Money Flow Trading Method along with Risk Management

Great Rocky007

If anything is not clear just post here. Take care.


Benjaminis

http://averybgoodman.com/myblog/2016...inet-position/

Snippet:

NEWS FLASH!!
Written by: Avery B. Goodman

On November 29, 2016, I wrote that John Allison, retired CEO of BB&T Bank and the libertarian think tank, CATO Institute, was being considered for appointment as the new U.S. Treasury Secretary. That was music to the ears of many people including me. The man is a real banker, as opposed to a bankster, and his bank concentrated on real lending, the way a bank ought to, rather than opportunistic gambling and manipulation. He spent his life running an institution that supported American business. That, of course, supported good jobs that sustain communities.


In fact, BB&T Bank was one of the handful of major American financial institutions that remained very well capitalized during the 2008 financial crisis. It didn’t need any help from the U.S. government, although it was forced to take the “help” anyway. Allison opposed “TARP” and was sharply critical of the bailouts. His bank was pressured into accepting the money because it was thought that if banks like BB&T didn’t, the truth about the insolvency of a majority of American banks would be forced out of the closet.


Mr. Allison believes, as do I and most clear thinking people, that the world would be better off returning to a strict gold standard. He also believes that the Federal Reserve makes the swings in the business cycle more severe, and that the central bank ought to be closed down. It was very disappointing whe I found out that former hedge fund manager, Steve Mnuchin, was awarded the US Treasury Secretary position, instead.


It seemed like Allison was going back to Winston-Salem, NC, empty handed. That was a sad shame considering how well-qualified he is. More recently, however, I learned that it isn’t over, and I wanted to share that with you. Mnuchin may be getting the coveted Treasury Secretary position, but Allison is still being seriously considered for “other administration positions”. In an interview in his hometown newspaper, for example, he disclosed that the 90-minute discussion with President Trump was only partly about the possibility of becoming U.S. Treasury Secretary.


Allison was actually being vetted for a number of other top positions. At the moment, he refuses to say which ones. But, he did mention that the idea that he join the Trump administration came from Vice President-elect Mike Pence. Mr. Pence had read his book about the 2008 financial crisis, and asked him to testify about it while he was still a Congressman. According to Allison:
“He thought my book was one of the best explanation of the crisis. As such, he was kind enough to inform the president-elect of my qualifications to serve in his administration. It was flattering to have been asked to meet with (Trump), and if I had been asked to serve in an administrative position, it would have required some significant thought and consideration.”


Oddly, although he says he wants to close it down, Allison is particularly interested in serving as Chairman of the Federal Reserve when Janet Yellen’s position expires. He says that he is willing to do that even though his real goal is to end the Fed. That’s because, in his opinion (and he is probably right) it is going to be politically impossible to close it down abruptly. His compromise is to, at least, end the central bank’s interest rate discretion. He wants to force the Fed to strictly comply with the “Taylor Rule”, which is a formula that determines what the interest rate should be, based on other economic factors.


Clearly, adherence to the Taylor Rule would rein in the Fed, because the basis for determination of the prevailing interest rate would be openly disclosed. Since everyone would have equal knowledge and automatically know what the interest rate would be, members of the FOMC could no longer tip off their friends and colleagues at the banks they once worked at. It would eliminate the insider’s advantage, and destroy the incentive to place Trojan horses on the Fed’s interest rate setting committee to the benefit of certain trading firms.


As to going back to gold, the best alternative is not necessarily to “end the Fed”. Rather, it is better to simply return gold to “legal tender” status. The Federal Reserve should be allowed to continue printing its notes. Paper and electronic dollars would continue to be used, alongside gold, to the extent that people wanted to use them. Both dollars and gold would be legal tender for payment of all debts, public and private. In order to stabilize the value of gold (and of the dollar), leveraged trading would become illegal.


By monetizing gold, we would have the best of both worlds. There would be an automatic one-off increase in the money supply without resorting to confidence-destroying measures like money-printing. The increase probably wouldn’t be used for speculation in the stock market. That’s because the primary dealers would not be able to borrow it at the Federal Reserve’s daily loan windows. As “better money”, most of it would disappear from circulation, based on Gresham’s Law. That, however, is a very good thing. As people’s savings, rather than a medium of exchange, gold could serve as the buffer that stabilizes against the big booms and busts induced by the fiat dollar economy.

Hello fellow FX traders

As I have added 3 more spaces and one has been filled then I invite two more to join in officially. There is nothing to stop everyone else from participating along with the 10 of us.

Dear wayfarer

I have 6 students signed up however because of the good interest shown here in the last few days I will open my Money Flow Method and Risk Management to 9 students.

Please read the last three pages from page 20 to page 23 and you will have all the information that you need. Thank You. When you have opened your FXCM UK Demo account please inform me via email or PM on Forex Factory the information. Thank You !!!


All that you need to do now is open your FXCM UK demo account using the option to set it up at $50,000 US Dollars and then post your User ID number here on this thread and then PM me on Forex Factory or email me at Benjaminisforex @yahoo.com with your password !!!

