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I'm self-taught trader started trading since 2007. Trading in major currency pairs, gold and some US indices.
I am using RoboForex as main broker for all my trade.
I am using RoboForex as main broker for all my trade.
Muhammad Syamil Bin Abdullah
Quote Of The Day : There is only one side of the market and it is not the bull side or the bear side, but the right side. Jesse Livermore
· 1
Muhammad Syamil Bin Abdullah
Trading Price Action Trading Ranges : Al Brooks (book available at amazon http://www.amazon.com/Trading-Price-Action-Ranges-Technical/dp/1118066677)
Divided into five comprehensive parts, Trading Price Action Trading Ranges skillfully addresses how to spot and profit from trading ranges—which most markets are in, most of the time—using the technical analysis of price action. Along the way, it touches on some of the most essential aspects of this approach, including:
Trading breakouts, which are transitions from trading ranges to trends, and understanding the gaps they create
The two types of "Magnets," Support and Resistance, and what they mean once the market breaks out and begins its move
Pullbacks, which are transitions from trends to trading ranges
The characteristics commonly found in trading ranges—areas of largely sideways price activity—and examples of how to trade them
Honing your order and trade management skills so that you can make more informed entry and exit decisions
And much more
Throughout the book, Brooks focuses primarily on 5 minute candle charts—all of which are created with TradeStation—to illustrate basic principles, but also discusses daily and weekly charts. And since he trades more than just E-mini S&P 500 futures, Brooks also details how price action can be used as the basis for trading stocks, forex, Treasury Note futures, and options. For your convenience, a companion website, which can be found atwiley.com/go/tradingtrends, contains all of the charts provided in the book.
Trading is a rewarding endeavor, but it's hard work and requires relentless discipline. To succeed, you have to stick to your rules and avoid emotion—and you have to patiently wait to take only the best trades. Understanding, and utilizing, the information found in Trading Price Action Trading Ranges is the next logical step to achieving this goal. With this guide, and the other two books in the series, you'll discover how to develop the patience and discipline to follow a sound system, and reap potentially huge financial rewards in the process.
Divided into five comprehensive parts, Trading Price Action Trading Ranges skillfully addresses how to spot and profit from trading ranges—which most markets are in, most of the time—using the technical analysis of price action. Along the way, it touches on some of the most essential aspects of this approach, including:
Trading breakouts, which are transitions from trading ranges to trends, and understanding the gaps they create
The two types of "Magnets," Support and Resistance, and what they mean once the market breaks out and begins its move
Pullbacks, which are transitions from trends to trading ranges
The characteristics commonly found in trading ranges—areas of largely sideways price activity—and examples of how to trade them
Honing your order and trade management skills so that you can make more informed entry and exit decisions
And much more
Throughout the book, Brooks focuses primarily on 5 minute candle charts—all of which are created with TradeStation—to illustrate basic principles, but also discusses daily and weekly charts. And since he trades more than just E-mini S&P 500 futures, Brooks also details how price action can be used as the basis for trading stocks, forex, Treasury Note futures, and options. For your convenience, a companion website, which can be found atwiley.com/go/tradingtrends, contains all of the charts provided in the book.
Trading is a rewarding endeavor, but it's hard work and requires relentless discipline. To succeed, you have to stick to your rules and avoid emotion—and you have to patiently wait to take only the best trades. Understanding, and utilizing, the information found in Trading Price Action Trading Ranges is the next logical step to achieving this goal. With this guide, and the other two books in the series, you'll discover how to develop the patience and discipline to follow a sound system, and reap potentially huge financial rewards in the process.
· 1
Muhammad Syamil Bin Abdullah
Quote Of The Day : Things do not happen. Things are made to happen. - John. F Kennedy
Muhammad Syamil Bin Abdullah
Quote Of The Day : Rules No 1, never lose money; Rules No 2, never forget Rules No 1. - Warren Buffett
· 2
Muhammad Syamil Bin Abdullah
Quote Of The Day : Time = Life, therefore, waste your time, waste your life, or master your time and master your life. - Alan Lakein
· 3
Muhammad Syamil Bin Abdullah
Quote Of The Day : It is well enough that people of the nation do not understand our banking & monetary system, for if they did, i believe there will be a revolution before tomorrow morning - Henry Ford
· 1
Muhammad Syamil Bin Abdullah
Bitcoin Market Gets a Lift From China
Chinese demand has helped fuel a boom in the virtual currency called bitcoin. But even as prices reach new highs, Li Xiaolai says he won't sell.
