Product Description
This audiocassette was recorded at the International Online Trading Expo 2B. (In Depth Day Trading Case Studies) In this tutorial, you will be taken step by step through actual trades. Mr. Oz will tell you what he was looking for in intra-day charts and why he chose specific entry points and why he chose to exit based on support and resistance levels.

Famous for his Stock Trading Wizard book, Tony Oz takes the mystery out of day trading with powerful, precise moves… More >>

Audiotape seminar “Day Trading Wizard” with presentator Tony Oz

Get A Free $50k Forex Trading Account. If you are looking for a Forex trading strategy which can make you big profits in around 15 minutes per day then, the strategy we will look at here is for you. Even better news is this trading method is very simple to understand and can be learned quickly, so lets take a look at it. If you want to make money in currency trading, you should focus on the big trends which last for many weeks or even months and if you do, you will spend less effort on your Forex trading strategy and make bigger profits. If you want to get in on all the big trends when the odds are on your side, there is a simple Forex trading strategy which will catch them all and its a breakout trading strategy.

If a currency is bullish it will start by breaking through overhead chart resistance and continue doing so, as the trend evolves and develops. You can look at a chart and see this is true in ANY currency pair, so if you buy breaks of valid resistance levels, not only will you have the odds on your side, you will make a lot of money. Obviously, not every breakout follows through in the direction of the break, so you need to decide the best breakouts to trade. The criteria for getting in on breakouts I use is – look for six or more tests before the break and check at least two of the tests, are spaced apart by at least six weeks. The more times a level has been tested and the further apart the tests are in terms of time, the higher the odds of the breakout being a good one. Another point to keep in mind is if you have a breakout to the upside and the news and other traders are bearish, the better the breakout is likely to be.

If you think about it this is logical – the majority of traders lose money, so being in the minority is good. Breakout trading can be learned by anyone and all you need to do is to look at chart resistance and use a few confirming indicators, to check price momentum is on your side and your all set for big gains with this Forex trading strategy. Many traders think the way to make money is to buy “low and sell high” but to buy a low, you need to predict where it might be and that’s doomed to failure. Breakout trading allows you to buy the move when its been confirmed with no guessing and is the method the professional traders use. So if you want to make money in Forex “buy high and sell higher” and you will make a great income in just 30 minutes a day or less.

Product Description
Change the way you trade the S&P 500 Index

This book is not another compilation of indicators you already know; none of the tools herein has been published in book form before. MEJT is a different system based on the principle that price action during certain times of the day allows you to make predictions regarding future support and resistance levels. The system allows you to tell, well in advance, which moves might have staying power and which ones shou… More >>

The MEJT System: A New Tool for Day Trading the S&P 500 Index

Why are support and resistance levels crucial when participating in the Forex day trading market?

Simply put, they represent key, strategic price points at which traders processed orders involving millions or even billions of dollars. No wonder price at times has a hard time getting past a previous high or low. Those levels are being fiercely defended by traders who have large amounts of money at stake and who do not want to see price break those levels.

For this reason anyone who engages in Forex day trading should learn how to trade support and resistance. The following checklist provides crucial guidelines:

1. Support and resistance levels are much more significant on the higher time frames. Pay particular attention to price highs and lows on the daily chart as this time frame is commonly used by big traders.

2. A price high or low has more significance when it has a number of candles either side of it which are lower (in the case of a price high) or higher (in the case of a price low).

3. Before you consider Forex day trading at a support or resistance level, see if there are more factors that would indicate this is a key price level.

For example, does a trendline intersect at the same point? Does the support or resistance line match up with a Fibonacci level, either a retracement or an extension? Does the support or resistance level coincide with a pivot point if you are in the practice (and it’s a wise one) of calculating pivot levels when Forex day trading?

4. Has a key support resistance level been broken? Then look to see if price will come back to test that level. Remember, resistance once broken can become support in the future and support once broken can become resistance in the future.

These Forex day trading scenarios can present excellent trading opportunities as you put an entry order in at the key level and wait for price to come back and pull you in. Within a short time your dealing spread is covered and you are in profit.

