Scalping Trade Strategies April 14, 2009

Save this PDF as:
Size: px
Start display at page:

Download "Scalping Trade Strategies April 14, 2009"

Transcription

1 Scalping Trade Strategies April 14, 2009 DailyFX Research Team John Kicklighter David Rodriguez Currency Strategists FOREX (36739) Just a decade ago, scalping was a lucrative form of trading that only pit traders could partake in. With tight spreads and a clear view of the market, the hustle and bustle of the open outcry market was perfectly suited for many quick entries and exits for five or ten basis points at a time. Now, however, with access to the deep liquidity of the currency market along with improvements to technology and data flow, retail traders have now found their way into the trading space formerly dominated by professionals. However, entry alone does not guarantee success. In fact, for the unprepared it merely presents a means to lose their money more quickly. Without the entire market trading in front of you, successful scalping requires a definitive strategy that takes advantage of inefficiency or even a natural characteristic of the market that is only seen through very short time frames. In this article, we will highlight three scalping strategies for the currency markets: scalping around event risk; near key technical levels; and through ranges and mean reversion. Event Risk Trading For many of the uninitiated, first time currency traders, the lure of high volatility that develops after a major economic indicator or any otherwise scheduled piece of event risk is announced offers the opportunity for quick profit. However, inexperience and the wrong strategy often lead to a quick loss. On the other hand, the presence of these indicators nevertheless has an objective impact on price action. Volatility leading up to a major event settles as traders try to avoid taking a significant position on the fear of an unfavorable surprise. During the actual release and up to a few minutes afterwards, activity often surges as the market absorbs the data. The normal retail traders short fall in this scenario is that they are trying to trade the data itself and are looking for a significant move in a single direction (and often without any drawdown along the way). For a scalper, there is no bias on the data aside from the potential for a jump in volatility. To present this strategy, we will make an example of the U.S. Nonfarm Payrolls (NFPs) report. Preparation begins well in advance of the actual event risk. At the beginning of the week (or even the beginning of the session), we will look for significant indicators or events considered market movers that threaten stable price action. In the image below we have filtered the DailyFX Calendar ( for all the events over the period of a week and chose an indicator that showed promise for generating price action. The NFPs has proven itself to be a consistent driver of volatility over the past; so we can reasonably expect activity to increase around its release (again, the actual outcome is not important).

2 There are three key stages to a market s reaction to a significant economic indicator. In the lead up to a release that could potentially turn a market or otherwise boost activity, there is often a slump in price action. Retail capital is held in the wings as traders await the actual release to trade, while institutions and banks look to hedge themselves to avoid the shock the market may be in for. What results from the drop in open interest is usually a tight range (sometimes imbued with a modest bullish or bearish bias). For this particular report, the chop began a few hours before the actual report was released. With a range of points, there is little room for the traditional trader to take a position. However, these are ideal conditions for a scalper who is able to repeatedly trade in and out of the market for 4-10 points each swing with a relatively tight stop set outside of the range itself. The effectiveness of trading this phase of the strategy depends on the range and the width of the bid/ask spread.

3 U.S. Nonfarm Payrolls report announced Volatility and direction wane, giving rise to a tight band of congestion Spreads return to normal and the market works out a consistent direction Typically, most speculative traders are interested in the actual release itself and plan to trade the data as quickly as they learn of the outcome. This brings with it a number of problems including: lagging data; a reaction that is inconsistent to the fundamental outcome; gaps; and a temporary widening of spreads. With such shortfalls, a scalper should clearly avoid these unfavorable conditions. While the shock of an indicator or other event announcement can be significant, the influence on the market environment does not last for long. From our example, the surge in volatility and open spreads lasted no longer than a few minutes. Afterwards, the market found a directional bias; but overall, the swings were subdued as the market efficiently ran through preset orders or market participants otherwise took their positions off. This cowed period allows the market to develop new or pick up old technical formations while allowing for wider ranges. Scalping Around Key Technical Levels For most forms of trading, speculation is essential. In contrast, scalping strategies look to remove most evidence of guesswork derived by various forms of analysis. However, through a significant increase in speculative interest, the markets have shown a more consistent reaction to these now traditional forms of market benchmarking. Just like our event risk-based scalping strategy, we can see the market often has a predictable reaction to major technical levels. There are many arguments as to why a technical analysis works (it is a reflection of the crowd s behavior or their mere presence is a self-fulfilling prophecy), but one thing is for sure these trend lines and congestion zones frequently give pause to market trends and basing patterns frequently form before an ultimate reversal or breakout. For scalpers, being able to foresee a level that can curb trends and volatility presents an opportunity. As an example, we will look to EUR/USD, where a key support was setting in around , which in turn led to a significant basing pattern. On the daily chart, the formation is evident. A rising trend line that began three months before gave pause to a steady bear trend. Initially, the first test of this line resulted in a sharp reversal; but additional trials confirmed the level s influence and price action would settle. Zooming into the one minute chart, we can seen that as price action drifted down towards the now obvious, horizontal floor around , price action would remain choppy and largely directionless. What would be considered untradeable congestion for most traders, presents the ideal conditions for the scalper with stable and tight ranges with little hint of volatility.