Mr. Li, 41 years old, is one of China's biggest bitcoin holders, according to a fledging community of bitcoin watchers in Beijing. The former English test-prep teacher won't disclose specifics but says his bitcoin holdings are "in the six figures with the first figure being one." With bitcoin prices soaring to around $1,000 each, that makes his stake worth more than $100 million.
"It's the first time China can lead the world," says Mr. Li, who cites local innovations in chips, web applications and other parts of the bitcoin ecosystem.
More reading from Wall Street Journal http://online.wsj.com/news/articles/SB10001424052702303997604579237913301162066
Chinese demand has helped fuel a boom in the virtual currency called bitcoin. But even as prices reach new highs, Li Xiaolai says he won't sell.
Mr. Li, 41 years old, is one of China's biggest bitcoin holders, according to a fledging community of bitcoin watchers in Beijing. The former English test-prep teacher won't disclose specifics but says his bitcoin holdings are "in the six figures with the first figure being one." With bitcoin prices soaring to around $1,000 each, that makes his stake worth more than $100 million.
"It's the first time China can lead the world," says Mr. Li, who cites local innovations in chips, web applications and other parts of the bitcoin ecosystem.
More reading from Wall Street Journal http://online.wsj.com/news/articles/SB10001424052702303997604579237913301162066
· 1
Muhammad Syamil Bin Abdullah
Quote Of The Day : "Trade what you see not what you believe." - Larry Pesavento
Muhammad Syamil Bin Abdullah
Edward Hopper's famous portrait of economic hardship has just become the new symbol of unbridled wealth.
The American realist's 1934 painting, "East Wind Over Weehawken," sold Thursday for $40.5 million at Christie's sale of American art. That makes it the most expensive Hopper ever sold, beating the record $26.9 million for "Hotel Window." It also far exceeded its estimate, which called for the painting to sell for $22 million to $28 million.
The winning bid for the anonymous buyer was made by telephone.
Read more here http://www.cnbc.com/id/101249817
The American realist's 1934 painting, "East Wind Over Weehawken," sold Thursday for $40.5 million at Christie's sale of American art. That makes it the most expensive Hopper ever sold, beating the record $26.9 million for "Hotel Window." It also far exceeded its estimate, which called for the painting to sell for $22 million to $28 million.
The winning bid for the anonymous buyer was made by telephone.
Read more here http://www.cnbc.com/id/101249817
Muhammad Syamil Bin Abdullah
Quote of the day : "If you know yourself and your enemy, you will not fear battle. If you know yourself but not your enemy, you will lose a battle for every one that you win; and if you do not know yourself and do not know your enemy, you will never see victory". -Sun Tzu
Muhammad Syamil Bin Abdullah
Goldman Sachs Sued By Singapore Client Oei Over Loss (Bloomberg News)
Goldman Sachs Group Inc. (GS) was sued by Singaporean wealth-management client Oei Hong Leong over a $34.3 million loss on Brazilian real-yen options trades he claimed the bank misled him into making.
Oei accused the New York-based bank of fraudulent misrepresentation, breach of fiduciary duty, fraudulent inducement and unjust enrichment in papers filed yesterday in New York state court.
Goldman Sachs rejected allegations that it acted improperly or cheated him, according to a letter it wrote to Oei in July and filed in a Singapore court, where the businessman is suing a unit of the bank over the same loss. The bank has said it will defend that lawsuit, which it is seeking to halt in favor of private and confidential arbitration.
“A lot of clients are like me, they trust the big banks like they trust their doctors,” Oei, 65, said in an interview today. His friends have had similar experiences and he is suing for “justice and fairness” for all clients, he said.
Andrea Raphael, a spokeswoman for Goldman Sachs in New York, said Oei’s lawsuit is without merit and will be defended.
