Money Flow Trading Method along with Risk Management

https://goldswitzerland.com/the-pric...d-in-a-casino/

THE PRICE OF GOLD IS SETTLED IN A CASINO
December 12, 2018

by Egon von Greyerz

GREG HUNTER INTERVIEWS EGON VON GREYERZ ON USA WATCHDOG
In this interview Egon covers a number of subjects which will have significant impact on the world economy including:

1. Europe a basket case – Brussels elite is petrified Brexit will cause contagion
2. Italy could be next to fall or Spain or Greece or ….
3. Macron and France could be the next trouble spot
4. Gold will break free from LBMA Casino leading to much higher gold price
5. Stocks will implode 95% against Gold
6. 100 years of excesses will unravel

usawatchdog.com


Egon von Greyerz
Founder and Managing Partner
Matterhorn Asset Management
Zurich, Switzerland
Phone: +41 44 213 62 45

Matterhorn Asset Management’s global client base strategically stores an important part of their wealth in Switzerland in physical gold and silver outside the banking system. Matterhorn Asset Management is pleased to deliver a unique and exceptional service to our highly esteemed wealth preservation clientele in over 55 countries.

GoldSwitzerland.com

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Articles may be republished if full credits are given with a link to GoldSwitzerland.com.
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1. THE PRICE OF GOLD IS SETTLED IN A CASINO
2. Max Keiser interviews Egon von Greyerz - Part 2 (13mins)
3. Max Keiser interviews Egon von Greyerz - Part 1 (13mins)
4. EASTERN AND WESTERN CENTRAL BANKS SUPPORT GOLD PRICE
5. BANKS ARE BLOCKING CLIENT ASSETS

https://wolfstreet.com/2018/12/11/us...s-spiral-down/

US Bank Stocks Spiral Down


by Wolf Richter • Dec 11, 2018 •


Something’s not right: Banks are heavily exposed to record business debt, as credit quality deteriorates.

On Tuesday, the US KBW Bank index, which tracks the largest 24 US banks and serves as a benchmark for the banking sector, dropped 1.2%, the fifth day in a row of declines, to the lowest close since September 7, 2017.The index is now back where it had been on December 1, 2016. Two years of big gains gone up in smoke. The past five trading days looked like this:

1. Dec 11: -1.2%
2. Dec-10: -2.1%
3. Dec 07: -2.0%
4. Dec 06: -1.6%
5. Dec 05: -4.9%

But no, the index doesn’t include Goldman Sachs – which is big in other ways but not as a bank, and which has skidded 35% from its all-time peak in February. The index has now dropped 22.5% since the post-financial crisis peak on January 26:
https://wolfstreet.com/wp-content/up...2018-12-11.png


So far in Q4, the index has dropped 14%. Unless a miraculous banking-Santa-Claus rally pulls banks out of their dive by the end of the quarter, a 14% decline would make it the worst quarterly decline since Q3 2011. If tax selling kicks in, given the losses bank-stock investors have taken so far this year, it could get worse in the coming days.


Not even in Q3 2015, during the oil bust, when investors were fearing that banks would take steep losses on their loans to the oil industry, did shares drop this much.


The index is now back where it had first been a couple of years before its crazy peak in February 2007. Said peak occurred about a year before Bear Stearns toppled. During the subsequent collapse of banks stocks, it looked like the index would hit zero.


After the bottom in March 2009, the Fed’s strategies to benefit the banks and those that owned them took hold, at the expense of depositors and other classes of US stake holders, such as renters or future home buyers. And it worked. But that era is now over. And the tax cut too has been baked in, and banks are left to fend for themselves:
https://wolfstreet.com/wp-content/up...2018-12-11.png


Big banks are heavily exposed to business debt, and business debt, which includes commercial real estate debt, has ballooned to record levels, while credit quality has deteriorated. The Fed, in its recent Financial Stability Report, pointed out this issue as a major risk to financial stability.


But those are the biggest 24 banks in the US. What about the regional banks?

Since the big-bank sell-off started in January, the regional banks actually performed quite well, and the KBW US Regional Bank Index climbed to new post-Financial Crisis highs the summer.


The story on Wall Street was that regional banks would be immune to the downdraft, and that investors needed to rotate from big banks into regional banks, etc. With immaculate timing, the KBW Regional Bank Index [KRX] peaked on June 8, wavered for a month, and in September started to spiral down. It too has plunged 22.3% by now, but in a much shorter time period than the large bank index:
https://wolfstreet.com/wp-content/up...2018-12-11.png


This is a new era for banks – the era the Fed arm-twisted them into preparing for: Building their loss-absorption capacity by building their capital buffer to have it nice and fat and ready to be eaten up by business loan losses over the next few years. But these are still the good times, loan losses are still low, and money is still flowing relatively cheaply and plentifully. The actual pain won’t start for a while.


