dati di mercato in tempo reale si nutre e la tecnologia Thomson Reuters è l'unico fornitore con TR Spot e EBS dati che rappresentano 200 miliardi al giorno e contenuti esclusivi opzione Fenics FX. Con 2.000 fonti fornire la migliore vista del mercato, ed i dati hanno contribuito ampie e profonde per oltre 250 coppie di valute a pronti e in avanti, la nostra copertura patrimoniale FX ti porterà avanti. Thomson Reuters è l'unico fornitore con BrokerTec, che rappresenta oltre il 60 del volume giornaliero di titoli del Tesoro USA da soli, così come ICAP 19901, TradeWeb Treasuries e TRFIT. Youll anche ricevere informazioni complete sui prezzi da tutti i database induttivi ICAP, Tullet, Tradizione, BGC e GFI, e la copertura in esclusiva sul mercato monetario da Tradeweb e Carl Kliem. Thomson Reuters è l'unico fornitore con Tradeweb e Axess mercato. Queste offerte forniscono esclusivo prezzi Tradeweb obbligazioni societarie attraverso oltre 24.000 titoli unici e Axess mercato da oltre 35.000 prezzi strumenti, che copre oltre il 90 del mercato liquido. Thomson Reuters è l'unico fornitore con Markit CDS intraday, la fonte intraday unico nel mercato. Ottenere esclusivi TR CDS prezzi, i dati DTCC per strumento e livello costitutivo, e copertura estesa con GFI, ICAP, Tulletts e CDS Tradizione prezzi. Ricerca di dati storici tick di back-testare le vostre strategie, eseguire una ricerca quantitativa e più Thomson Reuters Tick Storia offre un accesso senza precedenti ai dati storici a livello di zecca attraverso classi di attività a livello mondiale. Esso consente unicamente di gestire efficacemente i requisiti di conformità a oggi contesto normativo fluido, eseguire una ricerca quantitativa e di analisi e di utilizzare in tempo reale le strategie di trading algoritmico in un modo economicamente efficiente. I dati sono registrati da Thomson Reuters in tempo reale feed che copre sia OTC e lo scambio negoziati strumenti attraverso più di 400 sedi di negoziazione e di terze parti hanno contribuito dati. Vuoi trasformare i dati non strutturati in informazioni strategiche Thomson Reuters offre una vasta gamma di notizie a lettura ottica che consente algoritmi di sfruttare la potenza di notizie per cogliere le opportunità, sfruttare le inefficienze del mercato e gestire risk. Todays Borsa Notizie amp analisi in tempo reale After Hours pre-Market News Flash Citazione Sommario Citazione Interactive Grafici impostazione predefinita si prega di notare che una volta effettuata la selezione, che si applicherà a tutte le visite future a NASDAQ. Se, in qualsiasi momento, si è interessato a ritornare alle nostre impostazioni predefinite, selezionare Impostazioni predefinite sopra. Se avete domande o incontrano problemi nel cambiare le impostazioni predefinite, inviare un'e-mail isfeedbacknasdaq. Si prega di confermare la selezione: Hai scelto di modificare l'impostazione predefinita per il preventivo Cerca. Questo sarà ora la tua pagina di destinazione predefinita a meno che non si cambia di nuovo la configurazione, o si eliminano i cookie. Sei sicuro di voler modificare le impostazioni Abbiamo un favore da chiederti Si prega di disattivare il blocco annuncio (o aggiornare le impostazioni per garantire che JavaScript ei cookie sono abilitati), in modo da poter continuare a fornire la notizia mercato di prim'ordine ei dati youve si aspettano da us. How ottenere il massimo da questo libro Grazie per l'accesso alla tecnica quot eBook quotMy 1 giorno di negoziazione. Questo libro è stato progettato per principianti, intermedi e avanzati i commercianti. I presentatori in questo libro sono i maggiori esperti in azioni di trading, opzioni, futures e forex. Sarete esposti a alta probabilità strategie di trading da 8 esperti del settore. Come fx aggiuntivo, abbiamo incluso un capitolo psicologia commerciale e un capitolo sui potenziali vantaggi fiscali per i commercianti attivi. Mentre leggete questo libro, sarete esposti a molteplici strategie che hanno alte probabilità di successo Andor alto profitto. La maggior parte delle strategie in questo libro sono divisi in tre sezioni: ldquoThe gioco Planrdquo ndash Un'introduzione a una tecnica di creazione di grafici. La strategia è quindi accuratamente spiegata con le illustrazioni ed esempi. ldquoThe Movierdquo ndash Il capitolo è accompagnato da un video che illustra come utilizzare questa strategia, con gli esempi. ldquoSpecial Offersrdquo ndash Se vi piace davvero una strategia, è possibile seguire il presentatore e la strategia. Ci sono migliaia di dollarsrsquo valore di strumenti di trading, indicatori, formazione e servizi di mentoring, libri e video disponibili prezzi a ripidamente scontati. In breve, si avrà tutte le informazioni necessarie per scambiare il tuo nuova strategia preferita domani. Alcune delle cose che si impara in questo libro sono: Come individuare Setup-alta probabilità con l'Ichimoku Nube Come operare NASDAQ Futures (NQ) sulla campana di apertura Come eliminare il rumore di indicatori popolari e trovare le voci precise Come identificare Impostazioni ottimale con la ldquoRubber-Bandrdquo effetto usando una strategia semplice che gli obiettivi Moves di investitori istituzionali e molto, molto, più a ChartExperts. è la nostra sincera speranza che si toglie diverse strategie che è possibile utilizzare quando si è finito di leggere questo libro. Potrai anche conoscere i mercati che attualmente donrsquot commercio, e si scopriranno se sono adatti alla vostra personalità di trading. Infine, assicurarsi di sottoscrivere ChartExperts. Forniamo gratuitamente ebooks, articoli settimanali, video on demand e tante altre pubblicazioni per gli operatori attivi. I nostri presentatori sono esperti del settore di fama mondiale e il nostro contenuto è fornito gratuitamente in un ambiente rilassato e amichevole. Saluti a tuo trading successo capitolo 01 8 Forex Vita Hacks per farvi una migliore Trader Joshua Martinez, MarketTraders, Inc. Alcuni dei più popolari messaggi di social media sono i cosiddetti ldquoLife Hacksrdquo. Queste piccole strategie di divertimento prendono la preoccupazione di fare le faccende di tutti i giorni e in generale rendere la vita più facile. Proprio come si può usare hack di vita per rendere la vita più facile, è possibile utilizzare le strategie per fare trading sul Forex più facile. Da attaccare con questi Forex Vita Hacks, si aumenta la probabilità di successo Forex: Forex vita Hack 1: Memorizzare il Top Candlestick Formazioni Ogni commerciante sa per guardare i candelieri, ma quanti sanno candelieri abbastanza per vedere i loro modelli ricorrenti Pochi commercianti si rendono conto che candelabri fare di più che mostrare ciò che il mercato sta facendo in quel lasso di tempo, ma anche si uniscono per creare formazioni che gli operatori esperti possono individuare e utilizzare per i profitti. Ci sono una vasta gamma di candelieri, e molti di loro hanno alcuni nomi abbastanza unica, ma ci sono alcuni che sono importanti da ricordare: alcune formazioni candlestick a prendere atto del sono il fondo pinzette rialzista, il Bullish Piercing Line, la Bearish engulfing ribassista candela e la Shooting Star. Ognuno di questi nomi fornisce un'indicazione della direzione del mercato e fa qualche connessione tra la candela e lo stoppino. Spotting queste formazioni consente presto di ottenere nel mercato giusto prima che si verifichi una mossa importante, aumentando così il potenziale di profitto e che consente di battere il ferro finché è caldo. Forex vita Hack 2: Stick per 2 o 3 Strategie. Max. Una frase che ci piace usare è ldquosimplicity porta a pipsrdquo. Quando si arriva al mercato con 20 strategie diverse, si finisce per stiramento te troppo sottile e si perde su profitti a causa yoursquore cercando troppo duro. Thatrsquos perché itrsquos importante per limitare le strategie da utilizzare per due o tre ad un max. Perché tre Itrsquos non perché itrsquos un numero a portata di mano, o uno che si traduce facilmente. Itrsquos perché ci sono tre tipi di movimenti di mercato, e aiuta ad avere una strategia per ciascuno di essi. Avete bisogno di una strategia per quando si commercio di giorno, una strategia per quando si è in uno swing Andor un mestiere posizione e una strategia per il movimento laterale. Avere tre strategie di fiducia per ciascuna di queste condizioni di mercato significa che si dovrebbe essere più disposta a rivedere rapidamente il mercato, se il mercato sta facendo per i movimenti rapidi giorno di negoziazione, o sta vivendo consolidamento che si estende dieci o più giorni. Avete qualcosa da analizzare le condizioni contro, e le strategie per aiutarvi a trarre vantaggio di queste mosse. Forex vita Hack 3: Utilizzo multipla Tempo Fotogrammi di Commercio Il numero uno domanda nuovi operatori chiedono è quello lasso di tempo che dovrebbe scambi all'interno. La risposta a questo varia, ma la linea di fondo è che si dovrebbe sempre essere negoziazione su più di un periodo di tempo Come può questo lavoro Itrsquos semplici, tempi donrsquot lavoro nel vuoto. Ognuno ha un altro effetto, e modelli che appaiono in traffici lungo termine rendono presenze in operazioni a breve termine. e viceversa. Per esempio, se yoursquore cercano di entrare sul grafico di un'ora, si desidera iniziare la tua analisi su almeno il grafico a 4 ore o un grafico qualsiasi momento più grande framersquos. La regola è quella di avere sempre la vostra, più grande periodo di tempo secondaria essere almeno quattro volte la dimensione del vostro periodo di tempo iniziale. Pensate a tempi di avere una relazione padre-figlio tra loro. I tempi più grandi avranno un effetto sui più piccoli, proprio come i genitori hanno un effetto sui loro figli. Il lasso di tempo più ampio lo scenario ideale per le scadenze più piccoli. Una volta yoursquove stabilito la direzione generale del mercato da parte i tempi più grandi, è possibile barattare i tempi più piccole per i specifici punti di ingresso e di uscita. Un arco di tempo mensile mostra tipicamente la seguente formazione A-B-C-D per solo il prossimo 2,000 Pip-valore di movimento. L'arco di tempo quotidiano mostra i movimenti corrispondenti che creano la più grande formazione di A-B-C-D per i prossimi 500 a 1.000 pip vale la pena di azione per il mercato. La cosa grandiosa di questo metodo è che si risolve il più grande problema che deve affrontare molte commercianti di valuta. Questo problema è sapere quando smettere di comprare e quando iniziare a vendere. Con il movimento più ampio identificato, gli operatori possono meglio determinare quando i marketrsquos maree si preparano a cambiare per un movimento completo nell'altra direzione, in contrapposizione ai movimenti ondulatori naturali che compongono ampie oscillazioni del mercato. Forex vita Hack 3: non rischiare mai più di 2-5 del tuo account Un buon consiglio nella vita è quello di non rischiare mai più di yoursquore disposti a perdere. Sia il commercio yoursquore nel mercato azionario o di prendere un mutuo sulla casa, non si dovrebbe mai mettere più di quanto si può vivere senza. Questo è particolarmente vero quando la cosa yoursquore rischiare è il denaro. Itrsquos pena ricordare ancora una volta: non si dovrebbe mai rischiare più di yoursquore disposti a perdere. The Ultimate Traders Package su Demandtrade suggerisce di non rischiare più del cinque per cento del proprio account. Dovete capire, prima di entrare nel mercato, che ogni commercio si potrebbe fare viene con esso un certo rischio. Ci isnrsquot un commerciante nella storia che ha una percentuale di vincita di 100. Il nocciolo della questione è che si perde a un certo punto, ma quando a gestire il rischio con successo si può prendere tali perdite e vivere per combattere un altro giorno. Anche voi volete essere in grado di mettere in denaro sufficiente per realizzare un profitto. Dopo oltre 20 anni di esperienza, abbiamo capito che il punto dolce tra fare soldi, e non andare in bancarotta quando la perdita di denaro, cade nel range 2-5 per cento. Si consiglia di principianti o più operatori economici avversi al rischio di iniziare con rischiando solo il due per cento della vostra piscina di trading corrente in ogni commercio. Una volta che si diventa più esperti nel mercato, oi vostri profitti sono aumentati abbastanza, si può passare a tre, quattro, o l'intero cinque per cento. Forex vita Hack 4: Identificazione e Trading il Kingrsquos Corona Uno dei più famosi, e spesso utilizzati, le strategie è qualcosa che si chiama il modello testa e spalle. Questo accade quando un mercato con un trend rialzista rende un picco e comincia a ritrattare. Il nome deriva dal quadro del mercato rende come picchi e valli. Il punto più alto è il capo, e le due bassi su entrambi i lati di esso sono le spalle. In teoria, si disegna un ldquonecklinerdquo che collega le due spalle e iniziare a commerciare in quel punto. Il problema è, il mercato spesso overcorrect stesso e yoursquove preso una perdita prima si sapeva che cosa ti ha colpito. Thatrsquos perché la FX Chieftrade preferisce negoziare un modello diverso: Il Kingrsquos Corona. Il Kingrsquos Corona è scambiato al di là della ldquoshouldersrdquo del testa e spalle. Una volta che il mercato tira fuori un minimo di supporto, si ha la tendenza a rimbalzare indietro e agitare prima che il mercato finalmente cade. In questa strategia, la tua fermata sarebbe stata presa su quel raduno destra prima che il mercato si rivolse a completare la vostra direzione. In sostanza, si arenrsquot negoziazione la scollatura, si sono negoziazione il punto di rottura oltre il più basso basso. Questo picco in più nel mercato (ruotando la persona in una corona) permette di vedere la vera indicazione dei mercati e potrebbe ridurre il rischio di avere di assumere perdite in futuro. Forex vita Hack 5: imparare ad amare l'RSI stocastici Pensate gli alti e bassi del mercato, come le tendenze, come nel settore della moda. Prendere scaldamuscoli per esempio. Negli anni '80 