I trend trade forex using the currency strength meter now a days and it is very easy to follow the trends compared to a lot of other methods doing forex. This letter list you are on now will focus on the forex market and trend trading using the strength meter while the other one will concentrate on the regulated markets.
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There isn't any kind of a secret to trading the e-minis. They are quite easy to trade profitably for the little person once you have some experience. After listening to the action in the pits for nearly a year now, I can see why people in the pits are ending up with money, and those outside lose it. In the pits, they play support and resistance areas using fundamentals.
The release of economic reports and stock company announcements (usually) prior to the opening bell at the regulated market exchanges, allow me to use several neat trading strategies I used to play in forex. Many of you already know I have effectively retired from teaching live as of last summer. That's why these letters are only sent out when I have something to say or to answer a question a lot of readers have asked. Over the last few weeks a lot of people have wanted to know what I am doing these days.
These days, I trade the S&P e-mini for one hour every business morning. Sometimes it will take me 2 hours depending on what reports are coming out later in the day. I use only pit noise and anchors. I am applying the theories behind "Auction Market Theory" but rely heavily on the Intermarket correlations I have found.
Trading the Indices has proven itself to be a rewarding way of trading for me. There is a regulated price and freedom to remove the trading platform from the data feed. I can keep my favorite trading platform and choose from a variety of regulated data feeds. This insures integrity. Something sorely missing from forex at the moment.
The brokers are registered and accountable to a governing body, unlike foreign exchange, which to this day is unregulated. In contrast to the highly professional and scrutinized regulated exchanges, forex brokers support associations that are voluntary and country specific. The horror stories I have heard from disillusioned forex traders fighting with brokers for every pip and against every withdrawal caused me to look into the regulated markets. I still play forex when there are economic reports or trends, but they are longer term economic fundamental trending at very low leverage.
So, in came the S&P500.
I entered the Indices last year with no idea of where to start. I came from forex to the regulated markets instead of the other way around like many getting into forex now a days. Things were quite different from what I was used to in forex trading. I had entered forex with basically no money. I didn't have the credit worthiness or entry fee to begin with a legitimate broker and I found the professional regulated market information too confusing. Forex was easy. Well, easier for a fellow like me who had never even met another trader in my life. I came into trading through a 4X made easy commercial. I had no idea what it was all about and I had time on my hands to learn.
I'm not trying to sell anyone anything here. Use whatever broker you want and go to whatever guru you think will help you. I want to stress the differences between the regulated markets and what is commonly called the "forex" market for the poor bugger like myself who, when faced with the actual terms you are agreeing to by opening a real trading account for the first time has to take a moment to think it through. As it clearly states in every live forex broker account agreement, the broker will be creating a fantasy environment where everything you own will be on the line if something should go wrong in the real market. (whatever) You stand to lose everything you own unless you incorporate or LLC. Accept it or not. That's the way it is. Read the paper they give you upon opening.
I'm not saying the regulated market agreements are all that and a bag of chips either but here in Canada I have more protection than going outside the country and I always have a regulated market price to fall back on in any disputes over price. There is a great deal of transparency in comparison.
For all its faults, the regulated markets have one price for everyone. A typical forex broker will not only have a different price than all the other brokers, they give flawed and manipulated demo feeds to people trying to build systems in order to entice them to open up a real account where the actual price data is much different.
That's the perils of forex. Yell scream or cry about forex, I think it is the best way for someone with a little money to invest and a pretty good head on their shoulders to make enough to get into the legitimate markets later on. Up front my estimation of how much it takes to get into regulated market trading would be a minimum of 10K, preferably 25K or more that will not be used for essentials.
If you ask me, I would say you need about 2 months of paper trading time to get used to the various platform and learn how the industry works before testing the waters with a live account. I have heard stories about technical systems working for some people. In the regulated markets fundamentals is not a dirty word. In fact, the foundation was built by people who do not believe in technical's.( Maybe more about this another time.)
I'm cutting this letter short today since I just wanted to let everyone know I am still around and if your email isn't answered, please forgive me and send it again.