Instead of “bubble” or “collapse,” the Fed uses “valuation pressures” and “broad adjustment in prices.” Business debt, not consumer debt, is the bogeyman this time. Read... The Fed Explains the Rate Hikes: To Prevent Financial Crisis 2


Benjaminis

https://www.zerohedge.com/news/2018-...ops+to+zero%29

As she entered the meeting at around 5 pm London Time (noon in New York), the prime minister was greeted with loud banging - a sign of support. To stay on, May needs to win a simple majority of the 317 Tory MPs eligible to vote in Wednesday's secret ballot. The consensus view is that May will prevail in Wednesday's vote (nearly 200 MPs - far more than the 159 vote needed to prevail - have publicly pledged to vote for her). And so far, she's put on a After returning from her "whistlestop" tour of the Continent, May came out swinging on Wednesday, saying she'd fight to stay on "with everything I've got" before battling with her archrival, Labour Leader Jeremy Corbyn, during a contentious session of PMQs.
Here's the timeline for Wednesday's vote:

1. 5 p.m. - May addresses a meeting of the 1922 Committee -- the name of the caucus of Conservative MPs. The meeting is closed, but from outside, we'll be able to hear cheering, banging desks and so on. We expect her to promise not to fight the next election
2. 6 p.m. - MPs begin voting. They can vote by proxy, and it's a secret ballot. So all those public expressions of loyalty may not be worth much
3. 8 p.m. - Voting finishes. Graham Brady, chairman of the 1922 Committee, begins counting
4. Before 9 p.m. - Brady announces the result

During a round of questions after her statement, May told lawmakers that she's still working on making the Irish Backstop - the most controversial component of her Brexit deal - more palatable to DUP MPs who have threatened to vote against her bill, and possibly even join Labour in a vote of no confidence in May's government.
The prime minister's pitch to MPs is that ditching her now could mean delaying Brexit, or possibly even no Brexit at all.


But while traders are pricing in a May victory as a virtual certainty, there are some subtle signs that an upset could be in the offing (analysts suspect that May could resign if she survives by only a narrow margin). Brexiteers affiliated with the European Research Group (the faction led by Jacob Rees-Mogg) wouldn't have gone to the trouble of orchestrating the vote if they didn't feel there was something to be gained from it. According to Telegraph Deputy Political Editor Steven Swinford, that something might be surpassing the 80-vote threshold, which would signal that at least half of Tory MPs who don't have formal roles in the government are opposed to May's leadership.



https://c5x8i7c7.ssl.hwcdn.net/creat.../dslogo_sm.png
Eurosceptic MPs still think they are on course for a rebellion by at least 80 Tory MPs against the PM, although they admit they are unlikely to win.

They view the 80 figure is significant because it represents half of Tory MPs who aren't on payroll or in party roles.
— Steven Swinford (@Steven_Swinford) December 12, 2018


Still, online betting markets expect May to win easily. Ladbrokes put odds of May staying on as leader at 2/7 shortly before the vote, while they see 5/2 odds that she is ousted.


Should May lose or resign, the race to succeed her has no clear front-runner, though former Foreign Secretary Boris Johnson is the most popular and best known among the contenders.
https://infographic.statista.com/nor...gures_uk_n.jpg


You will find more infographics at Statista
The likely candidates include:

1. Boris Johnson
2. Sajid Javid
3. Michael Gove
4. Amber Rudd
5. Penny Mordaunt

For what its worth, the pound has reacted positively to reports that May likely has the votes to prevail as the British currency erased its losses from Tuesday. However, the cost of insuring against one-day moves in the currency has spiked. This suggests that traders are bracing for big swings in the pound tonight once the results are announced.

https://www.zerohedge.com/sites/defa...2poundhege.jpg

 

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11. Dr. Housing Bubble
12. ETF Daily News
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14. Financial Revolutionist
15. First Rebuttal
16. ForexLive
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Good Evening

UPDATE - December 12, 2018 8:06 PM

 

1. Post 4,994
2. Cleanup
3. Quote
4. Dec 11, 10:03am (34 hr ago) | Edited Dec 11, 10:23am

1. BenjaminIs
2. | Commercial Member | Joined Dec 2014 | 4,144 Posts | Online Now

Attached Image (click to enlarge)
https://www.forexfactory.com/attachm...1&d=1544540622


I have made my Forex trade exactly as my Trade Plan this morning called for.

NO TECHNICAL INDICATOR could have made that trade.