scaldamuscoli erano molto popolari, sono stati utilizzati da un ampio segmento della popolazione, e poi una volta ha colpito un certo punto è diventato troppo popolare e c'era una reazione creato contro di essa, rendendo la tendenza lentamente va via. Un sacco di produttori di moda sarebbe piaciuto avere conosciuto quando il trend stava iniziando ad andare via. Avrebbero voluto che sapevano qualche tipo di indicatore. Non ci potrebbe essere un indicatore come quello per l'industria della moda, ma non vi è per i mercati. Itrsquos chiamato il stocastico RSI, e potrebbe essere la chiave per il commercio. La RSI stocastico è costituito da due linee che servono come una sorta di riferimento per quando il mercato sta cercando di invertire. Se il titolo è scambiato troppo alto, si romperà quella linea e cominciare a tendere verso il basso. Se lo stock sta andando troppo in basso, si romperà la linea di fondo e iniziare trend back up. Avere una maniglia sui due barriere che la linea stocastico rende up vi darà un senso di quando si dovrebbe invertire la direzione e passare da toro a sopportare, e viceversa. Forex vita Hack 6: Utilizzare stop loss per le vincite Come familiare fa questo suono Hai messo in al mercato e, come un buon commerciante, si imposta la vostra fermata. Tuttavia, ci si trova costantemente prese fuori appena prima della grande vittoria. Itrsquos un problema comune che ha una facile soluzione, è necessario cambiare le stop loss come i cambiamenti del mercato come il mercato oscilla, le perdite di arresto si sviluppano più grandi in termini di dimensioni. Questa volatilità crea massimi e minimi crescenti, che possono incantesimo maggiori profitti per i commercianti intelligenti. E i commercianti intelligenti adeguare le loro perdite di arresto per rispecchiare il mercato. I commercianti fanno perdite di arresto per impedire loro di perdere il loro intero conto nel corso di uno scambio. Impostando un numero minimo per il mercato a colpire, una volta che il mercato colpisce quel numero, il commercio termina automaticamente e viene presa la perdita. Il modo utilizzare correttamente un numero stop-perdita di fluido è di spostare il numero minimo secondo il mercato si muove. Letrsquos guardano un esempio. Il grafico sottostante presenta diversi cerchi gialli. Questi cerchi rappresentano il prezzo di stop-loss in momenti diversi nell'arco di tempo di trading. Partendo dal cerchio più a sinistra, si dovrebbe regolare il vostro stop-loss per abbinare il prossimo numero più basso i colpi di mercato (che è il nuovo cerchio giallo). Anche senza il vantaggio di vedere i numeri reali, si può vedere la differenza tra il più lontano a sinistra e il cerchio più lontana destra. Questa differenza pip sarebbe perduto se si didnrsquot utilizzano un numero di stop-loss in movimento. Come fai a sapere quando per spostare il vostro stop-loss Itrsquos facile. Cercare un alto o un basso che ha due candelabri a sinistra, e due candelabri a destra che sono superiori o inferiori da quel punto. Un alto avrà due minimi a sinistra ea destra, un basso avrà due picchi a sinistra ea destra. Forex vita Hack 7: Uso ripristini a vostro vantaggio Trading si verifica in una finestra di 24 ore composto da tre diverse sessioni di negoziazione: europea, degli Stati Uniti e sessioni asiatici. La sessione europea ha la maggior parte dei movimenti, seguita da Stati Uniti e quindi i mercati asiatici. Più spesso che no, il mercato direzioni invertite quando una sessione finisce e inizia l'altro. Itrsquos giocando fuori questa inversione che la maggior parte dei semi vengono catturati. E 'ovvio che se la sessione europea è in trend rialzista che una volta che la sessione americana entra in gioco, sarà istituito un rovesciamento e il mercato si trasformerà in un orso. Utilizzando questa strategia è possibile individuare i punti di inversione, sfruttare il movimento del mercato, e di identificare quando un mercato ad alta e bassa si verificherà. Con tre sedute accadendo al giorno, c'è il potenziale per 2 punti di inversione al giorno, il che significa che l'uso di una sola strategia può dettare come si guarda a tre diversi mercati. Forex vita Hack 8: Appuntare tua personalità Trading Ci sono quattro tipi distinti di personalità di trading. Trovare il vostro potrebbe essere la chiave per la negoziazione i punti di forza e limitando le proprie debolezze. Itrsquos raro per un nuovo operatore per conoscere le loro personalità, in modo di leggere le spiegazioni e vedere se ce n'è uno (o più) che si descrive. L'ora Trader: L'ormai trader vuole entrare, ottenere i loro semi, e uscire. Essi utilizzano in genere più piccoli scadenze, trascorrono meno tempo di trading per-giorno e catturare i numeri pip più piccoli. Tuttavia, poiché gli scambi di tali tempi brevi, l'ora Trader tende a commerciare più spesso e avere strategie di trading più semplice. L'In-The-Game Trader: Questi operatori amano il check-in il mercato giornaliero, ma preferiscono la loro azione per essere più duratura e tendono a favorire pip grande cattura per un periodo di tempo più lungo. Il commerciante quotidiano spesso commercia in più tempi di fascia media e presta molta attenzione alle inversioni e frottole predittivi. Il Adrenaline Junkie Trader: Questi operatori commercio solo una volta, o un paio di volte, al mese sulla base di importanti annunci quali i rapporti trimestrali o di guadagni. Amano la rischiosità del mercato e tendono a scambiare solo per un paio d'ore alla volta, ma finiscono per vincere grandi se le loro strategie valgono. Il commerciante a bassa manutenzione: L'ultimo set-it-and-forget-it trader. A loro piace agli scambi nel lungo periodo, utilizzando le strategie che finiscono con grandi profitti per molti mesi. Essi arenrsquot cercando il brivido della manovra ad alto rischio, o l'impegno di un programma di scambi giornalieri. Piuttosto, essi stanno contando sulle scelte più sicure che li andrà a beneficio in futuro. Non c'è un modo giusto o sbagliato di trading, esiste la possibilità di fare soldi in tutti loro. Ciò che conta come un isnrsquot trader quando, o quanto spesso, è il commercio. La chiave per un trading di successo sta gestendo il rischio, sviluppare la vostra strategia, e prendere decisioni intelligenti basati sui grafici. Come ogni suggerimento Forex, questi canrsquot garantire una vittoria, e di trading Forex ha un rischio intrinseco coinvolti. Tuttavia, questi suggerimenti possono fornire una certa comprensione nella mentalità di coloro che hanno scambiato con successo in passato. Utilizzando i suggerimenti visto qui insieme con sana gestione dei rischi, muniti di una fonte secondaria di reddito è possibile da trading Foreign Exchange. Chiedere Forex Vita Hacks, le strategie e l'educazione Forex frequentando un webinar dagli esperti di mercato Traders Institute. Prima i suoi giorni come un analista esperto e commerciante visto in Trader Planet39s Digital Journal. Il tuo Trading Edge e FX Street. Josh è stato il tuo ragazzo medio prima di lui è diventato il Forex world39s FX Pathfinder. Sapeva che voleva fare qualcosa che era appassionato per una vita, ma sembrava che non stava lavorando. Josh ha fatto un nome per se stesso con la strategia di trading e prodezze Londra Daybreak quali raddoppiando il suo conto di trading in un solo mese e guadagnare 10.000 in 30 minuti con le sue strategie di trading personali. Come un creatore corso, mentore e maestro attivo con MTI, è possibile trovare Josh nelle classi MTI studenti, corsi di formazione dal vivo e MTI39s libero serie di workshop aperti al pubblico. Il mio 1 Day Trading Tecnica: L'inventario ritracciamento Hoffman Bar (IRB) Il commercio di Rob Hoffman, BecomeABetterTrader premiato approccio per identificare le opportunità di trading istituzionali sviluppati e utilizzati per vincere concorsi di trading in tutto il mondo, la Hoffman Inventario ritracciamento Bar (IRB) Il commercio ha diventato uno dei modi più popolari per identificare dove a breve termine inventario istituzionale controtendenza si è placata e quando itrsquos tempo di ri-entrare in una direzione di tendenza originale tradersquos. Cosa si può imparare qui è come identificare quando le condizioni si presentano per fare il commercio, i punti di ingresso, e strategia di uscita. Qual è il Hoffman inventario ritracciamento del commercio (IRB) L'IRB Trade è una strategia che viene utilizzato per identificare i tipi specifici di attività di trading istituzionale che è in contrasto con la tendenza prevalente a portata di mano, e quindi identificare le voci quando l'attività di inventario controtendenza a breve termine ha giunta al termine e il mercato è probabile pronto a resumersquos suo trend originale. Mentre è folklore comune nel settore degli investimenti che le istituzioni, come lupi, viaggiano in branchi, la realtà è che le istituzioni non sono tutti seduti intorno a un tavolo cospirare come gruppo su come separarsi commercianti al dettaglio con i loro soldi. L'attività di investimento istituzionale è estremamente competitivo e queste imprese sono molto fuori per se stessi e hanno i loro obiettivi e metriche di performance per ottenere per apparire più attraente per i potenziali investitori in un dato momento. Pertanto, questa strategia è progettato per identificare quando uno o una manciata di istituzioni si stanno muovendo inventario dentro e fuori dal mercato e vengono allontanarsi dal mercati percorso corrente provocando un ritracciamento a breve termine contro la tendenza. Stiamo poi cercando sul mercato in questione per riprendere il suo trend preesistente in cui tali attività istituzionali controtendenza a breve termine e le scorte si sono prosciugati. Le regole per l'inventario ritracciamento Bar (IRB) di identificazione in una tendenza rialzista ndash Cercare candlestick bar che aprono e chiudono 45 o più il loro elevato. La figura 1 mostra quattro esempi individuali e uniche dei IRBs in una tendenza rialzista a scopi illustrativi in una tendenza al ribasso - In cerca di candeliere bar che aprono e chiudono 45 o più il loro basso. La figura 2 mostra quattro esempi individuali in un ribasso per scopi illustrativi. In assenza di sistemi di identificazione di tendenza avanzata Rob Hoffman usa, un approccio semplice alla tendenza di identificazione sta guardando la (media mobile esponenziale) 20 EMA e chiedendo se sembra essere in un angolo di circa 45 gradi in base al periodo di tempo yoursquore cercando al commercio sopra le 20 barre di dati (ad esempio 5 minuti. 60min, giornaliera, settimanale, ecc). Il prossimo più alto periodo di tempo superiore a quello yoursquore cercando di commercio dovrebbe essere scorre nella stessa direzione. Per esempio, se yoursquore negoziazione off di un grafico a 5 minuti e itrsquos in una tendenza rialzista, vuoi vedere che il grafico 10 o 15 minuti anche in una tendenza rialzista. Va scorre nella stessa direzione. Se itrsquos lateralmente, o peggio ancora, trend nella direzione opposta, il vostro commercio è molto più probabile a fallire. La strategia di ingresso Una volta che l'IRB e di tendenza corretta è identificato, il passo successivo è quello di consentire al mercato di muoversi lungo e aspettare che l'azione dei prezzi per rompere uno tickcentpip sotto il minimo della IRB in un trend al ribasso. In una tendenza rialzista yoursquore ricerca di mercato per rompere uno tickcentpip sopra il massimo della IRB. Mentre non è un assoluto, si preferisce che il prezzo rompe oltre la IRB nei prossimi 20 bar in base al periodo di negoziazione yoursquore tempo. Per esempio, se yoursquore negoziazione fuori di un grafico di 2 minuti, vuoi ideale per vedere la rottura nei prossimi 40 minuti. In generale, la prima (cioè entro cinque bar come esempio) è meglio per la ripresa tendenza. La strategia Trailing Stop Uscita Mentre molti commercianti sono specifici commercianti bersaglio dollaro, il metodo preferito è più di una metodologia basata supporto e resistenza obiettivo sostenuto da un trailing stop per assicurarsi di non stanno dando indietro quei profitti durante eventuali snapbacks contro la vostra posizione. In genere, Rob Hoffman preferisce una fermata profitto trailing spostato fino a 50 finale del profitto raggiunto quando yoursquove fatto 50 della strada per l'obiettivo di profitto complessivo previsto di esso. Quindi spostare il trailing stop a 80 di profitto guadagnato come ci si avvicina 80 della strada per il vostro bersaglio. Quindi spostare la fermata a 90 di profitto realizzato come il principale livello di supporto o resistenza bersaglio viene colpito. A questo punto, se nessuna ulteriore progressione è fatto di prezzo, poi sentiero diritto alla bidoffer corrente con l'intento di uscire. Se un altro picco di energia viene a intrappolare i commercianti ignari di vendita al dettaglio con un falso breakout, ci Trail manualmente subito dietro di prezzo durante il picco fino a quando non si ferma, poi wersquore stipulata con profitto. In entrambi i casi una win-win opportunità di trading. maggiori livelli comuni includono livelli chiave di Fibonacci, dayrsquos precedenti alti e bassi, tutti i giorni, punti di articolazione settimanali e mensili, ecc Per il massimo comfort con la strategia, è preferibile utilizzare questo con i propri preferiti livelli di supporto e resistenza. Figura 3 Live commerciale Esempio: sotto il grafico medio evidenzia in giallo il bersaglio designato, un punto di rotazione. Mentre ci avviciniamo 50 della strada per il target, abbiamo sentiero fermata a 50 di profitto guadagnato. Figura 4 live commerciale Esempio: Mentre si avvicina 80 della strada per il target, abbiamo sentiero fermata a 80 di profitto guadagnato. Figura 5 in diretta commerciale Esempio: Mentre si avvicina intenzione obiettivo che ci Trail fermata a 90 di profitto guadagnato. Questo dà il commercio l'opportunità di avere un altro passo falso breakout sopra l'obiettivo che ci permette di tirare fuori un po 'più profitto. Figura 6 live commerciale