5. The market spends most of its time in trading ranges or consolidation channels. You need to accept that this is a characteristic of Forex day trading and adjust your mindset accordingly. Identify the high and low of the trading channel and manage your trades accordingly.

6. After identifying a trading channel or range and you see a trading opportunity, set your entry level at the base of the channel if you are going long or at the top of the channel if you are going short.

Don’t chase after price once it breaks out of the channel (although many who engage in Forex day trading do so). You will not get the optimal entry point. Waiting for price to take you in either at the top or bottom of the channel means you can have a smaller stop and your price target is closer.

7. Pay particular attention to the previous day’s high and low. Price will often hesitate and retrace at these levels. If you are a Forex day trading scalper, you can often grab a nice pull back of 10 pips or more at these strategic levels.

Note: Although there are various ways to calculate the previous 24 hour period depending on where you live, using GMT as a standard is often beneficial. Midnight GMT is a time when the market is generally very quiet and unlikely to make new highs or lows.

Succeed Or Fail?

It is unlikely you will succeed at Forex day trading if you fail to understand or take into consideration support and resistance. This indicator is that crucial! Yes there may be fancy indicators out there with all the bells and whistles, but this simple indicator, marking where price reached a high or low during previous trading sessions, can be one of the most powerful and effective Forex day trading tools available.

Be sure you spend sufficient time studying it, examining your charts, marking off the key levels each time you begin a new Forex day trading session.

Article written by Michael A. Jones

If you are a forex day trader or considering it, then you need to know the above facts, if you do they will save you a lot of money. Forex day trading is more popular than ever but how do you make profits? Let’s find out.

If you look online you will find more forex day trading courses than any other type of trading methodology and they will all lose you money here’s why:

Let’s start first of all with the vendors who sell courses

1. Why are they selling them?

To make money for themselves! They don’t normally trade their day trading systems because they know they don’t work.

If these systems could produce regular profits they would be to busy making money for themselves and not have the time to bother you for a few hundred dollars they would be to busy making money.

2. The Evidence That day trading doesn’t work

If you ask for a track record of profits from any of these vendors you won’t get one – What you will normally get is a hypothetical track record of huge gains but this is done in hindsight – KNOWING the closing prices.

If I knew tomorrow’s price today, I would be a multi millionaire but of course forex trading is a bit more difficult – you have to work out where prices are going without knowing them in advance!

These vendors use great advertising copy to dupe people but the logic of day trading simply doesn’t work. Why? Because:

3. All short term volatility is random!

Day traders will claim that it’s not – but of course it is!

Volatility can and does, take prices anywhere in a day and daily support and resistance levels are meaningless. When day traders lose, they blame the system or the indicators they use, however if volatility is random, then it is of course the logic of day trading that is at fault – NOT the indicators.

If you think that you can make money day trading go ahead and try but you will learn a very expensive lesson and lose.

I would love a day trader to prove me wrong and produce a real time track record of gains over the longer term (3 years or more), but have the feeling I will be waiting for a long time.

The belief that you can make money day trading, is one of the biggest myths of forex trading and despite the evidence it doesn’t work, traders still think they can win at it – they can’t.

Having been a forex trader for 25 years it amuses me when I see writers defend day trading. They say it really can make money! – Of course they have no track record to back it up just empty words. Fact is you are guaranteed to lose in day trading for one simple reason:

All Movements in Short Time Frames Are Random

Trillions of dollars trade hands each day and million of trader’s trade, all with different objectives and opinions and to say that you can predict what they do in a few hours or a day, is ridiculous. You can’t.

Volatility takes prices anywhere in a day and support and resistance levels are meaningless, so you would have the same success rate flipping a coin.

It’s absolutely impossible to get the odds on your side – PERIOD

This is of course why you NEVER see any of the vendors selling these systems give you a real time track record – Why?

Because they don’t dare trade it!

They would rather write some enticing copy and appeal to the greed and naivety of traders and make their money selling you the system – they win you lose – period.

But I have seen a track record you may say and yes will have, but it’s NOT real.

If you check the disclaimer on it you will see there all hypothetical!

What does that mean?

It means done in hindsight knowing the closing prices!