The human must make the trade. Technical indicators are only a SNAPSHOT of the IMMEDIATE.

I entered the Forex trade at 9:16 AM and closed my position automatically by using my Limit Out set in advance at $500 US Dollars.

The profit for today on just one Forex trade is $503.25 US dollars.

I have now done 5 Forex trades since December 4, 2018 so after one week of Forex trading and the Net Profit is $2436.25 US dollars. That is almost 5% for the month in one week of trading.

Just think about that. I have reached the number that most professional Forex traders would be most happy to reach and it was done without much effort or risk of loss of capital.

Of course I have invested 15 years of my life since 2003 to reach this stage of excellence.

It is important to have the DISCIPLINE to not trade just to trade. It is important to be patient and think and plan your trades.

Most Forex traders are doing nothing more than gambling.

My results show that I am making an educated investment by working on reward and controlling risk while knowing exactly what my Trade plan is and where my entry and exit points are.

Anyone that is serious and really wants to become a successful and professional Forex trader just needs to invest time and effort to determine if you have the skills and interest to make money trading Forex.


Benjaminis

UPDATE: December 12, 2018 8:08 PM

I have done two more Forex trades today as you can see from my screenshots. I have now done 7 Forex trades since I started trading this demo account on December 4, 2018.

My two trades this afternoon were done and both my limit outs were reached. The net profits were $1504.25 So the 7 Forex trades have produced Net Profit of $3941.00 US dollars.

https://portal.barclayhedge.com/rese...164f80361f408e

Good Afternoon

I have finished my Forex trading for today. I had done seven winning Forex traders since I started trading this FXCM UK $50,000 US dollars Demo Account from December 4, 2018 to December 12, 2018. Today I did another 7 Forex Trades.

The profit on my 7 Winning Forex trades was $2344.00 US dollars.

So in total I have done 14 winning Forex trades in a row in 10 days of trading.

I started with Capital of $50,000 US dollars. The balance now with all positions closed as you can see on the screenshot is now $56,485.00 Us dollars.

So I am up by 13% Return on Investment. (ROI)

The best that the Top Professional Forex Traders can achieve is 5% each month and that is not always the case year over year. I will surely reach my 20% target level.

I am in no way doing anything other than speaking the truth and showing my trading and teaching skills.

So if you want to see if you have what it takes then the next action is up to you.


Take care and be well.

Benjaminis
BWM

hello sir,
nice and useful
subscribed !!!!!!!!!!

Thank You otnishan

You can open a FXCM UK Demo Account and I will post the link and the instructions for you over the weekend.

I am getting ready to start trading shortly. We have RISK OFF today so it is a Forex trading day. I will see where we go after the open. There is more negative news than positive at the moment.


Benjaminis

Good Morning Forex Traders

I have done 4 more Forex trades today as you can see from my screenshot.

That is now 18 Forex trades in 11 days and all 18 Forex trades were winning trades.

I will not trade again today as I have reached my target for today.

The balance in the FXCM UK $50,000 US dollars trading account is $57,367.00 US dollars or nearly 15% profits as 15% of $50,000.00 US dollars is equal to $7500.00 US dollars.

I wish everyone a great weekend and hope to reach my target of 20% ROI (Return on Investment) next week before my 75TH birthday on December 31, 2018.

I have been trading Forex now for 15 years with my first three years only demo trading in order to train myself properly.


BWM
Benjaminis

https://dailyreckoning.com/the-7-sta...y+Reckoning%29

Good Morning Forex Traders

I have done 4 more Forex trades today as you can see from my screenshot.

That is now 18 Forex trades in 11 days and all 18 Forex trades were winning trades.

I will not trade again today as I have reached my target for today.

The balance in the FXCM UK $50,000 US dollars trading account is $57,367.00 US dollars or nearly 15% profits as 15% of $50,000.00 US dollars is equal to $7500.00 US dollars.

I wish everyone a great weekend and hope to reach my target of 20% ROI (Return on Investment) next week before my 75TH birthday on December 31, 2018.

I have been trading Forex now for 15 years with my first three years only demo trading in order to train myself properly.


BWM
Benjaminis

Hello Forex Traders December 14, 2018 4:16 PM

Late in the day in the last half hour or so of trading in the North America Equity markets when I saw the Dow 30 go back to the LOW of the day near 550 points down and the SP500 broke through 2600 , then I did two quick Forex trades for 6 trades on the day.

My profit for the day was $1057.00 US dollars for a new total of locked in profits of $5742.00 US dollars.

I have now done 20 Forex trades in these 11 days of trading. I have earned a Return on Investment NOW over 15% and have made 20 Forex trades in a row all being winning Forex trades.