Esempio: Se il commercio tiene bersaglio e non riesce a sfondare ci muoviamo smettere di bidoffer corrente e aspettare di essere tolto dal commercio. Se un altro picco di energia viene a intrappolare i commercianti ignari di vendita al dettaglio con un falso breakout, ci Trail manualmente subito dietro di prezzo durante il picco fino a quando non si ferma, poi wersquore stipulata con profitto. In entrambi i casi una win-win opportunità di trading. Figura 7 Live commerciale Esempio: L'offerta è stata colpita e l'utile massima raggiunta sulla base del presupposto di questa strategia di trading, l'attesa con l'entrata è che il mercato continuerà nella direzione originale si stava dirigendo dopo la sua breve pullback istituzionalmente guidato contro il tendenza. Molto spesso, una falla IRBs, il mercato sarà effettivamente rapidamente accelerare con l'azione veloce e gamme ampie come tutti comincia a rendersi conto che il breve pullback era semplicemente una pausa da una o alcune istituzioni contro la direzione prevista, come il mercato si muove al passo con il suo intento originale. Detto questo, una volta che viene inserito un mestiere, il prezzo non dovrebbe ripercorrere indietro oltre il lato opposto della IRB. Ad esempio, se il commercio è inserito uno tickcentpip sotto il minimo della IRB in un trend al ribasso, non dovrebbe fermare e invertire ad uno tickcentpip sopra il massimo di quel IRB. Se lo fa, che il mercato può essere formando più di un pattern di inversione e quindi la necessità di uscire la posizione e passare alla prossima occasione o utilizzare uno dei Rob Hoffmanrsquos strategie fenomenale inversione di mercato per catturare il movimento. Quando non usare la strategia Questa strategia è stato principalmente progettato per identificare e sfruttare le continuazioni di tendenza dopo controtendenza inventario istituzionale esaurimento. Pertanto, questo commercio non è quello di essere utilizzato in una delle condizioni di mercato lateralmente come si verifica di frequente fallimento continuazione. Perché questa strategia funziona In generale, il mercato tende al commercio direzionale con il minor numero di commercianti al dettaglio a bordo la direzione più preciso possibile. Questa strategia è così efficace a causa della sua capacità di trovare le aree ad alta probabilità di cui tre cose stanno accadendo ai commercianti al dettaglio in una tendenza rialzista: I compratori sono distratti dal prendere compravendite laterali lunghe quando vedono i pullback fuori gli alti, li spaventare a credere in movimento è finita. Durante pullback, i venditori vengono date false speranze che eventuali corti prese in precedenza nel trend rialzista può finalmente iniziare a lavorare. Gli acquirenti che hanno acquistato l'alto durante risalite rapide ad ampio raggio nella speranza che possa andare più in alto ottenere fermato sul pullback. Dopo tutti questi eventi di cui sopra, una volta che un nuovo IRB al rialzo appare e viene perforato, il mercato è molto più probabile di muoversi senza tutti quegli operatori sopra sul lato destro del mercato. In un trend al ribasso queste tre cose stanno accadendo ai commercianti al dettaglio: i venditori vengono distratti dal prendere brevi commerci collaterali quando vedono i pullback dai minimi, li spaventare a credere che la mossa è finita. Durante pullback, gli acquirenti vengono date false speranze che qualsiasi acquistare compravendite laterali prese in precedenza nel trend al ribasso potrebbe finalmente iniziare a lavorare. I venditori che hanno venduto il basso durante rapida discesa vasta gamma nella speranza che possa andare a prendere inferiore fermato sul pullback. Dopo tutti questi eventi di cui sopra, una volta che un nuovo IRB al ribasso appare e viene perforato, il mercato è molto più probabile di muoversi senza tutti quegli operatori sopra sul lato destro del mercato. Utilizzata durante le competizioni di commercio internazionale la figura 8 mostra una delle sette commerci scattate con questa strategia durante il Concorso International Trading tenutosi a Parigi, Francia. La freccia nera verticale mette in evidenza l'IRB e la freccia orizzontale nera indica l'area di entrata previsto per i traffici che utilizzano questa strategia. Strategia Robrsquos Lista di controllo chiave punti da ricordare Non più di peso è dato a qualsiasi IRB base al fatto che il suo vicino è al di sopra o al di sotto del aperta (cioè candela verde o rosso). Inoltre, pensare al concetto di over estensione. Se l'IRB ha una gamma straordinaria rispetto al Average True Range degli ultimi 10 bar prima di allora la rottura indietro attraverso il IRB è di gran lunga più probabilità di fallire. Questo sarà più probabile risultato in una voce che ha una maggiore probabilità di ritorno alla media la maggior quantità di energia e opportunità di profitto è potenzialmente dissipata lasciando l'operatore con un utile molto più piccolo o forse uno stop loss. Trail le voci per ridurre i rischi di regressione alla media, pur dando un mestiere la possibilità di spingere nella vostra direzione prevista. Utilizzare dimostrato strumento di qualificazione tendenza come Rob Hoffmanrsquos. In assenza di uno strumento collaudato del proprio, il commercio in direzione di un circa 45 gradi angolata 20 EMA. Questa strategia ha molto diverse applicazioni in molti mercati e classi di attività. Per esempio, oltre alla negoziazione convenzionale azioni, futures, opzioni e strumenti FOREX, gli operatori possono considerare l'utilizzo di questa strategia per analizzare azioni sottostanti e quindi il commercio di alta delta, nelle opzioni di denaro svolge come un esempio per le opzioni attive commercianti di giorno. Quindi molto vario davvero. Quello che abbiamo mostrato qui è un semplice premiato la strategia, che si può togliere ed esplorare qui oggi. Rob Hoffman ha usato questo strumento per aiutarlo vittorie sicure in molte delle sue 19 vittorie della concorrenza commerciale nazionale ed internazionale. Si tratta di un ottimo strumento utilizzato per identificare dove i commercianti al dettaglio sono misjudging il movimento mercati. Essa mostra in cui una o più istituzioni è temporaneamente rottura con la tendenza a causa di acquisizione delle scorte a breve termine o di liquidazione. Una volta che la necessità di inventario è esaurito il mercato globale è libero di riprendere il trend esistente offrendo nuove opportunità per i commercianti al dettaglio per il commercio nella direzione con la tendenza generale. Per saperne ancora di più su Rob Hoffman e la sua strategia premiata, guardare questo APPROFONDIMENTO video qui Rob Hoffman è il presidente e CEO di diventare un migliore Trader, Inc. e BecomeABetterTrader. Competenza: STRATEGIE Rob Hoffman è 19 volte nazionale e internazionale commerciante campione di trading che ha vinto di più dal vivo, soldi veri solo, concorsi commerciali nazionali e internazionali rispetto a qualsiasi altro operatore economico in tutto il mondo. Rob is also an internationally recognized professional trader, frequent speaker for top brokerage firms and financial exchanges, skilled educator and passionate mentor to proprietary traders, portfolio managers, and hedge fund managers from around the world. My Favorite Day Trading Technique My Favorite Day Trading Strategy By Geoffrey A. Smith, DTItrader When it comes to day trading, you have to be able to make quick decisions. Over the years I have learned that many stocks have their largest moves in first 30 minutes of the US day market. In particular, the NASDAQ stocks move more than most. Knowing this, I started looking at the NASDAQ 100 futures (NQ) to see if it moved like the equities. It did. It took time, but I finally figured out how to take advantage of the move in the NQ in the first 30 minutes. Because many people have computers and listen to the news in the morning, they open their trading platforms or websites and place orders to exit or enter new trades before they go to work. Once the Ding, Ding, Ding, on the New York Stock Exchange at 08:30am CT is heard, all these orders get filled. The problem is that we do not know which direction the market is going to move, so we have to give the market a little bit of time to quotwashquot these trade out of the market. Once they are gone, the market will then begin to push in one direction (up or down does not matter). This push will last about 15 minutes, and then the market will correct that move going into the top of the hour at 09:00am CT. The question is, how much time do you give the market to shake out the initial trades I have found that it is somewhere in the 3 to 7 minute range. The big thing is to see how it is trading off the open. Let39s take a minute and discuss the open. Most look at the close. I always wondered why. At the close you already know who won or lost, and I39ve never bought a tick to a football game to get there at the end. In fact, have you ever been able to start the race at the end Me either. So I do everything based off the open. If the market is trading above open, bulls are in control, and if below open, bears are in control. So as we look at this trade, I start looking at how the NQ is trading off the 08:30am CT open. Is it higher or lower than open during the 3-7 minute time period If it is holding above open, I look to go long, if trading below open during this time, I look to go short. Sounds simple huh In Chart 1 below is a 1 minute chart of the NQ futures (when we are done you might consider using a 5 minute chart, but we will get to that). The little blue bar is the opening minute at 08:30am CT. The yellow line is the open of that bar, which is also the open of the US markets on the NQ futures. Notice, once it opened, it never traded below open. If the first 5 minutes, it stayed above open. So, if you take the range in the first 5 minutes and wait until the market breaks out of the range, you would have gotten long. Look at the push it made. The NQ went from 4662 to 4681. The NQ is worth 20 per point (it trades it 0.25 increments, or 5 per tick). So on one contract you would have made 19 points or 380 on that move. Notice the little correction starting about 08:50am CT. This is very common and will spook many traders thinking that the market has fizzled out and the run is over, however, it is usually just taking a breather before continuing on after 09:00am CT. In Chart 2 below is another look at another day. This is a little tougher to trade, but look what it did. It opened and stayed below open in the first 5 minutes. Though it bounced up a little, it never got back above open, which argues that staying short was the right thing to do. ( Foot note . now you are thinking, so I have to risk above the open (or below the open if long), and I would say quotcorrectquot. In this trade, your protective stop needs to be on the other side of the open, and really about a point off the highlow since 08:30am CT.) Once it broke out of the first 5 minute range, I got you short, took some heat, but it paid nicely, moving from 4698 to 4692 for a 120 profit per contract. Interestingly, on both trades you could have left your stop on the other side of the opening 5 minute range and stayed in until lunch and been paid much better. I like to trade this with multiple contracts. I will take 1 off at 2 points profit, and another off at 4 points profit and let the last one ride. What I39m trying to do is finance my stop. If I can make 6 point on the first 2 contracts, that means that I can get stopped out and still make money or lose very little if the market reverses. Another thing, we will have economic news at 09:00am CT often. Knowing this, it can help your trade or it will stop you out. So before the news, I would tighten up the stop just in case. Now, back to the 5 minute chart mentioned earlier. Yes, you can use one. Since we are looking at the first 5 minutes, then why not use a 5 minute chart. I can39t disagree. I don39t use charts much when making this trade, but will use a 30 minute chart if I do look at one. I watch my trading platform, or DOM (depth of market), and quotdevelop the chartquot in my head. I39m a tape reader. I watch prices. Not to say I don39t like chart, because I do, I just use daily and weekly charts for bigger trends and use no smaller than a 30 minute chart if looking intraday. That is just me, and maybe not you. So, use a 1 minute or 5 minute chart if it helps. Finally, you can use this on stocks. The NASDAQ stocks do much of the same thing in the first 30 minutes. Watch GOOG or AMZN and see what they do. You can even use the options on those stocks. Just beware of the bid and ask in the first 5 minutes, because they can be quite wide, so use limit order to enter the options. Watch it for a couple of day and get the hang of it. It is kind of an quotartsyquot trade, but it will pay well over time. You will lose a couple every now and then, but that is part of trading. And it will not set up every day. There are some days that the NQ goes above open, then below open, then back above open, and you start wondering what you should do. Do nothing and let the market figure it out, but not with your money. There will always be another day to trade. Trade to win, and good luck trading Watch this trade discussed in further detail, SIMPLY CLICK HERE FOR THE VIDEO Register for this free, special event and get DTIs Trade of The Year During the class you will see DTIs top experts picks for 2017 and much more SIMPLY CLICK HERE TO RESERVE YOUR SEAT Geoffrey Smith teaches Level 1, 2, and 3 core curriculum classes, regular educator and instructor on the 24-hour Educational TradeRoom, GPS Coaching, and one of Tom Busbys first students. An active trader and investor for 25 years, Geof focuses in futures, equities and option trading including trading commodity option futures. Geof took an instrumental role in developing the DTI Method. The Platinum Experience core level classes took first place in SFO