GBP/JPY "tunnel" and MM system

I traded the London opening on the 24th and got 50 pips. It seems to be a good time to trade because volatility is high, the problem was I couldn't go back to sleep. Right now it doesn't seem as a good time to trade because the market is ranging, in my opinion. So maybe I'll wait until next year to open some trades.

I've done it!!!! I've gone live!!!

I opened my micro account last week, funded it, and began trading live this week. So far I'm at +150 pips. My weekly goal is still 100 pips, but i'm trying to make up for last week since I couldn't trade because I was funding the account.

My strategy has evolved and now includes S/R and scalp line breaks, Fibonacci retracements for my own adapted ABCD trading and the tunnel system. I'm now reading on the psychology factor adn trying to implement what I learn to my trading in hopes of becoming a consistent winner. I hope everything goes well.

Well, I got to +200 pips to make up for last week. However, today I opened a trade and ended up losing 100 pips. After that I went crazy trying to win some back and ended up losing another 50. So my total for this week is +50 pips.

I've learned a lot from how I reacted today. While I was opening and closing trades I knew I was doing wrong, but still went on doing what I knew I wasn't supposed to do. I will take that into account the next time I lose.

Let's see what happens next week.

Good old fashion revenge trading....lol I did that too when I first started trading. At least you are honest with yourself and know what you should do next time

...I didn't know that term existed, but it describes exactly what I was doing. I've learned 2 lessons from my losing trades:

1. Not to engage in revenge trading.

2. Once I reach my goals, no more trading for the week (art least not with the lot size that's been established for that week, but maybe with a smaller lot size)

It's time for an update.

I've had my ups and downs this week. The problem is the downs are far greater than the ups. I started this week with an increase of 5% in my account after being 20% up just a week ago. I've had many losing trades...most of them due to the fact that I'm trying to force trades in order to take back what I lost....(revenge trading)...I said I wouldn't do it, but the feeling lately, that has motivated me to trade is to get back and earn what I lost. This mindframe is probably the worst a trader could have when trading. I know this is wrong, yet continue to do it. My problem right now is DISCIPLINE.

The lack of discipline is what is making me take on trades where I haven't gotten an entry signal based on my method which have ultimately led to losses. I followed my entry signal twice. One was at the top of the double top, earlier this week (too bad it was a long position...after a small break of the line) and then I went short yesterday and earned 83 pips. For some reason I was afraid of going short, since the GBP/JPY is at its all time lows. When I overcame that fear I earned 83 pips. I need to work on my discipline and not try to force any trades. I've also considered switching back to the EUR/USD pair since it is less volatile and I can set my stop losses more comfortably than in the GBP/JPY.

I'm guessing my problem does not lie in which pair I'm trading, but in the lack of discipline and mindframe I am currently in. Right now I'm at -13% in my account.

One thing's for sure....Demo trading is nothing like Live trading....the emotions you experience when trading with real money are much more intense and can affect your trading.

I got 50 pips on the London session open...with one of those marvelous "earn-while-you-sleep" type of setups. Im not trading anymore today, at least not in the live account.

It's interesting how in my case, trading live has prevented me from opening certain trades when I get the signal to do so, just beacuse it's real money. In my demo account, I trade with hardly any emotions at all (the way it should be in my live account). Yesterday at around 6 pm EST I setup entry orders on all the possible breaks of reversing price levels for the GBP/JPY and one for the EUR/USD where a small double top seemed to be forming. Turns out that by 12:00am EST 2 of the trades had been activated and won 50 pips on the G/J and 30 on the E/U. I also setup the one I traded live for another 50 pips. When the US market open, the price in the G/J seemed to be reversing so I went long and got 42.5 pips. Then I went long at the break of 121.30 and price retraced hitting my SL at 50 pips. Then, price seemed to be coming back up so I went long at 121.40, price went up to 121.82 and retraced hitting my SL at +10 pips. So from last night up til this morning I've earned around 132 pips in my Demo account and 50 in my Live account.

I need to, as Brad Pitt said in the movie Fight Club, "Just let go!"

Check out what my Demo account chart looks like.....Oh I'm ready for the reversal.

Let me know what you guys think.

Tataocb,

I feel your pain and frustration through your words. I've been there and not really that long ago as I've only been trading over a year and a half. The only way to get through the process is to bite the bullet and trade afraid but as long as you stick to your system. If it worked on the demo, it should work live if you are sticking to the plan (with the exception of stop hunts). Like you said it's a whole other world on the live account. Are you trading with more $ than you feel comfortable with ? Are you over trading ? Try trading with smaller amounts. Open up a micro account if you have to and build up from there. It's normal to feel the emotions of fear and greed as long as you control them and not the other way around. A tip on trading the GBP/JPY, wait for a retracement of at least 100 to 200 pips before taking a trade. Example if it's falling, don't just jump in and go short. Wait for it to retrace 100 to 200 pips to establish a price swing low then when it comes back to retest that low, prepare to take a short as long as 1) the price action is there and 2) there are no volatile economic releases coming out. Since the GBP is so low, don't target more than 50 pips at a time while it's making new lows. If it begins to reverse and go in a bullish direction, don't take the first trade. Wait to see if it's truly breaking out in a bullish trend and not just falling into a range. It will save you and your account. Remember your goal is only 100 pips per week (right ?) So that comes down to 400 pips per month. The GBP/JPY can give you that amount of profit very easily so you never have to force any trades. If you take only 2 - 50 pip trades per week, you will hit your goal. Many times you will be able to get that in one day provided you trade both the London and U.S. sessions. These are some tips that I'm sharing because I feel your pain and hit the same walls as you have. As hard as it is try to remain patient and confident enough to know that you WILL get opportunities to trade. Another tip, when trading the GBP/JPY, always expect to see some retracement on your trades. It is perfectly normal to see 50 to 60 pips retracement and still be in a winning trade. What I notice is that whenever a .00 level is broken and a trade is placed that the retracement is usually greater. If your fear is that great then simply wait for the GBP/JPY to return to familiar territory and resumes it's normal wave like movements. I hope this helps but whatever you do don't quit just learn from your losses and apply the lessons learned. Okay ???