It is my NATURE to strive for PERFECTION although trading Forex and CFD's at leverage of 100 to 1 makes PERFECTION impossible.

So I will need to accept Return on Investment of 20% monthly while making sure that the risks will not result one day in the loss of my trading capital.

That is why in these type of wild swinging markets the KEY ELEMENT is always controlling your Risk.

This winds up a very successful Forex trading week for myself.


BWM
Benjaminis

1. Post 581
2. Cleanup
3. Quote
4. Dec 29, 2016 8:52am | Edited at 9:07am

1. https://cdn-assets.faireconomy.media...ar471684_8.gif dttsomh
2. | Joined Jun 2016 | Status: Time in market > Timing the market | 267 Posts

Quoting BenjaminIs
{quote} I would appreciate feedback from dttsomh on this particular topic.
Hi Benjamin,
1. I completely agree with everything you said. The reason I traded these 2k euro live is because I wanted to TAME my FEAR. It's just one aspect I wanted to work on beforehand entering this business. It's enough to feel the fear that a 50k demo account would not give me.
But I will certainly use it less. I don't feel any rush to get back to break even (2k) with this account. It will take take, but I have plenty.
I know, agree and understand that in order to succeed we must diminish the risks, hence we need a large account. (50k+)

2. My second point is that I am really thankful that you take your time and explain everything to us. We are like children learning math for the first time. And you are the most patient teacher we could ever encounter. My gratitude for you will last forever for that reason.

3. Everyone rushes to understand your technical method instead of seeing that your plan is: checking if we have the potential, then properly make us understand the basic rules to succeed, barely then (if we are worthy) going into deep and nuanced details from your methods that you accumulated in so many years.
THERE ARE NO SHORTCUTS. We must prove worthy first. My 50k demo will become the priority from now, as I understand now that it's my main tool in this process of learning.

4. I'll catch up with last page of info you posted and then I will start learning the basics of Awesome Oscillator and Fractals, perhaps about Bill Williams as well. I want to be ready for when the moment comes for you to teach us how these work in synergy with each other and with Support and Resistance.

5. In my performance update I wanted to highlight how you saved me from a catastrophic trading style and slowly going on the right path. It's far from perfect, far from decent actually, but it's improving.
Quoting BenjaminIs
I could have started trading Forex after one year for sure because I was consistently making returns of over 10% a month. I decided not to trade real funds whether mine or other peoples. The reason for that is that I hate to lose money whether mine and for sure not another person that trusts me.
6. If I were to make consistently 10% a month, I wouldn't hesitate to add 50k real funds myself in the market. I also hate to lose money but I will be confident in the 10%/month ability that I proved myself with month after month. Is it wrong that I think like this? Perhaps my 2k live account made me lose this 'fear'?

Regards!

1. Post 490
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4. Dec 27, 2016 6:49am

1. BenjaminIs
2. | Commercial Member | Joined Dec 2014 | 4,154 Posts | Online Now

Quoting KeepCalmfx
Benjamin Thank you for all the info and help so far. I just wanted to confirm the following: In one of your post you said, you add the second position if you are - 50 pips. So that order, do you place as a pending order, with same criteria, 100 pips stop and 300 pips profit? The last position, do you only place that, once the price has moved into our direction, so say position 1 & 2 is in profit? When position 1 is in profit, do you ever move your stop losses to breakeven or do you use the principle set and forget? So it either hit your stop loss...

Hello KeepCalmfx

Your questions are appreciated as they allow me to understand what you are thinking and what areas I need to clarify for you and others here. Rome was not build in a day so we are at the start of a learning process. I even learn as I teach.

First of all and most important since things can change within seconds in trading Forex and since we use leverage of 100 to 1 the last thing we want to do is to tie our hands with a rigid system of trading. We never enter an order unless we do it at the moment. Now to clear up the confusion that I caused about mentioning about the 50 Pips.

Each trade done is done within a Trade Plan. Each Trade Plan should only permit a loss of your trading capital of 6%. Let me make that clear for everyone. One of my five important parts is Risk Management. Without using a VERY STRONG Risk Management STRATEGY you will eventually BLOW UP your account and this applies to Professional traders as well as Retail traders or others just starting.

Here is what makes up the 100% that will allow you to become a professional Forex trader with time and practice and experience.

20% is Risk Management. 20% is fundamentals. 20% is technical indicators which includes Supply and Demand and or Pivot Points anything to do with the technical part of trading whether stocks or commodities or Forex. 20% is my Money Flow Method which does not belong to me it just is what I discovered while I was trading Forex since 2006 and it is what gives US our Edge. As I have explained before understanding Money Flow between the various Asset Classes lets us be part of the SHARKS meaning those that trade Billions and Trillions of dollars or pounds or any of the other Fiat Currencies. Even they suffer major losses at times since they are either pre-programmed or cannot see the Forest for the Trees.

