NZD/JPY Scalpers

I have moved on temporairly from the GBP/JPY (GJ) to treade the
NZD/JPY (NJ). I contend that after trading the GJ for years that the NJ is better and safer and requires quite a bit less margin per lot than GJ,
and pays almost twice as much interest.

NJ is far more tame than GJ. NJ has a much thinner range and moves slower.
So far I have done well with NJ trading right off the bat trading it in the exact same way that I have traded GJ for a while now.

I urge smart margin management and I do not use stop loss orders NOR do I go short. I do NOT recommend anyonw trade this way
UNLESS they have a very clear set of several reasons in their mind that
they have whole heartedly analyzed and considered.

Just because my trading yeilds a 99% trading profit ratio does not mean you can do the same if you copy me. But who knows certainly anyone can do better than me, bUT over time I consistantly build equity, even with huge drawndowns.

I operate my current live account with 100% profits over 90% derived from GJ trades. I am still only using 1K lots but will be going back to 10K lots soon. I trade a large volumne of trades per week and per month.
On average at least in GJ I had 600 or more trades per month lately.

For now I am giving GJ a break as I build my 100% profit account up
to a level where I can trade 10K lots all on profits. LAst 2 months profits are at about 7000 pips in GJ. I count my pips on each trade individually as I always purchase each 1K lot at one price and sell it at another price for a profit. I am making pips at times over the same price movement on multiple orders, so it may not be true pips, but I coult every pip on every lot individually EVEN if there is OVERLAP and I am making MORE pips becuase I have multiple lots over the same price movement.

It doesn't matter though. I am not here to brag.
If I say I made 7000 pips. You can multiply that times the amount per pip I am playing and get the exact profit I have made. So right or wrong that is how I do it.

MY NJ strategy is just developing, but I will mimic mostly my GJ strategy here in NJ and adapt as we learn more about NJ, by studying it day in and day out and traking the charts and news and whatnot.

Rules

1. Only go long
2. never use stop loss orders
3. but long in the dips going down every 10 pips
4. sell on the way up at a predetermined and set price ( TP order )
5. ALWAYS utilize smart margin management

smart margin management requires you maintain ideally 1-3% margin useage for ultra safety 2-5% is also acceptable and rather safe after your margin gets above 10% you are getting into dangerous territory, over 25% and you are really asking for it, over 50% and it may be time to head for the exits so you don't have to watch!, 60% it is all downhill from here, 75% you have bittn most of your nails off, 80% you have no hair left on yoru head,
90% you have your eyes closed and cant bear to watch, 100% your broker has sold you out and all your worst fears have been realized! BUSTED
80% of account gone for certain.

Smart margin management is the single most important ingredient in ANY trading system or strategy. Without it your demise is certain and swift.

I DO NOT RECOMMEND ANYONE TRADE LIKE I DO.

USE TINY POSITIONS AS THE DRAWDOWN CAN BE HUGE AND YOU MAY BE FORCED TO COLLECT DAILY INTEREST FOR A VERY LONG TIME IN ORDER TO REALIZE A PROFIT.

except the movement in GJ will be normally at least twice what it will be in NJ. I will go back to GJ soon but since they are so closely correlated I will follow both for now and only trade NJ.

I think at these opening levels on Sunday at 4PM EDT are good dips to buy long in going down 10 pips in NJ and 25 pips in GJ. Get a loss leader at the current market and start scaling down into dip buying on the way down.
CAREFULLY MANAGE your MARGIN if you dont understand smart margin management, go back to a demo account

DO not dare try this FOR YOUR FIRST TIME TRADING A LIVE ACCOUNT!!!

Then Please do NOT read my posts as I assume everyone to be somewhat experienced.

I am not here to change your forex trading ideas but your thinking processes.

GJ or NJ will not change. It is you that must change to take advantage of these currencies so that you can consistantly make a profit trading them.

You change your ideas about GJ and NJ and you can easily steadily make a profit. But check it on a demo account for a sufficient amount of time first.

I can literally get almost 3 times as much NJ as I can GJ for the same amount of YEN. The interest is literally almost double.
So the facor is like 4, and that is like 400% difference approximately.

So the benefits of NJ are huge.
NJ is also looking very strong against most currencies and it is currently as strong or stronger against YEN than GJ.

I initially planned on holding some NJ's LT to see how much interest I could make. But it keeps going up and hitting my Tp's! So I haven't been able to make much interest!

GJ on the other hand left me holding many lots overnight and collecting all sorts of interest at a much lower rate of course.

I regularly use 400:1 leverage. The higher the leverage you can get the better! if you dont understand this think about it and figure it out
OR ASK!

My prefered and used broker is in my profile.

MY startegy relies on a broker that does NOT force its cleints into FIFO.

FIRST IN FIRST OUT as I call it requires that if I buy in a dip as price is going down I am going long, that if I sell one back they force me to sell the first long I bought at the high price instead of the long I bought at the low price as price was going down down down.

FIFO is NOT to your advantage and for me is unacceptable and I will not trade at a place that forces me into that FIFO BS.

It sure looks like the GJ is in an upchannel and is at the bottom of a dip right now. the 120MIN NJ chart is not as clear. I expect GJ to continue up into serious resistance at 215.50 and 214.60 and I expect NJ to follow it up.