Here is the link: https://www.fxcm.com/uk/forex-trading-demo/



Benjaminis

Hope I did it right. Trade Station I have the tools & don't how to use it, However MT4 seems pretty handy let me play around with DS30
FYI, Weekly and Daily pivot has been added to the MT4 chart.

OMG! what have I missed out. DJ30 is really awesome, with help of PA we can shower with pipes.

Rocky007

Thanks so much for your chart. To inform you and everyone else whatever charts that you post here are excellent. I have learned and used certain effective indicators that can be added. The ones outside of MACD and RSI and the other common ones , I also use SAR and Awesome Oscillator and Fractal. You have on the FXCM UK demo platform great tools to build your own charts.

Imagine a rock thrown into a pond and it causes a ripple. So I use the 5 minute chart for the first ripple then the 15 minute chart for the second ripple and then the 30 minute chart and the 4 hour chart. It helps to see the different time frames.

Since as the MONEY FLOW METHOD shows when WE have Risk Off the money flows partly into USD/JPY and since we now trade as our second Trade Plan SHORT USD/JPY then there is correlation there so a second chart of USD/JPY will be helpful.

I will have more information posted here as I found a older thread on Forex Factory that covers this topic and as soon as I locate it then I will post the information here. Technical Indicators represent 25% of our overall strategy.


Benjaminis

As promised !!!
Have a Toolbox - Use what works for the Current Market Environment

According to some analysis: although defining trade parameters is important to traders in any market, it is particularly important in the currency market since over 80% of the volume is speculative in nature. This means that currencies can spend a very long time in a certain trading environment. Also, the currency market obeys technical analysis particularly well given its large scale and number of participants.


Too many traders have tried to pick the top within a trend, only to wind up with consistently unprofitable trades.

There are basically 2 types of trading environments, which means that at any point in time an instrument is either range trading or trending. The 1st step every trader needs to take is to define the current trading environment. The shortest time frame that traders should use in step one is daily, even if you are trading on a 5-minute time frame.

How to Trade Trend?
To trade trend the trader needs to answer 3 basic questions:

1. Trend detection - When is a trend in place?
2. Trade entry – How is a position initiated?
3. Trade exit – What constitutes trend exhaustion?

The use of Bollinger Band is a more accurate way to glean trend, though it is often used for range-bound markets.
What is trend really? The author will postulate that trend is actually a deviance in price. Typically, in all markets prices stay in a range somewhere between 70 and 80% of the time. Therefore, when prices decide to trend they in fact deviate from the norm. That is why Bollinger Band (“BB”) becomes one of the best tools to measure deviation in technical analysis. The BB formula contains the standard deviation (“SD”) calculation within it. BB measures the standard deviation of price away from its 20-period moving average. … Price action is captured within the 1SD – 2SD Bollinger bands.

THESE BB bands divide the price action into 3 separate areas. If prices are between the upper 1 standard deviation BB and the upper 2 standard deviation BB, they are in the buy zone. If a specific currency is trading between the lower 1 SD BB and the lower 2 SD, then its price is in the sell zone. Price candles that exists in the area between the 2nd BB bands are in effect in no-man’s-land as markets struggle to find direction.

With the BB bands approach, the trend detection rule is quite straightforward. The author considers the uptrend to have commenced once the price closes – not simply penetrates, but closes – in the buy zone. The idea behind this rule is that buyers must have enough conviction behind their actions to sustain a rally into the upper BB channel. If prices merely pierce the channel but cannot hold their value, then we do not have enough evidence of a clear up move in place.

The second component of the trade is perhaps the trickiest. Instead of simply entering the trade at market we will look for an opportunity to buy on any small dip into the no-man’s-land zone. IF the penetration of the buy zone is so powerful that prices reach the upper 2 SD BB, then we will wait for prices to retrace to the middle of the bands or to the 1 SD band. Why such hesitation? Shouldn’t we jump in the moment the trend becomes clear? No. Not if you want trade FX like a professional.
When it comes to trend trading in FX, the difference between professionals and amateurs is that while the pros are trend followers, the amateurs are trend chasers. The distinction may seem like nothing more than semantics, but in fact it’s often what separates those who earn money through trading from those who lose it.

Where would the trader abandon his position? At what point on the chart will be proven most likely wrong? If prices retreat all the way back to the lower 1 SD BB, then the trader should stop out. The probability that trend is over is very high. Note the difference in approach. In order for us to consider the trend valid, prices must not only touch but close through the upper 1 SD BB. As for our exit, a mere tag of the lower 1 SD BB will take us out of the trade. Why be so slow to enter and so quick to exit? Because, as I noted before, trend is not the common state of price, so price must really prove to the trader that it is making a directional move. Once price can’t hold trend, there is absolutely no reason for the trend t trader to stay around. His risks far outweigh potential rewards because he now faces 3 possible scenarios – consolidation, trend reversal, or trend continuation. 2 out of the 3 outcomes are unfavorable to his position and the last choice, which is advantageous, is usually the least likely under such circumstances.

Using the lower 1 SD BB provides ample room for the trend trader not to be falsely shaken out of the trade while the price meanders through the no-man’s-land zone before it decides whether it wants to continue its initial impulse higher.

