Categories
Day Trading

Emini Scalping – Why Some Traders Succeed and Others Don't When Scalping Index Futures

A great deal has been written about trading over the last ten years since online trading has increased exponentially, with there being no shortage of trading systems and methodologies utilized by individual traders. Although traders compete against others within the financial markets on a daily basis, trading itself is an individual occupation which will rapidly reveal to a trader their qualities, strengths and their weaknesses. In this article we are going to explain why some traders succeed at emini scalping and others fail miserably at this form of index futures trading.

Emini scalping is a method of trading where the futures trader will enter a position and quickly exit the trade, profiting by "scalping" only a few points. The trader is not looking for huge gains, but only for a successful trade with a small profit. The emini trader may execute large numbers of trades throughout the trading session which can add up to large gains at the end of the day.

Any method of trading requires a commitment to discipline, no matter if the market participant is day trading stocks, swing trading options or scalping emini contracts. If the index futures trader is going to utilize a emini scalping method, he must be committed to this method and not change his trading system once this commitment has been made. A trader may start the day planning to only scalp trade the entire day and enter their first position. After they gain a few points and knows they should exit the trade, they decide to change it to a day trade and hold longer since the market appears to be running.

Their excitement quickly turns to disbelief when the market quickly reverses and turns against them, taking back the points they once had and are now underwater on the trade. Disbelief quickly turns to frustration as the market goes lower and eventually turns to fear as the market continues to go further against their position. At this point the trader exits their position with a loss and anger sets in as the trader realizes if he had stuck to his original plan of only scalping a few points, he would have been profitable.

Scalping the emini futures market is a profitable method of trading and is utilized with great success by veteran traders. Only by purchase to a system of trading and following the rules of that system will a trader be successful. Changing methods after purchase to a trade will sometimes yield profits, but will eventually lead to disaster when the trader lacks the discipline to follow the rules of the trade. Greed, desperation and lack of discipline are most often the culprits that spell the demise of a trading career.

Categories
Day Trading

Forex Secret – Forex Literature As A 90-95% Of The Traders Lose Their Deposit (Part II)

(See beginning of this article under name Forex Secret. Forex Literature As A 90-95% Of The Traders Loose Their Deposit. (Part I)

B. Williams quotes 5 bullets killing a trend, whereas I exemplify their insufficiency and I add up 11 more thereto, not denying the above 5 of them.

B. Williams idealizes the Elliott wave theory, whereas I show that the combination of fives and threes is none the idealizable, otherwise a mankind 100-year development project could have long been elaborated on the basis of Elliott waves pattern, leading to exasperation at the fact that humanity progress does not follow Elliott and Williams. The other thing is that nowadays brokers have mastered the job of manufacturing more waves out of the 5 initially.

The aforesaid is applicable to each of the 20 problems of Forex.

A portion of my live Forex trading methods are to be found in this book, while the other portion thereof is forwarded upon request. Those eager to continue training under my supervision as well as to trade live, please, feel free to contact me on my e-mail address below.

It all could be funny unless it were sad. But IT IS sad, because the above examples are scaring in number. Bearing it in mind, do, go again through excerpts from distinguished scholars books:

– Awesome Oscillator (AO) serves us keys from the Wonderland;

– Accelerator Oscillator (AC) gives us with significant superiority over other traders;

– using AO is similar to reading tomorrow’s “Wall Street Journal”, while using AC is reading of the day-after-tomorrow’s issue thereof;

– by using AO solely, one may attain profits even without any knowledge of current rate; should the oscillator turn down, one may merely ring one’s broker and say: “Sell at the market price!”.

As You have guessed, these are extracts from B. Williams’s “New aspects of Exchange Trade”. Have You read the thing? And now, please, give a glance to the a foregoing figure, depicting the way, the vaunted Williams’s indicators may entail an abyss of losses.

But what truly makes my blood boil is as follows. B. Williams is a professional psycho therapist and his narrative style is none of an incidental one. This is a suggestive method by virtue whereof he attempts to demonstrate the exclusive, correct and faultless nature of his trading technique. The “faultlessness” is to be discussed in an individual chapter, and my only claim here is that I can easily draw hundreds of examples, where one can bump into loss by way of following Williams’s indicators.

By myself, I am an advocate of theory of chaos. But this theory is disclosed by Williams in a very primitive and a superficial manner, which fact results in his blind follower losses. As to the author, he resorts to propaganda methods instead of providing a clearcut distinction between the cases, where the above theory is 100% effective and those, where it is not.

