GBP/JPY Trade Updates (a bit of a rant and some questions answerd)

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Hey Guys,

I was very busy most of the day on Monday so I couldn’t do a trade update.

I came back to a mailbox full of questions. Some were genuine questions which I will answer in this post shortly. The others were…….. well putting it nicely……. the rest of the emails were absurd, moronic, half-witted, idiotic complaints spouted by small-minded, cry babies who for their own good should steer clear of the Forex market. In fact, they should probably steer clear of any job that requires an IQ higher than that of a primate.

I know that sounds a little over the top but anybody who knows me knows I do not suffer fools. Guys I am just tired of having people berate me because of a bad trade. I know the vast majority of you appreciate the blog because I get heaps of ‘thank you’ emails weekly. However, mixed in with all the thanks (which I am grateful for) are these idiots.

The vast majority of these morons do not bother to read the free e-Book which I spent 4 painstaking weeks writing. The book details my method precisely!

Instead of reading the book and studying the method these people just blindly jump in as soon as a line breaks. Then when they inevitably screw up a trade do you think they blame their own stupidity on themselves? NO! Instead they feel the need to write me some long winded diatribe about how I suck.

For all those idiots (you know who you are) I am going to give you a few facts about trading:

1. If you’re going to trade you’re going to lose some trades. I don’t know how much clearer I can make this. All traders lose some trades….. if you can’t deal with it go do something else!

2. Every trading method has periods in which it loses some of its effectiveness. Trading methods don’t work amazingly well all year round. Some months you can get a 100% win rate some months that drops down to 60%.

3. The Forex market is for grown-ups.

Now that we’ve dealt with the pleasantries let’s get on to some of the genuine questions that need answering. All these questions were asked more than three times via email and in the comments for the last blog post.


Q. Nick do you take reversal from failed scalp line trades. If so what’s the target?

Yes if a good reversal candle forms on the scalp line I will definitely take the reversal.

Think about it this way, a scalp line is a strong area of support or resistance (s or r). If a trade fails it usually means that the s or r held the move back. So, even though it may have broken the line the area has such strong s or r that the price can’t push very far past the line.

At this point the potential for a reversal is at its highest. More likely than not if you see a reversal pattern form it means that there will be a reversal.

So the answer is a definitive yes. If a trade fails and a reversal candle forms on the link I pretty much always trade it. However, I do not just jump right in I wait for confirmation of the reversal. I talk about trading reversal in the free e-Book read up on it.

As for the target it is generally 70 pips but it can be as low as 30 pips and as high as 100 pips. It depends greatly on momentum.

This week I took the line break and lost 52 pips I then took the reversal and snapped up 74 pips. So I am 22 pips up for the week. I will give a detailed breakdown of the reversal trade in the next post.

Reversals are a huge part of my method and my method only has an 80% win rate when you trade everything together. Don’t get carried away with just trading scalps!


Q. Nick why didn’t you trade the 155.95 or put it in your analysis?

I did the analysis about 10 hours after the market opened. The line was already broken so I excluded it from the analysis. However, this was clearly a line so if you traded it you did great!

This is why I repeatedly ask everybody to read the e-Book. My method is pretty easy and spotting scalps isn’t rocket science. If you read my book you would definitely have seen this line and if you took this trade you would have been profitable by at least 50 pips.

So if you took both scalps this week you would be at break even. If you took both scalps and the reversal you would probably be up at least 70 pips.

So please, for those of you who just blindly follow these signals……. DON’T!

These signals should only be used in conjunction with my method! If you have read the e-Book (or watched the video course) and know how to actually trade my method, use these signals as confirmation of your analysis.

DO NOT BLINDLY FOLLOW ANY TRADING SIGNALS ON THIS BLOG (or anywhere on the internet for that matter)


Q. Nick why didn’t you put a video up of this week’s scalp break?

I cannot always video my trades. When I do a trade video I have to be on Skype with my friend. My friend trades her account and mine while I trade the account being filmed on the video. This is because:

1. The broker in the video is GFT but my main trading account is with another broker. So if I shoot a video of my main account all you will see is me clicking a few buttons and entering a trade. GFT’s Dealbook has amazing charts and they are by far my favourite charting platform. So I shoot and enter trades on my GFT account while my friend trades my main account for me. She is on a Skype call with me so she enters and exits when I exit on my GFT account.

2. I am not an idiot! I do not put videos of my main account out on the web. I obviously need to protect my privacy!! I don’t want some person to see too much of my main account and find a way to steal my money. I know, I know the chance of that happening are slim to none….. but would you risk your life savings?

So I can only shoot live videos when I am with my friend and she is able to trade my main account.

Ok that pretty much answers the majority of the questions I got emailed this week (excluding the question by the aforementioned morons).