4 On the other hand, there is always a downside to any strategy. When approaching a notable technical level, there is always the danger of a significant reversal or breakthrough. The volatility that this generates can often lead to wide spreads, gaps, and directional momentum that could generate significant losses when our aim is to be in and out of the market quickly for only a few points of profit potential. Therefore, it is essential to confirm the market s intention to yield to these technical areas rather than looking for positions on the first test. Range Trading / Mean Reversion Scalping: the art of extracting small but frequent profits on an intraday trading basis. Scalping strategies revolve around finding predictable movements in price, and they very often involve trading narrow intraday ranges. Given that currencies tend to fluctuate rapidly through the very short term, it is sometimes profitable to bet that a currency may retrace sudden moves. That being said, there are clearly times in which a range trading/mean reversion scalping strategy will not work, and it is critical to highlight the key weaknesses of this popular trading strategy.

5 First and foremost, the primary handicap for virtually any intraday scalping strategy comes down to one thing: transaction costs. It is always difficult to predict short-term currency moves with reasonable accuracy, but those difficulties are magnified if one is forced to pay significant sums to even trade. A prime example comes from a popular trading system: the intraday RSI strategy. The chart below shows the theoretical results of a simple RSI trading strategy assuming zero transaction costs on a one minute trading chart. Basic RSI Strategy Basic Indicator Relative Strength Index (RSI) Buy Rule Buy when 14-period RSI crosses above 30 Sell Rule Sell when 14-period RSI crosses below 70 The chart shows that this strategy has theoretically been profitable on the EUR/USD even on a 1-minute time frame. Of course, if something seems too good to be true, it usually is. For the above results we assume that the trader pays zero spread and zero comissions on every single trade. This may not seem like a terribly unrealistic assumption on many lower-frequency systems, but the 1- minute chart generated a whopping 7800 trades in a mere three-year stretch. What do our results look like if we assume a much more realistic 2 pip roundtrip cost per trade? Such high-frequency range trade strategies are extremely sensitive to transaction costs, but we likewise note that there are other very important factors to keep in mind. Our equity curves shown above show that the strategy lost substantially from March 2008 onwards. Why exactly? Extreme volatility.

6 Quarterly Profits and Losses in the RSI Scalping Strategy RSI Scalping Strategy Performance Against Shifts in Market Volatility Quarterly Changes in the DailyFX 1-Week Volatility Index Given such evidence, we want to avoid situations in which price is at clear risk of prolonged intraday moves. Such effects would singlehandedly destroy virtually any range trading strategy, while the increased transaction costs linked to choppy market conditions would likewise decimate a high-frequency strategy. So when and how do we trade range trading scalping strategies? Given that high transaction costs and strong market volatility will both quickly eat into any intraday scalping range trading strategy, it is important to trade when transaction costs are lowest and markets are the quietest. The charts below show important facts about the EUR/USD. First, spreads are tightest through European and U.S. trading sessions. Second, volatility tends to hit its peak at the time that New York and London trading sessions overlap between 8:00-10:00 New York time. What does this mean for us as far as range trading scalping strategies go? We want to trade during times when transaction costs (i.e., spreads and potential slippage) are the lowest, but we likewise want to avoid overly volatile trading times. When does this occur?

7 Spread in Pips Range in Pips Spread in the Euro/US Dollar By Time of Day Hour of Day in New York Time Hourly Range in the Euro/US Dollar By Time of Day Hour of Day in New York Time According to our charts, we see a confluence of low spreads and low volatility at several key times in the forex trading day. After the London trading session opens, volatility slowly begins to drop while spreads hit their lowest levels of the day. This would arguably be the best time of day to employ highly transaction cost-sensitive strategies. Spreads remain relatively low through the beginning of the U.S. trading session, but we likewise note that volatility rises significantly between the hours of 8:00-10:00 New York time often linked to key North American economic reports. The next attractive window occurs between the hours of 10:05 to approximately 16:00. Volatility hits near its lowest levels of the trading day, but transaction costs do tend to creep higher. Finally, we see that the late Asia trading session provides solid conditions for scalping range trading strategies a mix of good spreads and low volatility. What s the next step? Find the appropriate strategy. Our article has thus far highlighted key strengths and weaknesses of range trading scalping strategies, but we would obviously need to find appropriate strategies to use with our information. Subsequent articles will try to find strategies that may work given different market conditions. Leveraged foreign exchange trading carries a high level of risk, and may not be suitable for all investors. Any opinions, news, research, analyses, prices, or other information contained on this document is provided as general market commentary, and does not constitute investment advice. DailyFX will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

8

EUR/USD Trading Strategy

EUR/USD Trading Strategy EUR/USD Trading Strategy TRADING SIGNALS TRADING EDUCATION TRADING STRATEGIES Kathy Lien & Boris Schlossberg www.bkforex.com TRADING SIGNALS & TRADING EDUCATION Risk Disclosure BKForex LLC is a registered

More information

Chapter 3.4. Forex Options

Chapter 3.4. Forex Options Chapter 3.4 Forex Options 0 Contents FOREX OPTIONS Forex options are the next frontier in forex trading. Forex options give you just what their name suggests: options in your forex trading. If you have

More information

Chapter 2.3. Technical Analysis: Technical Indicators

Chapter 2.3. Technical Analysis: Technical Indicators Chapter 2.3 Technical Analysis: Technical Indicators 0 TECHNICAL ANALYSIS: TECHNICAL INDICATORS Charts always have a story to tell. However, from time to time those charts may be speaking a language you