Williams could have explained to his admirers directly, that in these certain instances the theory is to be relied upon, while in these instances it is not to. The difference is in this, this and this. In the former instances one should necessarily enter, whereas in the latter instances one should abstain from entry. But the guy haven’t done the job (due to either not being desirous or to not having sufficient knowledge).

I was a success in finding out distinct operability criteria of the Williams’s technique. To achieve this, I had to improve the Alligator, by virtue whereof I enabled my students to easily pinpoint the difference between the Williams No.1 option (a trend, encouraging profits) and No.2 option (a flat, inflictive of losses).

By the by, it is supportive of the chaos theory methodological correctness and of imperfect Williams’s method structure, plotted on the basis thereof. Instead of acting upon the trader’s consciousness Williams resorts to forbidden subconscious programming procedures, thus stimulating man’s inherent and acquired instincts as if saying: “If You want to get rich, follow me! My method empowers one to trade without a single glance at a price! The Awesome Oscillator constitutes a key from a Kingdom!” Etc., etc., etc…

Hence, only 1 of 20 Williams’s followers exhibits Forex-earning capabilities in a most favorable environment. Thus, under this statistics, B. Williams is better not to be idolized, the way he has been by the crowd of his admirers. On the other hand, other Forex maestros’ trading techniques are far worse than that of B. Williams. So, let’s continue illustrating Forex truisms being erroneous in live trading.

– The “Theory of Chaos” of B. Williams. The author has not advised what should be added up thereto. A separate chapter here is dedicated to the issue.

– Trader’s psychological problems. I haven’t found any revelations pertaining to THE WAYS OF ELIMINATING THESE PROBLEMS.

– The issue of a stop-loss order is certainly important: even under trend hedging is an indispensable protective shield against market surprise. But is the problem too far complicated to require a dozen pages’ elucidation? Has the author beheld any secret? Wah! He hasn’t noticed anything but he still has repeated all that wanders from book to book on Forex.

Once I was stunned by a question put forward by one of my students after having read B. Williams’s “Trading Chaos”: what’s the use of giving so much attention to the stop-loss problem and above all what’s the good of chewing over the role of safety cushions in the automobile industry as though readers are down with minority?

Doubtlessly, it’s funny reading that Williams has never violated traffic regulations, priding himself on the occasion. Any psychiatrist could tell a hell lot about such a personality type, although, I should admit that Williams is American, not Russian.

Drawing picturesque, memorizing examples, each scholar is right to insist on protective barrier placement as a loss killer. But there is hardly anyone to introduce certain novelty into the issue and to disclose the secret as to what there should be in the trader’s store besides a stop-loss to insure against his deposit melting and extra losses. A separate chapter here is targeted at the issue.

I have shortly come across an aphorism: “Genius is not to the effect, that nothing can be added thereto, but it is to the effect that nothing can be deleted there from”.

If You go through numerous books on Forex at this aspect angle, You are sure to surprisingly find out that 90-100% of their contents may be subject to withdrawal. WHY?

BECAUSE nothing new and 100% correct is offered therein. Instead, reiteration is going on of what is familiar to any professional, since everyone is itching to exhibit one’s originality by way of retelling: a paramount authority of FA over Forex exchange rates; continuation and reversal patterns; a stop-loss importance; a divergence being a component of a trend reversal, etc., i.e. book-to-book travelers.

“An outstanding Forex trading techniques” and “a genius scholar”, etc., making their appearance in books’ abstracts and annotations are off springs of 1% originality added up by an author to 99% of common knowledge.

Sale is publisher’s primary target, giving birth to “genius” mediocrities and plagiarism. Standing separately among these books are opuses by B. Williams, being admired and scrutinized regularly by the majority of scholars and by myself. But EVEN HE cannot be qualified as “genius” with account to the above formula. He is rather “eccentric” than “genius”.

The thing is not, that his technique is addenda-allowing (this fact backs the correct Williams’s choice of the chaos theory to be applied to Forex) and I easily managed to add 11 trend-assassinating bullets to the 5 of Williams. The thing is that a number of Williams’s postulates ARE WRONG and thus loss- inflictive. These can be and should be subject to removal.

CONCLUSION: I guess, it’s understandable by now, that script-writing has turned to be business for scholars, incorporating additional advertising and additional charges for their students. However, the above is not worth millions Forex losers sacrifice.

