I thought I would spend this week waxing lyrical about my one of my favourite trading techniques ...
Scalping is a tricky technique to pin down: for every trader who
says he or she is scalping, there are usually ten more traders who'll cry "that's not scalping!" And give a completely different definition.
This week I'd like to show you some quick and easy ways to get
your trading journal on track, including...
This week I had a conversation with an irate trader. He'd just
received a margin call and was feeling pretty indignant about it -
let's face it, margin calls never represent our finest trading
moments.
Gold has been going up because of inflation … gold has been going
up because of deflation … gold has been going up because of dollar
weakness … gold has been going up because of dollar strength …
gold is going up because of a strong stock market … because of a
weak stock market … gold has been rising day in, day out because …
well, perhaps just because the sun has been rising.
When an opportunity to make money from UK property landed on my desk, my first thought was “You’ve got to be kidding!”Luckily, I kept reading – I’m glad I did, because it turns out that this opportunity has nothing to
do with house prices...
I often hear traders debating the differences between spread betting and CFDs - surely the dividing line between the two is
more than a cultural prejudice?
I had an interesting email this week from a Maven reader, which I
think reflects a state of mind that a lot of us can recognise. He
was frustrated and a little confused.
There’s a lot of buzz about the new Breakfast Trader strategy. In my opinion, George has an excellent system for tapping into the morning Forex markets. If you haven’t yet had a chance to look at it, it’s well worth it
One of the things that fascinates me about technical trading is
that the sentiment and behvaviour of thousands of people around the world can be laid out in black and white on a chart.
The sad truth is that most forex trading robots are developed by people who have no clue about trading or system development, hoping to hook people in more with the idea of what robots could do rather than what the software’s results actually are in reality...
Having said that there are things we can do to affect the outcomes of our trades when the markets misbehave ... such activity should be undertaken with great caution.
***Normally you'd have to pay £1,947 to try this proven Forex trading strategy.
But if you read this email and take action today you can test it out for just £97.
***
In recent months I've been working with planners over a building plot. Anyone who's ever had to deal with local planning authorities will know what I'm talking about ...
Now more than ever, it’s important that all investors know their ponzi schemes from their pump and dumps. This article exposes the most common scams in recent times and how you can avoid becoming a victim.
Why you should buy the stock market on the first day of the month to make money and 2 other simple trading systems that really work!
Here's a quick guide to the various markets and their trading times.
Alan Rich is a trading 'guru' with a difference - He actually knows how to trade and more importantly, he can show you how he does it.
Developing your own trading systems can be a rewarding process, especially when you go from an idea to a test onto live trading and find that it works exactly as it should do.
A reader suggested I take a look at Leo Babauta's 'The Power of less', which is pretty good I have to say. Simple tips to help you become more productive, worth a read, though most of the tips are already on his popular blog.
Many of us would love to be able to day trade quick moves on the Forex market, but realistically it can be hard to find the time - especially with a full time job.
I get a fair number of emails each day, so I thought it would be useful to share a selection of these questions and my answers with you.
Last week there was a big buzz around an old video documentary by PBS in the US on the trader Paul Tudor Jones. Not least because one of the scenes has Paul supporting on a beer while trading massive positions in the forex market.
Less than 12 hours to go!
"I have tried a few different trading systems over the past few years, and I would like to congratulate you on such a fantastic system. Anyone who doubts that this can work needs their head read!"
I've been spending some time testing new system ideas and have been getting encouraging results. I thought it would be worth sharing some of my findings so far.
ONLY 7 DAYS LEFT!
Trading the news is damned hard unless you have an ultra fast news feed and lightening quick trading platform. My advice to anyone trying to trade the news is not to bother because there will always be someone quicker than you.
"Due to massive demand the doors will close on this proven Forex trading system at midnight, Friday 31st July - reserve your place today and avoid missing out!"
I've just completed a guide to forex trading robots to accompany What Really Profits and it's taken me a lot longer than I ever anticipated.
Forex Megadroid is still getting a lot of attention out there with various blogs and forums buzzing with people reporting their results. I covered this trading robot in the latest edition of WRP so won't go into it too much here, but in summary, I am extremely sceptical on this one.
With the sun shining, I thought it would be a good time to suggest some holiday reading. Whether you're off abroad or sticking with Blighty, I hope the following are of interest...
