Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

did anyone bag it ?

I was waiting forever ....then the Euro bit !

N

 

[NVP]

at last...........i'll tighten up into the E/U sell to make sure i'm fully a decent quids in....

not much around today but again money was made eventually with patience !

have a great weekend.....i'm running off early
N

 

[NVP]

Dont beat yourselves up to much if you are down today

look how flat today has been on the Dow 1hr chart (see rest of the week ?)

to make money you need volatility - its the oxygen of trading !

have a great weekend
N

 

[NVP]

ok cant resist 1 more comment before I go .........

(oops - the wife is about to unplug my charts )

watch that bounce on the Dow .......it will be a biggie and you will be able to take some sells on Yen and USD when it hits later

shame I cant stay and play !
N

 

[nilvano]

The spirit of sharing information and time is very lacking nowadays, so I'm speechless because your generosity. Thanks you Mr. N(M)VP.

 

[NVP]

The spirit of sharing information and time is very lacking nowadays, so I'm speechless because your generosity. Thanks you Mr. N(M)VP.

No worries.............posting here on a daily basis keeps me focused and disciplined

I am always very happy to respond here to any questions from people who are viewing this thread ...... :smart:

N

 

[NVP]

ok cant resist 1 more comment before I go .........

(oops - the wife is about to unplug my charts )

watch that bounce on the Dow .......it will be a biggie and you will be able to take some sells on Yen and USD when it hits later

shame I cant stay and play !
N

hey all

heres what happened on the last session..........I said the /dow was gonna bounce (I was hoping for more though !) ...........hope it kept you out of trouble or even bag a few scalp pips trading the bounce

the more you watch the charts day in day out the more you will see.....especially using the FXcorrelator as well ! :smart:

N

 

[NVP]

a little heavy reading for the weekend ?

best bit of writing for a while from the boys ....

N

http://blackswantrading.squarespace.com/storage/currency-currents/100612_bscc_civilization.pdf

 

[NVP]

I get a lot of stuff through from Tom and I always read it

he has traded currencies based on individual strengths since the early 2000's and I soaked up a lot of it before walking my own path in this still relatively new area / approach to forex trading (Note we are not affiliated)

looks like he has reduced his prices over the years (hate to say it but I may be partially responsible for that in offering my free indicator and advice here and on my website)

have a look at the videos and free stuff he has ............my FXCorrelator is similar to his accustrength when set at 500ma.............but they are not the same (a long story!)

ayway here he is preaching the mantra of watching INDIVIDUAL currencies.....like I do

Respect !
N

When the market is going to move, trade it.

Look for a time when the market is most likely to make a move. It is usually around the release of an important economic report at 4am or 8:30 am (NY time).

I do some planning ahead of time to get a little piece of the move that happens.

We are trading individual currencies. A standard Forex price chart extracts the difference between 2 distinct currencies and displays the difference.

Currency movement is not determined by emotions the way tiny markets like stocks and indices are. Professionals and specialists moving huge amounts of cash around determine the value of a country's currency. We small time Forex traders have nothing to do with it. Our mission is to find an opportunity by understanding how these folks determine a currency value and trade on the idea that major world currencies are like ocean liners that slowly change direction.

As Forex traders, we look for a difference in the direction of prices between two currencies. We want to pick a time they are most likely to move away from each other. In other words, when one currency will strengthen and another will weaken. Knowing the prevailing trend of major currency strength or weakness is everything.

We buy strength or sell weakness of currencies, not pair,

This basic idea of measuring the strength of each individual is vital if you hope to last any amount of time in trading. If you can't tell in a glance whether the EURUSD is displaying US dollar weakness or Euro strength, then it is time to get the AccuStrength charting platform.