More information

So, if you are going to scalp the Forex market, you need to be very strategic with your or you will get eaten for breakfast

So, if you are going to scalp the Forex market, you need to be very strategic with your or you will get eaten for breakfast IMPORTANT: This is an added bonus for being our client. If you need more trading strategies that included: Beginners-Intermediate Trading Strategies Intermediate-Advance Trading Strategies Elliott Wave

More information

THE POWER OF FOREX OPTIONS

THE POWER OF FOREX OPTIONS THE POWER OF FOREX OPTIONS TOPICS COVERED Option basics Call options Put Options Why trade options? Covered call Covered put Hedging your position using options How to repair a trading position THE POWER

More information

Algorithmic Trading: A Quantitative Approach to Developing an Automated Trading System

Algorithmic Trading: A Quantitative Approach to Developing an Automated Trading System Algorithmic Trading: A Quantitative Approach to Developing an Automated Trading System Luqman-nul Hakim B M Lukman, Justin Yeo Shui Ming NUS Investment Society Research (Quantitative Finance) Abstract:

More information

Chapter 2.4. Multiple Time Frames

Chapter 2.4. Multiple Time Frames Chapter 2.4 Multiple Time Frames 0 Contents TRADING USING MULTIPLE TIME FRAMES Traders of virtually every monetary size and temperament trade the Forex market. At any given time, short-term scalpers and

More information

Chapter 2.4. Multiple Time Frames

Chapter 2.4. Multiple Time Frames Chapter 2.4 Multiple Time Frames 0 Contents TRADING USING MULTIPLE TIME FRAMES Traders of virtually every monetary size and temperament trade the Forex market. At any given time, short-term scalpers and

More information

Real Time Short-Term Trading Gregory McLeod Currency Strategist

Real Time Short-Term Trading Gregory McLeod Currency Strategist Real Time Short-Term Trading Gregory McLeod Currency Strategist Risk Disclosure Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree

More information

My Techniques for making $150 a Day Trading Forex *Note for my more Advanced Strategies check out my site: Click Here

My Techniques for making $150 a Day Trading Forex *Note for my more Advanced Strategies check out my site: Click Here My Techniques for making $150 a Day Trading Forex *Note for my more Advanced Strategies check out my site: Click Here The Strategy We will be looking at 2 different ways to day trade the Forex Markets.

More information

Forex Volatility Patterns

Forex Volatility Patterns Spotting Early Breakouts Forex Volatility Patterns BRUCE WALDMAN Want to catch 40 to 00 pips in each trade? Here s how you can find those entry and exit signals to make your forex trading a success. C

More information

Chapter 2.3. Technical Indicators

Chapter 2.3. Technical Indicators 1 Chapter 2.3 Technical Indicators 0 TECHNICAL ANALYSIS: TECHNICAL INDICATORS Charts always have a story to tell. However, sometimes those charts may be speaking a language you do not understand and you

More information

RISK WARNING. Retail transactions conducted with NatureForex are not insured by any deposit insurance of any kind.

RISK WARNING. Retail transactions conducted with NatureForex are not insured by any deposit insurance of any kind. RISK WARNING High Risk Investment Margined retail foreign exchange or currency ( forex ), commodities and financial derivatives transactions are extremely risky. Trading with Nature Forex Ltd. ( NatureForex

More information

6. Get Top Trading Signals with the RSI

6. Get Top Trading Signals with the RSI INTERMEDIATE 6. Get Top Trading Signals with the RSI The Relative Strength Index, or RSI, is one of the most popular momentum indicators in technical analysis. The RSI is an oscillator that moves between

More information

Regulated by CySEC 185/12

Regulated by CySEC 185/12 Regulated by CySEC 185/12 01 Traders often fail because they don t learn from mistakes. Keep a diary of trades to discover what works and what doesn t. 02 Don t set a stop loss order too close to the opening

More information

The Risk/Reward Properties of Bull Spreads

The Risk/Reward Properties of Bull Spreads The Risk/Reward Properties of Bull Spreads ThE RiSk/REWaRD PRoPERTiES of BUll SPREaDS Bull Spreads are versatile instruments. They can be used to trade direction, to trade volatility or, in conjunction

More information

What is Forex Trading?

What is Forex Trading? What is Forex Trading? Foreign exchange, commonly known as Forex or FX, is the exchange of one currency for another at an agreed exchange price on the over-the-counter (OTC) market. Forex is the world

More information

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET

AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK SA AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET DUKASCOPY BANK EDUCATIONAL GUIDE AN INTRODUCTION TO THE FOREIGN EXCHANGE MARKET www.dukascopy.com CONTENTS INTRODUCTION TO FOREX CURRENCY

More information

The Truth About Forex* TRADING GUIDE

The Truth About Forex* TRADING GUIDE The Truth About Forex* TRADING GUIDE *High Risk Investment Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work

More information

How to Find Your Fortune in the Forex Markets by Tom Willmott

How to Find Your Fortune in the Forex Markets by Tom Willmott How to Find Your Fortune in the Forex Markets by Tom Willmott DISCLAIMER WARNING: Any and all trades discussed during this webinar are FOR EDUCATIONAL PURPOSES ONLY. Stock, option, futures, and Forex trading

More information

The Truth about Forex TRADING GUIDE

The Truth about Forex TRADING GUIDE The Truth about Forex TRADING GUIDE Contents No Dealing Desk vs. Dealing Desks... 2 1. How does FXCM's No Dealing Desk (stp) service make money?... 2 2. How do traditional dealing desks make money?...

