Day #1: Forexmentor Pivot Mini Forex Course
*** Stop What You’re doing and consider this ***
I’ll show you how you can get your share of this
US$1.5 trillion-a-day market. You’ll think you’ve
died
and gone to Heaven when you find out how easy it is
to mimic the pros.
Every day, 1.5 trillion dollars float through the hands
of people who aren’t any smarter than you or I are.
It doesn’t make any difference if you’re an accountant,
baker, butcher, retired sea captain, homemaker,
airline pilot, surgeon - or cop on the beat.
If you’re willing to take some direction, you deserve
a
nice piece of the action. You’ll never have to learn zip
about currencies. You will learn the techniques and
strategies to go out and claim what is rightfully yours.
Play right along with the giants of world commerce. You
won’t be on the outside looking in; you’ll be enjoying
the
thrill of a lifetime, riding on their king-size coattails.
TRADING THE FOREX DESERVES YOUR SERIOUS
CONSIDERATION.
Forex trading has enjoyed exponential growth and
widespread popularity over the past few years. It is only
now that online foreign exchange trading is starting to
get noticed.
Until recently, large international banks were the big
dogs in the foreign exchange (FX or forex for short)
market, selectively allowing access via telephone
trading to Fortune 1000 companies, large funds,
high-net worth individuals, etc..
But now, there are online trading firms that provide
individual traders like you and I with direct access to
the largest, most liquid financial market in the
world – the forex. A lot of traders seem oblivious to
this market. This unfamiliarity is the root cause of
misconceptions about this exciting market.
Spot foreign exchange is the ideal market for active
trading – more leverage than equities/futures/options.
The market is highly volatile, has a tendency to trend s
trongly, and actively trades 24 hours per day. There are
no limitations on when one can short a currency.
Currency traders can make money when a currency is
becoming stronger or weaker.
That’s it for now. Tomorrow I will give you the “skinny”
on how the Forex works and how you can profit from it
big time.
Day #2: Forexmentor Pivot Mini Forex Course
This is Peter Bain and I want to welcome you to my Forex
The currency (foreign exchange) market is the largest
and oldest financial market in the world. It is also called
the foreign exchange market, or "FOREX" or "FX"
market
for short. It is the biggest and most liquid market in the
world, and it is traded mainly through the 24 hour-a-day
inter-bank currency market - the primary market for
currencies. The forex market is a cash (or "spot")
inter-bank market. By comparison, the currency futures
market is only one per cent as big.
Foreign Exchange simply means the buying of one
currency and selling another at the same time. In other
words, the currency of one country is exchanged for
those of another. The currencies of the world are on a
floating exchange rate, and are always traded in pairs –
Euro/Dollar, Dollar/Yen, etc. In excess of 85 percent
of all daily transactions involve trading of the major
currencies - Australian Dollar, British Pound, Canadian
Dollar, Japanese Yen, Swiss Franc, and the U.S. Dollar.
Unlike the futures and stock markets, trading of currencies
is not centralized on an exchange. Forex literally follows
the sun around the world. Trading moves from major
banking centers of the U.S. to Australia and New Zealand,
to the Far East, to Europe and finally back to the U.S.
In the past, the forex inter-bank market was not available
to small speculators due to the large minimum transaction
sizes and often-stringent financial requirements. Banks,
major currency dealers and the occasional huge speculator
used to be the principal dealers. Only they were able to take
advantage of the currency market's fantastic liquidity and
strong trending nature of many of the world's primary
currency exchange rates.
Today, foreign exchange market maker brokers such as
FX Solutions are able to break down the larger sized
inter-bank units, and offer small traders the opportunity
to buy or sell any number of these smaller units (lots).
These brokers give virtually any size trader, including
individual speculators or smaller companies, the option
to trade the same rates and price movements as the large
players who once dominated the market. Market makers
quote buying and selling rates for currencies, and they
profit on the difference between their buying and selling rates.
How the Retail Spot Forex Works
When you use retail spot Forex software, it only requires
an internet connection to trade real-time. No extra data-feed
is required. All online Forex brokers’ software is real-time,
rather than delayed.
If you download a free 30-day demo of the software, you
can "practice trade" in real-time with the exact same
quotes
as a live account. The software is exactly the same, and
you receive virtual money for the account. You are then
able to enter trades in real time, and monitor them just as
though it were a real account.
You will experience no difference between the demo
account and a live account. When you log onto your
trading platform, you see your price quotes, and you
simply click on the price to sell or buy. It will ask you
how many lots or contracts you want, and then you
click ok, and you are in. You can also use the charts
they provide with the trading platform; they will
reflect the movement of the real-time price of their
trading platform. With those charts, you usually have
the ability to place horizontal lines
where you choose (pivot numbers).