Oei said in the New York lawsuit that he cut dealings with Goldman Sachs in 2011 after it profited on a losing trade it persuaded him to make. He said he resumed transactions after senior executives including President Gary Cohn and Asia head David Ryan visited him in April 2012 and said his interests would be placed first.
Currency Bet
Oei said he relied on claims by Mats Dewitte, Goldman Sachs’s executive director for fixed income, currencies and commodities in Asia, before betting on May 15 the Japanese currency would fall against the real.
The bank had claimed the real was a stable and liquid currency anchored to the U.S. dollar, he said.
The real has fallen 12 percent since May 1 against the yen, the worst performer among 16 major currencies tracked by Bloomberg. The Brazilian currency dropped to a four-year low in June after the U.S. Federal Reserve said it may moderate bond purchases that have fueled demand for emerging-market assets.
Oei in 2009 settled a claim against Citigroup Inc. over S$1 billion ($797 million) in trading losses.
The Indonesia-born businessman, who made S$7 million trading American International Group Inc. shares in September 2008, in October that year predicted the global credit crisis would worsen because European banks would falter. A day after his remarks, then British government said it would inject 50 billion pounds ($81.2 billion) into the nation’s banks to keep them from collapsing.
“Trading is like the casino, sometimes you win, sometimes you lose,” Oei said.
The case is Oei v. Goldman Sachs Group Inc., 161176/2013, New York State Supreme Court, New York County (Manhattan).
Goldman Sachs Group Inc. (GS) was sued by Singaporean wealth-management client Oei Hong Leong over a $34.3 million loss on Brazilian real-yen options trades he claimed the bank misled him into making.
Oei accused the New York-based bank of fraudulent misrepresentation, breach of fiduciary duty, fraudulent inducement and unjust enrichment in papers filed yesterday in New York state court.
Goldman Sachs rejected allegations that it acted improperly or cheated him, according to a letter it wrote to Oei in July and filed in a Singapore court, where the businessman is suing a unit of the bank over the same loss. The bank has said it will defend that lawsuit, which it is seeking to halt in favor of private and confidential arbitration.
“A lot of clients are like me, they trust the big banks like they trust their doctors,” Oei, 65, said in an interview today. His friends have had similar experiences and he is suing for “justice and fairness” for all clients, he said.
Andrea Raphael, a spokeswoman for Goldman Sachs in New York, said Oei’s lawsuit is without merit and will be defended.
Oei said in the New York lawsuit that he cut dealings with Goldman Sachs in 2011 after it profited on a losing trade it persuaded him to make. He said he resumed transactions after senior executives including President Gary Cohn and Asia head David Ryan visited him in April 2012 and said his interests would be placed first.
Currency Bet
Oei said he relied on claims by Mats Dewitte, Goldman Sachs’s executive director for fixed income, currencies and commodities in Asia, before betting on May 15 the Japanese currency would fall against the real.
The bank had claimed the real was a stable and liquid currency anchored to the U.S. dollar, he said.
The real has fallen 12 percent since May 1 against the yen, the worst performer among 16 major currencies tracked by Bloomberg. The Brazilian currency dropped to a four-year low in June after the U.S. Federal Reserve said it may moderate bond purchases that have fueled demand for emerging-market assets.
Oei in 2009 settled a claim against Citigroup Inc. over S$1 billion ($797 million) in trading losses.
The Indonesia-born businessman, who made S$7 million trading American International Group Inc. shares in September 2008, in October that year predicted the global credit crisis would worsen because European banks would falter. A day after his remarks, then British government said it would inject 50 billion pounds ($81.2 billion) into the nation’s banks to keep them from collapsing.
“Trading is like the casino, sometimes you win, sometimes you lose,” Oei said.
The case is Oei v. Goldman Sachs Group Inc., 161176/2013, New York State Supreme Court, New York County (Manhattan).
Muhammad Syamil Bin Abdullah
"Remember, the market is designed to f00l most of the people most of the time. Sometimes, the market will go contrary to what speculators have predicted. At these times, speculators must abandon their predictions and follow the action of the market. Never argue with the tape. Markets are never wrong, but opinions often are. I only try to react to what the market is telling me by its behavior."-Jesse Livermore
Muhammad Syamil Bin Abdullah
How high can GBPJPY go?