Currency Strength Meter Chart

 

[NVP]

I get A LOT of stuff in my inbox.........I call it market and competitor research ......or junk as most of it is ! ..........and shameful most of it !!

anyway heres Richard Hill with some common sense for once (mostly hes selling other peoples junk sadly)
but this is valuable advice to people who seem to think that money flows out of every traders backside with immeasurable returns on capital


A healthy reality check

Dear Neil Prior,

If you're a new trader, you probably need a reality check from time to time.

You see, many people start off with totally unrealistic expectations when it comes to learning forex.

And that means you could be setting yourself up for a fall right from the start.

Instead, it pays to be realistic.

So - let's imagine you had £100,000 to invest in something. What would be a good, realistic annual return on investment for you?

Would you be happy with a 20% return on your money?

These days, I think most people would be ecstatic to see a 20% return. In many circles, that would be seen as excellent.

So - in this example a 20% return would be £20,000 on your original £100,000.

But to get that £20,000 for the year, two things are required:

First, there's the substantial original investment of £100,000. And second, there's the excellent return of 20% a year.

I don't know how often you check your pension account and the returns on your investment funds...

But for the majority of us, we'd be hard pushed to find many funds making 20% a year.

To be honest, if you see a 5% return you'd probably be happy.

Now, I know that forex trading is different to longer term investing...

And of course, forex is far more speculative...

But having said that - what makes people think they can make returns of 1,000% a year in forex?

It sounds crazy, but some people really think that's what they'll make from trading.

For example, some people put £1,000 into their trading account and then expect to make £1,000 a month in profit.

That would be a 100% return on their money every single month...

And if they expect that to continue for the whole year, what they're really hoping for is a 1,200% return on their money.

Now, you don't need me to point out how ambitious that hope really is...

Even George Soros and Warren Buffett would be jealous of those returns.

You see, the best money-managers in the world would be happy with 'just' a 20% return on their money.

And if that's the case, then 20% a year is probably a pretty good target for you to aim for...

Although to be honest, even breaking even can be a good result for beginners.

So if you're serious about learning how to trade, please do yourself a favour...

Take a reality check.

Don't start out expecting 1,200% a year returns on your money.

You'll get a lot further if you keep things in the realms of reality and possibility.

If you have £10,000 as your trading bank, you should be happy if you make £2,000 in profit throughout a year's trading.

I know that might not sound like a life-changing amount right now...

But to succeed as a trader, you have to realise the most valuable asset is you – and the fact is: you're still learning how to trade.

That's a skill no one can take from you... and you could be using it to profit for many years to come.

Best wishes,

Richard Hill
Editor

 

[NVP]

heres Boris at BK Forex.......stay with it as its a bit long winded

what I am saying is that the advice and information I give here on stengthmeter trading and the FXCorrelator should be used as advice given in the paragraph in Red

except i'm certainly not a Guru.........i'm a student of trading like you !

N


Clayton M. Christensen is one of the best known business experts in the world. His book the Innovator's Dilemma has sold millions of copies and is required reading for every corporate executive around the world. The basic premise of Mr. Christensen is:


"Disruptive technologies are cheaper, simpler, lower-performing, and are targeted at the least profitable part of a market. The incumbents do not respond because they are focused on their most profitable, premium, customers. The disruptive technology gets better and better until one day, whoops, even the best customers are selecting the disruptive product."
(quote from Michael Wolfe, CEO, Pipewise, Inc).

This brilliant insight has helped to explain the success and failure of many businesses and indeed is the primary reason for why capitalism - as long as it doesn't devolve into cronyism - is such a powerful force for innovation. So given the fact that we've just had the release of IPhone 5 I thought it would be interesting to see what Mr. Christensen had to say about the IPhone when it was first introduced in 2007.

"They've launched an innovation that the existing players in the industry are heavily motivated to beat. History speaks pretty loudly on that, that the probability of success is going to be limited."

Not exactly Nostradamus.

How could the world's foremost expert on innovation fail to comprehend the innovative power of the most iconic product of our age? Because of what I call the How/What problem. Experts (including yours truly) are very good at explaining the "How" of the problem. They are superb at providing the intellectual framework for understanding how the broad dynamic works, but they are no better than the layman at applying their theories to real life. The "What should I do with this info?" is a question that they often cannot answer well.