Understanding the exits – the 3rd rule of the trade – may now be helpful to appreciating the 2nd rule of buying only when price retraces. It all has to do with risk and reward. Remember that in real life prices frequently fake out the trade. Just because price enters into the trend channel is no guarantee that it will remain there. If markers were highly predicable most traders would make money rather than losing it. The key to positioning in a trend-based setup is to minimize the amount of losses for the countless times you will inevitable be wrong, rather than to maximize the gains for the few times that you will be right. In trading, trends are the exception, not the rule, and in order to avoid being wiped out, traders need to try to always enter the market under the most advantageous of circumstances no matter what the market environment holds. Novice traders tend to succumb to the lure of the crowd and not restrain themselves from buying at the top or selling at the bottom. The more patient trader, however, who would wait for a retracement down to the upper 1 SDBB, would suffer only a smaller loss.

- Boris Schlosseberg, Technical Analysis of the Currency Market

RELATIVE STRENGTH INDEX

Invented by master technician J. Welles Wilder, the RSI, like stochastics, compares the strength of the currency pair to its price history. As an indicator it places more importance on recent price data and as such is very popular with currency traders who use it in a variety of ways. Because of its built-in smoothing functions, the RSI filters out the noise generated by spikes in price and is even used by some traders as a proxy for volume since volume reporting does not exist in FX.


One of the most common methods of trading the RSI is by uncovering divergence patterns. If price is continually making new highs but the RSI does not, then a trend reversal or trend consolidation is highly likely.

The RSI is one of the most robust oscillator tools in technical analysis. Its price-smoothing function frequently offers better clues to direction than price action itself.By applying trendline analysis right on the RSI itself, traders can generate accurate entry signals on both shorts and longs. Although ostensibly the indicator generates overbought and oversold signals, like all oscillators its real value is in spotting divergence between momentum and price.

- Boris Schlosseberg, Technical Analysis of the Currency Market

STOCHASTICS Oscillator is invented by Dr. George C. Lane. It is one of the oldest, yet one the most robust, technical oscillators around.


This tool is built on the basic technical premise that as process rise in an uptrend, the close of each period will approach the high as bulls lift every offer, whereas in a downtrend the close will usually occur near the low as bears hit every bid.


Dr. Lane was very clear that a stochastic of 80 does not mean that the trader must immediately short, nor does a reading of 20 mean that bids must be placed. Rather, the proper way to use stochastic is to observe the indicator once it has entered the overbought or oversold zone. Only when the indicator slips back below 80 or moves up above 20 does the trader follow the signal. Stochastics essentially measure momentum, and a break of the 80 line or a rally through the 20 line would indicate that buying or selling momentum has ceased and the trader is offered a high-probability directional trade.

DIVERGENCE
Dr. Lane contended that one of the most useful ways to utilize stochastics is by spotting divergence between the price action and the indicators readings. Specifically, he found the setup where the %D line would make lower highs while the price made higher highs a very useful short setup, and on the opposite side when the dynamic reversed itself with %D making higher lows while the price continued to make lower lows, this setup represented a potent long trade. He found that these types of trades were most reliable when divergence occurred as %D was between 10 and 15 on the downside and 85 and 90 on the upside.

Stochastics are one of the earliest oscillator indicators and for that reason they have been abused by traders who misinterpret their signals. In highly range-bound markets, this tool can accurately call turns in price by simply flashing 80 or 20, but once the environment changes such simplistic trading will wreak havoc with your trading account, as price will continue to climb relentlessly against your shorts and fall against your longs. Stochastics are best used as a gauge of trend strength. Once trend weakens, stochastics will weaken as well, Even if price then resumes its prior direction, and even sets new highs in an uptrend or new lows in a downtrend but stochastics do not confirm the price action, that piece of information could be enormous value to the trader. Such a setup could signal the possible start of consolidation and range trading or a full-scale countertrend move. In either case, it’s at this point that stochastics can offer the greatest value and the indicator can prove its mettle as one of the oldest albeit valuable technical tools.

- Boris Schlosseberg, Technical Analysis of the Currency Market

Avery (a.k.a. TooSlow / Therumpledone) Always did offer one to think which in turn caused them to be banned from most Forex sites. Ponder that

Bear
Investor acting on the belief that prices or the market will decline.


Bear Market
Any market that exhibits a declining trend. In the long run they have a down turn of 20% or more.


Bull
Investor who expects markets or prices to rise.


Bull Market
A market where prices are rising or are expected to rise.


Buy a bounce
A recommendation to instigate a long trade if the price bounces from a certain level.
A strategy that focuses on buying a given security once the price of the asset falls toward an important level of support. Traders who "buy a bounce" attempt to profit from a short-term correction or "bounce" off of the identified support.
In order to use this strategy most effectively, a trader has to be sure that he or she is able to identify a valid level of support. Some traders may wish to enter a position before the signs of a bounce off of a support level, but generally this is a high-risk strategy and can result in devastating losses. Most traders will want to confirm a bounce off of a support level by using a combination of other technical indicators before entering a position.