Much more respect-triggering is Warren Buffet, having made a minimum of USD40 bn at the stock market without writing any books on his trading tactics. W. Buffet is the world’s second-rich man after Bill Gates, although this fact being thoroughly doubtable. B. Gates is supposed to declare the whole of his income obtainable from the Microsoft Corporation, whereas W. Buffet, being a trader, is sure to deem himself entitled to show the Inland Revenue what he really wants to.

The difference is fairly evident. The profit obtained from US companies, constituting the Gates official fortune major portion, may be kept track of, as well as the offshore profits may sometimes be properly checked. But Buffet’s profits attractable at all. Do You expect a man, lending his own daughter a sum of USD20 against a receipt, to allow ALL of his profits to be taxable by state? Or a moderate portion of profits is sufficient, yeah? It is entirely his job, whereas we are to learn to gain at least a spoonful of what he has acquired during 40 years of his activity at the stock exchange.

Thus, to cut it short: a classical Forex literature exhibits but an anti-scientific unsystematic nature, constituting a “crise de genre” and triggering losses among 90% of beginners, abandoning Forex market.

In what does science differ from a philistine and amateur effort? In a systematic and objective nature, in a methodology perspective. In there any of the above to be found with scholar literature on Forex? No, but instead there is in abundance:

A. Tautology and absence of new approaches. From book to book world-distinguished scholars feed traders (as if the latter were silly little chaps) with stories about R&S levels importance, technical indicators, continuation and reversal patterns, etc., which is as interesting and instructive for a professional trader as ABC reading is for a professor of philology.

B. Absence of integrity. Individually, it is all clear: Elliot waves, Fibonacci levels, resistance levels, reversal patterns, etc. But what’s the way it all is interconnected and integrated? In what way it is influential over each other? What is primary and what is secondary? Imagine a doctor diagnoses and cures patients without a slightest idea of interaction of digestive, cardio-vascular and other systems.

This is what exactly happens to Forex beginners. They are sure to have learnt something, but they are being muddleheaded instead of having a systematic knowledge. Medical students undergo a course of anatomy. Geologists and military men make use of topographic maps. And what do Forex beginners have to this end? You are free to interrogate any scientist if he has knowledge of parts of science without having knowledge of the whole. Guess, what he’s gonna answer? And now give consideration to what is being currently published on Forex and being accessible to anyone. Thereafter You will easily “evaluate” the “outstanding contribution” made by each of Forex scholars.

4. Methodology and techniques subjectivism and absence of objectivity. See live scholar, Th. Demark’s “Technical Analysis As An Emerging Science” recommending to manually draw R&S lines from the right to the left instead of so previously doing from the left to the right. The book’s preface qualifies it to be “refined techniques built during a quarter of a century of a laborious scrutiny of market tendencies and projecting methods”. And thereinafter: “Demark’s empiric-data strictly scientific approaches are in striking difference from an artistic intuitive one thus constituting a rational basis for dynamic systems, mechanically outputting market signals.” But, with having not disclosed his system’s essence, is Demark aware that his subjective Forex trading suggestions may happen to entail severe mistakes. Yeah, he substantiates his viewpoint in chapter “Why price projections may not go into effect”: “…due to no technique being perfect”. Good a science with “no technique being perfect”!

Demark is looking rather a philosopher, than a trader with his tirade being nothing but a sophism, made use of as back as in ancient Greece to provide grounds and protection for any kind of absurd.

In accordance to Demark, “a mistake becomes obvious the next day as soon, as the first deal price is registered”. I am itching to ask the scholar: “How many points may a currency travel in a wrong direction during an earth day?” I am answering myself: 100 pts or 200 pts or more. Demark diagnoses: “This instance evidences a breach, indicative of a new opposite tendency”. Well, I’ve got it.

Once there is loss, one should loss-close and enter oppositely.

Take a look at the picture below:

Fig.10. EURUSD H1 chart as of March, 22 – April, 18, 2005 manifesting a month-long flat. (See Note below)

How many days should one per-Demark loss-close with the rate repeatedly swiveling as though to Demark’s ill luck? The scholar has to be asked, how large should a trader’s deposit be to survive Demark’s experiments, being ranked “refined techniques” and “strictly scientific approaches”, “cardinally different from others’ “, less scientific ones, as I can guess.

The opus author will again fall soothing upon You: “One oughtn’t to expect herein outlined technical methods and indicators to offer profits and not to entail losses. Forex trading involves both: a profit opportunity and a loss risk. Preceding results are in no way guarantor of perspective success”. Further on, with greater cynicism and hypocrisy: “Should You be seeking a trading panacea, put this book aside: it’s in no way helpful to You”. Well, what’s the use of buying the book at such price?

