. I said if it went down we would see a bounce at 1.9359, it bounced back up at 61 which is only 2 pips. If anyone knows forex then you know that's basically a few seconds so to be over 200 pips away and call that is pretty close. I still see it going down over the next few weeks but I'm not sure how far this bounce up will be. If it can get down and break thru the 9336 level then it will be another trade but should be for a lot more pips.

20% roi isn't bad for 5 days.

 

[selkirk]

was just wondering how many times you trade in a given year. also how times would an average forex trader (trades) in a year.

thanks
selkirk

 

[layinwood]

Selkirk, that's a very hard question to answer. Forex has such big moves and constant moves that you find people that trade off of the 5 minute chart and because of that they may enter and exit trades 20 times a day. I've gone thru phaes of doing that. I base trades off of the exact same thing every time, I can look at any time frame from 30 minutes to weekly charts and see trade setups. So, depending on what time frame I'm watching will determine how often I trade. When I use the day chart, I may not have a trade set up but once a month but when that happens the signal I get is very strong.

I typically enter trades one to two times per week. I don't like to stay in the more than a week at a time.

I also have a robot trader trading for me at all times. I base the direction off of the signals I get on the day chart. From there I set my robot up and it makes trades for me every 25 pips, with 25 pip profit targets. Once that profit target has been hit the robot resets that trade entry so if the market goes back to it, it will enter in the exact same place. At times I can have several open orders. On my current "grid" I have 8 open trades. Of course I lower my lot size when doing this so as to not mess with my margin.

 

[layinwood]

another look ahead that should have soon.


It's for the Eur/US

I'm not sure if it will go short but if it does and breaks below 1.5692, enter short 1.5691 and ride it for a quick ride down to 1.5651. That's only 40 pips but should be quick. I'll be entering with 3 lots. That's 400 profit per lot for 1200 total.

 

[layinwood]

another look ahead that should have soon.


It's for the Eur/US

I'm not sure if it will go short but if it does and breaks below 1.5692, enter short 1.5691 and ride it for a quick ride down to 1.5651. That's only 40 pips but should be quick. I'll be entering with 3 lots. That's 400 profit per lot for 1200 total.

 

[layinwood]

Ok, I'm short now as it hit my mark. A more conservative approach would be to let it retrace back up a ways and then get in at say 1.5725 but I don't like to wait, this could go down all the way in a matter of minutes.

 

[layinwood]

That didn't take too long. Hit the mark this morning while I was sleeping.

+40 pips on 3 lots is +1200

I used the 6k I had, 5k plus the 1k I made on the gpb/us trade. I didn't need near that much but it's the account I used. So far I've done two trades, one took about 5 days the other took less than a day and I'm up $2200 on 5000. Not a bad return so far.

 

[selkirk]

layinwood congrats on the good returns, well great trades.

a few more questions

1. high risk= high returns, I mean do you hear of large losses, also large gains. it seems these trades are short term in nature, either high loss or gain. is the majority of the trades short, days, weeks.

2. are some contracts more liquid than others...are there some currencies that do not trade as much.

3. do people focus on one currecny vs. another. would they just focus on one or two currencies.
for instance do you follow a few or more.

thanks
selkirk

 

[layinwood]

Selkirk, let me see if I can answer you questions.

1) No, I don't fear big losses. When I enter a trade I establish what I'm willing to lose up front. I then set a stop loss and after that I don't think twice about it. Typically, I'm willing to use a stop loss that is equivalent to 5% of my overall money. The majority of my trades are a day or two, sometimes a little shorter sometimes a little longer. I do have some trades I do when I have time that are 30 minutes or less. It becomes to time consuming to do those all of the time though.

2) I just trade the major pairs and they're all very liquid.

3) Different strokes for different folks. I myself watch the GPD/US, EUR/US and the US/JPY.