Non Farm Payrol GBPUSD

The thought of Selling, trade down is for the reason a butterfly pattern has formed. however due to previous high and Low on 1 day time frame I have consider to start my trade on the 161.7 Extension of point BC. Now to be able to Manage the amount of pips I am risking I took the previouse High in I day which exactly gave me the enough pips to risk based on my capital. From my Money management I am only allowed 40 to 50 pips to risk.

as for the Take Profit I have considered the Non Farm Payroll once the mark 61% retracement is hit. The possibility that this is a reversal is half confirm for the reason a 1 day support is yet to be broken. however because of the nature of batterfly pattern which is an active reversal. the previouse pattern contributed a lot of factor for my confidence that this will have a long down pips.

Did i really know that this will happen? to be honest it shakens my confidece due to its long consolidation on 4hrs that took almost a day before it confirm that my trade was right. I even have small losses since i traded up on the candle that break the consilidation. howerve i did not turn of my sell trade but of course i did put a stop lost on my buy trade.

What Next?

I have lot to consider if i will find a reversal pattern on 1 day which what i can see is an head and  shoulder advance pattern then thats the time Higher percentage of reversal is confirm. Not to mention neckline must be below the support of 1 day...

if it did not break then most cases it is start on 2nd wave for uptrend refer pic below

Purpose of Money Management

The Objective of Money Management is 

• To Improve your Trading skill

Common Mistake in every trader is wiping out their account. The reason  for this they have under estimate the Success rate of their Strategy. Given the fact you are new discipline on trading is not one of your virtue.

Why Filipino belong to the 90% that fail in forex trading? because they loose so much that hurt them. wipe out account is the most painful  normal scenario when you are developing your skills. the joy of profiting from trades where devour by the pain of loosing Big. Loosing so much that you dont want to try again and improve where you have failed.

This is where Money Management will help you. It will keep you on track that even you are loosing Money Management will give you chance to fight back, pick up the pieces and not to do your mistakes again. In Forex it take skills to succeed and this can only be done through experience. How can you develop your skill if your account is wipe out?

However because of the limitation of trade size that you are going to trade, you will find that it will take long time to build. Imagine having $500 Dollars account your ideal trade size is only from 10 cents to 30 cents per pip.

In the video below I am going to show you how to Double your allowable trade size without Hurting your Account if you loose the trade EX.

Based on the Chart above

1. You are allowed to trade only at .3 or 30 cents per pip with tolerable pips you can risk of 42
2. In the video you can trade .6 or 60 cents per pip with tolerable pips to risk of 42 without hurting your Account. meaning you are still using money management system

IMPORTANT
above chart is design based on my way of trading.

Money Management

Money Management Sheet

To Effectively use this Sheet  

1. Use this with Discipline 
2. You must have your own strategy on how and where to trade

• Why your point of entry is in that specific Price?
• Are you Chasing the market because you though its Going Up or  Down?
• Is your Stop Lost supported by Previous price?
• Is your Stop Lost supported by Support or Resistance
• Is your Stop Lost supported by ideal implementation of Pattern?
• Is your Stop Lost supported by Fibonacci level? 
• Have you use that kind of set up and confident about it?

Remember there is no wrong in trading but if you have no supporting reason for the location of your Trade and particularly your Stop Lost then you will have hard time gaining confidence on trading. There will be no room of improvement since you don't define your own system.

Update on 2 Divergent Head and Shoulders Pattern Eur vs USD video blog 07

Now im waiting for pullback to take my 3rd trade.

          This strategy is Leveraging my capacity to double my trade size if my analysis i correct then I will also double my profit but if my analysis is wrong then I will only loose the allowable amount and pips for the day. currently I do have 82 pips reserve which I do have the choice to use its profit to trade again or keep it and risk another 50Pips completion did not go directly to the target as expected it consolidate during Asian Session yesterday and test back the previous low on Euro Session However during the start Us Session till this morning 7-26-17 which is Asian Session it completed the Head and Shoulders. created video on the update which will be embeded here.

          As for GBPUSD still on going good thing i prepared my Stop lost Higher than my allowable Risk which I strongly suggest not to do this. although it benefited me since it did not hit my stop lost but still I can get more pips if i just follow the rules.

The above trade plan was cancelled so the 3rd trade did not happen. as For GBPUSD Stop lost has been hit only earning 11 pips. although the it was cancel it was replace by more profitable success rate which is in GBPUSD 1 hr time frame

HEAD And Shoulder right shoulder forming. with so many potential patterns it can derive for now i just focus on the right should and complition of the head of shoulders. once complete lets see if there is another pattern that are much profitable