Face Ripper GBP/AUD – Making The Turn

I’ve refered to these pairs many times before as “face rippers” in that……they can move with such violence and such volatility as to literally…..well – you get it. It can get pretty ugly if you’re not careful.

It is not uncommon “in the slightest” to see these pairs move some 200-300 pips in a given 24 hour period, only to shoot back 150, then jet off in the opposite direction another 200 or more. They are “crazy volatile” and cannot be treated in the same fashion as one might consider trading a “pussycat pair” such as – lets say..USD/JPY.

I’m talking about EUR/NZD, EUR/AUD, GBP/NZD and GBP/AUD.

These guys can produce some major moves, and in this case the “upside potential” is easily….EASILY 1000 pips and higher – if we finally see the commods (AUD and NZD) roll over, as they appear to be doing now.

You trade these pairs as if holding a hand grenade so….careful, careful, small  (tiny small) order with “super wide stop” if you look to stand “any chance” of taking the ride.

Again, you may consider that I’m usually “early to the party” so get these on your screens – and watch for some “serious fireworks” in coming days.

7 Responses

  1. David April 16, 2014 / 10:19 am

    I still really believe these will perform very well around May (that includes now, May and into early June of course); GBP/NZD in particular is still my favorite.

    Also, I’d like to point out, since these are so volatile, if you’re used to trading these, it makes the less volatile pairs (such as AUD/USD) a lot easier to trade “emotion-wise”, which leads to better management and improved confidence with longer-term conviction.

    • Pot Stock Watch April 16, 2014 / 11:02 am

      Beutiful – love it and ya….looks like this will “grind on” into May.

      The turn has been made ( I feel some weeks ago ) and this is the usual retail “hope for the best” still buying.

      Ouch real soon.

      Biiiiiig Ouch!

  2. Careydina April 16, 2014 / 10:50 am

    AUDJPY has been up and down.. sigh

    • Pot Stock Watch April 16, 2014 / 11:04 am

      We are grinding across the top Carey – hang in there.

      AUD suffered significant short term technical damage here recently and the turn is upon us.

      Just another “full 100 pip” up and down / volatility day, as “once again” new traders entering “either long or short” get blown to bits daily.

      • Careydina April 16, 2014 / 11:16 am

        Yes. Yesterday like fallen down and up 110pips today. Sad

        • Pot Stock Watch April 16, 2014 / 11:32 am

          Sad…..but very normal during these times of “grind”.

          Hang in there.

  3. David April 16, 2014 / 12:24 pm

    Times like these will have many traders just finally close when they “get the chance to again” at 95 only to see it keep going down and down, 94…93…etc… I’ve been caught doing this myself several times figuring I’ll most likely be able to reload at 96 again for example, but instead missing the “big move”.

    Tough game to play; with that said (since I’ve touched upon how I like “range-trading” in the past), I closed 1/2 at 95 yesterday and reloaded earlier just under 96. I really thought we’d finally keep going down and down, but regardless, I still closed 1/2 (sometimes it works, sometimes you regret it b/c you only have half the profit potential now). But trading this way, psychologically I find it healthy for me as I don’t feel like I “missed my chance to close and reload”, while at the same time I can still ride my other half down for the eventual “turn” much lower. Pros and cons.

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