Buy break
A recommendation to buy the currency pair if it breaks the current level specified.
A type of recommendation to buy an asset once the price is able to surpass an influential level of resistance. A move above resistance is used as a buy signal because an increase in upward momentum often follows the breakout. Buying a break is a strategy often used by traders who incorporate the use of chart patterns, trendlines and other technical indicators into their trading.
For example, suppose a stock appears to have met resistance at the $50 price level for the last year. Many traders will watch the price movement around $50 very closely because a break above the resistance would suggest that a likely surge higher will follow. Technical traders use a break above resistance to signal a good opportunity to buy because a resulting surge of upward momentum commonly follows.


Buy stops above
A recommendation to enter the market when the exchange rate breaks through a specific level. The client placing a stop entry order believes that when the market's momentum breaks through a specified level, the rate will continue in that direction.


Cable
Term used to describe the exchange rate between the US dollar and the British Pound.


Chartist
Refers to a technical analyst or one who analyses charts/graphs and data to uncover potential trends.


Correction
A reverse movement, usually negative, of at least 10% in a stock, bond, commodity or index. Corrections are generally temporary price declines, interrupting an uptrend in the market or asset.
A healthy market will correct from time to time.


Cover on a Bounce
A recommendation to exit trades on a bounce out of a support level.
The covering of a short position after it has reached and bounced off a level of support. This strategy waits for the price to move to a support level, instead of selling before, to see if the level will hold (because the trader will benefit if it doesn't hold). Once the security bounces it is clear the security will have trouble moving down further so the trade covers their short position.
Levels of support act as a backstop to a further move downward in price but can sometimes fail to hold. If a security falls below a support level it will often lead to an even stronger downward move as the level is taken out. The trader waiting for a bounce is betting that the support level will not hold and they will benefit if this materializes.


Cover on Approach
A recommendation to exit trades for profit on approach to a support level.


Dead Cat Bounce
A temporary recovery from a prolonged decline or bear market, after which the market continues to fall.
Ever heard the saying, "Even a dead cat will bounce if dropped from high enough!"?

Flat/Square
To either have no positions or positions that cancel each other out.

Fiber
Term used to describe the exchange rate between the Euro and US dollar.

Fibonacci Extensions
Levels used in Fibonacci retracement to forecast areas of support or resistance. Extensions consist of all levels drawn beyond the standard 100% level and are used by many traders to determine areas where they will wish to take profits. The most popular extension levels are 161.8%, 261.8% and 423.6%.
In practice, most traders use Fibonacci extensions in combination with other technical indicators/patterns to help them determine appropriate target prices. As this chart shows, the 161.8% level is often used to set the price target on a breakout of an ascending triangle. This specific target is calculated by multiplying the vertical distance of the triangle by the key Fibonacci ratio of 61.8% and then adding the result to the upper resistance of the triangle.

Fibonacci Retracement
A term used in technical analysis that refers to the likelihood that a financial asset's price will retrace a large portion of an original move and find support or resistance at the key Fibonacci levels before it continues in the original direction. These levels are created by drawing a trendline between two extreme points and then dividing the vertical distance by the key Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8% and 100%.

Fibonacci retracement is a very popular tool used by many technical traders to help identify strategic places for transactions to be placed, target prices or stop losses. The notion of retracement is used in many indicators such as Tirone levels, Gartley patterns, Elliott Wave theory and more.

Flat On A Failure
A strategy of closing out of a position and taking profits if the security in question moves up to a target level but fails to break through it. This can be seen as a method of extracting what profit a trade has been able to produce so far because the trader believes that further movement past the target level is unlikely.
For example, suppose that a trader is in a long position on a given currency pair and the exchange rate moves upward in her favor by a moderate amount but fails to move past a key resistance level she was expecting to act as a catalyst for further movement. In this case, the trader would probably deem the trade flat on a failure and close the position out for whatever profit had been earned.

Fundamental Analysis
The analysis of economic indicators and political and current events that could effect the future direction of financial markets.

GTC (Good-till-Cancelled)
Refers to an order given by an investor to a dealer to buy or sell a security at a fixed price that is considered “good” until the investor cancels it.

Hedge/Hedging
Strategy to reduce the risk of adverse price movements on one's portfolio and to protect against the volatility of the market. Hedging typically involves selling the good forward or taking a position in a related security. Hedging becomes more prevalent with increased uncertainty about current market conditions.

One Cancels Other Order (O.C.O. Order)
An order that through its execution cancels the other part of the same order.

Panic Selling
Wide-scale selling of an investment, causing a sharp decline in price. In most instances of panic selling, investors just want to get out of the investment, with little regard for the price at which they sell.
The main problem with panic selling is that investors are selling in reaction to pure emotion and fear, rather than evaluating fundamentals. Almost every market crash is a result of panic selling. Most major stock exchanges use trading curbs and halts to limit panic selling, to allow people to digest any information on why the selling is occurring, and to restore some degree of normalcy to the market.

Pivot
A price level established as being significant either because the market fails to penetrate it or because a sudden increase in volume accompanies a move through that price level.

Pivot Point
A technical indicator derived by calculating the numerical average of a particular stock's high, low and closing prices.
The pivot point is used as a predictive indicator. If the following day's market price falls below the pivot point, it may be used as a new resistance level. Conversely, if the market price rises above the pivot point, it may act as the new support level.

Resistance
A price level at which most investors expect prices to decline further. A price at which there is sufficient supply to turn a previously uptrend downward. With regards to the forex market, it is the level at which a currency cannot rise above.

