Pippin Gypsy is a currency & commodities trader born in U.S., currently living in Chile with his wife and 2 young sons. His road that brought him from United States to Chile and later to currency trading is a fascinating journey. What is even more interesting is that he uses a very simplistic, traditional method for trading FX & commodities: Just candlesticks and SR levels, nothing else.
Currently he manages a strictly charts-centered website: “ The FX Brick Road”, writes chart analysis articles, makes trading videos and is a mentor at FX Trading Community. I got to know Pippin Gypsy in the early 2013 through babypips.com.
SpacePip: Hello! Thank you for the interview. First of all, I want to ask you how did it turn out that you started trading currencies? What was the event that inspired you and why did you keep on going?
Pippin Gypsy: Hello, hello!! Thank you for interviewing me. It’s a pleasure and an honor to be here. I first got into currency trading by accident. I was actually trying to find out about buying physical currency and just holding it until the price went up to be able to sell and make a profit. As I was searching the web I kept seeing “become a forex trader”, “trade currencies electronically”, etc. I had clicked on a like (babypips.com) and started to read. It was all over after that. I’ve since been trading live for almost 4 years and am now mentoring, blogging and posting analysis videos, as you mentioned earlier.
SpacePip: Your first encounter with forex trading was through one of your English class students, is that right? What did he tell about forex trading that caught your eye and does he trade himself?
Pippin Gypsy: Well, actually he was telling me about how I should try investing in stocks. After trying it, I decided that they weren’t for me lol. So, we got to talking a bit more and the subject of buying physical dollars came up. That’s the conversation that lead up to what I had previously spoke about.
SpacePip: How did it turn out that you left U.S, moved to Chile, and have been living there ever since?
Pippin Gypsy: I’ve always talked about leaving the states. I just never felt at home there. Finally the opportunity came up while I was still doing music and I took it. I’ve been in Chile ever since. A little over 8 years now. It’s still not home, but I am much more comfortable here than I ever was in the U.S.
Vicuñas, Laguna Miscanti, Chile by Dimitry B.
SpacePip: Chile is ranked nr. 2 in South America for GDP per capita, has the lowest crime rate of all South American countries and is relatively safe by world standards. What do you think makes Chile a good country to live in and how does it differ from other South American countries?
Pippin Gypsy: I wouldn’t necessarily say it’s a “good” place to live hahahaha. It’s about 25 to 30 years behind in some aspects (compared to the U.S.), but there is a lot of opportunity here. Coming from a developed country, it’s like I literally got a second chance at life. It’s the best place to live in South America, but honestly, that isn’t saying much economywise. Not to bad talk Chile, because I actually like living here a lot, but this part of the world still has a lot to learn. It is safer than a lot of places, but there’s a lot of petty crime here (pick pocketing, purse snatching, etc.)
SpacePip: Now let us get back to trading. You told me that your very first system for trading forex was Ichimoku. Why did you take a break from Ichimoku to learn japanese candlesticks, how has the candlestick knowledge benefited your trading and why did you recently continue trading Ichimoku again?
Pippin Gypsy: Yes, my first real trading system was Ichimoku. I had made about 3 or 4 different systems using various components of the original system and have traded the original system itself. The reason I took a break to learn candlesticks was because after I read about Ichimoku I contacted the author, Gabor Kovacs. He’s the one that congratulated me on taking Ichimoku seriously and said the next step was to learn candle analysis to use with Ichimoku. And that’s exactly what I did. Japanese candlesticks now play a significant role in my trading. I would never be able to call myself a trader without knowing how to analyze price through candlesticks. I recommend it to anyone who wants to have a long trading career. I recently continued using Ichimoku because I felt it was time to put some diversity back into my trading. I’ve learned to use both of my trading methods very well, so why not use both and take advantage of more opportunities in the market, right?
SpacePip: You have been writing your trading blog on “The FX Brick Road” from a long time ago. How has writing your blog benefited you and your trading?