From monthly chart of GBPJPY we can see this pair are now recovering and moving in bullish trend. It fell more than 950 pips started of August 2008 till Jan 2009, as seen on the chart. Currently GBPJPY trade move above monthly kijun sen level @ 167.34, maybe it could move up to the kumo cloud border of senkou span B @189.95, a big flat area within this month. Only time can tell.
From monthly chart of GBPJPY we can see this pair are now recovering and moving in bullish trend. It fell more than 950 pips started of August 2008 till Jan 2009, as seen on the chart. Currently GBPJPY trade move above monthly kijun sen level @ 167.34, maybe it could move up to the kumo cloud border of senkou span B @189.95, a big flat area within this month. Only time can tell.
· 1
Muhammad Syamil Bin Abdullah
Quote of The Day : "Experienced traders control risk, inexperienced traders chase gains." -Alan Farley
· 1
Muhammad Syamil Bin Abdullah
Spread To Pip Potential : Which Pairs Are Worth Day Trading?
Spreads play a significant factor in profitable forex trading. When we compare to the average spread to the average daily movement many interesting issues arise. Namely, some pairs are more advantageous to trade than others. Secondly, retail spreads are much harder to overcome in short-term trading than some may anticipate. Third, a "larger" spread does not necessarily mean the pair is not as good for day trading when compared to some lower spread alternatives. Same goes for a "smaller" spread - it does not mean it is better to trade than a larger spread alternative.
Establishing a Base Line
To understand what we are dealing with, and which pairs are more suited to day trading, a base line is needed. For this the spread is converted to a percentage of the daily range. This allows us to compare spreads versus what the maximum pip potential is for a day trade in that particular pair. While the numbers below reflect the values in existence at a particular period of time, the test can be applied at any time to see which currency pair is offering the best value in terms of its spread to daily pip potential. The test can also be used to cover longer or shorter periods of time. These are the daily values and approximate spreads (will vary from broker to broker) as of April 7, 2010. As daily average movements change so will the percentage that the spread represents of the daily movement. A change in the spread will also affect the percentage. Please note that in the percentage calculation the spread has been deducted from the daily average range. This is to reflect that retail customers cannot buy at the lowest bid price of the day shown on their charts.
# EUR/USD
Daily Average Range (12):105
Spread: 3
Spread as a percentage of maximum pip potential: 3/102= 2.94%
# USD/JPY
Daily Average Range (12):80
Spread: 3
Spread as a percentage of maximum pip potential: 3/77= 3.90%
# GBP/USD
Daily Average Range (12):128
Spread: 4
Spread as a percentage of maximum pip potential: 4/124= 3.23%
# EUR/JPY
Daily Average Range (12):121
Spread: 4
Spread as a percentage of maximum pip potential: 4/117= 3.42%
# USD/CAD
Daily Average Range (12):66
Spread: 4
Spread as a percentage of maximum pip potential: 4/62= 6.45%
# USD/CHF
Daily Average Range (12):98
Spread: 4
Spread as a percentage of maximum pip potential: 4/94= 4.26%
# GBP/JPY
Daily Average Range (12):151
Spread: 6
Spread as a percentage of maximum pip potential: 6/145= 4.14%
Which Pairs to Trade
When the spread is placed into percentage terms of the daily average move, it can be seen that the spread can be quite significant and have a large impact on day-trading strategies. This is often overlooked by traders who feel they are trading for free since there is no commission.
If a trader is actively day trading and focusing on a certain pair, making trades each day, it is most likely they will trade pairs that have the lowest spread as a percentage of maximum pip potential. The EUR/USD and GBP/USD exhibit the best ratio from the pairs analyzed above. The EUR/JPY also ranks high among the pairs examined. It should be noted that even though the GBP/USD and EUR/JPY have a four-pip spread they out rank the USD/JPY which commonly has a three pip spread.