Retracement
A reversal in the movement of a stock's price, countering the prevailing trend.
An example might be market risk causing a stock's price to pull back. The Fibonacci retracement tool is favored by many traders because of its abilty to identify a price level that a correction may reach before it is able to reverse and continue in the direction of the original trend.

Reversal
A sudden change in the price direction of a stock, index, commodity, or derivative security.
Also referred to as a "trend reversal", "rally" or "correction".
A reversal can be a positive or negative change against the prevailing trend. Technical analysts watch for these patterns because they can indicate the need for a different trading strategy on the same security.
For example, if a technical analyst holds stock ABC and notices a reversal pattern, he or she may want to consider closing his/her existing long position and assuming a short position to capitalize on the potential downward movement of the stock's price.


Rollover
Refers to a process of reinvesting in which, at the expiry, the settlement is postponed until a later date. The cost of the process is measured by the interest rate differential between the two currencies.

Scalping
A trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy will place anywhere from 10 to a couple hundred trades in a single day in the belief that small moves in prices are easier to catch than large ones.

Stochastic Oscillator
A technical momentum indicator that compares a security's closing price to its price range over a given time period. The oscillator's sensitivity to market movements can be reduced by adjusting the time period or by taking a moving average of the result. This indicator is calculated with the following formula:

%K = 100[(C - L14)/(H14 - L14)]
C = the most recent closing price
L14 = the low of the 14 previous trading sessions
H14 = the highest price traded during the same 14-day period.

%D = 3-period moving average of %K

The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. Transaction signals occur when the %K crosses through a three-period moving average called the "%D".

StochRSI
An indicator used in technical analysis that ranges between zero and one and is created by applying the Stochastic Oscillator formula to a set of Relative Strength Index (RSI) values rather than standard price data. Using RSI values within the Stochastic formula gives traders an idea of whether the current RSI value is overbought or oversold - a measure that becomes specifically useful when the RSI value is confined between its signal levels of 20 and 80.
The StochRSI is deemed to be oversold when the value drops below 0.20, meaning the RSI value is trading at the lower end of its predefined range, and that the short-term direction of underlying security may be nearing a correction. Conversely, a reading above 0.80 suggests the RSI may be reaching extreme levels and could be used to signal a pullback in the underlying security.

Stop Order (Stop-Loss Order)
An order used to hedge against excessive loss in which a position is liquidated at a specific, prearranged price.

Support
A price level at which there is sufficient demand to turn a downtrend up.

Take-Profit Order (T/P)
An order used by currency traders specifying the exact rate or number of pips from the current price point where to close out their current position for a profit. The rate deemed to be the level where the trader wants to take a profit is sometimes referred to as the "take-profit point".
As the name suggests, take-profit orders are used to lock in profits in the event the rate moves in a favorable direction. For example, if you are long a currency pair position and believe the price will rise to a certain level, but are unsure what it will do beyond that level, placing a take-profit order at that point will automatically close out your position allowing you to lock in profit. Example: Buy $100 worth of yen at 107.4 yen per dollar = 100*107.40 = 10,740 yen
Place a take-profit order at 108.80. Price then rises from 107.40 to 108.80 Take-profit order automatically executed to sell $100 and buy 10,880 yen
Profit of 140 yen realized.

Technical Analysis
A technique used to try and predict future movements of a security, commodity or currency, based solely on past price movements and volume levels. It examines charts and historical performance.

Technical Correction
A decrease in the market price of an asset or entire market after extensive price increases. A technical correction occurs even when there is no evidence that the increasing price trend should cease. It is often caused when investors temporarily slow down their purchases of securities, which commonly leads to a pullback toward a short-term support level.
A technical correction is a drop in stock or market prices when there is no fundamental reason for a decrease. After a steady increase in value, investors may become more cautious buyers at the higher prices and look to reevaluate the market, resulting in a decrease in purchases. The drop in purchase volume will stop the upward price trend from continuing while the market re-evaluates the short-term direction.


Trendline
A line on the price or value chart of a security depicting the general direction in which the security is headed. This chart shows an example of an upward trendline:
Many people believe that prevailing trends, either up or down, will determine where a security is headed. Trendlines can be used to analyze individual securities, such as stocks, commodities or indexes, among other things.

Volatility
Refers to the tendency of prices/variables to fluctuate over time. It is most commonly measured using the coefficient of variation (the standard deviation divided by the mean). The higher the volatility, the higher the risk involved.

Whipsaw
Term used to describe sharp price movements and reversals in the market. A whipsaw would be if shortly after you bought a stock the price plummeted.

I never trade CFDs before, however, I have little experience with the stock market. Due to pattern day trader rules I quite stock trading. Since then I've been involved with Forex trading. However, I'm well aware about technical indicators. Thank you tho for refreshment.

Hello raveon

I just checked your FXCM UK platform for you and I see your first trade was for 3 units so I took the liberty of shorting 100 UNITS for you and I entered a STOP LOSS for you of $1005 US if US30 gets well over 20,000 and I entered a LIMIT OUT for you at UNREALIZED PROFIT of $3000

Have a look and if you have any questions please share them here with us.

Thanks and I appreciate having your participation.