Demark, by the way, gives the interpretation of his book’s objective to be “fuelling readers with methodology, encouraging one to systematize various TA techniques”. Great! I thought, it were a new discovery of Forex regularities to be delivered to traders. But it looks, like the scholar has plunged himself into systematizing earlier 50%-correct discoveries without taking any pertinent responsibility.

Hence, no avail to purchase the book and to litter one’s brain therewith, since Forex rates enjoy 50/50 up-down travel chance, even under the probability theory.

Thus, not too much understandable, where Demark’s scientific approach manifestation is to be searched, whereas the essence of things is incomprehensible once the reversal results come evident after an earth day only with no reference to his book.

John G. Murphy, another Forex scholar, outlines in the preface, that the “less art – more science” slogan is specially topical now that greater entities begin taking interest in this area.

As to myself, I have truly appreciated the preface writer Murphy joke as being filled with subtleness and tristesse.

Now, pertaining to science-to-practice correlation and theoretical conclusions implementation… How many scholars of those hundreds referred hereto resort to live examples while teaching long and short entries and close ups thereof? Very few of them:

– B. Williams “Trading Chaos”, “New aspects of Exchange Trading”;

– J. Murphy “TA of Futures Markets”

– S. Nisson “Japanese candlesticks. Financial markets graphic analysis”

– A. Elder “Basics of Exchange Trading”

– L. Williams. “Long-Term Secrets of Short Term Trade”

– Ch. Lebo, D. Lukas “Computer Analysis of Futures Markets”

– D. Swagger “TA, Comprehensive Course”

… and hardly few more.

Disappointing enough, but it is fairly lucid why 90% of beginners mutate into failures and abandon Forex.

By way of getting familiar with the SYSTEM, one will suddenly realize how smooth are Forex artifacts to get apparent one from another, e.g.: M5 Elliott waves constituting M15 wave I, this wave being but H1 and H4 corrective within certain Fibonacci levels.

One gets clear vision of what all the Forex-traded currencies are doing now and what they are going to in half a day. Williams did have grounds to claim, he needs several tens of minutes to analyze tens of charts. He DID have understood Forex as a system, though he has offered but the system components portrayal in his books. Depending on where utilized, the Alligator may appear to be responsible either for a profit or for a loss. But Williams has not even taken pains to present a differentiation between the Alligator being a profit assistant and the Alligator being a loss bringer.

The above is conditioned by the Williams Alligator being a great TA tool, but pertaining to a certain AREA OF Forex only. Other areas require other TA facilities. I will do my best to teach You to effect proper estimation of long-term and super short-term entries being appropriate for the moment.

I will also dwell on why it is not difficult to add extra 11 trend-killing bullets to the 5 of Williams’s; why it is easy to build up a currency travel vector daily projection. The whole thing is minimized to several criteria, being constantly effective irrespective of currency intentions. As a result, You will not have to monthly pay quacking mountebanks’ impotent daily forecasts.

But now let’s move on with Forex scientific criteria. Stagnation and dogmatism are alternative attributes of Forex folios’ anti-scientific substance. Have You ever come across a criticism of any Forex-oriented theory? I mean a weighed objective criticism, assigning credits to the author for elaborating a revolutionary theory, which has by now got obsolete due to a number of objective reasons and thus requires improvement, i.e. replacement.

For instance, I have found nothing of the kind in relation to the 100-year old Dow theory, originally incorporative of benign principles. But life goes on, and there seems no reason to head-hammer life-rectified Dow’s postulates:

– a long-term trend (primary, basic as per Dow) being several years long. Curious enough to spot a currency pair to stand open for so a long period;

– a medium-term trend (intermediate tendency) being several months long. As per Dow, the MTT is opposite (corrective) to the basic trend;

– a short-term trend, not exceeding 3 weeks and incarnating minor fluctuations within the intermediate tendency;

– intraday trend being per-Dow midget ripples, not worth paying attention to.

You are now welcome to take a close look at the figures below, as of October, 2004 through March, 2005.

Fig.11. EURUSD D1 chart. (See Note below)

Fig.12. GBPUSD D1 chart. (See Note below)

CONCLUSION: This theory of Dow’s might be deemed effective rather till late 80s, than presently.