In the case of the USD/CAD, which also has a four-pip spread, it was one of the worst pairs to day trade with the spread accounting for a significant portion of the daily average range. Pairs such as these are better suited to longer term moves, where the spread becomes less significant the further the pair moves.
Adding Some Realism
The above calculations assumed that the daily range is capturable, and this is highly unlikely. Based simply on chance and based on the average daily range of the EUR/USD, there is far less than a 1% chance of picking the high and low. Despite what people may think of their trading abilities, even a seasoned day trader won't fair much better in being able to capture an entire day's range - and they don't have to.
Therefore, some realism needs to be added to our calculation, accounting for the fact that picking the exact high and low is extremely unlikely. Assuming that a trader is unlikely to exit/enter in the top 10% of the average daily range, and is unlikely to exit /enter in the bottom 10% of the average daily range, this means that trader has 80% of the available range available to them. Entering and exiting within this area is more realistic than being able to enter right in the area of a daily high or low.
Using 80% of the average daily range in the calculation provides the following values for the currency pairs. These numbers paint a portrait that the spread is very significant.
* EUR/USD
Spread as a percentage of possible (80%) pip potential: 3/81.6= 3.68%
* USD/JPY
Spread as a percentage of maximum pip potential: 3/61.6= 4.87%
* GBP/USD
Spread as a percentage of possible (80%) pip potential: 4/99.2= 4.03%
* EUR/JPY
Spread as a percentage of possible (80%) pip potential: 4/93.6= 4.27%
* USD/CAD
Spread as a percentage of possible (80%) pip potential: 4/49.6= 8.06%
* USD/CHF
Spread as a percentage of possible (80%) pip potential: 4/75.2= 5.32%
* GBP/JPY
Spread as a percentage of possible (80%) pip potential: 6/116= 5.17%
With the exception of the EUR/USD, which is just under, 4%+ of the daily range is eaten up by the spread. In some pairs the spread is a significant portion of the daily range when factoring for the likely possibly that the trader will not be able to accurately pick entries/exits within 10% of the high and low which establish the daily range. (To learn more, see Forex Currencies: The EUR/USD.)
Final Thoughts
Traders need to be aware that the spread represents a significant portion of the daily average range in many pairs. When factoring likely entry and exit prices the spread becomes even more significant. Traders, especially those trading on short time frames, can monitor daily average movements to verify if trading during low volatility times presents enough profit potential to realistically make active trading (with a spread) worthwhile. Based on the data the EUR/USD and the GBP/USD have the lowest spread-to-movement ratio, although traders must update the figures at regular intervals to see which pairs are worth trading relative to their spread and which ones are not. Statistics will change over time, and during times of great volatility the spread becomes less significant. It is important to track figures and understand when it is worth trading and when it isn't.
Spreads play a significant factor in profitable forex trading. When we compare to the average spread to the average daily movement many interesting issues arise. Namely, some pairs are more advantageous to trade than others. Secondly, retail spreads are much harder to overcome in short-term trading than some may anticipate. Third, a "larger" spread does not necessarily mean the pair is not as good for day trading when compared to some lower spread alternatives. Same goes for a "smaller" spread - it does not mean it is better to trade than a larger spread alternative.
Establishing a Base Line
To understand what we are dealing with, and which pairs are more suited to day trading, a base line is needed. For this the spread is converted to a percentage of the daily range. This allows us to compare spreads versus what the maximum pip potential is for a day trade in that particular pair. While the numbers below reflect the values in existence at a particular period of time, the test can be applied at any time to see which currency pair is offering the best value in terms of its spread to daily pip potential. The test can also be used to cover longer or shorter periods of time. These are the daily values and approximate spreads (will vary from broker to broker) as of April 7, 2010. As daily average movements change so will the percentage that the spread represents of the daily movement. A change in the spread will also affect the percentage. Please note that in the percentage calculation the spread has been deducted from the daily average range. This is to reflect that retail customers cannot buy at the lowest bid price of the day shown on their charts.