The most IMPORTANT PART since it involves the Forex Trader themselves is "YOU" This is the last 20% however it really is the FIRST 20% as it is about your ability to become a Forex Trader. I can only tell you that after 30 or so days of communications with you and some of you just might not be ready to trade real funds as yet. I took 3 years of learning before I risked one penny of trading funds. That is why I have arrived as a Excellent and very experienced hands on Forex trader.

That is why usually within 30 days I can inform any Forex trader if they show the characteristics of a Winning Trader. So 20% is yourself and what my way of trading does by having each of you and myself since that is how I learned and I am self taught as I did this on my own which was good since I tried things and when they worked then I adopted it to my Forex trading style.

Please post any thoughts or questions as that is the only way that I know that you understand what I am teaching here. Using the $50,000 US Funds Demo Account helps me to help you REMOVE your FEAR and YOUR GREED and teach you the right way to trade without fear of loss.

The Greed part usually goes to the EGO part especially when you are winning. That is WHY I do not want anyone to think this is about Instant Gratification. I can save you years of learning and protect you however that is up to you.

I have NOT answered all of your questions and I will however I first wanted to clear certain matters up having read some of the other posts here this morning. Yes these today are my Morning Thoughts.


Benjaminis

1. Post 390
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4. Dec 25, 2016 12:53pm | Edited at 1:58pm

1. BenjaminIs
2. | Commercial Member | Joined Dec 2014 | 4,155 Posts | Online Now

http://www.wealthresearchgroup.com/w...Lior-Gantz.pdf



The Role of Gold and Silver as Money Gold and silver are money. Though there are many opinions as to why these particular metals are considered as such, it is an irrefutable fact that since the early civilizations began trading goods, the role gold and silver have played at ensuring fair prices and stable economics is immense.

People dont seem to get that without the use of precious metals, the ancient world couldn't have advanced and commerce would have been next to impossible between nations and across vast distances. Gold and silver are subconsciously accepted as money after over 2,000 years. We dont use them as money anymore in an active way, for the most part, and being out of sight is exactly why the masses dont realize what a huge challenge the global economy is facing without a gold standard of some sort. Our opportunity is right in front of us.

Its so obvious that we might miss it if we listen to mainstream conventional wisdom. We dont believe in being contrarian just for the sake of it, nor are we Gold Bugs or Perma-Bulls. WE ARE GETTING INTO GOLD AND SILVER because they only go parabolic when NIRP (Negative Interest Rate Policies) are in place.

The next few years will be paramount to our wealth accumulation. It is an opportunity we at WRG call playing catch-up. Gold and silver are the soundest form of money, and today they are even more than that. The concept I am about to share is the critical point that people who haven't studied history totally miss. Gold and silver are not ONLY money anymore.

Back when national currencies were backed by gold and people used silver as a medium of exchange for everyday commerce, the purchasing power of the currencies was stable. When paper money became widely used, the role of the metals remained the same, as the notes were redeemable and 100% backed by metals.

Today, all currencies are brought into existence as credit. That means they are nothing but debt. Gold and silver, then, are much more than money. They are chaos insurance against natural human behavior. People in general pay back their debts, but some always default. Governments certainly dont close debts as well as individuals do. Time and time again, they use taxation, inflation, and other forms of maneuvering to reduce debt burdens.

The entire world economy is debt-based, and the boat of debt is sailing towards uncharted waters. The key to remember is that NOBODY can navigate the boat, so when the storm hits, its going to be each crew member (you and I) for himself. The captain (governments) can only dream up solutions, but he has no proven way to steer the boat.

Politicians are people not miracle workers. The global debt load requires us to get the boat to the shore of gold and silver, since the boat has a shortage of them. Only they provide insurance from the breakdown of a system we have created over the past 100 years, which shifted the concept of MONEY TO CREDIT. We are reaching the end of this experiment. Thats why owning gold and silver isn't a matter of choice anymore, but of necessity. Any crew member should hold on to his ounces and never let go. This is why owning mining shares gets you access and ownership rights to the source of insurance. When the boat finally reaches shore, anyone with access to mining will be crowned as a millionaire in ounces.


This manual consists of 3 parts:

1. History of precious metals Educate yourself on the history of the metals and how important they are to humans throughout history. This will serve as a benchmark and increase your fortitude and knowledge, because logic isn’t always reflected in market prices, and it is precisely when the market is acting irrationally that your fears are put to the test.