That's why when you follow a guru, be it in business or trading, it is very important to learn how to draw your own conclusions. You can learn the "How" from someone else. But you can only learn the "What" from your own hard work be it in markets or in life.

 

[metafx]

So - let's imagine you had £100,000 to invest in something. What would be a good, realistic annual return on investment for you?

Would you be happy with a 20% return on your money?

These days, I think most people would be ecstatic to see a 20% return. In many circles, that would be seen as excellent.

So - in this example a 20% return would be £20,000 on your original £100,000.

But to get that £20,000 for the year, two things are required:

First, there's the substantial original investment of £100,000. And second, there's the excellent return of 20% a year.

I don't know how often you check your pension account and the returns on your investment funds...

But for the majority of us, we'd be hard pushed to find many funds making 20% a year.

To be honest, if you see a 5% return you'd probably be happy.

Now, I know that forex trading is different to longer term investing...

And of course, forex is far more speculative...

But having said that - what makes people think they can make returns of 1,000% a year in forex?

It sounds crazy, but some people really think that's what they'll make from trading.

For example, some people put £1,000 into their trading account and then expect to make £1,000 a month in profit.

That would be a 100% return on their money every single month...

And if they expect that to continue for the whole year, what they're really hoping for is a 1,200% return on their money.

Now, you don't need me to point out how ambitious that hope really is...

Even George Soros and Warren Buffett would be jealous of those returns.

You see, the best money-managers in the world would be happy with 'just' a 20% return on their money.

And if that's the case, then 20% a year is probably a pretty good target for you to aim for...

Although to be honest, even breaking even can be a good result for beginners.

So if you're serious about learning how to trade, please do yourself a favour...

Take a reality check.

Don't start out expecting 1,200% a year returns on your money.

You'll get a lot further if you keep things in the realms of reality and possibility.

If you have £10,000 as your trading bank, you should be happy if you make £2,000 in profit throughout a year's trading.



Richard Hill
Editor

how about this?
http://www.trade2win.com/boards/general-trading-chat/120412-55000-one-month.html

 

[NVP]

metafx.....shame on you !

 

[NVP]

sorry - late on parade.........a few early meetings today

well well ..........after some more attempts on falling south (asian session) the Dow futures has bounced again north.....

Euro has taken the most benefit off this move

N
N

 

[NVP]

hey all

well Dow has kept coming north nicely - but in truth I am disapointed in USD's poor response

thats a pitiful recent fall - such is life !

you have 2 choices .....

1) stay on the hunt and keep looking for buys on AUD and GBP into (eventual) more USD falls.....

2) stay out and watch.......Dow must be due for a retrace soon and a nice sell on the Euro (already south on both charts) could fall into your lap as USD and Yen move north.......

have a great evening session :smart:

N

 

[NVP]

and dont forget mr Corries brother - the Goldmeter !

2 screaming trades today on the 1 hr chart !

N


http://www.trade2win.com/boards/commodities/157250-fxcorrelator_goldmeter-8.html#post1990220

 

[NVP]

hey all

my website looks ok again after some malware problems

Dow Holds |FXCORRELATOR

I see that dow futures held through the asian session and we got some Yen & USD sells

i've put some bands on the Dow charts to see recent S/R points...lets see what happens at those points when hit

meanhile trade what you see - normal rules !:smart:

Neil
NVP

 

[NVP]

this looks interesting........

N

 

[NVP]

dont feel too upset if you chased it .....(i didnt say trade did I ? )

Dow is bouncing between the red lines drawn...so I am primarily interested in trading the rebounds (scalp mode) until it gets broken later on

N

 

[NVP]

personally I am thinking that Dow is going to eventually fall (and we get some yen & USD buys later)

but I need to see the evidence on the charts to get me in the game .....

N