Do You Overlook The Yen? – Have A Look
The Japanese Yen or JPY as we call it in the foreign exchange markets is the third most traded (exchanged) currency behind the USD and EURO. This is an unknown fact to the majority of traders, and is thus why most new traders completely overlook it as a currency to consider trading. Some might even say it is way to volatile but I beg to differ that that is a negative IF you know on which side of the market you should be. Bringing in the Risk vs. Reward factor even if you are only correct 40% of the time, banking a 2:1 RR you will reap the pips!
Just to prove that point lets take a quick look at the figures:
- $100 Risk
- $200 Reward
- 10 Trades
- 6 Losing Trades
- 4 Winning Trades
$100 x 6 losses gives brings us to -$600. $200 x 4 wins brings in $800 profit. We simply subtract our losses from our profits ($800 – $600) and we still end up with a Net Profit of $200, taking into consideration you were only right 40% (4/10) of the time. Here at Day Trading Forex Live our 2:1 Risk Reward ratio is key and a big part of what we teach our traders. The power of risk vs reward in combination with tracking smart money is what makes all the difference!
Getting back to the topic point and message I want to bring forward is that we have members that favor the Yen crosses and do extremely well trading them due to the above mentioned. Don’t miss out on the profits!
Here is a great example of an aggressive and a conservative entry following railroad tracks. I entered both yesterday during the Asian session. Pips earned = 120.
This is a quote from the DTFL Only Forum, where a member banked 120 pips on the GBP/JPY. For obvious reasons I cannot post the charts and detailed reasons for entering but I am sure you get the idea on how profitable the Yen crosses can be!
Happy Trading!