More information

General Forex Glossary

General Forex Glossary General Forex Glossary A ADR American Depository Receipt Arbitrage The simultaneous buying and selling of a security at two different prices in two different markets, with the aim of creating profits without

More information

Forex Trading Strategies: One way to trade the Non Farm Payroll report.

Forex Trading Strategies: One way to trade the Non Farm Payroll report. Forex Trading Strategies: One way to trade the Non Farm Payroll report. June 3 2011 1 Upshot Trade Signals disclaimer The information provided in this report is for educational purposes only. It is not

More information

Day Trade System EZ Trade FOREX

Day Trade System EZ Trade FOREX Day Trade System The EZ Trade FOREX Day Trading System is mainly used with four different currency pairs; the EUR/USD, USD/CHF, GBP/USD and AUD/USD, but some trades are also taken on the USD/JPY. It uses

More information

The Magic Momentum Method of Trading the Forex Market

The Magic Momentum Method of Trading the Forex Market The Magic Momentum Method of Trading the Forex Market WELCOME! Welcome to one of the easiest methods of trading the Forex market which you can use to trade most currencies, most time frames and which can

More information

Contents Risk Disclaimer... 3 Introduction... 4 Choosing the Right Broker... 4 The Financial Markets... 5 The Forex Market...

Contents Risk Disclaimer... 3 Introduction... 4 Choosing the Right Broker... 4 The Financial Markets... 5 The Forex Market... Contents Risk Disclaimer... 3 Introduction... 4 Choosing the Right Broker... 4 The Financial Markets... 5 The Forex Market... 6 Trading methodologies... 7 Developing a trading strategy... 8 Risk Management...

More information

CURRENCY TRADING Using Swing Breakouts in Forex Trading

CURRENCY TRADING Using Swing Breakouts in Forex Trading CURRENCY TRADING Using Swing Breakouts in Forex Trading 28 MAY 2009 Doug Schaff discusses the use of intermediate swing highs and swing lows to develop a shortterm approach to trading the currency markets.

More information

Trading with ATR Price Projections.

Trading with ATR Price Projections. By Nitin Suvarna Trading with ATR Price Projections. J. Welles Wilder developed "Average True Range" (ATR) as a tool for a more precise calculation of price activity and volatility. True Range measure

More information

TOMORROW'S TRADING TECHNOLOGY. 100% automated Fibonacci support and resistance levels that you can count on every single trading day in an instant.

TOMORROW'S TRADING TECHNOLOGY. 100% automated Fibonacci support and resistance levels that you can count on every single trading day in an instant. TOMORROW'S TRADING TECHNOLOGY 100% automated Fibonacci support and resistance levels that you can count on every single trading day in an instant. ProTrader Table of Contents 1. Areas A. Fibonacci Confluence

More information

Chapter 4.3. News Analysis

Chapter 4.3. News Analysis 1 Chapter 4.3 News Analysis 0 NEWS ANALYSIS Fundamentals move currency pairs, and news moves fundamentals. News of an interest-rate hike or news of a sub-prime meltdown can cause a currency pair to change

More information

New York Traders Expo 2012

New York Traders Expo 2012 New York Traders Expo 2012 with JAMES CHEN, CTA, CMT Director of Technical Research and Education All rights reserved, FXDD Inc. 2010 Today s Topic: High Probability Strategies for Trading Forex www.fxdd.com

More information

Ideas for improving your trading in 2010. Trader_Dante

Ideas for improving your trading in 2010. Trader_Dante Ideas for improving your trading in 2010 Trader_Dante Copyright Trader_Dante 2010 Page 1 of 18 Disclaimer All reasonable steps and due diligence have been taking in preparing this document. However, it

More information

BROKER SERVICES AND PLATFORM

BROKER SERVICES AND PLATFORM BROKER SERVICES AND PLATFORM A broker is an individual who executes buy and sell orders and get commission in the form of SPREAD (I will talk about SPREAD in the subsequent lessons). You trade through

More information

Trading Binary Options Strategies and Tactics

Trading Binary Options Strategies and Tactics Trading Binary Options Strategies and Tactics Binary options trading is not a gamble or a guessing game. By using both fundamental and technical market analysis, you are able to get a better understanding

More information

The Ultimate Fibonacci Guide By Fawad Razaqzada, technical analyst at FOREX.com

The Ultimate Fibonacci Guide By Fawad Razaqzada, technical analyst at FOREX.com The Ultimate Fibonacci Guide By Fawad Razaqzada, technical analyst at FOREX.com Who is Fibonacci? Leonardo Bonacci also known as Leonardo Fibonacci was an Italian mathematician in the 12 th century. He

More information

BEST TIMES TO TRADE THE FOREX MARKET

BEST TIMES TO TRADE THE FOREX MARKET BEST TIMES TO TRADE THE FOREX MARKET The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements (BIS)

More information

Daytrading Cup Breakouts

Daytrading Cup Breakouts A Strategic Approach Daytrading Cup Breakouts inga poslitur Here s how you can daytrade momentum trades. ntering and exiting intraday trades using E precision technical trading signals has been popular

More information

Technical Indicators Tutorial - Forex Trading, Currency Forecast, FX Trading Signal, Forex Training Cour...