This week's economic data due to be released includes more housing data from US, along with the final reading of the US GDP numbers.
I've got news of something that is highly profitable and incredibly simple to operate. No Forex or Spread Betting to tell you about today, but something that anyone could benefit from...
I think many people underestimate that trading is an activity to be learned and that there is a big difference between theory and practice.
As usual, I've divided up the edition with reviews of systems, tipsters and some strategies for you to take away and use. I was impressed with the Black Dog program and the Seven days ahead advisory service.
In this month's edition amongst other things, I've
reviewed the Black Dog program, the latest books from
Malcolm Pryor and John Piper, 'Seven days ahead', as
well as various articles on trading techniques and
strategies.
According to a recent Wall Street Journal article,
women's risk adjusted returns beat those of men by an
average of one percent annually. Women trade less
frequently, hold less volatile stocks and have lower
expectations
I thought I'd do a quick summary of some of the systems
I'm looking at reviewing. If you have any feedback on
these or other systems you'd like me to take a look at,
get in touch by emailing.
Finally the FSA describes the typical boiler room victim as follows, if you fit any of these descriptions, be extra careful as you may be a likely target!
This month I've spent some time recapping on systems and services I've reviewed in the past. Some such as http://www.sharemaestro.co.uk/ continue to impress. Some others aren't faring too well and I'm glad I was a little cautious in my review of http://www.lstrader.co.uk/ as this is going through a period of fairly big drawdown at the moment.
One thing that I thought would be interesting to share with you is a recent study I read on the behaviour of experienced vs inexperienced traders, particularly in relation to what they focus on.
If you want to make good money online from something that fits perfectly with financial trading, then please read on...
This week I thought I'd touch on an aspect of trading that doesn't get as much attention as charting and all the usual technical analysis.
So before I trade I run a few checks every time. A bit like checking the oil and water before going on a long journey. Every morning I check...
It's been quite a week on the stock market with the US markets hitting gains of 7% last night. Is it a suckers rally, or the start of the recovery?
I do chuckle when I go to trading shows and investment seminars and the speaker is going through a load of chart patterns like a flag pattern, a double top or something called a cup with a handle.
There's a few useful posts from the 'doc below on how to hone your trading skills
Spread betting companies are reducing the number of credit accounts they make available, but some are still out there. I strongly suggest you only ever trade with the cash you have in your account and not on credit.
This month I've give particular focus to MetaTrader, the popular forex trading platform. I've focused on some systems, indicator and expert advisors that make use of this great program.
I'm often asked if I can recommend any 'one-stop' trader
training programmes. What you are about to read is one of my favourites.
No matter how tempting it seems, never give your money to an investment manager that isn't licensed by the FSA. Freeman's operation wasn't authorised and investors paid the consequences.
The trouble with testing new strategies while continuing to trade existing methods is that my trading activities can become rather distracted. Trading is in some ways, an expression of creative freedom.
Aside from the entertainment value, my trip to the casino did make me think about some useful lessons to be learned for trading...
The system in question is Forex Ambush - yet another forex system vendor who took the imaginative step of adding a 'power' word after 'forex' to name their product.
I think the current crisis shows the importance of taking an active role in your finances whether this is trading or forming your own opinions for your long term investments. Heck, you might be wrong, but the current crisis has shown that all the so called 'experts' can get it spectacularly wrong themselves.
When we are in a trade, in some ways our brain is operating differently. You make decisions that in the cold light of day look stupid/ foolish/ greedy/ fearful. The best way to guard against this is to have a plan in place before you get to a crucial point or ideally when you open the trade.
If you are free on Friday 16th January
2009 and want to spread bet £100 into
£5,600 in the just 10 weeks then you
must read this email . . .
In the last few years end of day forex trading was
a relatively slow moving affair, but not any more.
Forex pairs are moving as much in a day as they
used to in a week, maybe even a month.
Last week I wrote about avoiding illegal collective investments schemes and by coincidence Bernard Madoff's illegal ponzi scheme has hit the headlines over the last few days.
Earlier this year, Neil Leitch sent over his FTSE Wealth
Builder strategy and told me it could make anyone, with
any degree of experience, between £56 - £440 a day -
whatever the state of the markets.
