As I have mentioned in the past multiple times the pair GBPNZD is one of my favorite pairs in the Forex market. It ebbs and flows well, however is also one of those volatile pairs that if you do not trade properly can kill your trading account.
Firstly let’s look at the benefits of this pair –
- It is Volatile so getting over a 100 pips with a very short amount of time is very easy.
- This pair tends to respect price action very well so trading with my engulfing strategy it works well.
- This pair is a fast moving pair so less time waiting for positions to mature.
Now, let’s look at the Dangers of this pair –
- The first danger is you MUST use a stop loss, there is no looking away on this pair otherwise.
- The second danger is you must be patient on this pair before entry waiting on multiple confluences.
- And lastly do not risk too much leverage on this pair because it moves a lot.. It is better to risk half lots in order to be able to trade another day than to risk too much.
Okay so now that I have gone over the risk on this pair, let me tell you my story with it. I was introduced to this pair late last year around October sometime. When I first was shown the pair I was shown by another trader its ability for this pair to –
- Respect long term trends
- How it respects price action
My Story With The GBPNZD Pair
It was one of those pairs that most traders kept away from and I saw it like a challenge to get to know. As like I have mentioned before in the past I became like a Zen Buddhist and watched the chart religiously for like around three weeks. During that time I did not trade, I simply just watched it and studied its regular flows. This is something I recommend for anyone wanting to become a better trader.
Learn how your pair moves, it only takes one pair as an example to turn $100 to 1 million as the saying goes. Respect it and learn it.. The same goes with any pair.
It would of been around November last year when I started looking for a setup, mind you I was trading quite heavily during that time EURUSD and GBPUSD so they distracted me at the same time.. The first positions I traded on this pair was when I Identified this sideways range. I will try and post a screenshot below and on that sideways range I managed to get just over nine trades in a row all winners. My last of course being a loser. That was my beginnings for this pair. During that 9 sideways winning streak as an estimate I managed to pull just 1200 pips from the market and one loss for around 113 pips at the end. So overall just over a month of trading this pair a good 1000 pip gain.
That streak really did it for me with that pair. I know I have had multiple streaks on other pairs but this was different because this was one of those pairs many other traders said ” Oh no way am I trading that pair, too scary..” I was more determined from that statement.
Above – Okay, after looking back on the chart, I found the streak that lasted between October and November last year. This is a current screenshot, I had to go back to find it.. As you can see the last trade is a loss, each successful trade opened by looking at price action on this pair first before entry.. So, now if someone says it is almost impossible to get a 9 win winning streak, you can say, well that is not true.. It happens, it has happened to me, it is not often but it does happen.. It just takes discipline and patience with the pair you focus on..
So, as time went on I did more trades, I had a losing streak of 3 trades one time which almost seem to make me want to give up on this pair, but I noticed what I had been doing wrong, like many traders, once on a streak I fell into the confidence arena which ended up getting me on a losing streak and to think I only lost around 350 pips.. I started looking for multiple confluences and found a good retrace entry on the pair and made just over 400 pips in under 24 hours.. And to think on that trade as well, I only risked 75 pips.. Okay, so i was back on track and since then I have been trading this pair and it has been one of my top performers overall..
I hope that story inspired you in some way as well and like I said I do not want anyone to jump the gun with this pair, if you decide to trade it remember it needs to be treated with respect and patience. ( In other words if you get losses on this pair do not blame me, it takes a while to tame this pair in a way like a wild horse or brumby… )
How To Trade the GBPNZD Pair?
Above – Part 1
Above – Part 2
Above – Part 3
Above I have made a 3 part series on this pair to show you how it works and moves and what to look for when trading. If you have any questions relating to this pair then commenting below is the way to share your answer. As this series took me quite a while to make also take a few moments to like and share in the social networks or if you have not already done so add you name and email below or to the right to watch more videos like these and tips to do with Forex.