Magazine and Trader Planets STAR awards in the best trading courses category. Before coming to DTI, Geof was a pipeline engineer working in Oklahoma and Texas. The Rubber Band Reversal Strategy If you have been trading for any length of time, you have probably noticed that the markets are moving sideways A LOT. Consolidation is a huge part of the marketrsquos balance, and so it makes sense to learn strategies that take advantage of the sidewaysconsolidating type of market conditions. Often, ranging strategies are high probability but they do not offer a good Risk to Reward. But today, you will learn a strategy that has both a high win rate and the opportunity for some good R:R. The entire strategy can be boiled down into just a few steps. If you read the report carefully, you should be able to begin implementing the strategy virtually right away. Though, as always, I do recommend trying new strategies on a demo account and getting comfortable with them before trading them live. With that said, letrsquos dive into the steps. Step 1 - Identify RangeshyBound Markets on Daily or 4 Hour Charts A ranging market is simple to identify. We are looking for clearly defined sideways movement that is sustained with several tops and bottoms. One thing to remember is that a sideways market should have similar priced tops and bottoms. They do not have to be identical for us to consider it a range, but if the back and forth movement doesnrsquot have a consistency to it, itrsquos very difficult to take advantage of. You can see in situations, demonstrated by the green example, that a more consistent top and bottom will improve the chances that the market reacts at the expected time so that is what we are looking for. The red example shows you a sideways market that is not in a cleary defined range. So while the price is certainly going back and forth, the market is less responsive to a clear top or bottom range that we can utilize. The truth is that once yoursquove mastered this strategy you can still use it on less predictable ranges, but I recommend beginning with the more clearly defined ranges until you see some success. Here are a few examples of real ranging market conditions: In the second example, I used a 20 and 50 EMA to show you how moving averages can also signal a ranging market as they quickly begin to flatten and intertwine with one another. This is, of course, a lagging indicator but for those of you who like indicator confirmations, moving averages are an easy way to confirm a ranging market. Once you find a ranging market, you can move on to the next step. Step 2 - Identify an Overextension Within a Dead Market In this step, we are looking for the market to extend itself within a sideways market. More often than not, extended steep moves will pull back to settle toward reasonable prices, but this is even more true when the market is in a defined range. When it begins to accelerate and get overbought or oversold we are very likely to see it ldquosnap backrdquo like a rubber band once it runs out of orders to fulfill. Itrsquos this ldquoSnaprdquo that we are eventually looking to take advantage of within the Rubber Band Reversal, but first we must define the stretch point of the band. As always, I like to use multiple time frames to get a complete, accurate view of the market, so once we have a ranging 4 hour or Daily market condition, wersquoll zoom into a 60 minute chart to find an overshyextended point within the market. On the 60 minute chart, wersquoll add a Bollinger Band (standard settings) and RSI (standard). The Bollinger Bands and RSI give us a double confirmation to find overshyextended conditions. Bollinger Bands are a great indicator for this because they shrink down and quickly define a range which, in turn, makes it obvious when the market is stretching out of that range. When you combine the defined ranges with stretched Bollinger Bands, you get a pretty good idea of when price might make a turn around. But we also like to use the RSI to make sure that price is clearly overbought or oversold. The vertical lines represent when the RSI is above 65 or below 35. Please Note: The RSI is NOT an entry signal. It simply helps our patience and discipline as we are forced to confirm an overbought or oversold condition before going to the next step. The Bollinger Band and RSI are what allows us to be certain that the market has stretched like a Rubber Band and is ready for a potential snap back in the opposite direction. Now we know that the market is in position for our Rubber Band Reversal, but we do not have the ability to enter the trade yet. This is where a LOT of traders get tripped up. They see the RSI shoot over 65 or 70 and they are too trigger happy they just begin shorting the market. The problem is that more often than not, when the market hits 65 or 70 it is still in a momentum phase and we simply donrsquot know how long that momentum will last. We do not know how far the rubber band is going to stretch. So itrsquos very important to utilize the next steps in the strategy to make sure you have a complete plan and are jumping into trades early. We wait for the price to pierce the upper Bollinger band and simultaneously, we want RSI levels to be above 65 levels. After both conditions are met (Bollinger Band pierced and RSI overboughtoversold) we can go Step 3 - Find an Entry To find a high probability entry, we look for a unique combination I have used for a long time. The combination is a 15 Minute Reversal Candlestick (pin bar, inside bar, engulfing, etc.) at a whole number. Whole numbers are important because of their psychological value. A maximum number of orders are placed closer to the 50 or 100 levels, for example, at the 1.3050 or 1.3100 levels. In this shorter time frame, we consider anything ending in a 0 (for 4 digits) or 00 (for digits) to be a whole number. The key is that almost every time the market shows rejection around a whole number, we get SOME follow through. Often, it is only a few pips but when you combine it with the right market conditions like we are doing in this strategy, your odds of catching a reversal that moves 20, 30, 50 or even 100 pips is very, very high. Many times, price pushes slightly above the whole numbers and then quickly reverses, sucking in amateur longs, who get trapped and are forced to cover, thereby aggravating the fall. On other occasions, the institutional orders push price right at the whole number or even a few pips before. Either way, if you are prepared with a plan to trade around these whole numbers, you can take advantage of these scenarios. Once we see a 15 minute candle show rejection at a whole number, we are ready to place our entry. Here you can see a real trade example of the market spiking through to the tops, piercing the band, above 65 on RSI and getting our 15 Minute rejection candle right at 1.4340. With our criteria met, we can go ahead and set up the trade. Step 4 - Execution, Stop Loss and Take Profit With a market order, we will enter as soon as the 15 Minute candle closes (advanced traders can zoom into a 5 minute and anticipate the reversal momentum to improve R:R) For this particular strategy, our Stop Loss and Take Profit are very easy. Once the entry is made, we can place the Stop Loss a few pips above the entry candle or previous candle (whichever has a higher high) and we can place our Take Profit at the midshyband of the Bollinger Bands. The midpoint of the BB will change as the trade progresses but it should remain at the price of the midpoint at the time of the entry candle. So the full trade setup would look like this: Here, you have an ENTRY (green line) right as the candle closes, a TARGET (blue line) at the midpoint of the BB bands at the time of the entry candle and a STOP LOSS (red line) a few pips above the high of the piercing candle. In this case, the entry candle is relatively long given the high piercing wick so our RiskReward is about 1:1 (still not bad for a range trading strategy). But as yoursquoll see with practice many entry candles are smaller and the R:R can be 2:1 or even 3:1 in some cases. Plus, once you become a Rubber Band Reversal Expert, you can zoom in even closer to a 5 minute chart and get ahead of the momentum. Often, once the rejection of the whole number begins to happen, price falls quickly and waiting for the 15 Minute to close can cost you a fair amount of pips. So I like to get in early when I see that rejection taking place. Either way, it is a great strategy for ranging markets and I hope you take advantage of it Summary Points to Remember: Look for a rangeshybound market on the Daily charts and 4 Hour Charts. Once you have chosen your currency pair, select the 60shyminute time frame and overlay. Wait till the price pierces the upper Bollinger band and RSI is above 65 or below 35. Zoom into the 15 Minute chart to find our entry. On the 15shyminute chart, we want two important conditions to be fulfilled. We want a reversal bar We want to enter the trade close to a whole number The profit objective is at the midpoint of the Bollinger band, where we take our profits. With those few steps you can take advantage of the very common consolidating markets we see. If you have any questions about trading the strategy, you can email me at Jcrawfordlearntotradeforprofit I do ask that you try to be as specific and clear with any questions as I get lots of emails Grab TWO additional free strategy reports at no cost At Learn to Trade for Profit, we have one goal and its pretty easy to guess - we want to help traders and investors of all levels, all walks of life, all types of goals and motivations, anywhere in the world, aspiring to trade any market Learn to Trade FOR PROFIT. We dont sell anything, we just offer the best training and education at no cost. Using Precision Indicators To Day Trade On The Right Side Of The Market Force By Mohan Wolfe, BoomerangDayTrader All traders know that one of the key difficulties in any kind of trading (and especially day trading) is to get the initial positioning of the entry correct in order to keep the fluctuating price away from our stop. Greetings traders, my name is Mohan and in this special report I will show you the sure fire way to make your day trading more profitable and more peaceful with less grind. I have been working with futures traders since 2001 and have trained well over 50,000 traders through our variety of precision trading services. We specialize in working with traders who are suffering from trading losses or who are stuck in ldquobreak even syndromerdquo and really want to succeed. So letrsquos start with the first lesson in day tradinghellip be sure to ALWAYS USE STOPS Please donrsquot day trade without a stop, as this can cause tremendous damage to an account. You cannot always rely on your own judgementemotions to get you out of the trade that is on the wrong side of the market. We often tend to rationalize how when on the wrong side of a trade we ldquoknow the trade will still be good but just needs a little more wiggle roomrdquo. So the key to this is to position your trade on the right side of the market force. And as the trade progresses to assure yourself that you stay on the right side of the Market Force or to be able to determine if that MF has changed in any way. POPULAR INDICATORS USED FOR READING MARKET FORCE The most popular indicators over the years have been developed by brilliant market technicians that have stood the test of time. The Relative Strength Indicator also commonly known as RSI developed by Welles Wilder, Stochastics by Dr. George Lane, and MACD by Gerald Appel. There is such a wide variety of indicators available and so many great technicians whose names I wish I could mention in this short article. However, many of these modern day indicators are just slight variations of these original technical studies. Some newer indicators are combinations of these studies such as running an MACD on a stochastic etc. Below is a one minute chart of one of my favorite day trading contractshellip. The Mini Nasdaq (symbol: NQ) with the above indicators applied to it. Notice on the chart above that although we are applying some of the best and most popular indicator studies there is no crystal clear discernable area to get long or short in the market. And if you didhellip where would you place your stop How do you determine which direction the Market Force is on using these common indicators on this one minute chart So the most important element of day trading is to be able to determine what the primary Market Force is at the time you are getting ready to trade. Mohanrsquos Market Force precision indicators to the rescuehellip Over my 26 years of day trading I have studied practically every indicator that is out there in the industry. I have carefully studied and applied hundreds of them to my charts to determine which ones were the best. Well, after doing this type of research for quite some time and becoming somewhat disappointed (which I am sure you can relate to) I developed my own set of indicators which are extremely accurate. I call these indicators my ldquoMarket Force Indicatorsrdquo and they are part of my world famous trading system called Boomerang Day Trader. Now take a look at the chart below with the exact same day and time period of the chart shown above with the Boomerang Day Trader Indicators applied using a 450 tick chart. Notice the crystal clear identification of the Market Force with the bias coloring of the candles, the Trading Channels (shaded area) which identify the price direction of the Market Force, the matching colored Dynamic Trend Bands, and the 3 Market Force Indicators on the bottom of the chart all with matching color according to the Market Force direction of the pricebias. The first yellow dot after the Arrow which signals the opening of the Trade Channel in that direction is a crystal clear Sell Signal entry. On the buy side the