Each currency is quoted with a pip spread. This is
how the dealer makes his money. With most online
retail brokers, there are no commissions. For example,
I want to buy the Swiss Franc, and the current quote is
1.7205/1.7210. The dealer will give me the 1.7210 price,
and I would start the trade -5 points which equals $30.00.
In my trade window, I would see my money change as the
market price moves back and forth. As it moves in my
favor, my negative position is removed as soon as the
market is trading 1.7210/1.7215, or higher.
In the spot forex market, it is common for currencies
to move 100 to 300 pips/points in a 24-hour session.
If you like volatility, there is no currency more volatile
than the Franc.
If you want to see the software in action, just register for
it at www.fxsol.com, and download a free demo. You
will get your password and username immediately sent to
you by email.
If it’s action you’re looking for, like Mr. Magoo
driving
a sports car, then the forex is the place to be, and the
FX solutions trading platform is the right place to trade.
In tomorrow's email lesson, we will discuss what you
need to get started profiting from the Forex using my
Pivot trading strategies
Until then, happy trading!
Peter R. Bain
http://www.forexmentor.com
Day #3: Forexmentor Pivot Mini Forex Course
CONTENTS
o What You Need to Get Started Trading the Forex
o Charts
o Pivot System Overview
o Indicators
My Forex Trading System is extremely simple and yet
highly effective. Below is a brief preview. My full video
course describes the system in detail.
WHAT YOU NEED TO GET STARTED
1. A computer, Internet connection,
2. A system to trade with such as my Pivot trading system.
3. A funded account at a forex market maker broker
(www.fxsol.com). Please note that you can start off
with a demo account with most FX brokers, which
allows you to get your feet wet, before you commit
real money to trading currencies.
You only need a few tools to locate profitable set-ups:
price, price bars, MACD divergence, pivot point
breakthroughs/tests/violations, and trendline breakouts.
That's it folks. That and your passion to succeed is all it
takes to succeed in this wonderful business of Forex trading.
No other bells and whistles or toys are required – contrary
to what you may have learned before. The hardest part for
you will be to "unlearn" all the nonsense you’ve
been
fed about trading prior to coming here. (Just give your
head a good shake; maybe it will go away).
CHARTS
I use mainly daily, hourly, 15 minute, and five minute charts.
The daily chart will help you define the overall trend from
a
position trading point-of-view, and the hourly (one hour)
chart will give you a feel for the intraday trend. The 15 minute
chart is used for entry and exit – with assistance from
the
five minute chart, where price is moving quickly, and you
need to be closer to the action. Please note that the five minute
is not to be used for scalping, as there is a lot of noise there,
and you could easily get whipsawed.
Make sure you are using charts that are generated from
the same data source that feeds the dealing engine, as is
the case with the platform mentioned above. That way,
what you see is what you get when you buy or sell. Some
charting packages do not accurately reflect where price is at
any given moment in time.
PIVOT POINTS
My trading system is based on pivots. Pivot points are targets,
or mile markers, used for assessing price movement and
determining direction. If you’re unfamiliar with pivot
points
and how I use them, below is an overview.
Used by professional floor traders, pivot trading is one of
the
oldest and most valuable technical trading methods available.
Professional traders calculate pivot points in preparation for
each trading sessions. The pivot lines system is an indispensable
guide for making profitable decisions. For an active trader,
the
pivots can mean the difference between winning and losing.
The Pivot techniques work well in markets with a wide daily
trading range, such as the Forex. Pivot lines steers traders
away
from “no man’s land” and identifies “high
activity” areas in
which the equity has a high probability of reversal. These areas
are important trading zone watched daily by floor traders and
computer trading systems.
The levels for the trading ranges and pivots are the support
and resistance levels of the market in the next time interval.
It is important to note that the predicted levels only give
the range in the next time interval. They do not indicate
when the levels will be reached by the currency price action.
The pivot is a level at which the underlying asset can be
expected to change direction and/or move rapidly away from.
My pivots program provides not only Pivot, R1, R2, S1, and
S2,
but also the M1, M2, M3, and M4 points as well. It is common
to find many traders calculating only the Pivot, R1, R2, S1,
and
S2 levels. In the Forex market, however, you will find my
additional points of support and resistance to be very significant
indeed.
The Forexmentor video course shows you how to calculate the
Pivot points using our proprietary Pivot Calculator.
After you have calculated the pivot numbers for the day,
place horizontal lines on your 15 minute and 1 hour charts at
the
pivot numbers for the day, or at least as many lines as your
chart
has room for.