Pippin Gypsy: Writing has been a big help in my trading. For me, saying that you will do something isn’t enough. Writing it imprints it in your mind…a mental picture if you will. Writing also helps me remember because in my case, talk is cheap. If you take the time to actually write something down, then it must be of some importance to you. Just my personal opinion. An example would be, you meet a girl and give her your number. If she writes it down, then she’s obviously got some interest in getting to know you, as opposed to her just “remembering” your number by memory.
SpacePip: What is your advice for people who work a full-time job and want to start trading on the side? What should they start from, what should they concentrate on and what shouldn’t they waste time and resources on?
Pippin Gypsy: My advice to a full-time worker would be to start off trading daily charts. Definitely learn candlestick psychology and one western indicator (RSI, Stochastic, Bollinger Bands, S/R, etc.). Don’t waste your time on trying to learn everything at once or purchasing some “get rich quick” system.
SpacePip: Is it possible for people to spend only 1-4 hours per day on trading and still trade profitably? If yes, how? And what are the trade-offs of trading only a few hours per day?
Bicentenary Park with Santiago de Chile Amazing Skyline | 130629-4889-jikatu by Jimmy Baikovicius
Pippin Gypsy: It’s definitely possible. I would even go as far as saying that one could spend 30-45 minutes per day and trade profitably. If you understand the markets you are trading, have decent knowledge on reading price action and levels, then it’s definitely possible to become profitable. I guess the main trade off would be you’d only be able to look at higher time frames…preferrably 6-hour and higher.
SpacePip: What is your outlook on some of the major currencies (USD, EUR, GBP, AUD, NZD, JPY) , the countries they represent and the fundamental issues for the next few years?
Pippin Gypsy: Honestly, I don’t know much about fundamentals at all. I know which news events have the most impact and which news events have a lasting impact. But as far as a country’s fundamental issues, I don’t get that deep into it. I’m not saying that fundamentals aren’t important, because they can be. Especially, if you’re a longer term trader.
SpacePip: How did you get into trading commodities and what do you like about trading commodities?
Pippin Gypsy: Good old commodities. I’ve always liked the idea of trading commodities, just not as Futures. Spot commodities are what I like to trade. A couple examples would be $XAUUSD vs. Gold Continuous (GC) or $XBRUSD vs. UK Oil. If I could, I would trade Wheat/USD, Corn/USD, Cattle/USD, etc. I like commodities because in my opinion, they reflect supply and demand better than currencies do and the cycles are clearer.
SpacePip: What are some of the long term investments that you would like to make in the near future? What long term investments do you think people should avoid?
Pippin Gypsy: I would love to (and am planning to) invest in diamonds. The diamond market is a very interesting, well-known global market. I am also thinking about investing in physical silver, but haven’t decided yet. I would avoid things like ETFs or anything that isn’t physical. When I think of long term investing or investing in general, a piece of paper with X amount of shares/quantity of something just doesn’t sit well with me. If there really is a crisis will I get all of those shares? Physical investments, on the other hand, can’t be denied. If I have 100,000 oz. of gold and the price is $XXXX.XX, then the math is easy. Physical assets (cattle, wheat, corn, cotton, gold, silver, jewels, real estate, etc.) are tradable. That’s how it was done before fiat currency arrived.
SpacePip: What makes diamonds an attractive investment?
Pippin Gypsy: First of all, they rarely lose value. If their value doesn’t increase during the year, then it will more than likely stay the same. But they rarely lose value for any significant amount of time. One of my favorite qualities is that they are easy to transport. Trying to move a couple million dollars in gold or silver would drive a person nuts. But a couple million in diamonds could fit in your pocket. The thing most people probably don’t know about diamond investing is that you need to purchase diamonds that are easy to sell. That will depend on which part of the world you are living in. Most people just want a huge diamond just because it looks nice and you can brag about it. The thing is though, if a crisis hit would you be able to sell or trade it?? Probably not, because most diamond dealers wouldn’t have that kind of money available and if you wanted to trade it you wouldn’t be able to divide it up. That would make it pretty much worthless, lol.
SpacePip: What market conditions do you like to trade and what are the most challenging market conditions for you to trade?
