CMC Markets National Trading Challenge Tutorial Slides

Transcription

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www.tradewithprecision.com
Trading The Precision Way
“Follow the Smart Money”
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© Copyright Precision Universal LP
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Risk Warning
All information that is provided in this seminar is for educational purposes only.
Trade with Precision and its representatives are not stockbrokers or financial or
investment advisors and do not recommend any stocks, bonds, options, CFDs,
currencies or any securities of any kind. Any financial securities that are mentioned
throughout the course of training and/or on our website are cited only for
illustrative and educational purposes.
Investing in financial markets is risky and it is possible to lose money. It is
recommended that you seek a professional licensed financial advisor prior to
implementing any investment program or financial plan.
By participating in this seminar with Trade with Precision, you hereby generally
release Nick McDonald, Trade with Precision, Precision Universal LP and its
employees and representatives from any liability whatsoever related to your
participation in this course of training.
If you do not accept these conditions, please leave the seminar now.
For more info visit: www.tradewithprecision.com/terms
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About Trade With Precision
•
Educating traders since 2006
•
The company has grown by word of mouth &
strong CORPORATE PARTNERSHIPS
•
Provide LONG TERM HAND HELD education
programmes
•
Specialise in ANY MARKET, ANY
TIMEFRAME TRADING STRATEGIES
•
Team of professional traders
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What is Foreign Exchange?
•
Many DIFFERENT NAMES for the same thing:
 Forex
 FX
 Foreign Exchange
We will use all names
interchangeably
 Currency
•
Forex is essentially the trading of MONEY
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FX is a 24 Hour Market
• FX is open 24 hours per day, 5½ days per week!
• TRACKS the ‘day’ sessions around the globe, across 3 geographical
regions: ASIA, EUROPE, AMERICA
Ideal for part-time traders regardless of
the time of day you can trade!
When will you trade?
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Virtually No Gaps – Reduces Risk
NORTHERN ROCK
NZDUSD
Minimal Gaps on FX
provides a seamless chart
Gaps are Risky
WARNING: major news
announcements can cause
slippage and gaps
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Trade with Leverage
•
Leverage is the ability to control a LARGE amount of money with a
relatively SMALLER capital base
•
FX generally has the HIGHEST LEVEL of leverage of all financial products
 Forex offers leverage up to 200:1 (0.5%)
 Compare this to share/equity CFDs where 10:1 (10%) is more
common
WARNING: Leverage can be a double edged sword for those who misuse it.
ALWAYS use protect your downside with stop loss orders and sound money
management rules
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Low Transaction Costs
•
SPREAD
NO commissions or fees when
ASK
trading forex
Quote Window
•
The ‘COST’ of trading is the spread
BID
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FX Trends Beautifully
Trending markets provide the best
trading opportunities
Ranging markets are more difficult to
trade, especially when they range for
long periods of time
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Technical Analysis and Basic
Strategy
Start with a solid base
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Avoid - Charts with Gaps
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Avoid - Long Tails/Wicks
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Assess The Trend & Trade With It
USDJPY is in an Uptrend. Price is
making successive Higher Highs and
Higher Lows
GBPCAD is in a Downtrend. Price is
making successive Lower Highs and
Lower Lows
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MA Buy & Sell Zones
The MA Buy Zone
We look for
BUYING
opportunities
around this zone
The MA Sell Zone
We look for
SELLING
opportunities
around this zone
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Three Types of Candlestick Patterns:
•
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Buyers in charge:
Sellers in charge:
• The names aren’t important, the
psychology behind each candlestick
is
• Our job as traders is to decide who
is winning the tug-of-war, Buyers?
Or Sellers?
•
Indecisive:
Potential direction
change ahead
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Money Management
1.
STOP LOSS: At what point will we close the trade if it goes against us?

One of biggest reasons amateurs fail – they DON’T USE stops or
incorrectly use them

Stops must be placed at levels where they are TECHNICALLY
SUPPORTED

i.e. behind a lower high in a down trend or below a higher low in an
up trend
2.
REWARD/RISK RATIO: How much are we willing to risk for the potential
profit.
3.
RISK MANAGEMENT: What percentage of our trading capital should be
risked on each trade.
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The 1% Rule
•
Top traders risk a VERY SMALL PERCENTAGE of their trading capital on
any one trade
•
At TWP we never risk more than 1% of our account
 Example: $10,000 account size x 1% = $100 MAX RISK PER TRADE
•
The 1% rule means if stopped out our loss will be no more than $100 (1%
total assuming a $10k account)
“I'm always thinking about losing money as opposed to
making money. Don't focus on making money, focus on
protecting what you have”
- Paul Tudor Jones
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Trend Flow Strategy/Recipe
1. Trade charts with OPTIMAL CHART STRUCTURE
2. Trade only in the direction of TREND
3. Price must have pulled back to the BUY/SELL ZONE based on moving
averages
4. SMALL bullish/bearish candle formed in the DIRECTION of the trend
(trigger candle)
5. Risk a MAXIMUM of 1% capital on each trade
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Trend Flow Trading Strategy – Long Example
Trade Checklist:
1. OPTIMAL Chart Structure?
2. Is there a TREND?
3. What IS the TREND?
4. Is price is buy zone?
5. Is there a small bullish candle?
6. Is the STOP protected?
•
Is it in a logical place on the
chart?
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Trend Flow Long Example - Result
Multiple Targets Reached
Always opt to use Limit
Orders to Ensure Profits are
Locked in!
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Trend Flow Trading Strategy – Short Example
Trade Checklist:
1. OPTIMAL Chart Structure?
2. Is there a TREND?
3. What IS the TREND?
4. Is price is sell zone?
5. Is there a small bearish candle?
6. Is the STOP protected?
•
Is it in a logical place on the
chart?
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Trend Flow Short Example - Result
Multiple Targets Reached
Always opt to use Limit Orders to Ensure Profits are Locked in!
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Pointers for Winning The Trading Competition
 Have a risk management plan – it might not be 1% per trade in demo
account trading but one thing is for sure… the winner will have a plan to
reduce the downside (or be VERY lucky!)
 Take some profits as trades move in your direction to lock them in and
not let them become losers
 Add to positions if another trade sets up e.g. you have a sensible entry,
stop loss and target
 Pick charts that have higher timeframe trends e.g. daily, weekly and
monthly charts all with clear direction.
 Lets look at a few charts with clear direction to start off with…
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USDCHF
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EURUSD
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EURGBP
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Join Precision Perspectives FREE for One Month
 What is Precision Perspectives?
 A video newsletter where Nick McDonald and his trading team put out
1. Trade ideas
2. Market commentaries
3. Trading Strategy and education
 For those keen to learn – there is a video archive in the thousands
 Subscription price is $199 per month
Email [email protected] with your:
1. Name
2. Email
3. Phone number
We will set you up with one month complimentary access on us!
Good luck with the competition!

CMC Markets National Trading Challenge Tutorial Slides

Transcription

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