The prices of both gold and silver fluctuate without cease, and only an educated investor can handle the pressure of managing his position correctly.

2. Inflation and deflation with regards to the performance of the metals In 2016, there are major economies operating under negative interest rate policies, zero interest rate policies, and low interest rate policies. Loans and debt, both governmental and private are incredibly high, and government entitlement programs are in danger of not meeting obligations, which creates the danger of social unrest. Every currency on the planet is fiat and is backed only by the power of the government to use taxation, and nearly every country uses a central bank and fractional reserve lending, which create credit cycles and default cycles.

By understanding exactly where we are and what the future scenarios for us can be, preparation becomes methodical and prospering turns possible.

3. Specific action steps This part is meant for the investor who understands the world he lives in and wants to help himself and his family thrive during the next coming years when major changes will take place around us. Capitalizing on opportunities is certainly possible for the investor who is ready and isn’t afraid. After reading the previous 2 parts, this 3rd part will present a viable plan of action for you.


History of Precious Metals The U.S. has had many encounters throughout its history where the dollar/gold relationship has been tested. The U.S. was under a classical gold standard for more than 100 years.

It didn’t suffer from any monetary booms and busts throughout that period. The real mess began with the inception of the Federal Reserve banking system in 1913.

Many books have been written about the secrecy revolving this institution. For the purposes of this report, we are focusing on its effect on gold. After the 1st World War, the classical gold standard was changed to a gold exchange ratio. That means that not all bank notes were redeemable, and a credit boom began, resulting in the Great Depression.

What the U.S. was able to avoid from the days of the Constitution was inflation and deflation. It was deep in turmoil, and executive orders that President Roosevelt issued resulted in the turning over of gold to the government in exchange for Federal Reserve notes. This was the great wealth transfer from the private sector to the government – gold for “lawful paper.”

This is why our notes say “Legal Tender.” After the 2nd World War, the Bretton Woods was formed. The U.S. dollar, which by that time became the most stable currency (since the U.S. mostly avoided war), had become the reserve currency of the now international monetary system.

The exchange ratio was fixed to $35 per ounce, and this system was in place until 1971. The U.S. had embarked on costly wars, and foreign governments didn’t believe the dollar was worth the gold backing it.

So in August of 1971, Nixon announced that the gold-backed currency will now be fiat. That means currency without backing, except for the fact that the only entity that is allowed to create it is the government or central bank. This one decision has made possible the biggest credit expansion of all time, and now, about 45 years later, we are going to experience the greatest credit contraction of all time, and all the credit is being returned to the creditors. That’s the main reason for these policies like QE, or Quantitative Easing. Without it, central bankers know that our currency supply will contract massively, leading to mass unemployment and deflation.


2016 Inflation and Deflation Inflation and deflation are simply the effects of credit expansion and contraction. The best explanation of this subject can be viewed here: www.economicprinciples.org Ray Dalio explains cycles. Ray runs the largest hedge fund in history, and is by far the smartest investor of our era. It is our conclusion that we now stand at the perfect storm, because the credit contraction of 2008 didn’t come to its full cycle closure. The newly formed debt the U.S. government took on -- along with negative interest rates -- make this period the most favorable for precious metals in U.S. history. We will either have to go through another deflationary spiral or hyperinflation. No matter what and when it happens, this environment is fertile ground for the metals to protect and enrich their owners. This brings us to what we can do about the unavoidable.


Comments from Benjaminis: EVERYONE reading this carefully NOW has an EDGE if you use this KNOWLEDGE.

Knowledge is Power only if you use it and act upon it. For myself knowing this then I can prepare for the changes in values of all the Asset Classes and watch as the MONEY FLOWS from one to another and what the change in one does to the other. This is why I have said that the MOST IMPORTANT FUNDAMENTAL FACTS are not the fundamentals themselves or the use only of technical indicators or supply and demand although they all help they cannot SET THE TREND so knowing the trend you have your EDGE. It is not all that difficult to understand.

Each day we ask ourselves , "Do We Have Risk On today or Risk Off" ? The answer to that question gives us the direction to start although a fundamental new FACT can change the direction in seconds such as a Brexit or a FED Rate hike or NFP or any number of daily facts, expected or unexpected.

Then we come to my associated topic , Risk Management. The strategy that I have developed over the last 5 years always works with the exception being the Forex Trader themselves. Unless you have the desire and the interest and the DISCIPLINE to control your FEAR and your Greed you will lose. Of course since the MARKET is always right 100% of the time, unless you have complete control of your EGO for sure you will wipe out your account.