first Blue Dot is the Buy entry after the arrow opening up the Buy channel with the Dynamic Trend Bands and all the indicator colors matching. Both were winning trades, there was little or no pressure on the trade entry and you were able to put some money in your pocket. The Boomerang indicators have been tried and tested under ALL market conditions and have produced millions of dollars in winning trades from our large international group of Boomerang users. In fact, the rise of Boomerang Day Trader to being one of the top, best - selling day trading software in the industry is due to the extreme accuracy of the market force indicators which I developed. You can see that by having the best indicators and knowing how to use them with a proven system can make trading a lot easier and more profitable. This is my 1 day trading technique and practically the only one I usehellip. Trading into the prevailing current Market Force This trading concept is fairly simple in principle with the steps as follows: Determine from your indicators what the primary Market Force is in the market right now Discover the best way to get into that Market Force and join that side of the micro trend (or larger scale move if that is determined by the indicators) Develop a stop method that will allow the trade some ldquowiggle roomrdquo to move sufficiently against your entry without creating too large of a loss or too tight of a stop which could take you out of a correct trade. To learn more about my Market Force Indicators you can watch a recent, brief video which was recorded in front of a large audience of Boomerang Day Trader users. In this video I describe how to use the Boomerang Day Trader ldquoMarket Force Indicatorsrdquo in great detail. We have bi-weekly training classes that you can attend for FREE if you wish by joining us at boomerangtrader You can sign up on the blog and get notices of when our next class will occur. In these classes I go over many vital elements for developing trading success which you really need to learn to stay in the game and be a career ldquoBlue Collar Working Traderrdquo. I just want you to succeed at futures trading if you have come this far and are struggling. Please consider us your resource for relief and a new vision for profitable trading like thousands of traders have. The methods that I describe above can also be used for higher volume active futures, stocks, ETFs and other instruments. If you think about it really it is just common sense. In other words, find the primary force that is underlying the market and place your trades on the side of that force. Sometimes traders will call this a ldquoTrendrdquo or intraday trend which is another name for a continuation movement. However, the important distinction between the ldquotrendrdquo and the ldquoMarket Forcerdquo is that a trend is what happens AFTER the Market Force shifts FIRST. When a trend appears to be in place the market force will often shift right at the top or bottom of the so called trend and stop all those who didnrsquot see it coming. This was because their indicators did not alert them accurately to this shift. This creates a big reversal against the ldquotrendrdquo surprising all those trend followers who did not understand how to read the intraday Market Force correctly. That is why having the correct precision indicators and proven trading method of how to use them is so important. VALUABLE TRADING RESOURCES FOR YOU TO SUCCEED AS A DAY TRADER I have many other resources for you to learn how to day trade on the correct side of the Market Force and I hope you will take advantage of my many years of experience. You can access a FREE REPORT on other elements of market force in the US stock markets called ldquoHow to read the stock market like a bookrdquo I have two different services that I offer to traders. First is my highly popular Boomerang Day Trader software which Guarantees 90 winning trade signals to come from the software following our exact methodrules. boomerangtrader No trading software has ever guaranteed 90 winning trades before in the history of the trading industry except for Boomerang Day Trader. We are the first, and we have raised the bar very high on trading systems. This shows our extreme confidence in the trading method and indicators we use. My other service is called the ldquoDay Traders Action live trading roomrdquo which trades a variety of instruments including futures, stocks, ETFs and occasion directional options. We primarily trade mini Nasdaq (NQ) futures during the first 2 hours of trading (sometimes a bit longer) using 5 different trading setups that I have developed over the years. Our goal each day is to make 500-1000 on a small trading account within that early period of the session. Note: the DTA live trading room is NOT a Boomerang training room. We have our bi-weekly classes for Boomerang and market training. We have been fortunate to have very excellent success on our stock and ETF picks with all winners since we started that service. Examples are: 65 gain in emerging markets in 2 months, a 230 gain in 2 weeks on Chesapeake Oil at the bottom of the recent oil drop, long crude oil at 30 area, long gold from 1080 and still holding for higher prices, long the bio tech industry and solid picks for getting 6-9 income on your capital with low riskhellipand much, much more. In addition to this I make an exact, crystal clear directional bias call for the market almost each trading day. This is extremely valuable for day traders and those trying to manage a larger portfolio like many of our subscribers do. I want to thank you for reading my brief article today. If you have any questions on any aspect of trading the futures market I will be glad to assist you in any way possible as I have been doing for traders now for over 16 years in the industry. I have made a long career out of assisting traders and would look forward to your email if there is any way I can assist you whether you get involved with our services or not. Here is my email: Mohandaytradersaction Thank you for reading my article on ldquoTrading with the Market Forcerdquo. As a special offer to readers I will be offering you a 20 discount on my top selling Boomerang Day Trader software with a 90 guaranteed profitable signals coming from the software. The regular price is 1195 but with this special link you can purchase Boomerang and all the indicators discussed on the video for just 995 today. Mohan is a 26 year trading veteran and trading coach for over 14 years in the industry. He is also the developer of Boomerang Day Trader, which is one of the top selling day trading software on NinjaTrader. Boomerang is also the first day trading software to offer a 90 guaranteed winning trade signals, creating an historical precedent in the industry. Chapter 07 Day Trading and Algorithmic Trading in Futures By Carley Garner, DeCarleyTrading Whether you like them or hate them, day traders and algorithmic system traders, commonly referred to as algos, are here to stay. Both groups of traders bring additional liquidity to the marketplace, which is a positive. However, some would argue that the baggage they bring with them isnt worth the additional liquidity. It is no secret that highly day traded markets such as the e-mini SP experience additional volatility throughout the last hour of the trading session as day traders square their positions. In addition, it is difficult to deny that algo traders havent created a marketplace that sees severely abnormal prices at a relatively higher frequency. Nevertheless, the new challenges posed by aggressive day traders and high-frequency traders via computer algorithms arent all that different from the obstacles faced by traders during the heyday of open outcry trading the antagonists are simply wearing a different mask. DAY TRADING IN FUTURES During my time as a commodity broker, Irsquove noticed the strategy bringing the most traders to the futures markets is day trading. The appeal of the strategy is the prospect of hypercharged trading profits, but it also comes with low barriers to entry, a lack of overnight position risk and, letrsquos face it, it is exciting. Traders generally use the same technical indicators and oscillators for day trading as they would position trading, so if you have a winning strategy, why wait weeks for the outcome Instead, traders can determine whether they have what it takes to make money within a single trading day. Most people assume day trading only entails trades that span the traditional opening and closing times of the official e-mini SampP 500 futures day session, which is 8:30 a. m. through 3:15 p. m. Central. But that isnrsquot necessarily true day trading is the practice of entering and exiting futures positions within a single trading session. In todayrsquos nearly 24-hour world of futures trading, a day trade might actually be held overnight. The distinction can be found in when the position was initiated, and whether it was still open at the close of trade. Most of the financial futures markets open in the afternoon prior to the official day session and trade through the end of the day session. As a result, it is possible to hold a day trade nearly 23 hours per day. If a trader is flat at the close of a trading session, anything done during that particular session is considered a day trade. Of course, there are some things to be aware of. Not all brokerage firms allow their clients to trade overnight those that do might levy a small fee for holding their position. Further, many brokerages offer day traders discounted margin rates. These margin discounts are frequently only granted during the exchangersquos official day session (8:30 a. m. Central to 3:15 p. m. Central). On a side note, my brokerage service (DeCarley Trading) is more liberal than most, since we grant day trading margins around the clock. Some brokers go so far as to force liquidate accounts at the close of each day if the client doesnrsquot have enough money to meet the exchangersquos state initial margin requirement. Not being aware of the rules and characteristics of a brokerage is a mistake capable of destroying an otherwise attractive day trading strategy. Brokersrsquo efforts to reduce the risk of day traders isnrsquot because they donrsquot want their clients partaking in the strategy. In fact, it is the opposite. Day traders tend to execute a high quantity of trades, which pads the pockets of brokerage firms. After all, the more a client trades, the more commission he pays to the broker. Accordingly, brokerage firms work hard to promote day trading via discounted margin rates and lower commission for the highest-volume day traders. They also encourage automated trading systems, which are inclined to be high-volume trading strategies. Further, risk managers at brokerage firms love the idea of their clients being flat overnight. As you can imagine, this takes much of the stress away from monitoring their client positions throughout the night. Donrsquot forget, futures trade nearly 24 hours per day you might be resting on the couch or fast asleep, but that doesnrsquot mean the markets are. Global events and sentiment sway asset prices in real time without any regard to what traders in the US might be doing at the time. Likewise, US traders buy and sell futures contracts throughout their day session without thinking twice about the Europeans, who are slumbering. I39ve been a commodity broker since early 2004 and have had the privilege of having a front row seat to the game of retail trading. Based on my observations, day trading is one of the most difficult strategies to employ successfully. Yet with difficulty comes potential reward for those capable of managing emotions and willing to put the time in to pay their dues. Traders able to uncover a way to make consistent profits might discover the reward is not only lucrative but also extremely convenient. They have the ability to sleep well at night and literally choose their own trading schedule. There is an unlimited number of strategies that day traders might opt to apply, so discussing that aspect in a single chapter is unrealistic. Any market approach deliberated in Chapter 6, ldquoPosition Trading in Futures, rdquo and market analysis techniques debated in Chapter 2 with respect to technical analysis can be applied to a day trading strategy. But over the years Irsquove noticed a few factors that play a big part in determining day trading success and failure. Hopefully, you will walk away from this section with a better understanding of risks, rewards, and reality. Common mistakes made by day traders Day traders face modest barriers to entry, but they also face the worst odds for success. However, much of the dismal performance by day traders can be mitigated by avoiding a few common mistakes. Unfortunately, many of the items on this list are easier said than done because, for many, they contradict some of the advantages of day trading luring them into the markets in the first place. Failing to take these steps shifts the odds of success away from the trader and toward his competition, the trading public. As a reminder, margin requirements for intraday trading are set by the brokerage firm, not by the exchange. As previously mentioned, because brokers generate revenue based on volume commission, they have incentive to entice traders to participate in day trading strategies with low margin rates. It isnrsquot uncommon for brokerage firms to advertise day trading rates for the stock indices such as the e-mini SampP 500, the e-mini Dow, and even the mini Russell 2000 for as little as 300 on deposit as a good faith deposit. So assuming his broker was granting him a 300 day trading margin, a trader with 3,000 in a futures account could buy or sell 10 stock index futures contracts at a time, as long as his intention is to exit by the close of trade. To green traders, this sounds like a fabulous