These pivot points will guide your trading throughout the day.
INDICATORS
I really only espouse one – MACD (for divergence only).
MACD Divergence is covered extensively in my course
and my trading examples
MACD is my favorite indicator, and that would be my choice.
The nine and 18 exponential moving averages are okay too to
give you some sense of price direction, but I am not a believer
in
using moving averages for this market – so am not too
thrilled
about their application and use. Go ahead and plot MACD on the
charts you are working with.
I will give you more information in tomorrow’s email
on my revolutionary trading system.
Day #4: Combining Chart Pattern
Recognition and Pivot Point Analysis
My Forex Video trading course shows how to combine chart
pattern recognition with Pivot Point analysis to produce
extremely profitable results.
Here is an overview:
I personally like to focus on a small number of the more
consistent, reliable and re-occurring formations. The ones
I am particularly interested in are the powerful
reversal formations at tops and bottoms of price ranges.
When chart pattern recognition skills are applied with the
use of
the Pivots Program, benefits accrue. The targeted support and
resistance numbers are like an early warning system. Being aware
of an important price target level, accompanied by a pattern,
you
can then anticipate your move.
Specifically, the pivot point calculations give an early
warning signal, and chart formations confirm potential
buying or selling opportunities. Formations like triangles
and wedges are instrumental in helping you take action.
Having access to support and resistance numbers, plus
combining the bullish or bearish patterns, facilitates identifying
bankable trades.
For example, even if you were not convinced that a downtrend
would hold, then at least the "breakout" from a symmetrical
triangle
pattern in a downtrend would have enabled you to capture a portion
of the ensuing decline.
Bullish and bearish pattern recognition helps you get in at
bottom
and top price reversals.
Armed with these indications, combined with pivot points, this
will provide a wealth of signals in order to develop a proper
game plan. At the very least, it will keep you from buying the
high or selling the low.
Tomorrow, I will share with you my top 29 Forex Trading Tips.
Don’t miss it!
Day #5: Forexmentor Pivot Mini Forex Course
For clarification on each point below, please refer
to my opening remarks on CD/DVD.
1. Initially set a goal of 20 pips a day
2. Use MACD: divergence; otherwise, it just
confirms the trend.
3. 20-30 pip stop losses – but on the other side
of event that caused you to take action.
4. Specialize in one currency pair.
5. Keep a log.
6. Sit on your hands unless you “SEE” something
concrete to do.
7. This is NOT about scalping.
8. OHLC at midnight ET.
9. Don’t buy too soon in a downtrend;
don’t sell too soon in an uptrend; currencies trend well.
10. Average trading range (ATR) usually fulfilled
starting at 3 am ET.
11. Forget trading retracements when you catch the main trend.
12. Four things to watch out for … to be discussed later.
13. Single versus multiple lots.
14. NO MAN’S LAND – except where you see ironclad
signals like bar/candle/chart patterns, multiple bottom/top,
MACD divergence, trendline break.
15. You don’t need to draw pivot points. If you do, they
don’t
have to be exact.
16. Green lights. (Don't wait of all the lights to turn green,
it will seldom happens)
17. Learn, paper trade, demo, live.
18. Look at lower-level chart when price is at a
pivot point and moving fast.
19. Automated systems kick in at pivot points; therefore,
lots of follow-through.
20. Shades of gray.
21. M1/M3 and M2/M4 – like early warning radar, but not
cast
in stone; S can become R, and R can become S.
22. Buying below the central pivot point and selling above
the
central pivot point can be influenced by signals like bar/candle/chart
patterns, multiple bottom/top, MACD divergence, trendline break.
23. If bias is to be short, think short – not long; if
bias is to be long,
think long; go one way or the other, but not both.
24. Use standard default settings for indicators.
25. Do not trade holidays, Mondays, month-end, quarter-end,
year-end.
26. Repeat after me, “The trend is your friend.”
If the trendline holds, buy the dips in an uptrend, and sell
the
rallies in a downtrend. Currencies trend WELL! In an uptrend,
don’t look to go short; in a downtrend, don’t look
to go long.
27. No volume figures; but, a very liquid market.
28. Take your signals off higher-level charts, unless you
see something concrete at the lower level. Remember,
the five minute chart is your ‘trim tab.’ It is
not to be
used for scalping!
Use the 5 min to spot price reversal situations, where
price is on a tear, and/or where price is moving quickly
in and around a pivot point. You won’t know what hit
you on the 15 min in such situations.
29.Any one indicator like a hammer or spinning top
may not be enough ammo to pull the trigger. Look around
for more evidence of an impending shift in price direction.
