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Opportunities on Metal Markets: The Leaders and Laggers

Correlated metal contracts such as Silver, Platinum, Gold and Copper all have interesting charts right now and there is a strategy component that I love to use in correlated markets, looking for leaders and laggers to help decide what will happen next. For example, if Silver is the leader right now, which I believe it is, then it is another string to our bow if looking for Gold or Platinum trades in the same direction that Silver is already heading.

Identifying Key Levels in Volatile Equity Markets

If you are trading the equity markets during volatile times, there are a few things you need to know.  This volatility can create problems for traders because the VIX is up significantly at new highs.  The VIX measures the level of volatility in the markets and determines the prices that investors are willing to pay for various equities related options.  Paying attention to the VIX can help you to understand what to expect in the markets in terms of price swings and how to react.

Thinking: A Learning Experience

Right! So here we are, I finally get to share this most recent learning or relearning experience with you all. This is it………..

About 6 weeks ago the DOW pulled back into the buy-zone on the weekly, gave a bullish candle off the old highs, an old resistance level that became support and looked set for the trend to continue to push higher. Check the chart out below.

A One Percent Position Size is Paramount

We always recommend that traders only ever risk 1% of their trading capital on any one trade; this protects their trading capital as well as their emotional capital.  This means that, in a losing streak of, say four or five trades, they still have capital to trade another day and their trader mindset is not knocked around by the experience.  We have analysed the charts, placed our order, defined and accepted the amount of the risk, then allowed the markets to determine the outcome;  stop or target - whichever comes first.

The Key to Using Multiple Time Frames

Novice traders will often utilise a single time frame to determine price points for entering the market.  The problem with this approach is that you only have one perspective on the market direction.  By using multiple time frames, you can now confirm the price action trend over several time periods to determine a higher probability of the market’s next move.

Consistency in Trading, what Does It Mean To You?

It is the “buzz word”, the “everything” and the “holy grail”. Yes, that eleven letter word, consistency, means so much to all traders whether they are just starting out or are the best in the world. So what does it mean to you? It is an important question because different meanings of the word can certainly alter the outcome from the practice that we take.

How Big are the Trading Markets?

They are Huge, really Huge and a trader only needs the most minuscule slither of that market to make a substantial income.

Let me put it like this; an average three bedroom house with one bathroom costs about $200,000 to build and that is not including the land, just the basic build price. It takes about 12 weeks to build that house. 

Five Trading Lessons from the Football World Cup

The FIFA Football 2014 World Cup is finally over.  Football fan or not, it has been hard to miss. Global sporting events such as these unite us with a patriotic passion that often spans otherwise impenetrable barriers.

The Importance of Timing Your Market Entry

If I were given $100 for every time I had a conversation with someone that said they knew that the markets would go in a particular direction I would be happily retired right now. The fact with trading is getting the correct direction of the market is only the start and many people, in fact, most people can get direction right, yet still lose money consistently.

Trading Around Your Annual Vacation

Many of us will be taking vacations during the July and August period now that the northern hemisphere summer is upon us. The question is what do we do about our trading? Do we take a complete break? Do we leave one or two trades on, but not open the charts till we return? Do we plan to carry on trading whilst we are on holiday with family and friends?

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