As you can imagine I get inundated with new trading systems to review. Most turn out to be turkeys, but once in a while I find something very special...
Last week I mentioned the latest offering from the Forex Mafia (tm). FAP Turbo seems to be something that has caught your attention. After all, why wouldn't it? A trading program that automatically generates untold profits certainly piques my interest.
I need testers to take it seriously and report back on progress at the end of the testing period. So have a think about whether you'd be able to do it justice. If you are interested, please drop me and email and a short paragraph explaining why you think you'll be a good system tester.
One consistent question I get asked is for a place to start trading that combines tradingsignals, education and someone on hand to answer your questions. Without wanting to tyrannise you with more choice, here's some suggestions.
Stock markets are down to their lowest levels since 2003 and pirates are riding the waves of the high seas once again. Has the world gone mad?
I've had lots requests for feedback on Guy Cohen's Flag Trader system from readers. Finally I've got a free moment between writing the latest What Really Profits to share my thoughts.
The advantage of short term trading is that you're not shackled to a traditional buy and hold strategy. This means that, depending on your method, even when markets are stuck in a range, you can still make money.
I've had some great emails from members following last week's email on big name trading seminars. I've had some more not so positive feedback on certain people, but it must be noted that I've had a couple of emails full of praise for Greg Secker, including his back up support program.
All this volatility can be a bonus or a boon depending on how you're
trading. On my longer term trades I've reduced my position sizes and
increased my stops. On my short term intraday trades I've effectively
done the same.
I'm also pleased as punch to be able to share with you an
interview I did with a pro trader contact of mine. The guy
is a real prodigy (literally, he's just 21!), but don't let that put you off, he is one of the best traders I've ever come
across.
Tricky times for investors and traders alike. With the
economy roughed up and a recession looking likely, there's a number of newspaper and magazine articles cropping up with ideas on what stocks to buy in a recession and where the stock market is going next.
Various experts and gurus are giving their two pennies worth on
where we'll go next. The BBC even showed a clip of Jim Cramer
going on US breakfast Television saying that Americans should
pull any money out of the stock market that they do not need for
5 years.
It happened principally because US congress unexpectedly failed to back Bush's bailout bill. Markets were down any way in early trading because it looked like the bill that was going to congress was too watered down to be effective anyway. However, awatered down bill was evidently more popular than no bill at all! European markets were down less only because they had closed by the time news on the bill came out.
had quite a number of people get in touch and tell
me how useful they found the EZtrade system from
Ian Williams. Over the last couple of months I've
been sampling the offering myself and I'm so
pleased with what I've seen that it gets a Market
Maven thumbs up.
As I write this, the US markets are down around 3% overnight and the FTSE is just opening down by 1.5%. What an incredible week. I must admit I've been mesmerised by it all from a trading perspective
and a study into human psychology.
The turbulent market action seems a world away from the wonderful week I enjoyed in Lake Como. We didn't get off to a good start with the weather and it looked as though my bad weather curse was striking again.
I'm currently either sunning myself on Lake Como, or busy explaining to Mrs Market Maven that it is not my fault that it is raining whenever we go abroad. I've put together some of the past articles that seemed to have got the been received well including my My Top Freebies and My Top Five Books.
At least one thing is going well this morning; oil is down 10% on the day. That's a punchy fall by anyone's reckoning; unfortunately I had no trades on it. Coulda woulda shoulda! Speaking of which, I had one member email about monitoring oil markets and the best ways of getting information on it.
I think many of us are attracted to trading by the dream of fast cash and easy money, but the reality is that hard work is required to get it right in the long run. I'm not saying it's an Olympic challenge, but perhaps we all have to be prepared to put in the hard work.
The latest edition of
http://www.whatreallyprofits.com/ is done
and dusted after typing at the speed of light last week. According to my publisher's
schedule it should be dropping by the end of the week. I dedicated some space this
month to recap on the progress of systems
and products since I first reviewed them.
This was a great process to go through and it was pleasing to see so many things
making money since I first looked at them.
While I'm busy beavering away I was wondering if I could ask a favour of you. I get many kind emails with feedback from Market Maven and What Really Profits with feedback on how they enjoy the publications. This
gives me a good steer on what interests you the most and what to focus on in my writing, but I've been thinking
about a number of things to write about and wanted to double check I'm not wide of the mark.