Technical Indicators Tutorial - Forex Trading, Currency Forecast, FX Trading Signal, Forex Training Cour... Page 1 Technical Indicators Tutorial Technical Analysis Articles Written by TradingEducation.com Technical Indicators Tutorial Price is the primary tool of technical analysis because it reflects every

More information

THIS IS THE TRADING METHOD FOR THE STEALTH FOREX TRADING SYSTEM V10

THIS IS THE TRADING METHOD FOR THE STEALTH FOREX TRADING SYSTEM V10 THIS IS THE TRADING METHOD FOR THE STEALTH FOREX TRADING SYSTEM V10 YOU SHOULD HAVE ALREADY READ AND APPLIED THE INFORMATION IN THE SET-UP DOCUMENT. IF YOU HAVE NOT ALREADY DONE SO - PLEASE COMPLETE SET

More information

Forex Success Formula Presents Forex Success Mini Forex Success Formula Presents Forex Success Mini

Forex Success Formula Presents Forex Success Mini Forex Success Formula Presents Forex Success Mini Forex Success Formula Presents Forex Success Mini - 1 www.forexsuccessformula.com/forextradingblog Risk Disclosure Statement The contents of this e-book are for informational purposes only. No Part of

More information

My Daily Trading Preparation. Establishing Risk Parameters and Positions

My Daily Trading Preparation. Establishing Risk Parameters and Positions My Daily Trading Preparation Establishing Risk Parameters and Positions My Trading Goals My goals have to be consistent with my trading plan each day. For stocks, I am primarily a long-only trader (and

More information

ADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. FIGURE 1: AFTER ADX > 40

ADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. FIGURE 1: AFTER ADX > 40 TRADING STRATEGIES ADX breakout scanning ADX breakouts can signal momentum setups as well as exit conditions for intraday and swing traders. BY KEN CALHOUN FIGURE 1: AFTER ADX > 40 Spotting volatility

More information

HF Markets Ltd. TRADING AND EXECUTION RISKS

HF Markets Ltd. TRADING AND EXECUTION RISKS HF Markets Ltd. TRADING AND EXECUTION RISKS February 2013 Trading and Execution Risks 1. Slippage... 3 2. Rejected Orders... 3 3. Offquotes... 3 4. Trade Execution Delay... 3 5. Grayed Out Pricing... 4

More information

Thinking Man s Trader

Thinking Man s Trader Thinking Man s Trader Advanced Trader s Package Trading is a three dimensional world and the Advanced Trader s Package covers all three. Dimension three: Market Dynamics, conditions and change of conditions

More information

Introduction... 4 A look at Binary Options... 5. Who Trades Binary Options?... 5. Binary Option Brokers... 5 Individual Investors...

Introduction... 4 A look at Binary Options... 5. Who Trades Binary Options?... 5. Binary Option Brokers... 5 Individual Investors... Table of Contents Introduction... 4 A look at Binary Options... 5 Who Trades Binary Options?... 5 Binary Option Brokers... 5 Individual Investors... 5 Benefits of Trading Binary Options... 6 Binary Option

More information

Leon Wilson Trading Success

Leon Wilson Trading Success Leon Wilson Trading Success A talk given by Mary de la Lande to the BullCharts User Group Meeting on 13 February 2008 1. Who is Leon Wilson? His Books and where to get them. 2. Book 1: The Business of

More information

CONTROLLING. Your TRADES, MONEY& EMOTIONS. By Chris Vermeulen

CONTROLLING. Your TRADES, MONEY& EMOTIONS. By Chris Vermeulen CONTROLLING Your TRADES, MONEY& EMOTIONS By Chris Vermeulen INTRODUCTION In this condensed guide I have put together some key points which I think should be read a few times in order for these critical

More information

Best Times to Trade Forex

Best Times to Trade Forex Best Times to Trade Forex The Forex Market The forex market is the largest financial market in the world, trading around $3.1 trillion each day. (Every three years, the Bank of International Settlements

More information

Stock Breakout Profits Strategy

Stock Breakout Profits Strategy Stock Breakout Profits Strategy Introduction Welcome and thank you for downloading the Stock Breakout Profits system. The Stock Breakout Profits is a complete trading strategy for trading not only the

More information

How I Trade Profitably Every Single Month without Fail

How I Trade Profitably Every Single Month without Fail How I Trade Profitably Every Single Month without Fail First of all, let me take some time to introduce myself to you. I am Kelvin and I am a full time currency trader. I have a passion for trading and

More information

The 15 50 Trading System

The 15 50 Trading System Main Premise: This is considered to be one of the most straight forward systems for a live trading style for day- and/or intraday trading. The 50 SMA is one of the most commonly used moving average numbers

More information

FOREX analysing made easy

FOREX analysing made easy FOREX analysing made easy UNDERSTANDING TECHNICAL ANALYSIS An educational tool by Blackwell Global Contents Technical Analysis 2 Line Chart 3 Bar Chart 4 Candlestick Chart 5 Support and Resistance 6 Fibonacci