proposition, but to those with experience it is a clear death sentence to a trading account. With that said, in the wake of financial crisis volatility, day trading margins have increased. It is still possible to find 500 day trading margin rates for stock indices, but most brokerages have increased it to 1,000 or above. This might appear to be a disadvantage and may frustrate a few traders, but the reality is a far more reasonable amount of leverage. In addition, it is still more than enough leverage to produce large profits and losses in a trading account. To put a 500 day trading margin into perspective, we know each point in the e-mini SampP 500 is worth 50, so with the e-mini SampP valued at 2,000 a single futures contract represents 100,000 (2,000 x 50) worth of the underlying SampP 500. It is easy to see how a trader buying or selling an e-mini SampP contract worth 100,000 with as little as 500 on deposit could get into trouble. If yoursquove done the math, in such a circumstance the trader is putting up a mere 0.5 of the contract value to partake in the profits and losses produced. This type of leverage doesnt give traders an advantage it gives them an incredible burden and a dismally low probability of success. Adding salt to the wounds of overleveraged day traders, many discount brokerage firms offering low margins are quick to liquidate client positions should their account equity dip (even slightly) below the stated day trading margin rate. This too adds to the likelihood of failure. A trader with 5,000 in a futures account being granted 500 day trading margins could buy or sell as many as 10 futures contracts to enter a position. However, if the market goes against the trade, even slightly, the brokerage will often liquidate the position. Each firm has slightly different risk rules, but most begin to take action if the trader has less than 400 per contract. Simply put, if the e-mini SP moves adversely by 2.00 points, the trade might be force liquidated. Even worse, brokers often charge a liquidation fee of 25 to 50 per contract. Anyone who has traded the e-mini SP before will tell you that 2.00 points are nothing more than random ebb and flow. Without the help of luck, a traders entry price will have to endure more than a 2.00-point drawdown before moving in the desired direction. Day traders using this much leverage rarely survive the trade long enough to see profits. To review: a trader starting with 5,000 and going long 10 e-mini SP futures, as would be allowed by a 500 day trading margin, could see his position offset by the risk managers of his brokerage firm once the loss reached 1,000 ((2.00 x 50) x 10) or 2.00 points in the e-mini SP. Further, the losses would be exacerbated by a forced-liquidation fee levied by the broker in an amount as high as 500. This trader would have lost 30 of his account in a matter of minutes on nothing more than quiet market flow. It should be clear by now that day trading futures in high quantities relative to account size or on a shoestring budget is equivalent to playing craps in Las Vegas. Traders can increase their odds of success by mitigating leverage through sufficient account funding, or at least trading minimal quantities. As a rule, it is a good idea to trade a single stock index futures contract per 10,000 on deposit in a trading account. Aside from the leverage factor, lightly capitalized accounts might not have the means to hold positions overnight when necessary. This does traders a massive injustice because it prevents their trading strategy from adequately giving each entry signal the time necessary to work out. Stock index futures might close at 3:15 p. m. Central, but that doesnrsquot mean your technical setup has had a chance to play itself out. For instance, a trading strategy could conceivably trigger a sell signal an hour before the close, but the restricted time frame might not allow for the anticipated price change to materialize. Thus, it might be crucial to hold positions into the overnight session, or even the next trading day, to give your strategy a fair chance to succeed. Trading sessions might be on timers but markets and technical indicators are not. If a trader is forced out of a trade at the close of the day session, it is possible he is forgoing the success of the trading signal. Most trading strategies struggle to turn profits on 50 of trades if you are limiting the performance of each signal to the day session, it is possible the winloss ratio will be greatly reduced. Sometimes, to their own detriment, those drawn to day trading tend to have hyperactive personalities, and this often has a negative impact on their trading results. Rather than exercising patience, many day traders force trades out of boredom, or they rush their trading signals. The best traders are able to develop the discipline necessary to delay entry into the market until their trading strategy returns a verified signal. Further, trading on a whim or a gut feeling in the absence of a true trading signal according to the set parameters is generally a horrible idea. This is because the venture is likely a low-probability prospect to begin with, but because a trade was entered on something less than a detailed strategy, there probably isnrsquot a sound exit strategy either. Further, it is doubtful the trader will be able to keep detrimental emotions under wraps on balance, if the trade is entered based on emotion not logic, the psychological stress is higher. Poor decision making breeds more poor decision making. If you find yourself in the midst of a string of bad decisions, it doesnrsquot mean you are an inept trader. It simply means you are human even the most experienced traders will have cold spells. What differentiates the successful from the unsuccessful is the reaction to hard times in the market. Traders who are overactive and trade without justification from a defined set of rules not only face potential peril from market losses, but they end up with a hefty commission bill that eats away at their trading account. I often find myself in conversations with traders who assume if they enter a position, and the market fails to move in the desired direction right away, they will just get out. Similarly, beginning day traders frequently express their desire to cut their losses by exiting a trade if it goes against them by a few ticks. Although the desire for risk management is admirable, the result is relatively predictable. This type of trading activity might not create large losses on each individual trade, but over time the transaction costs and small losses produced by the strategy can be substantial. Day traders using overly tight leashes to manage the risk of their trades will soon find small losses eventually leading to a big loss because the market will rarely move in the desired direction without some sort of adverse price move. A day trader cutting losses on a trade after a few contrary ticks faces a very low probability of catching a move in the desired direction. Brokerage firms love this type of trader. Not only do they pose little risk to the firm, they often pay a substantial amount of their account toward transaction costs. To prevent overtrading, most traders must adjust the way they think about the market and the day trading opportunities it presents. Green traders look at being flat the market (being without a position) as a missed opportunity. But traders should see it in the opposite light. Those on the sidelines are not losing money, nor are they at risk of losing money. In addition, they are in a much better position to take advantage of a promising opportunity should it come along. Traders often grow bored with a quiet market and execute a small trade to lessen the pain of watching paint dry. The problem with this is that quiet markets have a tendency to become abruptly volatile without any advance notice. Perhaps there is a new announcement or simply a large group of stop orders triggered to force prices outside of the narrow band of trading. In any case, a sudden change in volatility can be a painful lesson but also pose significant opportunities for those on the sidelines. Using stop orders Listing stop-loss orders as a common mistake that day traders make probably has readersrsquo minds reeling. The majority of trading books, courses, and forums teach traders to always use stop orders. In fact, if yoursquove ever trolled any of the popular social media trading groups, yoursquove probably noticed a daily meme regarding the perils of not placing stop-loss orders. When dealing with leveraged futures contracts and theoretically open-ended risk, you may find it preferable to protect a trading account from catastrophic losses. However, stop-loss orders might not be the best way to accomplish this task. In fact, in my opinion, the use of stops often increases the odds of trading failure. Anybody who has experienced their stop order being filled just before the market reverses understands the emotional turmoil it can cause, not to mention the financial ding to a trading account. Not only was that particular trade a failure but it can have a negative effect on trader psychology going forward, so it could affect future trades as well. The assumption regarding premature stop-loss triggers is that ldquosomeonerdquo could see the tradersrsquo stop order and went for it. The truth is, unless a trader is executing hundreds of contracts at a time, there wouldnrsquot be any incentive for a trader with pockets deep enough to be capable of taking advantage of a temporary stop running price spike to pay attention to the order, let alone take action. Most retail traders arenrsquot swinging enough size to get onto the radars of the ldquobig fishrdquo in the market. Thus, if a stop order is filled just before the market reverses to a favorable direction, the trader isnrsquot a victim he simply placed the stop-loss order at an inopportune place. Unfortunately, this occurs frequently. Ironically, the very order intended to protect traders from large losses can easily become the source of the large losses. In the end, several highly certain small losses will eventually add up to crippling amounts. We will debate the use of stop-loss orders and offer alternative risk management techniques further in Chapter 16. Once again, futures brokerage firms offer cheap and easy leverage. Unfortunately, novice traders often assume 500 day trading margin for the e-mini SP is a reasonable amount of leverage. In my opinion, utilizing the maximum leverage offered is a horrible idea, inevitably leading to massive losses. Traders are far better off trading with less leverage than is available to them. Yet, I would venture to say that most day traders execute quantities in excess of what is ideal based on available trading capital. Brokerage firms are partly to blame for overleveraged futures day traders, but in the end, it is the traderrsquos choice whether to use it. It is easy for traders to get sucked into the mindset that the more contracts traded, the more money made. They rationalize, ldquoIf the trade setup is a good one, and the belief is the market will move in the desired direction, why not trade as many contracts as possiblerdquo Regardless of the strategy, the trader never knows which ventures will be winners and which will be losers until after the fact. Even the best trade setups can go awry. Actually, sometimes trades that look the best on paper are the trades that fail to work. On the other hand, trades that comply with the signals but not the traderrsquos ldquogut feelingrdquo often work out the best. Accordingly, a strategy of loading up on risk on any particular trade is a poor one. The more contracts traded in a single outing exponentially reduces much needed room for error. In this game, it is important to have some breathing room no trading method is perfect. In addition to the mathematical disadvantage of lower-success probabilities at the hands of being overleveraged, trading a high number of contracts adds to the emotional turmoil a trader will experience. The avoidance of aggressive position sizing is key to keeping harmful emotions in check such as fear and greed. If you are holding 20 contracts in a 10,000 account it would take a mere ten-point move in the e-mini SampP to blow out your trading account. Further, it would only take a five-point move to lose 50. If yoursquove followed the e-mini SampP intraday, you know that it can move five points in the blink of an eye. One might argue trading such size leaves the door open to double an account on a single trade. This is true, but the odds are highly against it. Even the most sophisticated and experienced traders require room for error in their trading. How many contracts you trade at a time should be based on personal risk tolerance and available capital. However, I recommend traders initiate a position with a one-lot of a mini stock index futures contract per 10,000, or most other commodities (gold, crude oil, the grains, currencies). Of course, you can easily day trade ten or more times this amount with the given account size, but just because you can doesn39t mean you should. Sound boring Look at it this way: an average profit of 50 per day equates to 1,000 per month and 12,000 per year. Assuming you were skilled enough to do this and started with a 10,000 account, you would have more than doubled your money in a year. It doesn39t take 10 lots of any commodity futures contract to make 50 per day, but trading 10 lots dramatically increases your odds of depleting an account. To illustrate, a trader going long 10 e-mini SampP 500 futures stands to lose 10 of his trading capital for each point the contract goes against him. In a market that generally sees 10.00- to 15.00-point ranges on any given day, it would be relatively easy to cause detrimental harm to a trading account by executing too many contracts. Failure to average price Most