Benjaminis

P.S. Here is the report that I just ran for you so you can see visually.


12/26/16 3:39 PM Deposit 02732522 50,000.0050,000.00
Total:50,000.00


ACCOUNT SUMMARY

Beginning Balance0.00
CommTrading Commission0.00
RolloverRollover Fee0.00
PnLProfit/Loss of Trade0.00



OptionOptions Payout0.00
CommOptions Commission0.00
AdminFeeAdministrative Fee0.00
MngFeeManagement Fee0.00
PerfFeePerformance Fee0.00
VoidDeposit Rollback0.00
ASPCommASP Commission0.00
MargInterestInterest on Usable Margin0.00
SubscriptionFeeSubscription Fee0.00
RRebRollover Rebate0.00
Div_AdjDividend adjastment0.00


Ending Balance 50,000.00
Floating P/L -15.45
Equity 49,984.55
Necessary Margin 1,081.50
Usable Margin 48,903.05
Notes:
"THIS IS A DEMO ACCOUNT WHICH IS TRADED WITH VIRTUAL FUNDS. NO REAL MONEY IS USED IN TRADING THIS ACCOUNT. Demo accounts are used primarily for education purposes, testing of strategies, and familiarizing traders with market movement and the FX Trading Station. There are inherent risks associated with online trading that may arise due to downtime, currency fluctuation and other risks associated with currency speculation. Only risk capital should be used when trading a real account."

Thanks Benjamin,

I have tried to enter the order as you describe. As I am unfamiliar with the FXCM platform I don't know if I did it correctly.

I could not see how to set a SL and TP in dollars so I just gave it a go...... could you check it and let me know?

Thanks

That was my first trade with my Trade Station and please ignore that one, now I know what I'm dealing with, just give us the fundamental information we can rock the market. Monthly 5% can be achieved that for sure.

http://www.zerohedge.com/news/2016-1...ops+to+zero%29

Snippet:

Last week, in a largely "under the radar" event, one of China's wealthiest billionaires (if only on paper), Wu Ruilin, chairman of the Guangdong based telecom company Cosun Group, and whose personal fortune of 98.2 billion yuan ($14 billion) makes him wealthier than Baidu founder Robin Li who is ranked 8th on the Hurun Rich List 2016, shocked Chinese bond market watchers when he defaulted on a paltry 100 million yuan ($14 million) in bonds sold to retail investors through an Alibaba-backed online wealth management platform, citing "tight cash flow."

Needless to say, many were stunned that a billionaire for whom $14 million is pocket change, blamed "tight cash flow" for defaulting on mom and pop investors. In any case, as South China Morning Post reported, despite the founder's personal fortune, according to a notice put up by the Guangdong Equity Exchange on Tuesday, two subsidiaries of Cosun Group are each defaulting on seven batches of privately raised bonds they issued in 2014. According to the notice, “the issuer had sent over a notice on December 15, claiming not to be able to make the payments on the bonds on time, due to short-term capital crunch."

To be sure, yet another default in a Chinese landscape suddenly littered with bankrupting debt dominoes would have been the end of it, however this morning Reuters added to the mystery when it said that the fate of the defaulted $45 million Chinese corporate bond sold through an Alibaba-backed online wealth management platform was thrown into doubt on Monday, after a bank said letters of guarantee for the bonds were counterfeit.
Quoted by Reuters, China Guangfa Bank Co Ltd (CGB) said guarantee documents, official seals and personal seals presented by the insurer of the bonds "are all fake" and that it has reported the matter to the police.

The dispute highlights challenges in China's loosely regulated online finance industry, where retail investors often buy high-yielding bonds and other assets, expecting them to be "risk-free" due to guarantees provided by various parties.

As first reported last Wednesday, at the center of the latest dispute are up to 312 million yuan ($45 million) worth of high-yielding bonds issued by southern Chinese phone maker Cosun Group that defaulted this month. The bonds were sold through Zhao Cai Bao, an online platform run by Ant Financial Services Group, the payment affiliate of e-commerce firm Alibaba Group Holding Ltd.

Ant Financial has asked Zheshang Property and Casualty Insurance Co Ltd, which wrote insurance on the bonds, to repay investors. On Sunday, Zheshang Insurance published two documents on its website that it said were from CGB carrying the bank's official seals, and that guaranteed Zheshang Insurance policies for the Consun bonds. The letters were issued at CGB's Huizhou branch in December 2014, when the Cosun bonds were sold, Zheshang Insurance said.

And yet, suggesting there is a massive landmine hiding just below the surface of China's bond market, far worse than merely the consequences rising interest rates, on Monday, CGB said the documents were fake and that it had reported the incident to police as "suspected financial fraud."

While material misrepresentation of facts in Chinese finance is hardly new, the recent alleged violations usher in a whole new breed of fraud, one which is far less nuanced and far more simpllistic and includes outright forgeries of documents that backstop tens if not hundreds of billions in debt. The Cosun dispute follows similar instances of financial fraud this year including forged bond agreements that led to brokerage Sealand Securities sharing potential losses of up to $2.4 billion. In May, the government advised banks to be vigilant after several cases of bill fraud.

