A Good Time-Tested Trading System Based on Sound Trading Principles Combined with Trader Knowledge Can Trade Micro Forex Futures For Profit
Today is a date we are on a mission offering a new futures trading system to FX futures traders who are members of our Traders Club. By being a traders club member you will receive a Certificate of Membership to Traders Club to use your club membership for the opportunity to buy our new futures system, which will include a free trading system upgrade (when available) as an extra club membership benefit.
FX Forex means the foreign exchange market which takes into account all the major currencies in the world. The currencies are purchased and sold in this market for profits. The forex trading is done by the people who are efficient in the foreign currency movement and are recognized by the market. As a trader you can also take part in this market via a registered Commodity Trading Adviser (CTA) regardless of requiring a substantial monetary investment, experience and your background.
CME announced launching the forex e-micro futures market featuring a small size contract reduced to 1/10th normal size so even a very small investor can avail the opportunity to take part in the active forex futures market. This size minimizes the risk from the point of an investor in forex futures market trading.
The contract size has been reduced to vary small sizes with reduced margins which are proportionate to the investment. This step has been made to draw traders for retail participation. This has been termed Forex E-Micros and expected to be a cost friendly access to the forex futures market for the retail investors with full transparency and respective liquidity of CME. This is to be executed under the strict rules and regulations of CME. Click for Trading Tip of Day.
With the new introduction of the Forex e-micro futures contracts, the Chicago Mercantile Exchange (CME) has been able to open a new horizon for the small investors to accumulate new resources to their credit. They can use this investment opportunity with the security of CME and benefit from their investment in the forex futures market. The investors are able to gain access to the global forex market in a cost friendly way. The trade transactions are electronically processed and are legitimate globally with fixed fees, which are exceptionally profitable for the spot buyers.
Due to their small sizes, individual traders can also take part in these contracts, at the world's largest forex market place. Mainly the six major currencies will be involved in this FX e-micro futures market, which are Euro/USD, GBP/USD, AUD/USD, JPY/USD, CAD/USD and USD/CHF. The transactions are quoted in over the counter basis so that it becomes simpler for the investors to incorporate into their own systems and necessary portfolios. The allowable margins and exchange charges will be calculated proportionately with the original version and at nearly one tenth of the usual size and cost.
As you wait for the new webtrading network trading system development to conclude we recommend you pay a visit to commodity traders club news futures traders website. In addition, you can also go to free trading seminars. We will soon be offering new memberships to our new Forex System club so please visit us again.
More on How to Daytrade Spot Gold & Index Markets
Last week was an exciting one for intra-day traders who follow the spot gold and major stock indexes. Actually, the market has been performing very well for us.
As we all know the market is consistently changing its price patterns and momentum from up, sideways to down, which in turn affects everyone’s trading results for any given month.
For swing/position traders who trade using the daily charts they will find some months will favor trend trading strategies, while other months favor short term range bound strategies, and other months that just are not good for trading at all like the last few months of last year.
During extremely choppy market conditions such as we saw last November and December, the market was up an down like a yo-yo. Swing/position traders had a tough time making money, and speaking for myself, once the market gets like that I patiently sit in cash or hold very small positions.
The good news is that when the market become choppy and swing traders are having a tough time making money (which is fast intra-day up and down movements), day traders come out of the wood work like fire ants. There are crazy amounts of money made and lost during high volume intra day trend reversals and pattern breakouts.
Day Trading the Index – DIA Exchange Traded Fund
If you watched the gold video above you will see how I day traded spot gold in the morning and why I used futures as my investment vehicle. That being said, anyone could have traded the GLD or DGP gold etfs.
Only a couple hours later I saw a great Head & Shoulders pattern on the broad market indexes. Taking a step back, my chart analysis has been telling me to look for a reversal pattern on the broad market as I feel it is over bought, and I still do…
So when I saw gold roll over then a reversal pattern on the Dow Jones Index, I decided to take a short position. Also, I noticed the price reverse down off the right shoulder.
This time, I traded the DIA etf just because it is where I saw the pattern develop first and because I have a thing for DIA (I just like trading it).
So once the price reversed down off the right shoulder with the long red candle I went short at $106.07 with a first target price at $105.85 to sell 1/2 of my position, and then move my stop to break even on the balance of my position. I ended up pocketing just over 25 cents per share in gains which does not sound like much but because day traders get 4:1 and some brokers allow 10:1 leverage you can trade large amounts of shares for these quick trades.
Trading the DIA I focus on 500 or 1000 shares per trade depending on how I feel about the trade. This particular trade I did 1000 shares pocketing $250 profit within 70 minutes.
If you see a Head & Shoulders pattern with a neckline angled up (see chart below), then you should focus on trying to short the top of the right hand shoulder (the first reversal candle). The key here is to be short before the index (or any investment) breaks the neckline.
Once a neckline is broken a large surge of sellers should rush in as everyone jumps out of their long position. Also, this is the point when aggressive traders start taking a short in order to take advantage of the breakdown and price depreciation.
So if you see a right shoulder drifting higher into resistance with that bearish looking flag, be ready to short once you see selling volume pick up and a drop in price.
Day trading Spot Gold and the Indexes Conclusion
Well I hope this short report helps you to take advantage of the market using different trading strategies and time frames. Every day and week is different and I jump around from trading 60 minutes charts, 4 hour, daily and the occasional 5 minute charts like the ones above.
I try to stay away from the 5 minute charts simply because they move so fast, and the shorter the time frame the smaller the potential. But some days favor it so I just take what the market gives me and that’s all we can do.
On another note, if you are interested in my new high-end trading service that trades all the setups in real-time, I will be launching this service with my personal trades and analysis for you to trade alongside me!
You will receive all my intra day and swing trade alerts for indexes and commodities allowing you to trade which ever vehicle you want - whether it’s an ETF, Leveraged ETF, Futures Contract or CFD. This way your timing is accurate, your downside risk is carefully calculated and you can trade which every investment you are comfortable with.
There will be a 24/7 chat room allowing us to trade around the clock when setups arise. Also, members can swap ideas, ask me questions, make new trading buddies etc… There is even a squawk box feature! I can and will talk live with audio to everyone in the chat room for important news, trades alerts or questions.
All trade alerts are instantly posted in the members area, chat-room and sent via email making it one of the most powerful trading services I have ever seen available online.
If you are interested please fill out the form to be notified for this service which will start the last week of March or the first week of April. It will have limited availability to keep it personal. Form is at the bottom of my web page: www.TheTechnicalTraders.com