How To Trade

Linda Bradford Raschke on Day Type, Taylor Trading, Trade Location, More



Linda Bradford Raschke covers:
- Combining Taylor's philosophy with a 2-period ROC and pattern recognition
- Finding ideal trade location
- Determining trading range vs trending environment
- Conditions that lead to extended runs or persistency of trend
- Two different rule sets depending on which trading environment
- Quantitative backtesting to support a statistically significant edge
- Mechanical vs Discretionary - pros and cons of each
- Linda uses this approach personally in her own trading every day

Jeff York has been a full time independent trader and technician for 20 years. Jeff swing trades SPY and IWM weekly & monthly options.

Stock Market Cycles And Price Forecasts

In this webinar, we delved into the trading process and a few favorite trade set-ups. We looked at several fairly recent examples of trades utilizing trend and market conditions, support & resistance, candlesticks, and chart patterns.

To begin with, each trader must find what resonates with them when it comes to developing a trading methodology. While many traders utilize the same tools and perhaps similar combinations of analysis which make their approaches comparable, trading styles are like fingerprints – there are no two exactly alike.

The purpose of this session is to give you a peek into the type of things I look for when seeking out high-quality trade set-ups, in hopes of helping spark ideas as to how to create your own process. Below are a few important components which are at the foundation of my approach used to guide the decision-making process.

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This is simple example about entry and exit method for swing traders (D1 timeframe). Very short video with very understandable explanation.



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Count Back Lines - indicator for MetaTrader 5

There are many significant differences between the futures and the spot market when it comes to currencies. The biggest difference is that currency futures are traded on an exchange, while the spot Forex market is traded over the counter.

One such popular exchange is the CME Group (Chicago Mercantile Exchange), which specialises in futures. Other futures exchanges include the Intercontinental Exchange, or ICE in London, and the Eurex exchange in Europe.

Currency futures derive their prices from the spot market values; whereas, the spot Forex prices are determined by market forces. Moreover, currency futures are standardised products, meaning that specific contract sizes can be bought and sold.

One of the advantages of trading currency futures is that transactions are done directly between buyers and sellers. This removes the risk faced by market makers. In the spot Forex market, you can often find that brokerages act as market makers, thus taking counter-positions against clients.

Another benefit of the currency futures market is that there is no counterparty risk. All over the counter (OTC) transactions always carry a counterparty risk because they are not centralised. When trading futures you are required to come up with the collateral and you also need to maintain a margin.

The prices in the futures market are marked to market on a daily basis. Thus, funds are added to or deducted from your account. This is where currency futures are greatly beneficial to speculators. Although counterparty default is very rare in the spot Forex market, the risk still exists.

With the futures contracts traded on an exchange which acts as a clearing house as well, futures traders do not face the risk of a default.

Futures contracts are well leveraged, thus making them more attractive for speculators to switch to trading currency futures than the spot market. Another difference with the currency futures market is that the contracts come with a quarterly expiration date.

The most popular currency futures are the US dollar, euro, yen, and British pound.

Besides the above, there are also a number of other contracts such as Swiss franc futures, Canadian dollar futures, and even South African rand futures if one wants to gain exposure or hedge with exotic currencies.

There are different types of futures contracts. For example, you will generally find euro futures contracts to be standard contracts, but you can also find E-mini or E-micro futures contracts for it.

The main difference between these three types of futures contracts is the contract size.

The standard euro futures contracts size is 125,000 EUR. This means that when you buy one standard contract, you gain exposure to 125,000 EUR in the contract. With a tick size of 0.00005, this means one tick is equal to 6.25 USD.

Thus, if the EURUSD have 1000 euros to dollars and the pair moved from 1.2005 to 1.2010, which marks a 10-tick move, this will be equivalent to 62.50 USD by 1000 we have 6250 USD when you trade a standard euro futures contract.

Similarly, when you trade E-micro euro futures contracts you are able to control 12,500 EUR. Here, the minimum tick size is 0.0001, or 1.25 USD. Thus, a 10-tick move will be equivalent to 12.50 USD.

What is pre-set or set file, and how to use it in EA - read this premium section post with detailed explanation.

Although the United Kingdom is a member of the European Union, it has not yet adopted the Euro as its currency, so it is not part of the European Monetary Union. There are a number of reasons for this, but perhaps most famous is the country's forced withdrawal from the Exchange Rate Mechanism, the precursor to the Euro. As we have touched on in previous lessons, before joining the Euro countries were required to meet certain criteria, one of which was to keep the value of their currency within certain "bands". After initially trying to adhere to the qualifications set forth for participation in the European Monetary Union, the value of the pound dropped below the lower band, forcing the country out of what would become the European Monetary Union.



As Kathy Lien points out in her book Day Trading the Currency Market, while the GBP/USD is a very active currency, the Pound is also very active in the crosses, and as the EU is their largest trading partner, traders pay particular attention to movements in the EUR/GBP for fundamental ques on the currency. As of this lesson the UK also has the highest interest rates in the G7, causing it to be used as the currency many traders will buy when playing the carry trade we learned about in module 3 of this course. This makes GBP/JPY one of the more active crosses in the market and one which traders who are looking for increased volatility often choose as their favorite.

ECN vs. STP vs. Market maker – Brokers explained

• What is ECN Broker
• What is STP Broker
• What is market maker
• Is market maker bad
• A book vs. B book
• Liquidity providers
• How to test your broker
• How to understand your broker is a scam
• Trader rights vs. broker rights

It’s not easy to learn how to trade, but if we are determined and dedicated, then it is all very much possible and workable. I am grateful to my current broker FreshForex, as they have awesome system of 7-step educational guide, it is really helpful and something that allows one to learn well and when you do that, then you could easily make money.