Now who can’t do that it’s not exactly hard.

If we all knew tomorrows price today we would all be millionaires but we don’t – and neither do we know what will happen tomorrow, so there not worth the paper their written on.

Day trading is a good story but the logic doesn’t add up and the biggest lie about day trading is you can make money at it longer term.

If you could you would see a track record or the vendor would shut up and trade it himself and not need your few hundred dollars.

If you want to win

Appreciate that trading is an odds game and to trade the odds you need to trade over longer periods ,where the data is valid and you can have a chance of getting the odds on your side.

Finally

Don’t day trade, get real and trade with the odds on your side.

Forex day trading and success are a total contradiction in terms – day traders don’t make money. If you want to prove this, just ask anyone selling a day trading system for a real track record – you won’t get one. Why? Let’s take a look.

The Odds

If you want to trade and win you need to be able to take calculated risks when the odds are in your favour and you cannot do this in day trading, as you have no reliable data.

Consider this:

Countless millions of traders all with different opinions trade trillions of dollars per day and to say that you can measure market movement in just a few hours or a day is ridiculous – you can’t.

Prices can and do go anywhere in a day and support and resistance levels are meaningless.

You may as well flip a coin it will be just as effective.

FACT – If you dont have relaible data you will lose over time its 100% certain – PERIOD

BUT I SEE GREAT DAY TRADING RECORDS ALL THE TIME!

Yes you do, but look at the track record and it will say:

“Hypothetical” and you will get a disclaimer.

In case you have never read one – it basically says that the track record is done knowing the closing prices!

Well that’s hard!

Let’s see if I knew tomorrow’s price in advance would I make a lot of money – of course I would. However, you don’t have the luxury of knowing the closing price when you trade though and you will lose.

Claims with No Proof to Back Them Up

I have always maintained that these hypothetical track records should be banned – There of no use at all.

Vendors use them to dupe people into buying forex day trading systems and normally throw in some outrageous headlines as well that never have any facts to back them up.

The vendor wins You Lose

The vendor’s don’t trade these systems (as they know they have no chance of winning) so they sell them to you take your money and you trade and lose.

The Myth & Reality of Forex Day Trading

The myth of making money in forex day trading is perhaps the biggest myth in currency trading – it’s actually a guaranteed way to lose and if you don’t believe me try and find someone who has made money at it.

Get ready for a long search!

f you are considering forex day trading than this article is for you. On the net you will see more products and forex trading systems sold in day trading than for any form of trading and this article will give you the facts on forex day trading.

The most important fact is it doesn’t work long term and you will get wiped out here’s why:

Short Term Volatility is random

Millions of trader’s trade trillions of dollars each day and to say you can tell what this huge diverse mass of people will do in a few hours or a day is ridiculous.

Humans are un-predictable in short time frames – PERIOD.

All Volatility is random

This is a by-product belief of the above and of course short term volatility is random.

If this is so, then all support and resistance levels are not valid in a daily time frame, as volatility takes prices anywhere in a day and you have no way of trading.

Tools that work in other time frames, simply don’t work in intra day trading and never can – that’s why a day trader can never get the odds in their favor and his luck will soon run out.

So why is it so popular?

Because it’s a good story and internet marketers know this.

They sell ridiculous e-books claiming regular profits and untold riches, all for a few hundred dollars! If they worked, a lot more traders would make money and they don’t.

It sounds low risk scalping small profits that build up over time but the reality is a thumping quick loss of equity for the trader.

But I have seen the track record you may say…

Sure you have but you never see a real one – there always hypothetical simulations done knowing the closing prices – how hard is that?

Anyone could do it even a kid could – but life in forex is not like that, you have to trade going forward and not knowing the closing prices and that makes things a little more difficult!

Its a good story and some of the advertising copy is fantastic but it’s a story but good stories don’t make money. My kids love Harry Potter but they don’t think they can fly!

Forex day trading appeals to greedy and naive traders who are looking for a fast buck and in forex markets making money is not easy and nor would you expect it to be – with the rewards on offer.

THE GOOD NEWS IS…

There are far better ways to make money than forex day trading and these methods use longer time spans where you can get the odds in your favor.

