I’m often asked ‘What is Swing Trading and why do it, rather than Intra-Day trading? This post is an attempt at answering that question and also to highlight my view on the Pros and Cons of Swing Trading. Continue reading
The Traders Forum is a ‘Mastermind’ group formed with the aim of raising the bar from the usual so-called Trading Events, free Seminars and low-cost workshops. It is aimed at both active and aspiring traders with some trading knowledge. Plus it is also designed to be a sociable inter-active occasion for net working with like-minded people and for seeking knowledge from seasoned traders without the usual attempts at a hard up sell at the end.
You may be thinking, ‘what has this blog post title got to do with trading?’. Well, if you do some research you will find that the greatest volume of trades in the Forex markets are actually SPECULATIVE.
If so, then perhaps you need to think like a speculator. Speculators are always on the look out for the next big idea, trend or thing and want to get in early in order to maximise their returns. Continue reading
For several years now I’ve helped Paul Wallace run the London Traders Forum – a once-a-year all-day event for Traders to come together, learn and socialise with each other.
This year’s London Traders Forum will be on Saturday 6th October 2018 in Central London. Please put the date in your diary and keep your eyes peeled for details and early-bird opportunities.
In the meantime the next event will be the Q3 Online Traders Forum on Saturday 7th July.
This is a new initiative from traders, for traders. The idea is for it to be a short, intensive 3 hour online seminar that covers various aspects of the 4M’s of Trading: Markets, Method, Money and Myself. The idea is for you to be able to learn some new trading ideas, whilst in the comfort of your own home, and without sacrificing your entire weekend.
The plan is for there to be one Online London Traders Forum the first Saturday of Q1, Q2 & Q3 with the London Traders Forum at the start of Q4, the main all day event.
For the Q3 Event running from 09:00 AM to 12:30 PM BST, we’ll have the following speakers:
Paul Wallace from FXTraderPaul.com and founder of The London Traders Network will deliver the market analysis section focusing on FX, Indices, Commodities (and perhaps some Crypto) and look at where to focus for possible Q3 Trading Opportunities.
Martin Walker of ForexTradingLondon.com will take a deeper look at Price Action, what are it’s constituent parts, and how to identify and read it on your charts. He will show you how to use this knowledge in your trading. Understanding and being able to read Price Action is key to identifying Trends, Breakouts and False Breakouts, Market Turns and much more.
From Dublin, Ian McFadden from the Symmetry Trading FB page will talk about his way of intra-day trading Oil using the CL Futures contract. Ian has traded using Fibs for over 10 years and he will explain how he uses them to analyse Oil and find intra-day trade set-ups.
There is a charge for £20 to attend. Why? Because we’re not selling anything. Its proper educational content rather than a slick pitch in the hope to up-sell you something. Furthermore the sessions will be recorded, and as an attendee you’ll have access to them afterwards.
It promises to be an enjoyable session that will help you grasp the opportunities that Q3 2018 will present. For further information, timings and tickets etc just go here:
Today (27th March 2018) the pan-European financial regulator ESMA released its final proposals to govern leveraged trading, which remain unchanged from its original proposals.
Apart from banning Binary Options, essentially it boils down to the following Leverage limits which the FCA is expected to follow in due course:
1. Leverage limits on the opening of a position by a retail client from 30:1 to 2:1, which vary according to the volatility of the underlying:
· 30:1 for major currency pairs;
· 20:1 for non-major currency pairs, gold and major indices;
· 10:1 for commodities other than gold and non-major equity indices;
· 5:1 for individual equities and other reference values;
· 2:1 for cryptocurrencies;
2. A margin close out rule on a per account basis. This will standardise the percentage of margin (at 50% of minimum required margin) at which providers are required to close out one or more retail client’s open CFDs;
3. Negative balance protection on a per account basis. This will provide an overall guaranteed limit on retail client losses;
4. A restriction on the incentives offered to trade CFDs; and
5. A standardised risk warning, including the percentage of losses on a CFD provider’s retail investor accounts.
So what impact will this have on retail traders? Well you will need sufficient trading capital, but more importantly if you employ robust Risk and Money Management in your trading then these new Leverage limits should not impact your trading of Major and Minor Currencies, Major Indices and Gold. Only those foolish enough to trade without using strict Risk and Money Management rules will be significantly affected. If you trade Individual Equities and Crypto CFDs then there may be an impact.
Using lower Leverage has always been a great way of stopping oneself from ‘Over Trading’, because your trading platform will alert you to the fact you have insufficient funds to open any further trades. So this fact makes a trader be selective about which trades they take and to manage their position size(s) commensurate with their amount of trading capital and the size of their stop loss.
Lastly, if you don’t understand the terms Leverage and Margin then check them out before you take another Live trade.
Top Trading Tip: Always use Robust Risk and Money Management when trading and employ lower leverage to prevent ‘Over Trading’ and exposing oneself to too much Risk.
One of the key elements to being a successful discretionary swing trader is ‘Preparation’. I’ve written about this to some extent before and covered the 5 or 6Ps. The best trades I have had, have all been pre-planned. Thorough preparation before taking any trade, particularly swing trades, tends to pay off handsomely. This entails the following: Continue reading
In previous posts on my Blog I have written about the the 4 Ms and the 5 or 6 Ps. I thought it about time I added the 4 Cs! The 4 Cs came about through Swing Trading. When I am looking for Swing Trades I use Multi-Time Frame Analysis (MTFA) in my trade planning. People have asked me in the past why I ‘laboriously’ look at all the different time frame charts when looking for and planning a trade, rather than stick to a single time frame. Here is why.. Continue reading
As the Brexit Referendum looms, it seems an apt moment to write something about Risk and Risk Management.
The UK Brexit Referendum is clearly a High Risk news event and probably far to close to call at the moment, whatever your view. Other High Risk news events include General Elections, the monthly Non-Farm Payroll (normally the first Friday of every month) and also other events such as the minutes from the Federal Open Market Committee and BOE Minutes and Interest Rate Decisons by Central Banks various.
As a trader you need to be aware of such High Risk events and conduct your trading accordingly. The last thing you need to do is expose your trading account to too much risk in the run up to such often highly volatile events. Better to scale back or not trade than to essentially toss a coin and become in effect a gambler.
There are many ways you can control your risk when trading: Continue reading
(With apologies to William Shakespeare in this 500th anniversary year!)
To Trade or NOT to Trade, that is the question;
Whether ‘tis nobler in the mind to suffer
The drawdown and losses of unplanned impetuous trades,
Or to wait with patience for higher probability setups,
And then to plan and trade them with discipline and calm,
Whilst managing your Risk and being focussed on the process,
And as a consequence, reap fine rewards for one’s labours!
Whilst doing some Housekeeping in my email account, I came across and was reminded of an email I had sent as a reply to a prospective student, who unfortunately could not afford our Personal Mentorship Programme (PMP) lessons. In my reply I wanted to be helpful, so I tried to summarise the Key areas that he should work on until he was in such a position to be able to take advantage of our PMP. Here is the main body of the email, with a few additional tweeks, containing what I suggested:
‘No problem, the key things you need to concentrate on are: Continue reading