Nowadays, with 3 pips spread, 50-200 pips pullbacks and trends not exceeding a week, the Dow theory

MUST BE recognized as being despairingly obsolete and trader-hostile, since, under a 3-pip spread, it is, certainly, top of recklessness and stupidity to stand open for months or years. A different trend classification is to be called for, meeting updated Forex environment standards.

I guess there’s no need to continue being proponent of the fact that presently Forex theories are obsolete in their majority, with this sort of methodology being requisite for analysts rather than for traders. As opposed, I hold it more appropriate to forward my entry and exit technique to traders willing to conduct successful and loss-safe trading.

By way of prompting: please, attempt to view Forex as a system inclusive of components being familiar to You: Elliott waves, reversal patterns, Fibonacci levels, MAs, ally currencies, etc. All the above staff is integrally intercommunicative rather than existing individually, the way, each organ is in the human body.

I DID have understood it, and I realized the way B. Williams is able to analyze tens of currencies within tens of minutes in order to execute correct long and short entries.

It may look surprising to someone, but a qualified doctor is capable to diagnose Your body hazards after a short examination and talking to You. The doctor has actually examined but several organs, but his knowledge system has empowered him to jump at wider conclusions, as Williams at Forex.

GROSS TOTAL. Steady and regular Forex profits are real opportunity. There is hardly another area which enables one to knock up a fortune without having rich aged relatives abroad, without having to join one’s native country’s throughout corruptible authorities or else. If You have discovered THAT ANOTHER area, You are free to get engaged therein. Then, Forex is not likely to be requisite.

Note:

Full text of this article and pictures of examples http://www.masterforex-v.su/

If you wish to be trained on Trading System Masterforex-V – one of new and most effective techniques of trade on Forex in the world visit http://www.masterforex-v.su/

Categories
Day Trading

Know These Potential Risks and Limitations of Candlestick Charting Unknown to Many Traders!

Candlestick charts is a visual representation of the battle between the bulls and the bears that takes place in the market. It takes time for this battle to take shape. Candlestick patterns on the very short timeframes used for scalping and some other day trading strategies may not give signals that can be properly interpreted and traded.

In the last decade electronic trading has become highly popular. What this means is that significant volume of the trading takes place outside of the regular market hours. This trading can cause patterns that don’t reflect the full picture to appear on a candlestick chart.

For example, stock ABC trades on NYSE. NYSE officially opens at 9:30 AM EST for trading. Stock ABC open price is $60 per share. However, this stock had been trading on the electronic network in the pre-market hours as low as $59. Now the open on the NYSE may not be a true reflection of where the stock had been trading initially on that day.

What this means is that the open recorded on the candlestick chart is not accurate. Now, suppose the stock ABC never trades down to $59 during the day. So, the low on the candlestick chart may not be an accurate depiction of the day’s price action.

So, electronic trading makes these charts somewhat inaccurate. Couple this with the fact that on short timeframes, candlestick charts are not very accurate. These charts are good for timeframes of 1 hour and above. Just keep these two limitations of candlestick charts.

Apart from that candlestick charting is a powerful tool in the hands of an experienced trader. When an experienced trader combines these charts with technical indicators, this combination can produce highly accurate trading signals.

Candlestick patterns can be a good buy and sell signal when combined with a technical indicator like the RSI or the stochastic. There are simple as well as complex candlestick patterns. Single stick candlestick patterns are easy to spot however, two stick and three stick candlestick patterns do not appear quite frequently but when they do, they are very accurate and can be highly profitable to trade!

Now Yahoo Finance is an excellent free resource that you can use to create candlestick charts for any stock by just entering the stock ticker symbol. You should play around with the options available for Yahoo Finance. This will help you to learn a lot of new things about candlestick charting.

Categories
Stocks

Trading Psychology – The Number One Goal-Setting Mistake Traders Make in Trading

The number one goal-setting mistake traders make is setting goals related to money.  Active traders will often tell me that they have a goal of making X-dollars a day or X-points a day.  That’s just not a good way to structure a goal.  

Trading Goals Related to Money 

What happens when the market trades in a very narrow range?  Typically, price movement will remain within the first hour’s range throughout the day.  That range might only be 5 or 6 points — too narrow to offer much trading opportunity.  It is very difficult to make money on such narrow range days.

So, if you goal was to make X dollars a day how do you do that on a narrow range day?  Since it is nearly impossible to make good trades on such a day, you would have failed to achieve your goal.  And, if you couldn’t read that the market has narrowed its range and instead tried to reach your money goal, you would have likely been trying to trade at every little turn and wound up over trading a choppy, range-bound day.  At best your money goal had set you up for failure because you couldn’t achieve it.  Worse, your money goal caused you to force trades in a choppy market, and maybe you lost money.  Goals that promote failure, poor trading habits, and losses are not useful goals.

