GBPUSD & GBPJPY Down? + What To Look For In a Trade

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In today’s live trading webinar, we went over the current status of our GBPUSD & GBPJPY trades that were taken yesterday. We also discussed ‘What To Look For In a Trade?’. Moving forward, we will end each live session with a brief discussion on certain trading topics.

During yesterday’s live session, we did a live analysis using price action for GBPUSD, which led us to our bearish bias on the currency pair. Since taking this trade yesterday, we are currently up +30 pips in profit. In addition to selling GBPUSD, we also recognized a short trade setup on GBPJPY. This trade was sent on RP Forex’s Telegram channel to all our members.

In today’s session we talked about what you should look for in a trade setup. Once you have a bias on a currency pair, you wanted to make sure the risk is worth the return. Your trade setup needs to have a good enough risk to reward ratio. We recommend to start with trade setups with a 1:1 risk to reward. Then, once you become more consistent, hitting your Take Profit targets more often than your Stop Losses, you may try to go for trade setups with a minimum risk to reward of 2:1. This means that you want to risk x amount of pips for 2x the potential return.

Let’s break this down…

For a 1:1 risk to reward setup: If you are trading 0.10 lot on GBPUSD and willing to risk $50 or 50 pips, you will need a target of 50 pips to your Take Profit level.
For a 2:1 risk to reward setup: If you are trading 1.00 lot on EURUSD and willing to risk $400 or 40 pips, you will need a target of $800 or 80 pips to your Take Profit level.

Lastly, you also want to make sure that you are not entering trades close to market close or during a fundamental news release. This is because brokerage spreads can become very wide during market close and volatility may increases substantially during news release.You should always trust your instincts and trust your analysis. Trusting your intuition and sticking with it is the best way to learn, especially when you’re wrong. Learn from your mistakes and treat each loss as a lesson. There’s is no better way to learn how to trade.

It’s only Tuesday and we’re still early in the trading week. As we mentioned yesterday, it may be a slower week due to the lack of fundamental news to drive the market. Not to worry, as our price action strategy is effective in all market conditions. We are currently in two trades, and have a pending setup on Gold. We will once again focus on only taking quality setups. I will see all the members tomorrow for another live session. Be great, traders!

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Check Out Yesterday’s Live Session Recap: Novemeber 18th, 2019
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