Pippin Gypsy: I love ranging markets. Clear entry/exit levels. Trends are a little more difficult for me, but still tradable. I do prefer ranging markets, though.
SpacePip: I learned a lot about candlestick psychology from you. I know that you got into Japanese candlesticks through Steve Nison’s videos. What makes candlestick patterns a valuable tool for trading and what are the difficulties of trading with them?
Pippin Gypsy: Candlesticks ARE the market. They tell what the market is feeling. If a certain news event came out significantly better than expected, but there was no rally, you will be able to see that immediately through candlesticks. No guessing. No waiting to hear what an “expert” thinks. Just the honest TRUTH right in front of your face. The difficulty with trading candlesticks is not knowing how to read them.
SpacePip: What are other trading tools that can go hand in hand with trading candlesticks?
Pippin Gypsy: As you know, I prefer to use S/R with candlesticks. I use Ichimoku Kinko Hyo with them as well. They can basically be used in conjunction with any western indicator. There isn’t one particular tool that works better than another. It’s all about what works best for each individual trader. I do, however, believe that the tool you choose should be used as a tool (confirmation) and not a substitution for price.
SpacePip: What does your usual trading day look like and what preparations do you do each week?
Pippin Gypsy: Starting with my weekly preparation, I basically go through each chart on my watchlist and plot major levels on the higher time frame I’m using for that pair. Then I scale down (generally by 4s) to try and get an entry with lower risk and a possibly higher reward. My trading day is a lot of waiting for candles to close and signals to form. Not very exciting, but that’s what a business is.
SpacePip: What are some of the aspects of trading that you think other trading educators might have overlooked when teaching trading?
Pippin Gypsy: Very few educators teach how to manage the position after entering and determining your target. Most just “let the trade play out”. Not that that’s a bad thing, but there is a lot more that could be taught.
SpacePip: So managing the position after the entry has to do with reading the price action in real time or anything else? Does it have anything to do with the emotions of being in the trade?
Pippin Gypsy: Well, emotions always have something to do with the trade. Whether it’s entering, holding, adding, de-risking, etc., emotions do play a big part. When I manage my positions I focus on price and S/R areas. It really helps if you are very familiar with the pair you are trading too. Knowing how a pair moves can be a game changer. Little details like knowing if a pair generally corrects after a rally or has a tendency to make a complete reversal are just a couple ways that knowing what you trade can help you to become consistently profitable.
SpacePip: We both are contributors to the FXTC magazine and now you write articles for FX Trading Community as well. What do both communities stand for, who is the content for, and how did you start writing for them?
Pippin Gypsy: FXTC stands for FX Trading Community. It’s basically a place where traders can come and learn about trading, tech. analysis, different ways to trade, get alerts/trading signals, written & visual education, get EAs & apps, etc. There is some free content, which is for whoever wants to read it. Most of the content is for trading members, though. I started writing for the magazine (FXTC) maybe six months or so ago. I had gotten a message saying that another trader had recommended me and if I wanted to start writing for an online trading magazine. Of course, I said yes.
SpacePip: What are some of the benefits that the students who you mentor receive?
Pippin Gypsy: First and foremost, brutal honesty!! Lol. I help them figure out how to improve their trades and trading method. I review past trades and give them my feedback. Also, some strategy training and education.
SpacePip: Do you have any last words to traders who want to learn how to trade with Japanese candlesticks, Support & Resistance levels and Ichimoku?
Pippin Gypsy: I say go for it!! Learn all you can about them. There is more than enough information on the web about all three topics. If one doesn’t know where to start, then I can definitely point them in the right direction. Candlesticks are necessary for a trader. Support/Resistance are just one of many western indicators, but make the most sense in my opinion. Ichimoku is a complete system by itself and can be used a number of different ways. It’s in its own category. They are all worth learning!!
SpacePip: Thank you for your time and see you soon!
Pippin Gypsy: Thank you and I hope we can do this again sometime. It was a great experience!!
fotos-vulcao-chile-erupcao-impressionante-11 by Reporter Free Lance
Want To Follow my Feed? @cannamellia
Subscribe to my mailing list HERE