Usdjpy

[AbeSmith 10]

Hello. I've been looking at this USDJPY trade and it seemed to me the 8EMA would be a good place to go short, which is also around the last lower low. But I'm new to Forex so I didn't know how to play it. So I think I have to let this trade go. But just wondering for the future how much leverage I should get and where to place my stop, and to do this I need to know how much each pip is worth, which I'm having trouble figuring out.

 

So let's say I go short at 108.585. Would one pip higher be 108.586? If so, how do I calculate how much that pip is worth? And thus be able to figure out if I'm risking no more than 1K, how much leverage is too much, causing too tight of a stop, and also to know where to place my stop so it doesn't risk more than 1K. Thanks.

[AbeSmith 10]

Here is the chart I forgot to post: Also would be interested to hear your opinions about USDJPY and the fundamentals and technicals behind it. Thanks.

[Anna-Maria 10]

 

So let's say I go short at 108.585. Would one pip higher be 108.586? If so, how do I calculate how much that pip is worth? And thus be able to figure out if I'm risking no more than 1K.

 

1 full pip short from 108.58 would take price to 108.57, the 3rd number after the decimal is the 1/10th. A standard (100,000) lot on this pair stands at $9.17.

 

Your risk is down to how you wish to play your strategy. If you’re computing it via your account balance, then what % of $1k does that represent??

 

Easy option would be to maybe determine what % of your capital base you wish to delegate to your trade first, & then maybe wrap everything else around that axis point? You can then calculate your trade expectations/stop value etc & manage the trade accordingly?

 

Your entry, stops & trade exit/management will revolve wholly around your strategy play. You’ll obviously employ different parameters based on the instruments current conditions (range/trend/volatility/momentum etc).

 

The conditions influence your game plan. Therefore the trade tools/management structures on trends will differ from those utilized for ranges etc.

 

Sounds like you need to run yourself thru some sort of basic FX education module or something? Piling in unprepared or even a little unsure of your bearings, will get you beat up real bad in this arena.

 

Why not pop along to a newbie hang out like Babypips for instance?

 

http://www.babypips.com/school/

 

They got themselves a Forex beginner education section in there, which might offer you some background/structure to assist in familiarizing yourself along the road?

 

Just a suggestion.

[Anna-Maria 10]

Also would be interested to hear your opinions about USDJPY and the fundamentals and technicals behind it.

 

Well, my views on this instrument might not sit in harmony with yours, we all trade from different landscapes & angles etc.

 

I'm short this pair on one account/strategy & flip to 2 way (long & short) on another a/c dependant on the short term flows.

 

I & my buddies here are firm believers in keeping the fundamentals & technicals in real close company when trading currencies, which doesn't suit a lot of retail traders outlook. I guess it depends on how you view trading?

 

Some fella's rely exclusively on technicals, others place a large emphasis on mech system triggers etc. I guess whatever gets the job done.

 

Again, it might help you some if you bed yourself into a simple educational course similar to the one I mentioned above?

 

Get a basic grasp of what turns these instruments on & tickles their bellies?

 

If you then wish to major on one particular sector (fundaments/technicals), then move up a gear & hit the gas.

 

Technically, 109 to 111.50 places this pair in strong range territory. This zone (109.0) is the 2006 low, therefore likely to extract a little nervous energy from both camps.

 

It will certainly be a very strong radar for Yen Bulls (short) if it begins to stutter around here.

 

Yen Bears need to start building a sturdy base between current lows (107.20-50) & 109.0 in the form of higher lows/ + a range structure to encourage accumulation & demand on trips back.

 

This type of activity (base building) can be a decent intraday play as both camps attempt to assert their authority.

 

The big money is then made once prices have a guage in which to bounce from. Once these floors/ceilings gain substance, you can use them as barometers from which to compound into positions from your slightly larger (big hourly) timeframes.

 

But they require testing first. Until they justify building a core position - they can be traded from the short-term strategy play as aggressively as you wish!

[milliard 10]

 

Why not pop along to a newbie hang out like Babypips for instance?

 

http://www.babypips.com/school/

 

 

Good god almighty, where do you come across these joints?

 

It's a wonder Krantz (or the likes of Jesse maybe??) hasn't stumbled across it, fast talked the owners out of selling it & begun charging extortionate fee's at the school doors!

 

Looks like plenty of school fee material in there.

[AbeSmith 10]

Thanks Anna Maria. I'm glad I didn't take this trade because the Dollar spiked up overnight.

[torero 10]

Good god almighty, where do you come across these joints?

 

It's a wonder Krantz (or the likes of Jesse maybe??) hasn't stumbled across it, fast talked the owners out of selling it & begun charging extortionate fee's at the school doors!

 

Looks like plenty of school fee material in there.

 

I actually find this babypips site very well organized and explained (not sure about the fees though) and usually recommend it to beginners. But I've found my source of studies and learning right here between these posts (hee hee). Nice to see jolly good and experienced company!

[Anna-Maria 10]

He was only having a (caustic) humorous dig at me torero!

 

It's a standing joke that I unearth all sorts of clutter out there in cyber land. But I agree with you, if a newcomer to FX wants to dip their toe, that site ships some decent material.

 

Sure, you need to carry a flame thrower to raze a lot of weed & clear a path thru the crap, but there are one or two items certainly worthy of a second glance in there.

 

The fee's reference is Krantzy maintaining there's a whole pile of dough waiting to be had from charging the new kids for their Babypips School tuition.

 

They're all heart huh? :o

[torero 10]

Is Art a comrad of yours at the firm? He seems to be a very knowledgeable fellow like you. This is beginning to be interesting turns of events for me. I'm getting finally seeing all the crosses relate and picture which currency is in consistent bias and stay with that currency. I've never done that before but it's actually taking me to higher ground of knowledge. Enlightening indeed.

[Anna-Maria 10]

Is Art a comrad of yours at the firm? He seems to be a very knowledgeable fellow like you.

 

Sort of torero....he trades a seperate tranche of (private) money for some of my Parents colleagues, but he shares our space.

 

Can't recall which thread this pairs chart was posted on previously, but it's continuing to honor it's s&r zones pretty religiously.

 

Further bullish behaviour focuses that dual zone up yonder @ 2.3360-90, which also houses each-way activity (on the daily) from 4th quarter 06/1st quarter 07.

 

Clear lower supports to catch it on contra visits. Nice, sharp bounce this week though off that beaut of a flip @ 2810.