That is why I have not developed too many bad trading habits because I learned my trade over three years only trading demo funds of $50,000 US.

When I started real Forex trading with real funds , I went out and raised $250,000 US from a number of clients and traded their funds using LPOA. (Limited Power of Attorney).

My first large account during October 2007 was for $100,000 US and in the first 35 days of my Forex trading for a Hong Kong corporation I earned for my client $19,000 Plus US Dollars. My performance fee was 20% of the Net Profits.

I traded through the Financial Meltdown of 2008 when EUR/USD after reaching an all time HIGH around 1.60 within months broke below 1.20 and I took major losses for this same client and that was the day during 2008 that I realized that as good a Forex trader that I was, unless I had a FOOLPROOF Risk Management Method this could and would happen to my clients in the FUTURE.

Now that cannot happen ever again as long as I maintain my DISCIPLINE and my desire to trade Forex and have fun.

I offer anyone here this opportunity to learn at no cost to you other than your time and effort. There are still 3 spaces available.

This information comes from post 117 of December 13, 2016 on page 6 of my thread on Money Flow and Risk Management !!!

My congratulations go to DavidRP who is the first Forex Factory trader that has opened his FXCM UK Demo Account.

I have logged into his account since as requested he has emailed to [email protected] his User Login and Password.

I now have organized for DavidRP the 16 symbols that I use on the FXCM UK Demo trading platform. DavidRP now has $50,000 US Dollars to trade with. I will show here what the 16 symbols that are used and in the order that they are on the platform in blocks of 6 symbols.

EUR/USD EUR/JPY USD/JPY GBP/USD USD/CNH USD/CHF

EUR/CHF AUD/USD USD/CAD USDOLLAR XAU/USD XAG/USD

US30 NAS100 SPX500 COPPER UKOIL BUND

You can all see that by having these 16 pairs you have an excellent view of the Money Flow between Asset Classes.

Congratulations DavidRP

You are soon ready for your first Forex trades with Capital of $50,000 US Dollars.




Benjaminis

1. Post 272
2. Cleanup
3. Quote
4. Dec 20, 2016 9:00am | Edited at 9:28am

1. BenjaminIs
2. | Commercial Member | Joined Dec 2014 | 4,156 Posts | Online Now

Good day fellow traders on Forex Factory. I have been trading Forex for over 10 years now and with the incredible movements on a monthly basis which has been caused by the intervention efforts of the world's central banks trading today is much different trading before 2008. Thus RISK MANAGEMENT must be a priority for any serious forex currency trader. You should never RISK more than 5% of your trading capital on any one trade plan. I also strongly suggest that you never trade more than 20% of your total trading capital at anytime. Example - If you are trading $50,000 in US Funds NEVER have more than 20% or $10,000 US Dollars on your various trade plans always using the 5% rule for risk on each trade plan being used.

The Money Flow Trading Method is based each trading day on Risk On or Risk Off which means are the markets heading down or heading up. I use the DOW to determine this each day. When the markets head down and we have Risk Off the money flows into US Dollars first and then the money is parked usually into US Bonds so the bonds go up and the yield goes down. Money also flows to USD/JPY. I will give more explanations when the forex markets reopen on Sunday. If you have any comments or questions please post them on this thread. Tomorrow we have two important events the most important being the referendum in Italy.

The results will move the markets whichever result we see. This is a Fundamental Fact and that combined with Technical Indicators as to Support and Resistance along with investor perception of the meaning of the results short term will lead the direction of the market. I will be thinking of going short on USD/JPY depending on the results of course and Risk being off.

Before I do any FX currency trade I always develop a Trade Plan as previously explained. So my Trade Plan will be to SHORT (Sell) 3 $100,000 US Dollar contracts of USD/JPY in 3 stages. My first trade will be my base trade and my MAXIMUM LOSS would be 100 PIPS or $1000 US Dollars. My second position when opened would also have a ENTERED STOP LOSS of $1000 US Dollars and so would my third and LAST position. With this strategy my MAXIMUM loss is $3000 US Dollars or 3% of my trading capital. After I enter the 3 positions I will print out a updated statement in Real Time so we all can follow along.

Again if you are a member of Forex Factory all feedback or questions are welcome and appreciated. If you are not registered as a member please register so that you can participate in this thread and other threads of course. Thank You !!!

I decided to open a second trade plan because of short covering in EUR/USD and I just shorted my first position of $100,000 US of EUR/USD at 105.40 and I will see where things stand at the Frankfurt open tomorrow morning. My total margin used is now at $3200 US Dollars for my three open positions. If I have on all 6 positions the capital used will total $6600.00 and my Net Possible loss will be $6000 US however I expect to close all positions at a profit most likely over the next 24 hours. You can never lose taking a good profit trading forex.