Talk Soon.
Tom-
Good intro to the basics of futures.
http://www.cme.com/presentation/presentation.html
---
There isn't any kind of a secret to trading the e-minis. They are quite easy to trade profitably for the little person once you have some experience. After listening to the action in the pits for nearly a year now, I can see why people in the pits are ending up with money, and those outside lose it. In the pits, they play support and resistance areas using fundamentals.
The release of economic reports and stock company announcements (usually) prior to the opening bell at the regulated market exchanges, allow me to use several neat trading strategies I used to play in forex. Many of you already know I have effectively retired from teaching live as of last summer. That's why these letters are only sent out when I have something to say or to answer a question a lot of readers have asked. Over the last few weeks a lot of people have wanted to know what I am doing these days.
These days, I trade the S&P e-mini for one hour every business morning. Sometimes it will take me 2 hours depending on what reports are coming out later in the day. I use only pit noise and anchors. I am applying the theories behind "Auction Market Theory" but rely heavily on the Intermarket correlations I have found.
Trading the Indices has proven itself to be a rewarding way of trading for me. There is a regulated price and freedom to remove the trading platform from the data feed. I can keep my favorite trading platform and choose from a variety of regulated data feeds. This insures integrity. Something sorely missing from forex at the moment.
The brokers are registered and accountable to a governing body, unlike foreign exchange, which to this day is unregulated. In contrast to the highly professional and scrutinized regulated exchanges, forex brokers support associations that are voluntary and country specific. The horror stories I have heard from disillusioned forex traders fighting with brokers for every pip and against every withdrawal caused me to look into the regulated markets. I still play forex when there are economic reports or trends, but they are longer term economic fundamental trending at very low leverage.
So, in came the S&P500.
I entered the Indices last year with no idea of where to start. I came from forex to the regulated markets instead of the other way around like many getting into forex now a days. Things were quite different from what I was used to in forex trading. I had entered forex with basically no money. I didn't have the credit worthiness or entry fee to begin with a legitimate broker and I found the professional regulated market information too confusing. Forex was easy. Well, easier for a fellow like me who had never even met another trader in my life. I came into trading through a 4X made easy commercial. I had no idea what it was all about and I had time on my hands to learn.
I'm not trying to sell anyone anything here. Use whatever broker you want and go to whatever guru you think will help you. I want to stress the differences between the regulated markets and what is commonly called the "forex" market for the poor bugger like myself who, when faced with the actual terms you are agreeing to by opening a real trading account for the first time has to take a moment to think it through. As it clearly states in every live forex broker account agreement, the broker will be creating a fantasy environment where everything you own will be on the line if something should go wrong in the real market. (whatever) You stand to lose everything you own unless you incorporate or LLC. Accept it or not. That's the way it is. Read the paper they give you upon opening.
I'm not saying the regulated market agreements are all that and a bag of chips either but here in Canada I have more protection than going outside the country and I always have a regulated market price to fall back on in any disputes over price. There is a great deal of transparency in comparison.
For all its faults, the regulated markets have one price for everyone. A typical forex broker will not only have a different price than all the other brokers, they give flawed and manipulated demo feeds to people trying to build systems in order to entice them to open up a real account where the actual price data is much different.
That's the perils of forex. Yell scream or cry about forex, I think it is the best way for someone with a little money to invest and a pretty good head on their shoulders to make enough to get into the legitimate markets later on. Up front my estimation of how much it takes to get into regulated market trading would be a minimum of 10K, preferably 25K or more that will not be used for essentials.
If you ask me, I would say you need about 2 months of paper trading time to get used to the various platform and learn how the industry works before testing the waters with a live account. I have heard stories about technical systems working for some people. In the regulated markets fundamentals is not a dirty word. In fact, the foundation was built by people who do not believe in technical's.( Maybe more about this another time.)
I'm cutting this letter short today since I just wanted to let everyone know I am still around and if your email isn't answered, please forgive me and send it again.
Talk Soon.
Tom-
Good intro to the basics of futures.
http://www.cme.com/presentation/presentation.html
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