Trading The Precision Way

Transcription

1 1 Trading The Precision Way Follow the Smart Money 1

2 2 Risk Warning All information that is provided in this seminar is for educational purposes only. Trade with Precision and its representatives are not stockbrokers or financial or investment advisors and do not recommend any stocks, bonds, options, CFDs, currencies or any securities of any kind. Any financial securities that are mentioned throughout the course of training and/or on our website are cited only for illustrative and educational purposes. Investing in financial markets is risky and it is possible to lose money. It is recommended that you seek a professional licensed financial advisor prior to implementing any investment program or financial plan. By participating in this seminar with Trade with Precision, you hereby generally release Nick McDonald, Trade with Precision, Precision Universal LP and its employees and representatives from any liability whatsoever related to your participation in this course of training. If you do not accept these conditions, please leave the seminar now. For more info visit: /terms

3 3 About Trade With Precision Educating traders since 2006 The company has grown by word of mouth & strong CORPORATE PARTNERSHIPS Provide LONG TERM HAND HELD education programmes Specialise in ANY MARKET, ANY TIMEFRAME TRADING STRATEGIES Team of professional traders

4 4 What is Foreign Exchange? Many DIFFERENT NAMES for the same thing: Forex FX Foreign Exchange We will use all names interchangeably Currency Forex is essentially the trading of MONEY

5 5 FX is a 24 Hour Market FX is open 24 hours per day, 5½ days per week! TRACKS the day sessions around the globe, across 3 geographical regions: ASIA, EUROPE, AMERICA Ideal for part-time traders regardless of the time of day you can trade! When will you trade?

6 6 Virtually No Gaps Reduces Risk NORTHERN ROCK NZDUSD Minimal Gaps on FX provides a seamless chart Gaps are Risky WARNING: major news announcements can cause slippage and gaps

7 7 Trade with Leverage Leverage is the ability to control a LARGE amount of money with a relatively SMALLER capital base FX generally has the HIGHEST LEVEL of leverage of all financial products Forex offers leverage up to 200:1 (0.5%) Compare this to share/equity CFDs where 10:1 (10%) is more common WARNING: Leverage can be a double edged sword for those who misuse it. ALWAYS use protect your downside with stop loss orders and sound money management rules

8 8 Low Transaction Costs SPREAD NO commissions or fees when trading forex ASK The COST of trading is the spread Quote Window BID

9 9 FX Trends Beautifully Trending markets provide the best trading opportunities Ranging markets are more difficult to trade, especially when they range for long periods of time

10 10 Technical Analysis and Basic Strategy Start with a solid base

11 11 Avoid - Charts with Gaps

12 12 Avoid - Long Tails/Wicks

13 13 Assess The Trend & Trade With It USDJPY is in an Uptrend. Price is making successive Higher Highs and Higher Lows GBPCAD is in a Downtrend. Price is making successive Lower Highs and Lower Lows

14 14 MA Buy & Sell Zones The MA Buy Zone The MA Sell Zone We look for BUYING opportunities around this zone We look for SELLING opportunities around this zone

15 15 Three Types of Candlestick Patterns: Buyers in charge: Sellers in charge: The names aren t important, the psychology behind each candlestick is Our job as traders is to decide who is winning the tug-of-war, Buyers? Or Sellers? Indecisive: Potential direction change ahead

16 16 Money Management 1. STOP LOSS: At what point will we close the trade if it goes against us? One of biggest reasons amateurs fail they DON T USE stops or incorrectly use them Stops must be placed at levels where they are TECHNICALLY SUPPORTED i.e. behind a lower high in a down trend or below a higher low in an up trend 2. REWARD/RISK RATIO: How much are we willing to risk for the potential profit. 3. RISK MANAGEMENT: What percentage of our trading capital should be risked on each trade.

17 17 The 1% Rule Top traders risk a VERY SMALL PERCENTAGE of their trading capital on any one trade At TWP we never risk more than 1% of our account Example: $10,000 account size x 1% = $100 MAX RISK PER TRADE The 1% rule means if stopped out our loss will be no more than $100 (1% total assuming a $10k account) I'm always thinking about losing money as opposed to making money. Don't focus on making money, focus on protecting what you have - Paul Tudor Jones

18 18 Trend Flow Strategy/Recipe 1. Trade charts with OPTIMAL CHART STRUCTURE 2. Trade only in the direction of TREND 3. Price must have pulled back to the BUY/SELL ZONE based on moving averages 4. SMALL bullish/bearish candle formed in the DIRECTION of the trend (trigger candle) 5. Risk a MAXIMUM of 1% capital on each trade

19 19 Trend Flow Trading Strategy Long Example Trade Checklist: 1. OPTIMAL Chart Structure? 2. Is there a TREND? 3. What IS the TREND? 4. Is price is buy zone? 5. Is there a small bullish candle? 6. Is the STOP protected? Is it in a logical place on the chart?

20 20 Trend Flow Long Example - Result Multiple Targets Reached Always opt to use Limit Orders to Ensure Profits are Locked in!

21 21 Trend Flow Trading Strategy Short Example Trade Checklist: 1. OPTIMAL Chart Structure? 2. Is there a TREND? 3. What IS the TREND? 4. Is price is sell zone? 5. Is there a small bearish candle? 6. Is the STOP protected? Is it in a logical place on the chart?

22 22 Trend Flow Short Example - Result Multiple Targets Reached Always opt to use Limit Orders to Ensure Profits are Locked in!

23 23 Pointers for Winning The Trading Competition Have a risk management plan it might not be 1% per trade in demo account trading but one thing is for sure the winner will have a plan to reduce the downside (or be VERY lucky!) Take some profits as trades move in your direction to lock them in and not let them become losers Add to positions if another trade sets up e.g. you have a sensible entry, stop loss and target Pick charts that have higher timeframe trends e.g. daily, weekly and monthly charts all with clear direction. Lets look at a few charts with clear direction to start off with

24 24 USDCHF

25 25 EURUSD

26 26 EURGBP

27 27 Join Precision Perspectives FREE for One Month What is Precision Perspectives? A video newsletter where Nick McDonald and his trading team put out 1. Trade ideas 2. Market commentaries 3. Trading Strategy and education For those keen to learn there is a video archive in the thousands Subscription price is $199 per month [email protected] with your: 1. Name Phone number We will set you up with one month complimentary access on us! Good luck with the competition!