Comment by Lisa on February 5, 2013 at 8:33pm

My long term goal is to get into other markets outside of currencies; Futures, Options etc.

“Since life (and the currency market) is so uncertain, spread your financial investments out.”

“Cast your bread on the surface of the waters, for you will find it after many days.”

Cast is better rendered “send”, ...

"surface of the waters" refers to the commercial sea trade.

“Bread” refers to grain from which bread is produced.

Solomon was deeply involved in international trade with countless merchants. 

Then as now, one of the main trade commodities was grain.

The merchants of Solomon’s day would load their grain ships and send them off.

The Israelites were “casting their bread upon the water.”

But notice that with Solomon, the word is plural: “cast your bread on the waters.”

In other words, don’t put all your grain in one ship.

Put your wheat in several ships, and send it out in a diversified way so that if one of the ships

should sink, you’ll not be ruined. 

In others words, “Don’t put all your eggs in one basket.” Diversify your portfolio.    Ƹ̵̡Ӝ̵̨̄Ʒ

Comment by Peter jcp on February 5, 2013 at 9:35pm

Hi Oasis - Because I have been a scalper for over 7 yrs - ( first 2 years tried swing) I have "majored" on the EU because - 

1. For years it had the best spreads - ( not so wide this last year or so with more brokers and competition)

2. Because it had the best liquidity - important on larger lot sizes.

3. It was easier to trade - prior to recession and HFT etc

4. Any scalper need to "major" in at least one major currency pair - GU was over double the spread and was more volatile - so used to prefer the EU  and UJ was too slow 

5. Spent best part ( over 70% ) of my 10K plus hour watching live small frame charts and the have done the most analysis on this pair.

6. The EU is recognised as the main currency pair and therefore the most info on it - and generally its the important one - and other pairs were less important 2-5 yrs ago.

7. For me nowadays - it tested my skills the most - I need a challenge and its a good way to "pit" you wits against the market, The harder and more difficult it is for me is good - it keeps you on your "toes" and makes you have respect - and stops you getting sloppy.

Finally now I have "cut my teeth" on the EU - I feel this year more ready to tackle the "beast" - ie the GJ. I will still need another few months to really get into the GJ "zone" but have started and enjoying the ride - so far ;-)))

Hope that explains why the EU is popular.

Regards 

Peter

6. 

Comment by Romano on February 5, 2013 at 10:51pm

Problem(of most other pairs) is heavy correlation due to EUs highest turnover. Sometimes(like now) they can decouple nicely but mostly it drag everything with it, so its problem. Why do u think AU still havent dropped significantly? Just look at weekly - its EU thats holding it. GU most recent decoupling is quite rarity, I wish it stayed like that cause I like recent price action on GU more. Still, EU as a main driver is important to watch, at least for long term direction as it can screw your other pairs easily.

Comment by Oasis on February 5, 2013 at 11:14pm

Hi Peter

Your experience and expertise with EU is unquestionable. I don't even have to read your posts properly to know that. If a trader specializes in a particular pair that is easily understood. Its so many others who are either new or intermediate level that go chasing after EU that I do not understand. It is to these people that I say, it does not have to be only this pair.

Comment by Franck Max on February 5, 2013 at 11:17pm

wow, interesting topic! I am a complete beginner, just lost about 40% of my initial capital at the moment because I am struggling with my entries and still do not know how to enter a trade and be profitable. Over the weekend, I have decided to forget live trade for now and figure this entry stuff out. I am therefore back to the demo environment, thinking also about the YEN pairs as GBPUSD and EURUSD are not being friendly to me. So see what I just made of the JPY pairs in the past 2 days. I am stunned by my humble result ..see herein.. PS: it is demo though and I would be glad to do the same with my live account! How? I am not yet so sure..

Comment by Lisa on February 6, 2013 at 1:06am

I commend you, Frank, for using your simulator to work-out your strategy. 

Comment by Sundaram on February 6, 2013 at 3:47am

Fantastic result Franck!

Comment by sabbir on February 6, 2013 at 4:32am

In my opinion, every currency pair goes through a phase, no matter when you buy or sell, you will see profit, in this case Yen pairs,  word of caution, Yen pairs are not easy to trade, when players will start offloading and you are biased to long, you will see losses by the time u trade.  so when a pair goes through strong trend and you can identify it, it will be easy to trade.  Problem comes when they consolidate and reverse.  During reversal process, pairs will make frequent stop hunts and consolidate.  Soon you will see Euro, no matter where you sell, you will see profit and for CHF vice versa. 

Comment by Oasis on February 6, 2013 at 5:09am

My apologies Sabbir - I need to improve my communication skills. It was not my intention to suggest that JPY pairs are always easy to trade. I merely mentioned JPY as for the past +2 months, they have been in a continuous uptrend. I often see new traders in this forum looking for trading signals from other experienced traders (sometimes it seems they are ready to kiss their feet), when all that is required is to study a few charts on different longer time frames, identify the trend and trade. 

My question therefore still is since EU is complex at the moment, shift your attention elsewhere.

Regards

Comment by Oasis on February 6, 2013 at 6:07am

Those are fantastic numbers Franck. Congratulations and keep going. I would make one suggestion - Try to trade as if it were a real account. Especially keep your lot size in proportion to the amount of equity you would have in a live account. See the money management blog posted in this forum. 

Congratulations again.

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