Posted on May 23, 2009 - by Chee Wan

Learn Forex: Case study for Euro Yen

Earlier this week we had written an article: Breakthrough Discovery in Forex Trading. To our surprise there are 420 readers on that day, wow! So we guess my readers are interested to learn more about our proprietary Forex trading strategy (BL TS System). By the way all of our students learn to trade forex using BL TS System.

In our previous article we had used USDJPY as an example. This round we will use another currency pair, EURJPY. EURJPY is one of our favourite currency. Why? Reason is simple, because EURJPY has made a lot of money for us.

Here are some of our previous trades from EURJPY (trade details in the links):
68 pips profit, 149 pips profit, 133 pips profit, 72 pips profit, 14 pips profit, 95 pips profit, 61 pips profit, 39 pips profit, 18 pips profit, 41 pips profit, 60 pips profit, 66 pips profit, 97 pips profit, 40 pips profit, 37 pips profit, 69 pips profit, 67 pips profit, 94 pips profit etc.

One common question that is often asked by our students (subscribers) in Tactical Trading Academy:
“there are so many currency pairs in the market, how do you choose which currency pairs to trade?”

We have 2 answers for them:
a) Avoid currency pairs that have wide bid / offer spreads. Some of the exotic currency pairs have very wide spreads: 100 pips (USDZAR), 10 pips (GBPAUD), 13 pips (AUDNZD), 7 pips (AUDCHF), 30 pips (USDDKK).

30 pips for USDDKK means that the price quote is 5.3427 / 5.3457. This means that your buying price is 5.3457 and your selling price is 5.3427.

In layman term this means that you will lose 30 pips immediately whenever you enter a new position to buy or sell. 30 pips means US$30 if you are trading 1 mini lot.

Major currency pairs like AUDUSD, EURUSD, EURJPY, USDJPY, USDCHF, USDCAD are only trading at around 3 – 4 pips spreads. That is very reasonable and acceptable. These are the currency pairs that I will be interested to trade.

This is why forex brokers always recommend their customers to trade exotic currency pairs. Because the higher the spreads, the higher are their commissions. Read more…

Related posts:

1. Learn Forex: How To Succeed In Forex Trading
2. Learn Forex: Profited USD1500 in March 2010
3. Case Study of an Unplanned Hospitalisation Financial Disaster