There is some NJ news coming out tonight that shouldnt be too big.
There is NJ news spread through the week that could affect it in the ST, but the LT trend I believe for GJ and NJ is UP.

I am expecting the dollar to rebound up.
Mortgage rates have been creeping up and soon Tbills and fed fnds rate will follow, it is only a matter of time before the dollar regains some of its former glory. I am still a dollar bear, but even I can see it is coming back and this is a risky time to be a dollar bear.

I will hold NJ long as the dollar goes up and carries my NJ up up up.

So as NJ price goes up my longs will hit their tp's at 42 pips.
If I have hold them. I will collect about 9 cents per 1K lot every day, 7 days a week, 52 weeks a year.

Often if I am sitting here I will manually close orders that are in the green and reenter an order to buy at the same price as the one I just sold.

SOmetimes I will close an order for 1 pip if I am tired of sitting there and hanging at once price level, then I reneter another long order to buy if it falls ten pips then I set a TP order at the same time as my long and I can then walk away without worrying.

Stop loss orders are only for those who WANT to realize a loss of a specific amount otherwise they would not enter those orders.

SOme say cut your losses. BAH. I will wait for price to come back as long as it takes. And with this pair I can literally hold NJ forever and retire off the interest as it continues to compiund daily if I keep buying more lots.

NJ is currency and as long as I hold it I will collect interest EVERY day.

I have done this very same thing with GJ however I have mostly made money on pips on GJ because of selling back lots at a profit.

I will do the same with NJ, except I will set my TP's higher and anticipate holding lots longer and collecting more interest, because I have less time to spend here sitting here studying charts and trading. With NJ comes a certain amount of safety.

starting at my loss leader at 82.34 and going down I have 16,
I am buying another at 81.50 81.35 81.25 81.09 and on down into 80.00 but we won't get anywhere near there I don't think.

Expect it to rebound back up into 108's into tomorrow which should bring all the other crosses up a bit.

Price is very bottomy in GJ and NJ I think.

sO IN ANOTHER 10 MINUTES i EXPECT SOME MORE TRADIN G AS PRICE IS DRAGGING AND VOLUMNE IS PRACTICALLY NOTHING SO FAR.

Which makes me wonder why someone isn't running price all over the place so I can scalp some pips and renter my longs at the same price or lower.

with GJ you have GU x UJ = GJ
with NJ you have NU x UJ = NJ
so the UJ is key for both of these pairs.
NU is up easily a solid 100 pips over what it started out at last week off the top of my head. A stronger dollar and a stronger Kiwi will lead to higher NJ prices.

In ANY event I can hold my NJ longs for 21 days and in 21 days my margin required to hold those trades will double. True I have to deal with drawdown but drawdown will not be any where as near severe in NJ as it is in GJ.

I scalped one and enetered an order to get another one at 81.57.

Nj is following

Then buy for the next move up into 212.50 which should pull NJ over 82

All this shows is the move up from where I am calling the bottom
just above 81.40

81.65 81.57 81.46 81.35 81.25 81.09 and so on down into 80.00.
At that point I will reasses and/or hold depending on my margin used.
Since I am operating on all profit I dont want to have to make any deposits to bail myself out in case I overextand m margin. NJ just doesn't require anywhere near the amount of margin as a GJ lot, so I am not farmiliar yet really with how many I can have to stay within my margin useage goals.

You can buy 1 pip apart like 10 1K lots, it is like buying one minilot (10K).
Nothing like seeng all those 10 lines green on your screen.

The trouble I have is when I see all green I have to start closing them!
As I am a true scalper. If I can get you for 1 pip I will. Often I have a hard time waiting for 10 or 20 pips or more.

So I do my best trading while I am away from the Keyboard/screen since if I am not here I cannot close them early. Sometimes closing them early and entering an order to rebuy is like shooting yourself in the foot.
You cut you winnings dwon and try to rebuy but it doesn't dip back down sometimes and takes off without you.

Granted it will make all your higher longs better. But if you sell out each lot for a few pips when you could easily get 11-42 or 50 pips why not wait?
I have the hardest time waiting. So when I go to bed all my orders are set, all my TP's are set or will be when my buy order executes when price hits my price. Then when my TP hits it sells while I sleep. Then I get up and count the pips.

I am normally up around 430 AM EDT as frankfurt opens at 2am and london at 3am, and most movemment occurs in the overlaps of major trading centers and usually the most movemnet is in the first 144 minutes of trading.

I have only been playing NJ for less than a week I guess.
But see no reason why I cant beat it 99% of the time like I normally get GJ.
All is well and I am piling up thousands in interest per month on all accounts.

We didnt quite get 20 pips down but I think we are rebounding back up now in any event I am going to scalp NJ while I am here and wherever I get left I will be ok and go to bed and see what the night brings me.

I don't feel anywhere near as scared as I used to be when I first started trading GJ with no stop losses. ONLY a FREAK uses no stop losses

I was waiting to buy one at that price for a while I finally broke down and bought one at 81.73. NJ seems to be holding tight as GJ sinks to 212.00,
which should hold. Looks like it will be an early night for me. Nothing much from that 701 news it looks like.