More information

Trading Education. July 2014. The Five Key Elements of CFD Trading. The Five Key Elements of CFD Trading INTRODUCTION

Trading Education. July 2014. The Five Key Elements of CFD Trading. The Five Key Elements of CFD Trading INTRODUCTION READ OUR FULL RISK WARNING. Spread betting, Contracts for Differences (CFDs) & Foreign Exchange (FX) are leveraged products & carry a high level of risk to your capital as prices might move rapidly against

More information

Foreign Exchange Trading. Trading at the 4pm GMT Fixing

Foreign Exchange Trading. Trading at the 4pm GMT Fixing Trading at the 4pm GMT Fixing Summary Points Many transition managers default to executing all FX at 4PM London fixing This is same rate used by most index families for daily valuation Traditionally this

More information

Evolution of Forex the Active Trader s Market

Evolution of Forex the Active Trader s Market Evolution of Forex the Active Trader s Market The practice of trading currencies online has increased threefold from 2002 to 2005, and the growth curve is expected to continue. Forex, an abbreviation for

More information

GOLD S SECRETS REVEALED. All You Need to Know to Trade Gold Successfully on the Financial Markets

GOLD S SECRETS REVEALED. All You Need to Know to Trade Gold Successfully on the Financial Markets GOLD S SECRETS REVEALED All You Need to Know to Trade Gold Successfully on the Financial Markets HIGH RISK INVESTMENT WARNING Trading Foreign Exchange (Forex) and Contracts for Differences (CFDs) is highly

More information

Retracement Or Reversal. Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com

Retracement Or Reversal. Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com Retracement Or Reversal Kennsei Trading, Inc. Chief Trader Dinger dinger@kennseitrading.com www.hotstocksforincome.com Retracement Or Reversal Most of us have wondered, at some point, whether a decline

More information

Putin faith in the Russian Ruble?

Putin faith in the Russian Ruble? Putin faith in the Russian Ruble? Chris Tevere, CMT, Senior Technical Strategist FOREX.COM 8 January 2013 The ruble has gained in popularity in recent years. It is considered part of the well-respected

More information

Pivot Point Trading. If you would rather work the pivot points out by yourself, the formula I use is below:

Pivot Point Trading. If you would rather work the pivot points out by yourself, the formula I use is below: Pivot Point Trading You are going to love this lesson. Using pivot points as a trading strategy has been around for a long time and was originally used by floor traders. This was a nice simple way for

More information

Part 1: Three-Way Orders - Theoretical. Aksjer Obligasjoner Netthandel Corporate Finance www.norne.no

Part 1: Three-Way Orders - Theoretical. Aksjer Obligasjoner Netthandel Corporate Finance www.norne.no Part 1: Three-Way Orders - Theoretical Agenda Advantages of using 3-way orders Ratio-trading Support and Resistance levels Placing a 3-way order on Norne Investor Example Slide 2 What is a 3-way order?

More information

DailyFX Research. DailyFX Forex Options Weekly Forecast

DailyFX Research. DailyFX Forex Options Weekly Forecast FX Options sentiment and Futures positioning have long warned that the US Dollar could set an important bottom, and recent Dollar rallies suggest that we are in the midst of a major USD reversal from recent

More information

A Primer On Technical Analysis. Written by. Available at

A Primer On Technical Analysis. Written by. Available at A Primer On Technical Analysis Written by Available at Page 1 of 23 Overview Technical Analysis (Versus Fundamental Analysis) Technical analysis is a method of forecasting price movements by looking at

More information

D.O.T.S. Guppy Trading Method

D.O.T.S. Guppy Trading Method D.O.T.S. Guppy Trading Method Dean Malone /dots Disclaimer Unique experiences and past performances do not guarantee future results. Trading in the off-exchange Foreign Exchange market (Forex) is very

More information

ALPHA DAY MANAGED ACCOUNT

ALPHA DAY MANAGED ACCOUNT ALPHA DAY MANAGED ACCOUNT About Us Logic Investments is an independent advisor providing stockbroking and investment management services to private investors, pension trusts and corporations. Our approach

More information

Chapter 3.3. Trading Psychology

Chapter 3.3. Trading Psychology 1 Chapter 3.3 Trading Psychology 0 TRADING PSYCHOLOGY Forex traders have to not only compete with other traders in the forex market but also with themselves. Oftentimes as a Forex trader, you will be your

More information

Take it E.A.S.Y.! Dean Malone 4X Los Angeles Group - HotComm January 2007

Take it E.A.S.Y.! Dean Malone 4X Los Angeles Group - HotComm January 2007 Take it E.A.S.Y.! Dean Malone 4X Los Angeles Group - HotComm January 2007 Dean Malone Partner of Compass Foreign Exchange, LLC. Co-Founder of Forex Signal Service.com. Previous Senior National for 4X Made

More information

D.O.T.S. Guppy Trading Method

D.O.T.S. Guppy Trading Method D.O.T.S. Guppy Trading Method Dean Malone /dots 1 Disclaimer Unique experiences and past performances do not guarantee future results. Trading in the off-exchange Foreign Exchange market (Forex) is very

More information

How To Use Multiple Time Frames For Setups. by Chris Vermeulen

How To Use Multiple Time Frames For Setups. by Chris Vermeulen by Chris Vermeulen A couple months ago I started providing more of my intraday charts in hopes to educate traders on current market conditions so they feel like they are "in the zone" for trading. It's

More information

Market Microstructure: An Interactive Exercise

Market Microstructure: An Interactive Exercise Market Microstructure: An Interactive Exercise Jeff Donaldson, University of Tampa Donald Flagg, University of Tampa ABSTRACT Although a lecture on microstructure serves to initiate the inspiration of

More information

What Are the Best Times to Trade for Individual Currency Pairs?