A Better Trading Goal

A better goal focuses on your development as a trader.  It will help you improve your trading knowledge, skills, or abilities.  Rather than thinking about money, think instead about the process of trading.  The process of trading simply refers to the skillful actions a trader takes in trading effectively.  A useful question to ask is:

What trading process, if I were to improve and develop in this area, would add to my ability as a trader? 

Example of a Better Trading Goal

An example will help to illustrate how to do this.  Let’s say you want to improve your ability in trading trends.  You have done a self-assessment of your trading on trending days and find that your greatest limitation is that you tend to counter trade the trend.  A simple solution might be to notice whether the market is moving with momentum and making higher lows and higher highs (for a bullish trend).  A useful process goal then becomes:

Prior to taking a trade that fades a move, I will assess whether the market is moving with momentum and making higher highs and higher lows.  If it is trending, I will not take the trade.  I will execute this process on at least 85% of all trades considered over the next 20 trading days.

Note that this goal is useful because it builds skills and ability in assessing market movement.  It also keeps the trader from taking poor quality trades.  The next step for this trader would be to develop a goal to execute trades consistent with the trend – again, a process goal.

Trading goals should be designed to help you achieve.  Goals related to money, points, or other ‘stats’ won’t help you do that.  Work on trading goals that are related to achievement by helping you to develop your trading skills.

Categories
Stocks

How Much Do Day Traders Make?

The question of how much money day traders make is difficult to answer not only because the answer will vary from trader to trader, but also because the vast majority of traders don’t publicly disclose their incomes in the same way that other professions do (although I disclose my verified trading results because transparency is very important to me). Thus, while most people have a general idea of the salary range for a lawyer or a teacher, the income level of a professional day trader remains shrouded in mystery. Before I tackle the question of how much a professional trader makes, it’s important to note that this article is not meant to be conclusive and is based just on my own experience. Your results as a day trader will depend on your skill, your account size, the instruments you trade, and a host of other factors. Let’s first start with the main problem when estimating the average income of a day trader: survivorship bias.

The Problem Of Survivorship Basis

Survivorship bias refers to the skewing of results incurred when focusing only on the people who have survived the day trading learning curve. While the exact numbers differ from study to study, the vast majority of traders fail before becoming profitable. Thus, an examination of the average incomes of current day traders can’t account for the people who failed at day trading and are now pursuing other careers. With that said, I’m going to give you an idea of possible income ranges for professional day traders by separating traders into different skill levels, akin to how major league baseball operates.

Amateurs

The first level of traders are like amateur baseball players in that they currently don’t make enough money as a trader to fully support their lifestyle. I characterize any trader making less than $50,000 a year as an amateur. While every trader has to start at this stage, being an amateur is typically transitory; if a trader is stuck too long at this stage, he’ll probably get a job at some point.

Minor Leaguers

These traders have shown promise and have the talent to enter the major leagues of trading. Any day trader making between $50,000 and $100,000 a year can be thought of as a minor leaguer. Traders in this category will typically have solid fundamental skills and a strategy they are confident in. Getting to the next level will require adding more size to trades and adding more strategies to diversify their trading.

Major Leaguers

These traders have beaten the odds and are consistently making six figures a year, placing them in the major leagues. Any day trader making between $100,000 and $500,000 falls into this category. These traders are trading larger size than those in the minor leagues and are typically more experienced as well.

All-Stars

The all-stars in day trading consistently make between $500,000-$1,0000,000 a year. These traders have excellent fundamental skills and utilize a variety of trading strategies, and also typically possess some creativity and market intuition not found in other traders.

Hall Of Famers

Quite simply, these are the best day traders in the world and they consistently make over $1 million dollars a year. These traders will typically have at least five years of experience and are trading very large positions compared to other traders. Very few day traders reach this level.

Conclusion

While the income of a professional day trader can obviously vary greatly, the above categories should give you a general ballpark of how much a day trader can make at a given skill level. It’s important to remember that just as every baseball player started off in the minors to hone their skills, so too must traders work on their skills before becoming the cream of the crop. As you can see, the financial rewards for becoming an elite day trader are impressive.

