Here are some final comments to add more thoughts about
various topics pertaining to this system. Each comment is
preceded by “<<<>>>” to separate them.
<<<>>> Check out chart 5. This is a snapshot of this trading
week that all the examples used in report came from. This is only
EUR/USD. If you look at it you should see that there were about
a dozen price explosions that could have been traded
successfully. Go to look at your live charts now and view
EUR/USD in a 5 minute candlestick view for the past five days.
Zoom in a bit to get a clearer look. Find the candles that went up
20 or more pips and mouse over them to see their time. How
many of them were for 8:35am EST? For the rest of them
compare them to the times posted on a Fundamental
Announcement calendar. What you will likely notice is that most,
if not all of them, will correspond with announcements. How
many valid trading opportunities were there that week? How
much money could you have made had you traded that week?
This alone should be proof enough that this system works!
<<<>>> I thought I should include the comment that I realize that
this strategy goes contrary to what professional traders
recommend. The usual practice is to avoid trading just before
Fundamental Announcements as they throw off technical analysis
temporarily and you are encouraged to avoid such volatility, and
practice good technical trading. I would normally agree with that
sound advice, however this strategy is designed to capitalize on
that volatility. It doesn’t matter which way it goes, up or down,
with or against technical analysis, for you to profit from it. If it
moves against what the technicals are saying then it often
corrects itself shortly, long enough after you’ve made a profit.
Remember, do your technical analysis and if the price jump
agrees with your analysis then that could be an excellent way to
enter the market with less risk than entering in another way with a
60 pip stop. In other words if it goes against the
trend/expectations then take your profits and run, but if it goes
with the expected direction then move your stop to prevent any
loss, and even to secure some profit then let it ride as discussed
in the “Gone Surfing” section of this eBook.
<<<>>> I have included some free eBooks that you can download
from the resource website. I recommend that you read them.
<<<>>> I often look back and use the highest highs & lowest lows
from earlier candles (3 and 4 minutes before announcement time
– sometimes even a few more) if they seem to be jumping wildly.
Sometimes if I feel a bit uncertain I might even pad my spread by
15 pips rather than 10 (keeping 10 pips as stop though). This
usually leads to less whiplash and lowers the risk of getting
entered into a trade if it results in a dud. Remember, it is a dud if
by 3 minutes after announcement time if prices haven’t jumped
and immediately cancel your orders.
<<<>>> You could work this system for virtually every
Fundamental Announcement, however you would be wasting your
time for the most part. The highest likelihood of getting the jump
you are looking for is when there are multiple (two or more)
announcements from the same country at the same time,
however a jump can occur even from a single announcement
(and if the announcement seems like an important one, like
explained in the “Key Announcements” section above, then you
may want to try it). Also notice when there are announcements
happening at the same time from two different countries (i.e. US
and Canada) then trade their currencies (i.e. USD/CAD). Bottom
line is that there aren’t any scientific strict rules to follow, it is more
subjective, and a bit of luck helps too. Pick what appears to be
the five or six best opportunities from the announcements
calendar for the week and just focus on those. Don’t waste your
time trading every announcement. Some weeks will be better
than others. Remember, with a little practice you’ll get a feel for
what to look for.
<<<>>> Spend a little time researching on the web about
Fundamental Announcements to understand what they are, and
to gain a better sense of what kinds of announcements should
have a higher likelihood of causing the sought after price
explosions. Remember, successful traders will do what
unsuccessful traders won’t do. So gain an edge by educating
yourself a little about this subject.
<<<>>> I have found that 8:30am EST so regularly has price
explosions that I’ve set it a standard trading time to attempt every
trading day that has some sort of announcement at that time (as
this is the time that the US usually releases important
announcements, and because it is so close to the beginning of
the European/N.American market overlap). It consistently creates
price explosions to trade using this system, I’d say a guesstimate
average of 2 or 3 times a week. If you were to do nothing more
than trade this time each weekday, working only one hour per
week (actually only 50 minutes if you spent only 10 minutes a day
doing this), then this alone could result in full time income for you
(depending on how many lots you trade and how many pips you
actually get – i.e. if you got 60 pips from 3 trades with a limit of 20
pips trading two lots would be $1200, but if you successfully baby
sit your trade for a while it could be even more! If you have a
larger margin account then you could trade to earn even more,
just multiply the numbers by how many lots you can safely afford.
The best currency pairs are EUR/USD & GBP/USD, and a
secondary choice would be USD/CAD & USD/CHF (if there is a
specific reason such as a CAD announcement at same time, but
generally stick with EUR or GBP).
<<<>>> This eBook is kind of slanted for trading times that are
convenient for me, but please know that no matter where you live
(N.America, Europe, Australia, Japan, etc…) this system works.
Hey lucky Europeans! If you are European then you are luck to
have most trading opportunities during the day so you won’t have
to wake up in the middle of the night for most of your trades.
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