TRADING SOFTWARE: It's pretty much
impossible to trade without charts, but
getting live data can be extremely expensive. Thankfully the spread betting companies
have been getting their act together over the last couple of years and their built in charting programs with live data feeds have come on leaps and bounds.
Well it's Tuesday, I'm penning the Market Maven alert and would you believe it... The
FTSE is down around 1%. (NB it's recovered a fair bit as I send this off to go out). I wondered if it was just me imagining things, or whether Tuesday really has been such a dire day recently.
I'd been looking for contrarian buy signal (meaning to buy while everyone is selling for a while, but these things usually seem to come at the most inconvenient times.
Books are often over looked as a trading resource, they often costs a fraction of an expensive guide and
contain just as much useful information. You can even order them from your local library for free.
I mentioned in my regular Market Maven Alert on
Tuesday about a new trading programme that
Nick Laight (my publisher) was putting on with
Roxanne Cross.
One man who makes it look ridiculously easy is Alan Rich. I was invited by George Hallmey of www.clickthemarkets.com to come along to their A Z of US day trading seminar near Heathrow Airport. It's just down the road from me (a very congested road), so I was more than happy to accept his invitation.
With What Really Profits on its summer recess this month, I've got some time to reflect on the editions gone by and make a serious dent in the backlog of systems to test. Top of this list is Concept FX
The week's news flow is dominated by the US interest rate announcement tomorrow. A no change verdict is expected to be the more likely outcome, but aside from the small potential for surprise next week, it is the prospects for the rest of the year that will cause the most excitement.
Does summer have an effect on how markets perform? Do certain months out perform others. Thankfully we don't have to consult our runes, one very good website has done a lot of great work for us. http://www.cxoadvisory.com/ researches various stock market phenomenon and presents their research in objective manner. They cover various areas, but their calendar studies can be found here
Forex markets seem to have become less spikey with moves more pronounced. UFXP and many of the other forex systems I've been looking at had a very good week. Members have been sending through their experiences with various systems that they've been looking at. Here's a summary of the info I've received lately
One of the more popular seminars is called 'Knowledge to Action' run by a guy called Greg Secker. A well named course because trading isn't just about knowledge, it's about the doing.
The best way to manage your risks is to make sure that you have an idiot proof money management plan. I say idiot proof because there is nothing like money to make you do stupid things. It's easy to be rational when looking at a trading situation from the comfort of hindsight, but when your in the thick of things with real money at risk, you can end up making the strangest decisions.
I've received a lot of emails about UFXP. I'm still impressed by what I'm seeing and with how easy it is to use. I'm much preferring the trading method rather than the scalping method because I think you'll get better returns after the spread in the long run. It's a lower strike rate, but the gains are bigger when you do let one ride.
You know me by now, I'm sceptical of everything that I test. Let's face it, there are a lot of cowboys out there, but what we have here is different - it actually works! And it ticks all the right boxes . . .
Whether you're trading for 5 minutes or trading on a longer time frame, you need to give that trade your undivided attention. Once the trade is in progress, depending on how long it lasts you don't need to necessarily be on top of it all the time, but your pre trade focus needs to be 100% no matter what your time frame.
A few weeks ago I wrote about various software programs that allow you to create your own trading system. I've finally got my hands on the brilliant Wealth Lab program which is one of the best of its type (See full review in this month's WRP).
Contrarian trading & investing involves spotting when the crowd has got it wrong and knowing when to go the other way. Some of the best things I've seen on contrarian investing have come from Barry Ritzholtz via his blog...
This week I'm grateful to one member for sending over some notes he's made from a trading psychology book. They're extremely useful and I'm sure lots of people will benefit from them. So useful in fact that this week I'm going to have a look at trading psychology in a bit more detail Trading psychology is an area that often gets over looked when people start to trade.
There could be some more explosive action this coming week, with some top tier economic announcements due. Today brings US ISM manufacturing index later this afternoon. Midday on Wednesday will be a turbulent time for European traders, with the release of US ADP Non- farm Employment Change, and Fed Chairman Ben Bernanke speaking.
I can't report on any systems I've looked
at over the past fortnight (what a week to miss!), but I'd like to share with you some interesting holiday reading.