Categories
Currency Trading

Five Major Forex Trading Mistakes That Traders Make

Forex trading is undoubtedly a great money-making platform. However, fact is even the most experienced traders tend to make mistakes that cost them in the long run. This samples a list of some of the greatest mistakes that forex traders commit and sheds lights on some of the best strategies that you can adopt to avoid such pitfalls.

Not having a proper plan

This is virtually one of the greatest mistakes that traders make in the market. In the absence of an effective strategic plan, traders work in the market based on speculations and as a result they meet losses and they end up putting the blame on their brokers instead. Without a clear definitive plan traders usually do not have a clear judgment on when to stop in the market and the right amount of money to invest initially. At the end of it all they end up spending minimal time in the market before they are kicked out of business.

Unrealistic goals and expectations

Most traders tend to set rather unrealistic goals and objectives in the market and usually expect monetary returns too soon. However, they eventually end up committing too many mistakes in the cause of their trading not realizing that it requires a lot of patience and tolerance for one to be able to start enjoying lucrative profits.

Not having protective stops

Also most traders end up being pushed out of the forex market since they do not use protective stops. With protective stops you are able to gain a broad knowledge base of exactly how much money you ought to invest and whether you stand a chance of earning profits or not. Protective stops are undoubtedly effective money management tools everyone should use.

Excessive leverage

Another common mistake that traders make in the market is taking out excessive leverage. Traders should have clear definitive picture of how leverage works and how exactly they can use it to make profits. Exercise a lot of caution when it comes to using leverage and see to it that you do not lose capital in the event that an abnormal move is made against you.

Overtrading

There are traders who tend to overtrade and they eventually suffer from lethal losses. If you notice that you are incurring losses as you trade then you should put your investments on hold. Instead of persisting to trade to overcome the losses you should put your trades on hold first and focus your energies on diagnosing the reasons as to why you’re trading is failing and find strategies of correcting the same.

Categories
Currency Trading

Millionaire FX Traders – Lessons From Them for Forex Trading Success!

In this article, we will look at some lessons from a group of ordinary people, who learned to trade in just 14 days and then went on to make hundreds of millions of dollars. You can learn a lot from this group of people so lets look at how they achieved stunning Forex trading success after just a few weeks training.

The paradox of FX trading is easy to learn yet very few succeed. In fact, the amount of traders who make money is a minority of just 5 percent. If you learn how our group of super traders learned to win, you will understand how they made money and how you can too.

The story started when a famous trader called Richard Dennis, decided to teach a group of people who had never traded before to trade. he selected some people and they were from both male and female, of different ages, of varying levels of intelligence and the group included:

A kid just out of school who had never worked, a security guard, a lady accounts clerk and an actor and Dennis then set about teaching them to trade.

They learned to trade in just 14 days and the rest is history – they piled up hundreds of millions of dollars in trading profits and many still trade successfully today. So how did they manage to achieve success quickly, when so many traders fail? Lets take a look in more detail.

The trading method wasn't complex or over loaded with indicators, it was simple! The trading method followed price action on a charts, locking in to big trends via breakouts which is a proven way to make money.

The system focused on the long term!

Most traders like to scalp and day trade, they make a lot of effort and lose money. The group of traders who Dennis taught, did the opposite and focused on the big trends which last many weeks or in some case months and held them for huge profits.

The system lost the majority of the time and around 70% of trades lost money but the ones that made money, made huge profits. This allowed the traders to pile up triple digit long term profits and still lose the majority of their trades.

The method was easy to learn but following it was hard, as many of the traders have since said in interviews and books on the experiment. However, they knew they had to hold their discipline and cut losing trades quickly and run their profits to win and they did with spectacular success.

No one likes to lose, we all have egos – but if you want to win at Forex trading you must learn to take losses and keep them small.

Most traders can't do this and lose. To enjoy currency trading success, you must learn to cut losses or you will end up losing too. Be smart – lose your ego and accept losses and run profits and you can achieve success.

Why You Can Achieve Forex Trading Success

If you have understood the article you will see why the majority of traders lose and how you can win. Learning a FX trading system which can make money is easy but you need to right mindset to win and this is the reason why most traders fail.

The right mindset for success though is a choice and if you want to enjoy success, make the right choice and your on the road to long term FX trading success.

Categories
Currency Trading

Currency Trading Tips For Serious Traders

There are a lot of currency trading tips available online but in this article, I will only be going through 3 most important tips that have changed my trading experience and make me who I am today.

Making an income from currency trading is not that hard but it is not that easy either. Most new traders thought that having a good strategy is enough to make them a decent income and therefore they are always in search for the best trading strategy available.