Just for the record I normally only trade from 2:00 AM EST at the Frankfurt open until 5:00 PM EST when the North American markets are closed. There is just not enough volume and my Money Flow Method works when all the Equities are trading so we start with the DAX , FTSE and CAC. By 6:00 AM when North America comes on board and the MSM gives their two cents worth. By 9:30 AM to 11:30 AM when Europe goes home and most major news comes out between 8:30 AM and 10:00 AM and daily Options on currencies close out for some of them at 10:00 we have plenty of material to work with. I do use technical indicators to determine entry and exit. We are in interesting times for the rest of December with the Electoral college declaring on December 19, 2016 and on December 31, 2016 we shall see the Shanghai Gold Exchange become very important because for the FIRST TIME Muslims can trade Gold and associated products as Comex which is effectively a paper market becomes less relevant. 2017 will be an extraordinary FX trading year.

The reason that I do NOT put on my third position on either of my trade plan is it is because it is usually my third position that is the most profitable as I scale in my positions rather than buy them all at the same time. The next 24 hours will most likely see many movements in the currencies and keep in mind that since the Trump rally is way overdone we may see a MAJOR reversal in Risk Off and money will flow to Gold and USD/JPY and with the weakness in EUR/USD it will be interesting to see how the US Bond market and the other Bond markets react.

Edit to Add FINVIZ link - 10 Year US Bonds. http://www.finviz.com/futures_charts.ashx?t=ZN&p=d1

You can see money FLOWING into the 10 Year US Bond for safety and look at the gap on the 5 Minute chart. MONEYFLOW is my KEY to successful forex trading.http://www.finviz.com/futures_charts.ashx?t=ZN&p=m5


COMMENTS FROM BENJAMINIS: What I have decided to do this morning as for me in Canada it is 9:23 AM EST is to post all the information that is relevant in one location so it is easier to understand for anyone interested in becoming a successful trader. As I have just started to do it and I expect it will take me a few hours to complete it as I post I will reference it to where the information came from. The following post came from my post number 19 so with that as reference it makes it easier in case you go back and review my other posts. I will start another page after the basic information becomes too much for this page or I might start a new page after each of te 14 pages already up.

From Page 19:

My subject this morning is PERCEPTION and REALITY. The results of the Italian referendum last night are a perfect example of that. In normal times which means free markets where we have proper price discovery, it is easier to make speculative decisions on market trades. Today we all live in a financial world where the truth is always distorted by those in control. The control for the moment rests with the Central Banks of the world led by The Federal Reserve and followed by the ECB and the BOJ and the BOE.

After the financial meltdown of 2008 involving Lehman Brothers and TARP, which originally was voted down in the USA and then approved, the financial world entered into uncharted waters never ever seen before. It started with QE in the USA and it continued with Draghi in Europe saying he would do whatever had to be done. We also see the failed monetary policies of the last ten years in Japan by the BOJ.

So now we live in a world of NIRP and the attempt all over the world especially recently in India removing the 500 Rupee and 1000 Rupee as legal tender. Because of the Money Printing and Helicopter Drops clearly stated by Bernake in his role as Fed Chairman, there has been so much electronic cash created that now the Central Banks of the World must remove actual cash from the World before the Public figures out that the real cash does not exist and if everyone realized the truth that all monies would be removed from the banks of the world and our financial systems would immediately collapse.

So with the first two paragraphs as background is it any wonder that at times the ability to understand day to day movements in the various currencies is impossible. The fact that EUR/USD has gone up and the markets are ignoring the REALITY and looking as the market psychology of the PERCEPTION then it follows that the MARKET is always right until it is not. Another excellent example with real life consequences is the behavior of the US Stock Markets and the World Bond Markets since November 8, 2016 and the election of Donald J Trump.

Based only on hope and surely, NOT REALITY the wrong assumptions of stimulus in the USA with the NEW Trump Presidency has lead to over Two Trillion Dollars of loss in the World Bond Markets and new highs in the Dow and SP500. There is no possibility that everything will NOT reverse, when REALITY TRUMPS PERCEPTION and that is the whole point. It is in knowledge of reality and the timing of the reality taking effect.

It would be most appreciated to have some feedback so intelligent discussions can be entertained. This week might be the week for REALITY when we hear from the ECB on Thursday and of course next week the FED meets on December 13, 2016 and comes out with their Rate Decision on December 14, 2016. This could be the principle of buy the rumor and sell the news which is what seems to have happened with Italy and the referendum results. When the FED raises rates for the first time in one year even though last December when they raised once and no again.