Peace,

Ciara

Hey! It's nice to hear from you in my humble noobie thread.

It's been a tough week for me I must say, however it ended on a "high note" with that last profitable trade which was a result of sticking to my method. It was kind of encouraging I must say, to have a winning trade because it reinforces the idea that if I stick to my method I have a better chance of ending up with higher gains than losses. After all, that's what this is all about, exploiting your edges. So this is what I learned this week about GBP/JPY:

 

1. This is what happened to me this week: I opened a long position at the break of where the double top formed. I watched it stay at around +10 or +15 only to retrace and end up with a 60 pip loss. The other time it happened was with a short position but ended up with a 20 pip loss. Lesson 1: If price starts to range for 5 or 10 minutes in a winning trade I should close it or set the SL at BE.
2. I also noticed what you said about the retracements, in one trade there was a small bullish trend forming (I was long) and the trendline broke and hit my SL at around 65 pips and price was moving down with lots of momentum so I went short thinking it would continue to fall. As you might expect, that trade never went into positive numbers before retracing some 40-50 pips. The result was a loss of around 25 pips. So that's how I lost 90 pips in a matter of 30 minutes . So yeah, after a big move, there's usually a 50 pip retracement or even more, depening on the move. I saw that happen maybe 4 times this week.

My goal is still 100 pips a week, I know I can "easily" reach it with 2 50-pip trades. My main problem this week was the lack of discipline and trying to force trades. Had I stuck to my method I would probably have ended this week with +100 pips instead of -133. All the losses resulted from forcing trades when there was no entry signal. I gotta fight that urge to trade when I'm not getting signals (a battle all noobies have to go through). Patience is an important part of being a succesful trader.

As for my MM I think I'm going to reduce the lot size which will probably make me feel more comfortable with my risk. I'll still use the demo account to improve my method or incorporate new things. And I'm not quitting.

Thanks for your reply Ciara, it's encouraging and I really appreciate that.

If next week, for any reason I'm posting stuff about being undisciplined please do some sort of virtual slap in the face and tell me to get a grip.

A virtual slap you will get ....hehehe.

Tataocb,
Thanks for the excellent thread. You listed your trading problems so well in your last post, it inspired me to write a general letter (which quotes from that post) on my own thread. I took this unusual step (if it's a problem, let me know) of posting my comments, which may help explain with my own experiences the why of some of the problems you've been having, elsewhere (http://www.forexfactory.com/showpost...2&postcount=33),
to avoid distracting from the excellent common sense you possess and the repartee you already have with others on your thread.

It's not a problem...you can quote my thread...if my thread can help others in their trading then that would be great.

As for my trading, I got 50 pips today...went short at 120.60 with a TP at 120.10 and a SL at 121.10. Momentum was looking good and my TP was reached in about 15 minutes or less. Price went further down to 119.75 and then retraced to around 120.40 in a matter of 5-10 minutes. It was a 65 pip retracement after a fall of more than 150 pips.

It's a nice way to start this week.

I got another 50 pips on Tuesday morning. Last night I setup a trade with 1/3 my usual lot size and it turned out to be a fake breakout of the 127.75 scalp line I had. Price retraced and hit my SL at 75 pips. I was tempted to get back in on the retracement, but I chose not to because acting that way was what led me to the drawdown I had last week. So I can say Im improving on my discipline.

After winning and losing for the last 2-3 weeks, I've decided to go back....back back back....back to the very heart.....back to the very soul....of the trading system/method I began using. Im going to try to figure out Fibs a bit more on the demo account and in my live account I will only trade the break of the SWMAs and occasionaly some previous highs/lows.

Last night I earned around 140 pips from a break of the High swma at 134.60 and set the TP at 136.00. Im going to try to start using a second lot to let it ride the trends, cause last night's move could have earned me some 350-400 pips; but I was asleep and didn't want to risk a second lot with a trailing SL.

I'm still struggling to become consistent, it's probably one of the most dificult things when starting out. But I'm determined to learn this beautiful business.

So I have finally almost recovered what I had lost. I had a losing trade of 8 pips and two winners, one with +35 and the other with +50. Morning pips are just lovely!

I'm still trying to develop consistency.

Hi，Tataocb，thanks for sharing the great system. It's powerful and useful to me. I am looking forward to learning from this thread.