Ant Financial on Tuesday said Zheshang Insurance "hasn't any reason to refuse repayment" which it was obliged to do "within three days" of default.
Making matters worse, the fraud has taken place in the context of a bond default that, according to an Ant Financial spokeswoman cited by Reuters, was a "a one in billions incident" on the platform.

Incidentally, Cosun's bond issuance totals 1 billion yuan, according to Zheshang Insurance. The insurer's total registered capital is 1.5 billion yuan.
Should more such "one in billions incidents" emerge, Chinese bond investors - already freaked out by the recent record plunge in Chinese govt bond futures, soaring overnight funding rates, and fears over Fed rate hikes - will rush for the exits just as China's housing bubble is also popping as reported yesterday, leading to a rerun of the US 2006/2007 dual bursting of the housing/credit bubbles, only this time instead of an $8 trillion financial system, the world will have to backstop China... whose banking system at last check had over $30 trillion in liabilities.


Incidentally, we wonder if now that China's bond insurers are also under the spotlight, if that means China's very own MBIA/Ambac moments is imminent, as billions in bond insurance contracts are deemed "fake" by the insurers who would rather not pay up on what is set to be an avalanche of defaults.


* * *
Finally, for those interested in what Bloomberg last week dubbed the "latest China Finance Scare", namely outright forgeries in various debt products, mostly focusing on Entrusted Bonds, here is a useful primer courtesy of BBG:

There’s another Chinese financial practice that’s prompting high-decibel warnings. So-called entrusted bond holdings are a way for financial institutions to skirt rules on using borrowed money to invest in bonds. How? By getting a third party to buy the bonds and agreeing to purchase them at a later date. What could possibly go wrong? How about the worst rout in China’s bond market in a decade. That’s left regulators concerned about the prospect of investors failing to make good on such arrangements, estimated to involve at least $144 billion of bonds.

1. Why entrust us with this news only now?
Concerns about entrusted bond holdings have worsened the tumble in the debt market. Last week, Caixin cited market rumors when it reported a brokerage called Sealand Securities Co. had refused to take over bonds held by a counterparty. That got investors worried. Oversea-Chinese Banking Corp. then said in a note, citing media reports it didn’t identify, that the entrusted holding agreement may have been tied to alleged fraud by ex-staff. Sealand cleared the air when it said it would in fact fulfill the bond contracts that had been stamped with a forged seal. The whole incident was enough to frighten an already jittery market.
2. So why do investors use entrusted holding agreements?
Brokerages and other institutional investors ask counterparties to buy bonds from them when they need to circumvent internal rules on note holdings and leverage, according to Xu Hanfei, a bond analyst at Guotai Junan Securities Co. Or they can simply have third parties buy the notes directly from the market. The practice boosts leverage by effectively giving the financial institutions loans: As brokerages and institutional investors don’t carry the bonds on their books, they can use the funds freed up on paper to purchase more bonds, which can then be rolled into more such agreements. “Non-bank financial institutions, which emphasize returns, have more motivation to amplify leverage through entrusted holdings,” said Li Liuyang, a market analyst at Bank of Tokyo-Mitsubishi UFJ in Shanghai.
3. How widespread is the practice?
Outstanding entrusted holdings are "in the trillions of yuan," according to Guotai Junan’s Xu. That estimate is based on the bond holdings of the brokerages and smaller banks that are major participants in such transactions. That means the amount of money tied up in such deals is at least 5 percent of the 21 trillion yuan ($3 trillion) of outstanding corporate notes in China, according to data compiled by Bloomberg.
4. What broader risks does it pose to China’s financial markets?
A default in an entrusted holding could turn what otherwise might have been a problem with one company’s liquidity into a broader credit event, given that multiple parties may be involved, according to Li at Bank of Tokyo-Mitsubishi UFJ. Li says “everyone is worried about similar situations in their transactions with non-bank financial institutions.” OCBC said that things had got so bad that banks were reluctant to lend to non-bank institutions amid a breakdown in trust between investors.
5. What are regulators doing about it?
Authorities including the central bank and the China Securities Regulatory Commission are investigating some financial institutions’ entrusted bond holdings after the Sealand incident, people familiar with the matter said Tuesday. The holdings run contrary to the central bank’s push to trim investments made on borrowed money, according to China Merchants Bank Co. “It’s just a question of when Chinese regulators will clean up entrusted bond holdings,” said Liu Dongliang, a senior analyst at the bank. Tommy Xie, an economist in Singapore at OCBC, says China’s market rout may prompt regulators to strengthen rules on entrusted holdings. He describes them as "a common practice in the grey area of the bond market.”

Yes my friend Rocky007

Let US rock the market and fill the boat with Money and Gold. Keep up the good work. You are doing good.

I am off to bed soon so will start up tomorrow near the Europe Open !!!

Good Evening


Benjaminis

Here is what you do. Go to your FXCM UK platform and look at open orders. On your three small units just to practice look at the open part that says limit and stop.

Just click on the BOX for STOP and LIMIT and you will see how to enter your STOP and your LIMIT OUT. Since you have only 3 units then your STOP and your LIMIT OUT will be much smaller. You can close these positions manually as soon as you are in a profit. Please post any follow up questions here as I will hang around for another 15 minutes or so. There can be more than one person on the FXCM UK platform so I am leaving your platform on my computer overnight.