# EUR/USD
Daily Average Range (12):105
Spread: 3
Spread as a percentage of maximum pip potential: 3/102= 2.94%
# USD/JPY
Daily Average Range (12):80
Spread: 3
Spread as a percentage of maximum pip potential: 3/77= 3.90%
# GBP/USD
Daily Average Range (12):128
Spread: 4
Spread as a percentage of maximum pip potential: 4/124= 3.23%
# EUR/JPY
Daily Average Range (12):121
Spread: 4
Spread as a percentage of maximum pip potential: 4/117= 3.42%
# USD/CAD
Daily Average Range (12):66
Spread: 4
Spread as a percentage of maximum pip potential: 4/62= 6.45%
# USD/CHF
Daily Average Range (12):98
Spread: 4
Spread as a percentage of maximum pip potential: 4/94= 4.26%
# GBP/JPY
Daily Average Range (12):151
Spread: 6
Spread as a percentage of maximum pip potential: 6/145= 4.14%
Which Pairs to Trade
When the spread is placed into percentage terms of the daily average move, it can be seen that the spread can be quite significant and have a large impact on day-trading strategies. This is often overlooked by traders who feel they are trading for free since there is no commission.
If a trader is actively day trading and focusing on a certain pair, making trades each day, it is most likely they will trade pairs that have the lowest spread as a percentage of maximum pip potential. The EUR/USD and GBP/USD exhibit the best ratio from the pairs analyzed above. The EUR/JPY also ranks high among the pairs examined. It should be noted that even though the GBP/USD and EUR/JPY have a four-pip spread they out rank the USD/JPY which commonly has a three pip spread.
In the case of the USD/CAD, which also has a four-pip spread, it was one of the worst pairs to day trade with the spread accounting for a significant portion of the daily average range. Pairs such as these are better suited to longer term moves, where the spread becomes less significant the further the pair moves.
Adding Some Realism
The above calculations assumed that the daily range is capturable, and this is highly unlikely. Based simply on chance and based on the average daily range of the EUR/USD, there is far less than a 1% chance of picking the high and low. Despite what people may think of their trading abilities, even a seasoned day trader won't fair much better in being able to capture an entire day's range - and they don't have to.
Therefore, some realism needs to be added to our calculation, accounting for the fact that picking the exact high and low is extremely unlikely. Assuming that a trader is unlikely to exit/enter in the top 10% of the average daily range, and is unlikely to exit /enter in the bottom 10% of the average daily range, this means that trader has 80% of the available range available to them. Entering and exiting within this area is more realistic than being able to enter right in the area of a daily high or low.
Using 80% of the average daily range in the calculation provides the following values for the currency pairs. These numbers paint a portrait that the spread is very significant.
* EUR/USD
Spread as a percentage of possible (80%) pip potential: 3/81.6= 3.68%
* USD/JPY
Spread as a percentage of maximum pip potential: 3/61.6= 4.87%
* GBP/USD
Spread as a percentage of possible (80%) pip potential: 4/99.2= 4.03%
* EUR/JPY
Spread as a percentage of possible (80%) pip potential: 4/93.6= 4.27%
* USD/CAD
Spread as a percentage of possible (80%) pip potential: 4/49.6= 8.06%
* USD/CHF
Spread as a percentage of possible (80%) pip potential: 4/75.2= 5.32%
* GBP/JPY
Spread as a percentage of possible (80%) pip potential: 6/116= 5.17%
With the exception of the EUR/USD, which is just under, 4%+ of the daily range is eaten up by the spread. In some pairs the spread is a significant portion of the daily range when factoring for the likely possibly that the trader will not be able to accurately pick entries/exits within 10% of the high and low which establish the daily range. (To learn more, see Forex Currencies: The EUR/USD.)
Final Thoughts
Traders need to be aware that the spread represents a significant portion of the daily average range in many pairs. When factoring likely entry and exit prices the spread becomes even more significant. Traders, especially those trading on short time frames, can monitor daily average movements to verify if trading during low volatility times presents enough profit potential to realistically make active trading (with a spread) worthwhile. Based on the data the EUR/USD and the GBP/USD have the lowest spread-to-movement ratio, although traders must update the figures at regular intervals to see which pairs are worth trading relative to their spread and which ones are not. Statistics will change over time, and during times of great volatility the spread becomes less significant. It is important to track figures and understand when it is worth trading and when it isn't.