people will tell you not to add to your losers. Nevertheless, for those with well-capitalized accounts, I believe adding to a position as a means of adjusting your breakeven point makes sense because it increases the odds of obtaining a better average entry price. Traders who follow the previous guideline of keeping position sizing reasonable to avoid the stress and risk that comes with overleveraging have the ability to price average. Price averaging for day traders is similar to the act of scale trading for a position trader. The premise is to nibble on futures contracts incrementally rather than buying or selling the entire desired position in a single transaction. If the plan is to go long crude oil with as many as five futures contracts, a day trader might start with a single contract and enter limit orders to buy the other four contracts at lower prices, perhaps 20 to 40 cents lower. In some scenarios, doing so will prevent the trader from getting all of the contracts filled, but it will also avoid being filled on all five in a declining market at what later turns out to have been an inopportune entry price. Once the trade is deeply underwater, emotions flare, leading to ill-advised trading decisions. Averaging the entry price will almost always lead to a more achievable breakeven point, and thus, less stress. Yet the practice of price averaging is something you should treat with care. It doesn39t mean you should buy another crude oil futures contract each 20 cents it drops against you without any other considerations. However, if the price of oil falls substantially beneath your initial entry, perhaps that is something to consider. Naturally, it would be wise to peel contracts off at various prices should the market turn in your favor. If you scale into a trade, it is often best to scale out of it, too. Day trading time frames Day trading is a broad term that can be used to describe a nearly unlimited number of strategies. It is conceivable that the most important decision a day trader makes when developing a trading plan is which time frame to use to chart the futures marketmdashwill the technical rules be applied to a chart using one-minute price bars, 60-minute price bars, or something in between There are even some day trading platforms and charting software packages that offer traders the ability to chart futures contracts using line charts produced by plotting data points for each and every trade executed on the exchange independent of time. Others have the ability to chart price intraday using 90-minute price bars a 90-minute chart would produce a price bar each hour and a half. Each of these examples rely on extremes, but most traders work with something in the 10- to 30-minute range. With that said, I prefer to look at a 60-minute chart. In my opinion, a 60-minute futures chart provides day traders with a ldquobigger picturerdquo view of price action, which can help prevent being lured into the market on noise, rather than a valid trading signal. The exact time frame a trader chooses should reflect his personality and risk tolerance. The shorter the time frame used, the more active the strategy will be and the higher the frequency of false signals. Conversely, longer time frames tend to experience less activity, fewer false signals, and less deceptive price moves. Yet, most technical trading strategies applied to charts with longer price bars will come with higher risks relative to a shorter bar. This is because those playing with stop-loss orders will be required to place stops deeper when using a 60-minute chart than they might with a 10-minute chart. Accordingly, there is a tendency for traders utilizing 10-minute price bars to trade larger quantities than those using 60-minute price bars. This is because the profit and loss potential per trade is generally smaller using a 10-minute trading trigger. In my opinion, day traders are better served trading less consequently, using 60-minute bars help to tame the trader. Figure 1: Beware of signals produced by technical oscillators in early morning trade following a tame overnight session. They are generally unreliable. Most assume all technical indicators will work similarly among various time frames and during all times of the trading day, but that isnrsquot the case. Technical oscillators are least reliable in the early morning hours (Figure 42) this is because they are being calculated based on what is often tight range trading in the overnight session. As a result, it is common to see indicators created to identify overbought and oversold market conditions produce false countertrend trading signals. Even worse, during this time of day, the indicator can easily reach highly saturated levels, giving traders a false sense of reliability. Oscillator inaccuracy doesnrsquot have to be early in the morning it can happen at any time. It is far more common when using short time frames. This is because the price data used to calculate each five - or 10-minute price bar isnrsquot necessarily a representative sample of the overall trend. Some traders think such charts will provide information that the 30- or 60-minute chart wonrsquot display for quite some time, but the overactive nature of short time frames encourages overtrading, breeds stress, and often massive losses. The use of a five-minute chart, relative to a 60-minute chart, will undoubtedly result in a higher number of day trading signals (Figure 43). However, the goal of any trading strategy should be to locate and execute quality trades focusing on quantity is a common misstep. Because shorter time frames disguise market noise as something significant, traders will likely fall victim to a large number of false signals. Even if the trader manages to keep losses on these high-frequency trades in check, excessive trading volume can quickly result in an expensive commission bill regardless of how low the trader has managed to negotiate his trading fees. The bottom line is, the traderrsquos behavior plays a much bigger part in controlling transaction costs than the actual commission rate paid to his broker. We will discuss the reality of commission in Chapter 15, ldquoUnderstanding the Implications of Trading Cost Decisions. rdquo Figure 2: A five-minute chart offers day traders a higher number of trading opportunities, but the quality of the signals produced suffer relative to a longer time frame chart, such as the 30- or 60-minute. Using charts based on short time frames, such as the five-minute chart, requires traders to place tighter stop-losses and therefore increases the odds of being stopped out of the trade prematurely. Nevertheless, because five-minute charts are so quick to generate signals, it is paramount that the trader keeps risk in check. This is because in low-volatility markets, the five-minute chart might generate a buy signal for countertrend swing traders with a mere 3.00-point decline in the e-mini SampP. However, we all know the SampP 500 is capable of moving 15 to 20 points in a minute or two. Thus, reacting to a shallow dip because the five-minute chart calls for it could put the trader into a massive losing position should he be in the wrong place at the wrong time. On the other hand, a swing trader acting on signals produced by a 60-minute chart might not receive a countertrend trading signal unless the SampP drops 15 to 20 points. Such a trader is still facing substantial risk, but on most days the SampP doesnrsquot fall more than that. Accordingly, the odds of getting stuck with a massive loser can be mitigated. Stop-loss orders or weekly options In Chapter 16, on deliberating risk management, we will debate the use of stop-loss orders and long options to protect futures positions from losses. It is worth mentioning in a discussion of day trading because the difference between success and failure is largely dependent on where, and how, stop-losses are used or not used. Despite widespread chatter suggesting that one should never trade without stops, it might be the sole reason most traders lose money. Whether traders place stops too tight or too loose, stop-loss orders elected prior to favorable market movement is a common occurrence that can devastate trading accounts as well as trader psychology. Nothing hurts more than losing money on a trade despite being right about the market direction. Day traders operating on the premise of quality over quantity by utilizing 60-minute charts, or perhaps even 30-minute charts, are generally aiming at higher profit targets than someone initiating positions based on five - or 10-minute charts. As a result, it might be worth their while to skip the practice of using stop orders and instead purchase cheap protection via weekly e-mini SampP options or e-mini NASDAQ options. If you are unfamiliar with weekly options, they are those listed by the futures exchange that expire on a weekly basis rather than a monthly basis, which has traditionally been the norm. There are also weekly options on some commodities such as the grains and crude oil, but most day traders are applying their efforts to the stock indices due to favorable liquidity. Those trading markets that donrsquot offer weekly options might look to the traditional monthly options if they happen to be expiring soon (two weeks or less). If it is possible to get a reasonably close-to-the-money weekly expiring call option in the e-mini SampP for less than 500, it might be worth the cash outlay to protect a short futures position for the day while protecting the trade from losses without the risk of premature stopout. This approach might not make sense for those traders utilizing extremely short time frames with small profit targets. Obviously, if a trading signal provided by the five-minute chart calls for a long position with a profit objective of three points, it doesnrsquot make sense to spend five or six points to protect it. Again, we will tackle this issue in more detail later on, but I wanted to introduce the idea here because it is relatively unconventional, despite being potentially helpful to a day trading strategy. Believe it or not, in many instances and environments and when using options for protection isnrsquot feasible, I believe not using a stop order at all is preferable. Stop-loss orders have the ability to cause more harm than good to countless traders. Scalping futures contracts Those who scalp futures contracts are seeking to profit from small market moves that seem inconsequential to most trading strategies. Scalpers believe because a market never sits still, they can profit from the ebb and flow that occurs as each market participant buys or sells a futures contract. In many cases, scalpers are targeting a mere tick or two in price movement. This is equivalent to different dollar values in each commodity market but is generally somewhere around 10. A scalp that nets one tick would provide a 10 profit to the trader before considering transaction costs, while a two-tick winner would generate 20 in gain. However, unlike position traders or even day traders using longer time horizons, who find transaction costs to have little impact on their bottom line, a scalper could easily pay 30 to 50 of his profits to transaction costs. Suddenly, the 10 per tick in profit per contract is cut in half. Because of the relatively low-profit potential per trade, scalpers are playing a volume game. They are rarely trading one or two contracts at a time. In order to make a scalping strategy worthwhile, it is necessary to trade high quantities of contracts in a clip. As you can imagine, this strategy is a dream come true for those benefiting from the trading costs of a scalping account. Contrary to what most would believe, the futures exchange itself reaps most of the rewards from the transaction costs paid by scalpers because exchange fees are constant regardless of how much commission is paid to the broker. Yet the broker often accepts a scalping account at a discounted commission rate to help better the clientrsquos odds of making money. As a result, the broker often makes pennies per trade even the most active scalpers donrsquot pad the pockets of his broker as much as he thinks he is. Instead, he is probably paying anywhere from 2 to 4 per trade to the exchange. So if you are a scalper and the CME reports better than expected earnings, you should know you played a part in that. Most scalping strategies involve attempting to buy the ask and sell the bid in any particular futures market. This goes against the norm. A trader placing an order to buy a futures contract at market price would receive a fill at the current ask price, if he placed an order to sell a futures contract at the market he would receive a fill at the current bid price. As covered in Chapter 1, the difference between these two prices is known as the bidask spread, and it is accepted as a normal cost of doing business in the commodity markets. Scalp traders must recognize the relatively hidden transaction cost of trading built into the bidask spread. A trader entering a futures contract at the market price is immediately sustaining a paper loss in the amount of the spread and the transaction costs. For simplicitys sake, lets assume a scalper is paying a total of 5 per round turn for commission and exchange fees, most of which goes directly to the exchange. By going long a crude oil futures contract, the trader is incurring a 5 transaction cost plus the spread between the bid and ask, which is generally a tick, or 10 in crude oil. Thus, upon entry, the trader is in the hole by one and a half ticks (15). To turn a net profit of a measly 5, the scalper must pick up two ticks in crude oil. This is easier said than done. To further illustrate, to make 50 the trader would need to execute 10 contracts and offset the scalp at a one-tick profit in addition to overcoming the one-tick hidden cost of the bidask spread. On the other hand, if the trader loses two