What Are the Best Times to Trade for Individual Currency Pairs? What Are the Best Times to Trade for Individual Currency Pairs? By: Kathy Lien The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market

More information

Pro Picks Quick Reference

Pro Picks Quick Reference SUMMARY PAGE Asset Tabs Filter Bar Subscription Status Portfolio Performance Summary Multi-select Filter Drop-down lists Asset Performance Summary Listing Panel Asset Tabs The tabs in the upper left allow

More information

The foreign exchange market is global, and it is conducted over-the-counter (OTC)

The foreign exchange market is global, and it is conducted over-the-counter (OTC) FOREIGN EXCHANGE BASICS TERMS USED IN FOREX TRADING: The foreign exchange market is global, and it is conducted over-the-counter (OTC) through the use of electronic trading platforms, or by telephone through

More information

LET S GET TO KNOW FOREX

LET S GET TO KNOW FOREX LET S GET TO KNOW FOREX AN INTRODUCTION TO TRADING CURRENCIES A FOREX.COM EDUCATIONAL GUIDE LET S GET TO KNOW FOREX AN INTRODUCTION TO TRADING CURRENCIES 4 INTRODUCTION: THE BULLS & THE BEARS 6 WHAT IS

More information

Binary Options Trading Strategy. Professional Binary Trading Manual Strategy

Binary Options Trading Strategy. Professional Binary Trading Manual Strategy Binary Options Trading Strategy Professional Binary Trading Manual Strategy U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards,

More information

The foreign exchange market operates 24 hours a day and as a result it

The foreign exchange market operates 24 hours a day and as a result it CHAPTER 5 What Are the Best Times to Trade for Individual Currency Pairs? The foreign exchange market operates 24 hours a day and as a result it is impossible for a trader to track every single market

More information

An Introduction to Nadex

An Introduction to Nadex An Introduction to Nadex AN INTODUCTION TO NADEX MULTIPLY YOUR TRADING OPPORTUNITIES, LIMIT YOUR RISK Discover a product set that: Allows you to trade in very small size (risking no more than a few dollars)

More information

Trading Pivot Points Forex-Breakout-System

Trading Pivot Points Forex-Breakout-System Trading Pivot Points Forex-Breakout-System Pivot points are rarely understood, and they are rarely used by the Forex trader. The first chapter explores the question, What are Pivot Points? and the reasoning

More information

Forex Basics brought to you by MatrasPlatform.com

Forex Basics brought to you by MatrasPlatform.com Forex Basics brought to you by MatrasPlatform.com Table of Content What is FOREX... 3 FOREX Basics... 4 Trading Hours... 4 What Is Traded on FOREX?... 4 The Six Majors... 4 Currency Pair Distribution...

More information

CHART TRADING GUIDE 1

CHART TRADING GUIDE 1 CHART TRADING GUIDE 1 How to understand chart trading This guide is designed to teach you the basics of chart trading- the chart patterns that are covered in this booklet can be used for short and medium

More information

Chapter 4 - Picking the time frame

Chapter 4 - Picking the time frame Chapter 4 - Picking the time frame In this chapter we ll discuss the different time frames of operations available to the trader and their relative returns, considering both ideal and real-world situations.

More information

Table of Contents. Preface. Chapter 1: TRADING BASICS. Chapter 2: BASIC TOOLS. Chapter 3: ADX. Chapter 4: ACCUMULATION LINE

Table of Contents. Preface. Chapter 1: TRADING BASICS. Chapter 2: BASIC TOOLS. Chapter 3: ADX. Chapter 4: ACCUMULATION LINE Table of Contents Preface Chapter 1: TRADING BASICS Chapter 2: BASIC TOOLS Chapter 3: ADX Chapter 4: ACCUMULATION LINE Chapter 5: AVERAGE TRUE RANGE Chapter 6: CANDLESTICKS Chapter 7: MACD Chapter 8: MOVING

More information

SPREAD BETTING MODULE 3 RISK MANAGEMENT 1 MODULE. Spread betting. Risk Management

SPREAD BETTING MODULE 3 RISK MANAGEMENT 1 MODULE. Spread betting. Risk Management RISK MANAGEMENT 1 MODULE 3 Spread betting Risk Management RISK MANAGEMENT 2 How to use this module Navigation There are two navigation systems in this PDF. You can move forwards and backwards using the

More information

TIPS TO HELP AVOID A TRADING TRAGEDY

TIPS TO HELP AVOID A TRADING TRAGEDY TIPS TO HELP AVOID A TRADING TRAGEDY TO HELP AVOID A TIPS TRADING TRAGEDY ACCIDENTS HAPPEN 1 LEARN THE RULES OF THE ROAD We simply can t overstate the importance of educating yourself about the markets.