Good Evening !!!

From Finviz - Great Visuals

Free Site - 5 Minute chart on Gold.

http://finviz.com/futures_charts.ashx?t=GC&p=m5

5 Minute chart on USD/JPY - Enjoy !!!

http://finviz.com/forex_charts.ashx?t=USDJPY&tf=m5

OK , I entered it for you now just let the market do its job while you relax.

Here is the report that I ran for you so you can see it here and on the platform.

OUTSTANDING ORDERS

Order #Expire DateTypeTicketSymbolVolumeDateB/SPricePeg OffsetMarket PriceCreated By

277256311 S115234582US30312/26/16 10:28 PMB20,029.00 19,930.50d102742734001

277256319 L115234582US30312/26/16 10:28 PMB19,591.50 19,930.50d102742734001

277254768 S115234623US3010012/26/16 9:49 PMB20,026.00 19,930.50d102742734001

277254776 L115234623US3010012/26/16 9:50 PMB19,625.50 19,930.50d102742734001


OPEN/FLOATING POSITIONS

Ticket #SymbolVolumeDateSoldBoughtFloating P/LCommDividendsRolloverNet P/LConditionCreated By
115234582US30312/26/16 9:45 PM19,925.50 -1.500.000.000.00-1.50Mktd102742734001
12/26/16 10:28 PM 19,930.50


115234623US3010012/26/16 9:48 PM19,925.50 -50.000.000.000.00-50.00Mktd102742734001
12/26/16 10:28 PM 19,930.50


Total:-51.500.000.000.00-51.50

Posted at statement period of time:0.000.000.00

ACCOUNT ACTIVITY
Time PostedCodeDescriptionAccount #Ticket #AmountBalance
12/26/16 3:39 PMDeposDeposit02732522 50,000.0050,000.00
Total:50,000.00
ACCOUNT SUMMARY

I opened an account United Kingdom - D102743041001 . A password is sent to the post office

https://www.theguardian.com/business...ays-ecb-member

Snippet:

President of Germany’s Bundesbank questions wisdom behind rescuing Italy’s third-largest bank if it is in a bad financial state
https://i.guim.co.uk/img/media/09f94...sm=12&fit=max&

The Italian government has approved a state bailout plan for Monte dei Paschi bank, which can trace its roots back to 1472. The bank failed to raise €5bn privately to top-up its capital. Photograph: Bloomberg/Bloomberg via Getty Images

A bailout of struggling Italian bank Monte dei Paschi should not be seen as a done deal, a key European Central Bank policymaker has said.


Jens Weidmann, president of Germany’s Bundesbank, said the Italian government ought to consider whether it should rescue the bank if it is in a bad financial state.


“For the measures planned by the Italian government the bank has to be financially healthy at its core,” he said in an article published German newspaper Bild.
“The money cannot be used to cover losses that are already expected. All this must be carefully examined,” added Weidmann, a member of the ECB’s governing council.


The ECB has taken a tough line with Italy’s third-largest bank, refusing to give it more time to find private investment. The Italian government approved a state bailout plan last Friday after the Siena-based bank, which can trace its roots back to 1472, failed to convince investors to fund a €5bn (£4.25bn) cash injection.
It plans to dip into a €20bn fund approved by the government earlier this month for the purpose of propping the bank up if no rescue plan could be secured elsewhere. The bailout plan was spurred by Monte dei Paschi’s poor results in ECB “stress tests”, a system set up by the European Union after the financial crisis to measure banks’ resilience to unexpected economic shocks.


Stress tests are intended to ensure that taxpayers are not asked to pick up the tab for multi-billion pound bailouts, such as those that the British government orchestrated to save Lloyds and Royal Bank of Scotland. Fears about the strength of Monte dei Paschi began to mount after it came last out of 51 European banks in the ECB’s latest round of tests in July. The bank was told to shore up its finances by the end of the year or face being wound down.


“These (rules) are meant especially to protect taxpayers and put responsibility on investors. State funds are only intended as a last resort, and that is why the bar is set high,” Weidmann told Bild.

Monte dei Paschi’s problems have piled up since the 2008 banking crisis, when it paid €9bn (£7.6bn) for Banca Antonveneta.

The deal doubled its size and turned it into Italy’s third largest bank behind UniCredit and Intesa Sanpaolo. It bought Banca Atonveneta from Santander, which had acquired the Italian bank during the three-way bid for Dutch bank ABN Amro, a deal that was a key factor in the taxpayer bailout of Royal Bank of Scotland.
Three years ago Monte dei Paschi’s problems escalated. The Sienese bank asked the government for €4bn amid a scandal over loss-making derivatives contracts and alleged fraud. It has gone back to the the government for funds after talks with private investors failed, with Qatar’s sovereign wealth fund thought to have scuppered the plan by refusing to take part. The Italian government already has a 4% stake in Monte dei Paschi.

Comments from Benjaminis: This news may show up at the Europe open at Frankfort at 2:00 AM and the open for the DAX , CAC and FTSE at 3:00 AM EST.

Keep your eyes on this development.

That is it !!! Off for some rest for 4 or 5 hours