Traders can and do make money in forex trading – but the day traders end up in the 95% of losers and if you don’t want to do the same, avoid forex day trading.

Get proper sensible forex education and trade the longer term trends for profit.

Day trading is popular with huge numbers of novice traders yet you are guaranteed to lose in the longer term, as the logic it is based upon is simply not true and can never work.

Lets look at the two reasons why if you day trade you will lose.

Before we get started on the reasons why day trading is a guaranteed route to losses lets look at why you see track records with huge profits on many day forex day trading systems.

Here is the reason they all carry a disclaimer like the one below which means they have NEVER been traded:

“CFTC RULE 4.41 – Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown”.

So you can make anything up you like and the track record is not worth the paper it’s written on.

What’s the point in having a track record if it isn’t real and also you would think that the person selling the system would actually show confidence and trade it!

The reason they don’t is most are sold by marketing companies looking to dupe naïve and greedy investors. Try and find a forex day trader with a real time track record and let me know if you find one you won’t

So why doesn’t day trading work?

The reason is obvious all volatility in short time frames is of a random nature and all support and resistance levels are not valid.

You cannot get the odds in your favor when day trading and if you can’t get the odds in your favor you will lose – Period.

You simply can’t judge in such a short time span what prices will do.

You have millions of people all with different motivations and personalities and to say you can measure what this vast diverse group will do in under a day is simply destined to failure.

So the next time you see that tempting day trading track record check the small profit, as chances are its never been traded. Then think about the above and you will see that day trading is a total mugs game.

Some experienced traders dogmatically assert that nobody makes money day trading. That is probably because they have tried, failed, and found some other trading style that suits them better. There is no doubt that day trading is a tough, competitive business, but the good news is that if it is your dream, it can be made to work for you.

Successful traders specialize in a trading niche which suits their temperament. In the process of doing this they may try different vehicles and strategies which are unsuccessful (for them). This is usually because the strategy is unsuited to the trader, not because it is “bad”.

After following a few blind alleys, I found my niche day trading grain futures contracts. I enjoy getting almost instant feedback on my trades, and having my money safely parked on the sidelines most of the time. It turns out that day trading suits my temperament, whereas longer term trading does not.

Day trading critics often trade relatively stodgy Forex markets. However, trading costs can sink a day trader, and, despite “commission free” trading offered by brokers, Forex trading costs are too high due to spread and slippage charges.

I prefer markets with greater volatility and enough volume to ensure a tight spread, but not such a huge volume that the market becomes hard to read. The grains (soybeans, wheat and corn) do the trick for me.

Do NOT decide on a market before you decide on your trading style. Find the style that suits you, then find the markets that respond best to that trading style.

Successful day traders should:

• Learn the concept of support and resistance in a market.
• Develop a trading system based on tactics at support and resistance levels.
• Test the system on independent data to make sure it has a positive Expectancy.
• Learn money management techniques to prevent taking on to too much risk.

Day trading often involves regular repetition of a simple trading plan to place high probability trades. If you learn the principles outlined above, stick strictly to your plan, and learn to avoid mistakes made in the heat of the moment, you are well on the way to day trading success.

Most day trading is done by professional traders who experience lower stress levels than you because they are using bank funds. You have to beat them at their own game despite the additional anxiety of having your own money at risk!

Two cardinal sins for a day trader are trading without a plan, and over-trading. You must have a plan which dictates your every move in the fast paced cut and thrust of a market session. Otherwise you will be a victim of bad decisions driven by emotions, the downfall of many a trader!

Over-trading often arises because you experience a loss and try to get it back by taking an unplanned trade. Very often, you end up making a bad day into a disastrous day. Sometimes people over-trade because they feel the more trades they take, the more money they make. In fact, all they are doing is building up huge trading costs which make it very difficult to make a profit.

Even though I am a day trader, I take less than one trade per day on average. If the trades you take are good quality, you can still make good returns. (For example, I placed 15 trades in February 2010 and recorded a return of 39% on trading capital invested. You can see the trades here).

Author: D Bennett
Article Source: EzineArticles.com
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