More information

TRAITS OF SUCCESSFUL TRADERS: a four part series

TRAITS OF SUCCESSFUL TRADERS: a four part series TRAITS OF SUCCESSFUL TRADERS: a four part series Research & Analysis: DailyFX Over the past several months, the DailyFX research team and the DailyFX trading instructors have been closely studying the

More information

FREEFOREXEBOOK.ORG. Forex Trading

FREEFOREXEBOOK.ORG. Forex Trading FREEFOREXEBOOK.ORG Forex Trading Index Index 2 I - Forex Advantages 3 II 5 Myths about Forex Trading 5 III How Can I Start Making Money on Forex? 7 III.1 Educate Yourself 7 III.2 Plan How You Will Trade

More information

CommSeC CFDS: IntroDuCtIon to FX

CommSeC CFDS: IntroDuCtIon to FX CommSec CFDs: Introduction to FX Important Information This brochure has been prepared without taking account of the objectives, financial and taxation situation or needs of any particular individual.

More information

The Building Blocks for Succeeding with Forex Trading

The Building Blocks for Succeeding with Forex Trading The Building Blocks for Succeeding with Forex Trading This e-book was created by traders and for traders with the aim of equipping traders with the right skills of earning big returns from trading forex

More information

TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies

TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies TRADING SECRET NO. 3 How to combine two simple tools to capture big trending moves, especially in currencies 25 Currencies have a reputation for being markets that trend well. And, every business day over

More information

DAY TRADING WITH THE INSTITUTIONS by Jay Wireman

DAY TRADING WITH THE INSTITUTIONS by Jay Wireman DAY TRADING WITH THE INSTITUTIONS by Jay Wireman Welcome everyone to my top day trading setups. Below you will find my powerful techniques using my proprietary symmetry software package that I have developed

More information

Currency Trading and Forex 100 Success Secrets 100 Most Asked Questions on becoming a Successful Currency Trader

Currency Trading and Forex 100 Success Secrets 100 Most Asked Questions on becoming a Successful Currency Trader Currency Trading and Forex 100 Success Secrets 100 Most Asked Questions on becoming a Successful Currency Trader Copyright 2008 Currency Trading and Forex 100 Success Secrets Notice of rights All rights

More information

均 衡 表 Ichimoku Kinkō Hyō

均 衡 表 Ichimoku Kinkō Hyō 均 衡 表 Ichimoku Kinkō Hyō Hello Forex Winners! On this book we will talk about Ichimoku Kinko Hyo indicator and will show many pictures to make it easy for you. Ichimoku Winners e-book is free on ForexWinners.Net

More information

The 3 Rules of Successful Swing Trading

The 3 Rules of Successful Swing Trading The 3 Rules of Successful Swing Trading Trade with the Wind at Your Back The Rule That Hits Home Runs & Be In the Right Place at the Right Time by Michele Mish Schneider, Director of Trading Research &

More information

FOREX STRATEGIES BY ANDREA UNGER

FOREX STRATEGIES BY ANDREA UNGER the purple forex company FOREX STRATEGIES BY ANDREA UNGER 4-time winner of the prestigious World Cup Trading Championships Axiory is proud to present you with the unique opportunity to invest in forex

More information

The Definitive Guide to Forex Binary Options

The Definitive Guide to Forex Binary Options The Definitive Guide to Forex Binary Options Chapter 1: Introduction to the Course But first: What is Forex Trading? Factors Affecting the Exchange Rate Forex Pricing What is Binary Option Trading? What

More information

Carry Trade Explained What Is the Carry Trade?

Carry Trade Explained What Is the Carry Trade? I The Forex Trading Formula Carry Trade Triad Trading Formula - The Introduction Carry Trade Carry Trade Explained What Is the Carry Trade? The carry trade is a trading strategy in which you simultaneously

More information

Nadex Multiply Your Trading Opportunities, Limit Your Risk

Nadex Multiply Your Trading Opportunities, Limit Your Risk Nadex Multiply Your Trading Opportunities, Limit Your Risk Discover a product set that: Allows you to trade in very small size (risking no more than a few dollars) Gives you the security of trading on

More information

SECRETS OF FOREX SCALPING: Cheat Sheets

SECRETS OF FOREX SCALPING: Cheat Sheets SECRETS OF FOREX SCALPING: Cheat Sheets Reviewed and recommended by Rita Lasker & Green Forex Group Disclaimer Please be aware of the loss, risk, personal or otherwise consequences of the use and application

More information

RSI PRO Forex Trading System

RSI PRO Forex Trading System RSI PRO Forex Trading System Trading Examples Vol. 1 Paul Dean 2010 [Type text] Page 1 WWW. Y O U L E A R N F O R E X. C O M RSI PRO FOREX TRADING SYSTEM Trading Examples The purpose this book is simply

More information

BINARY OPTION TRADING. Lesson #1

BINARY OPTION TRADING. Lesson #1 BINARY OPTION TRADING Lesson #1 1 Table of Contents Forward. 3 Introduction to Binary Option... 4 Benefits of Trading Binary Options. 5-6 Binary Option Basics 7 Types of Binary Option. 8-10 Unique OptionBit

More information

The Forex Profit System :

The Forex Profit System : The Forex Profit System : How to Earn $50 to $500 a day Forex Trading from the Comfort of Your Own Home! OVERVIEW Dear Friend, Thanks for your interest in my Forex Profit System. The Forex Profit System

More information