Free Raghee Horner Webinars This Weekend

Raghee Horner announced today that she will have 2 webinars this weekend.  The first is called "Setting Up Your Entries with Advanced GET Charts."  This webinar allows you to watch as Raghee walks you through the three type of entries she uses. The second is "Master Order Execution with Raghee Horner" with a description as follows:

Raghee will share her entry techniques using eSignal's Advanced GET charts
which attendees of this FREE WEBINAR can get free through TradeDirectFX*.
Advanced GET charts will allow you to set up the Wave, draw trendlines, support,
and resistance as well as use all the Fibonacci retracement and extension levels she uses every day. 
See set ups of momentum trades, swing trades, as well as Raghee's Wave/CCI
trade and learn specifically when to use each.

Both webinars are this Saturday, the first at 1 p.m. EST and the second at 4 p.m. EST and are FREE. I've been to her previous 4 webinars and found them all very beneficial if not for her commentary also for the contacts you meet in the room.  

I've already registered for these 2 events.  I would recommend you do the same.

Click Read More to see the attached email with register details. 

[Read more]

Popularity: 3%

Newest Forex Volume Report Released

Open interest dropped across the board this week except in the Australian dollar.

Canadian Dollar
Big swing from NET LONG to NET SHORT

Swiss Franc
Very Bearish.  50,327 Short positions vs. 3,462 Long positions

British Pound
18,418 Short positions, 13,183 Long positions 

Japanese Yen
Decrease of 17,632 short positions.  Still Bearish 

USD Index 
Decrease of 7,196 long positions.  Still bullish with 11,114 Long positions and 4,491 Short positions 

Euro 
EURO remains Bullish with another decrease this week in Short positions (-10,149) 

New Zealand Dollar
Less Bullish than last week with decrease of 688 long positions and increase of 178 short positions 

Australian Dollar
Bearish.  Increase of 15,455 Short positions on increasing open interest. 

Crude Oil 
Less open interest than last week with an almost equal balance of long (128,840) to short (135,177) positions. 

Popularity: 4%

Stick to your Trading Plan

Here’s a post by Lloyd on his blog at http://tradingforaliving-assess.blogspot.com 

American trader and hypnotherapist Robert Krausz argues that 75% of trading depends on your psychology and claims that hypnosis can be used to control your emotional state to maximise your trading performance.

However, he stresses on the importance of having a trading plan at the first place!

Here are the 5 basic tasks necessary to become a winning trader and my personal takes:

1. Develop an analytical methodology
– For myself, I read fundamental news and run technical analysis

2. Extract a trading plan from this methodology
– I set up short-term swing trades (1-3 days), always try to pick good entry and exit prices

3. Formulate rules for this plan including money management
– Take profits while ahead, find the best place to get out on bad trades, not relying on stop loss

4. Back-test the plan over a long period
– Start trading small positions and allow mistakes

5. Finally, stick to the plan
– Having confidence and keep practicing till perfect

Popularity: 2%

Yen Swing Trade Analysis

TRADE

Date: Friday, February 24th

Entry: Short USD/JPY at 117.05

Reason for trade/setup: With a downward trend in motion, I was looking for a swing trade to short the USD/JPY.  I was waiting for price to retrace back up where a minor Asian session breakdown occurred several hours prior at 117.10.  The DMI indicator was used as confirmation that the existing trend was still in place.

Initial Stop:  117.19; the high of previous bar

Initial Target:  116.40

RESULT 

Exit: 116.76

Reason for Exit:  End of day

Profit/loss:  +29 pips/ +$745.10 (3 lots)

Trade executed according to plan? yes

Outcome: This trade entry went exactly according to plan so much so that it surprised me.  The price didn’t reach my limit and that didn’t surprise me. 

Thoughts:  The market doesn’t generate trades like this everyday and this setup would only apply to trending markets.

 

 

 

 

 

Popularity: 4%

Understanding Market Structure

There is another decent article in Stock & Commodities magazine regarding market structures.

Sometimes I neglect to identify the underlying market structure before entering a trade.  I’m hoping this post will help you and I.

This article identifies 4 market states:

1.     High directionality - low volatility : prices moving steadily up/down with no or little reaction or correction.  Trend following systems work fine in this scenario and oscillators will continuously give false signals.

2.    High directionality - high volatility : trend is well-defined and corrections are deep and volatile.  This scenario favors swing traders and counter-trend traders.

3.    Low directionality - low volatility : no or little direction and moderate volatility.  This is a very difficult environment to trade in and traders should wait for a new trend to ultimately emerge.

4.    Low directionality - high volatility : no or little direction but deep swings.  This market state favors swing, counter-trend, and short-term traders.

Click Read More to Continue reading. 

[Read more]

Popularity: 2%

Trading Environments for Beginners

As an absolute beginner, I’ve always found it difficult to understand what everyone meant by trending markets, ranging markets, swing markets, etc.  Now that I’ve had about 6 months to digest some of this information, sometimes I forget to really identify the market environment a currency pair is trading in. 

Here are 4 types of markets that you will encounter as a forex or any other securities trader:

1.  Trending Market

Defined:  Overall Direction of pair is moving up or down. 

Goal: Join the move early and hold the position until the trend reverses!

2.  Ranging Markets

Defined: Currency pairs that are trading in sideways ranges or channels

Goal: Sell at top of channel or buy at the bottom of the channel

3.  Swing Markets

Defined: Catching major trends but getting in later than most regular trend followers

Goal: Wait for pull back and then buy or sell in direction of trend

4.  Volatile Markets

Defined:  Market that has no particular direction and has very large swings and reversals

Goal: Look to take advantage of break-outs and large spikes

Popularity: 1%