What I am going to share with you are 3 important factors you need to know besides having a good strategy.

1) Execution Skill: Having a good strategy does not means that you will be profitable, it depends on the way you execute it and how you plan your trade. Two traders can be trading the exact same strategy but I can assure you that the result will differ.

Therefore the key to successful trading lies in your training, you need to always practice your trading strategy on a demo account until you are able to execute it properly and profitably before moving to live trading.

2) Exit Strategy: For most traders, they are interested in knowing how to enter a trade but knowing how to exit your trade is just as important if not more important. Usually it is the exit strategy that determine whether a trader is profitable or not. Therefore you need to horn your exit tactic in order to be profitable.

3) Money Management: Having a sound money management skill is very important in the area of trading. Fancy losing all your profit in one single trade and you will never be profitable throughout your trading.

All serious traders should spend sometime to learn the proper money management skill as it can determine their success.

The 3 currency trading tips above are what I find most important for a trader and I hope that you can benefit from this article as well.

Categories
Currency Trading

Forex Megadroid – The Trading Robot That Makes Small Scale Traders Swim in the Big Forex Ocean

Many traders today use trading robots to get ahead in the highly competitive world of forex trading. There are many brands of trading robots out there with varying levels of effectiveness, price, and trading styles. From big time traders to those who trade at smaller scales, there is a robot that will suit their trading styles and preferences.

The Forex Megadroid, a creation of the trading experts John Grace and Albert Perrie, enhanced currency trading with its patented software called the Reverse Correlated Time and Price Analysis. This software program is what enables this robot to do its analysis, forecasts, and trading. By using this robot, traders are assured by the creators that their chances of winning will increase.

Unlike other robots, the Forex Megadroid only trades with one currency pair, which is the Euro and US dollar. With just one currency pair to focus on, this is ideal for those who have just started with currency trading.

The trading style of this forex robot is less aggressive and thus will suit traders who want to participate in trades that are less risky. This is because the Megadroid trades more selectively than other robots. This way, the robot ensures that the chances of getting profits are maximized and the losses that one might incur are minimized.

One other thing that this robot do that makes it ideal for new or small scale traders is that it can handle the live trades by itself even if the trader is not around. So the trader can do some other personal business that needs his attention and go back to trading when one is done with that errand.

As the familiarity of the trader increases with frequent use of the software, he can become more comfortable and confident in currency trading. He may be able to tweak the settings of the Megadroid later on so that it will be more customized according to his preferences and willingness to take on higher risks. Indeed, the Forex Megadroid has made it a lot easier for new traders to adjust and even excel in currency trading.

Categories
Stocks

Forex Day Trading – Why Day Traders NEVER Win Long Term

If you are new to Forex trading you may consider day trading but beware of the fact that day traders ALWAYS lose for the following reason:

All short-term price volatility is random

There are countless millions of traders each day that trade trillions of dollars worth of currency and to say that you can measure what they will do in a few hours or a day is the biggest myth of currency trading.

THE PROOF

You may say that you have seen forex trading systems that claim profits and what they do is claim and NEVER produce a real track record.

You normally get the following:

1. Outrageous Claims

Advertising copy pure and simple, with no substantiation – designed to appeal to the greed and naivety of the buyer.

2. A Hypothetical Track Record

Let me explain what this is, for those of you who don't know:

It's a hypothetical track record done in hindsight KNOWING the closing prices! How hard is that?

Anyone can do it and there not worth the paper they're written on. The fact so many traders don't question them or don't ask for a real track record, means they lose and wonder why.

Anyone can make money knowing the closing prices but in Forex Trading you don't get that luxury – its what makes forex trading so hard.

The reason you don't get a real time day trading track record is simple – day trading DOESN'T work.

If it did you would see a day trader with a real track record but of course if you try and find one you're in for a long search.

Day Traders don't make money – PERIOD.

If you want to make money with forex technical analysis you need to trade in time frames where the data can help you get the odds on your side and this means normally data of a few weeks minimum, not a few hours.

Think about it – if you have random volatility that can and do take prices anywhere in a day, its impossible to apply any technical tools to it. The tools maybe good but the data is unreliable and that's why day traders lose.

The proof is a real time track record and you wont get one in day trading – try asking one of the vendors who try and sell day trading systems for one and get ready for a long search.

Day trading does not work and never has and it's one of the biggest myths of trading that forex traders fall for – dont fall into the trap or you will lose to.