ticks in the market, the total loss on 10 contracts is a quick and painful 250 ((20 5) x 10) From a purely mathematical standpoint, it is difficult to justify a scalping strategy. Yet some traders with quick fingers or computer programming prowess swear by it. A scalper thinks he can find a way to collect the bidask spread rather than pay it, as all other market participants do. To do this, he might place a limit order to sell a contract at the ask and buy at the bid to profit from market ebb and flow. Predicting the ability to do so often stems from judging the working limit orders of other market participants via a depth of market (DOM) panel. If you are unfamiliar with a DOM panel, it is a price ladder displayed within most futures trading platforms offering its users a glimpse into the currently working limit orders in a particular market. For instance, it will display the best 10 bids (working buy limit orders) and the best 10 asks (working sell limit orders). Accordingly, traders can see which prices within immediate reach of the market might have the most buying or selling interest. An often-overlooked drawback of DOM panels is they donrsquot display stop orders placed by market participants, and they donrsquot account for market orders. This makes sense, because a market order is filled immediately. Nonetheless, market orders are done by the most motivated buyers and sellers and often have the biggest impact on price. In general, if there are more sell limit orders working than buy limit orders, the scalper assumes he will be able to buy the bid as those seller orders are filled and prices are temporarily depressed. Likewise, if a trader spots a market with more buy limit orders immediately under the market, he might believe he can sell the ask as those orders are filled and prices are temporarily boosted. Some scalpers take the opposite approach. They believe if the DOM panel is displaying more sellers than buyers, they will be able to sell a contract and buy it back a tick or two later after the sell orders are filled and prices have fallen accordingly. Similarly, if the DOM panel suggests more buyers at prices near or a tick below the market price, a scalper might go long in hopes the filled orders will cause prices to tick higher. Once again, you can see there is more than one way of looking at market conditions and signals, and there are even more strategies attempting to exploit them. One again, there isnrsquot a proper or improper way to trade. The only judge is the bottom line of a trading account statement. It is also worth noting that, although these two approaches to scalping involve a vastly different thought process, both methods could work. We cannot deny that even in directionless markets, prices tick up and down as time goes on. This is all scalpers need to potentially profit. Scalping is a much more refined skill than it appears to be on the surface. Due to extremely high transaction costs and relatively aggressive position sizing, scalpers can make or lose a substantial amount of money quickly. If your preference is to employ a conservative trading strategy, look elsewhere. Despite low monetary risk per contract for most scalping strategies, the price action in such a narrow time frame is largely random, and high transaction costs are a difficult burden to overcome. In addition, the practice of scalping in the traditional sense requires more nimble fingers than the average trader likely has. In todayrsquos world of super computers, most scalping strategies have been developed into automated, or algorithmic, trading systems. This is an excerpt from Chapter 7 of Higher Probability Commodity Trading written by Carley Garner and published by DeCarley Trading, an imprint of Wyatt-MacKenzie Publishing. Vi è un rischio sostanziale di perdita in futures e opzioni. It is not suitable for everyone Sign up for a free trial of our futures trading newsletters by clicking here. Carley Garner is an experienced commodity broker with DeCarley Trading, a division of Zaner, in Las Vegas, Nevada. She is also the author of ldquoHigher Probability Commodity Tradingrdquo, ldquoA Trader39s First Book on Commoditiesquot, quotCurrency Trading in the FOREX and Futures Marketsquot, and ldquoCommodity Optionsrdquo, she also writes a monthly column for Stocks amp Commodities Magazine. After graduating from UNLV as a Magna Cum Laude, Carley jumped into the options and futures industry with both feet in early 2004 and quickly became one of the most recognized names in the business. Her commodity market analysis is often referenced on Jim Cramerrsquos Mad Money on CNBC, and she is a regular contributor to TheStreet and its Real Money Pro service. Taking Advantage of Falling Fear Trading From the Gut: Is it a Good Thing Kenneth Reid, Ph. D. DayTradingPsychology Greetings traders, Irsquom a day trader and trading coach with a Ph. D. in Clinical Psychology. This e-book is about trading techniques, a quintessential topic because without a solid technical method, traders will absolutely drive ourselves crazy. The topic Irsquod like to discuss is trading intuitively, or ldquoTrading from the Gut. rdquo Humans have two brains and one of them (the right hemisphere) is highly intuitive. Naturally, traders wonder how best to incorporate intuition into trading, becausehellip itrsquos always there offering an opinion. And because there39s nothing methodical about intuition (itrsquos totally subjective and discretionary) it often creates a nagging inner conflict with a more objective (technical) perspective. DONrsquoT DRIVE YOURSELF CRAZY Discretionary trading is psychologically the most challenging work experience you are likely to ever have, unless you are in the military. Because it will feel like your own mind is working against youhellip which is what crazy people feel. Itrsquos like having Mad Money inside your head. Part of your brain is yelling ldquobuy, buy, buyrdquo and another part is shouting ldquosell, sell, sellrsquo Fortunately, this inner argument can be mitigated if the traderrsquos technical method is 1) well understood and 2) suits the traderrsquos own personality. So before we address the intuitive side of trading, letrsquos take a short detour and look at these two pre-qualifications. The personality analysis will then lead directly into a discussion of gut-based trading. For onersquos method to be ldquowell-understoodrdquo it has to be built by the trader from the ground up, or at least extensively tested. This is the only way to have sufficient confidence to endure drawdowns without feeling compelled to re-design the method. If you are constantly changing your method, i. e. searching for the Holy Grail, you wonrsquot get anywhere at all. Markets do evolve, of course, but if your method has a positive expectancy, change it as infrequently as possible. Generally, sticking with one method that you have absolutely mastered is better than trying to develop a different method for every market mood. Findingdeveloping a method that ldquosuits your personalityrdquo is also essential. However, most traders have no idea what their trader personality might be. I use my own 5-Type model, which is easy to understand. Letrsquos look at two opposite personality types, the Warrior and the Engineer. Trader personality fundamentally influences how you define risk and reward. A Warrior personality, such as found in most Chicago-trained traders, is generally risk-seeking and much less methodical than an Engineer personality, which is likely to be risk averse and very disciplined. The Warrior trader is usually comfortable doing things like buying or selling extremes and adding to a losing position (they call it ldquoscaling inrdquo), while the Engineer would consider that behavior sloppy and reckless. In a nutshell, the Engineer relies on ldquobrains, rdquo whereas the Warrior relies on a different part of his male anatomy. Warriors will often use market orders to enter in a general area of interest, usually at an extreme, and many are contrarians, who look to play reversals. Engineers, on the other hand, tend to feel more comfortable using limit orders for a satisfyingly precise entry after the Warriors have taken their positions, and then might look for trend continuation. Of course not all Warriors are countertrend traders and not all Engineers are trend followers, but I would argue that most Warriors are risk seekers and most Engineers are risk-averse. Bottom line: Your personality is already influencing your trading because it determines how you define opportunity, risk and reward. According to my research, trader personality is a combination of 5 different styles, and the best traders are not overly expressive of one single type. Rather, they are integrated hybrids and that hybridization process happens slowly, as traders mature. In the end, Warriors must become more methodical and Engineers must become more comfortable with risk in order for each to fulfill their trader potential. To find out more about trader personality you can take a free AWAREcopy personality profile on my website daytradingpsychology WHAT ABOUT TRADING FROM THE GUT Herersquos the segue into the topic of intuitionhellip. your personality determines to what degree you are attracted to intuitive trading. Warrior traders trade from the gut all the time. Itrsquos naturally their dominant style. They think with their gut and act from their gut and their account balances usually fluctuate wildly. Fortunately, psychologists recently discovered that there is a brain in the gut, so Warriors do have a fighting chance. Their main challenge is keeping losses small because they are natural risk-seekers . And regardless of your personality type, the more intuitively you trade, the more carefully you need to manage losses, or they will get out of hand. ARE YOU TRADING RISK OR REWARD Nigel Hawkes, a very experienced Warrior trader and friend, is fond of saying that ldquoI donrsquot trade price, I trade risk. rdquo They seek out risk because they know, in their gut, that without risk there is no chance of reward. They donrsquot shy away from risk, they embrace it and get charged up from it. Without a steady supply of risk, Warriors get bored and feel useless. But for the average non-Warrior trader . risk is not their friend. The average trader tries to avoid risk because for them, risk loss. (Their ideal fantasy is a market without risk.) Their thinking goes like this: ldquoWhy think about possibly losing when the goal is to win Wouldnrsquot that be negative and self-defeatingrdquo This naiumlve assumption is why most traders start out trading Reward, not risk. In analyzing a potential trade, they only think about how much they could make. But if you have not planned and prepared to lose, trading Reward sets you up for shock and disappointment when the market suddenly moves against you. Every loss is then a small trauma for the blindsided Reward trader. And in that panicked emotional state, you are likely to make mistakes, which will result in some of those small unrealized losses suddenly becoming large realized ones. That creates the standard boombust pattern for Reward traders. They are lucky if they can stay at breakeven. Whatrsquos the alternative Trader development is largely about integrating complementary personality qualities (hybridization, as noted above) and making the shift from trading Reward to trading Risk. In my own trading, this means using my professional trading to read price action psychologically. I trade futures and I try to determine where the Reward-driven Traders are likely to stop themselves out. The principle is simple: if you are trading in a minefield, you donrsquot want to be on point. I prefer to wait until a group of Reward Traders suddenly change their minds and now believe that they have made a mistake. This motivates them to liquidate their positions at a discount. And thatrsquos where I like to enter. HOW TO MAKE THE MINDSHIFT If you want to make the transition from trading Reward to trading Risk, the following material might be useful for you. Below is a summary of a video I produced on Trading from the Gut and a link to the downloadable video file, which is just 5 minutes long. By the way, the video is not just informational, if you use headphones itrsquos an experiential lesson that might actually help you change this habit if you listen to it every day for a week or two. (And therersquos a link if you want to get one of these videos every week.) TRADING FROM THE GUT Looking at a cold chart, trading looks seductively easy. Hindsight is a beautiful thing. The lure of hindsight is that we imagine that somehow we could have or should have known what was going to happen at pivot Xhellip or pivot Y. We like to imagine that we could have taken advantage of the big drop or the big rally. Itrsquos particularly pleasurable to imagine this because when the thought of a beautiful winning trade flashes through our mind, even in fantasy, the brain generates a jolt of the neurotransmitter dopamine. Dopamine is mentally energizing and motivating. It fuels the primitive hunter in us who constantly stalks the big trade. Unfortunately, dopamine is also addictivehellip itrsquos the active compound in cocaine. Curiously, more dopamine is generated by the thought of potential reward than by the actual reward. This is what kept those hungry hunters going for days and it motivates traders to dream big and be over-focused on reward (dinner). If you are chronically low on dopamine (which has a genetic cause) one of the best ways to raise it is to imagine great trades. Each imaginativeintuitive foray into a positive future generates a shot of pleasure and hope, just like a rat pressing a lever. THE DREAMER vs. THE REALIST Therersquos no harm in dreaming. The harm comes when we act on the fantasyhellip with real money. (Strike One.) And then use our factual knowledge to justify the imagined scenario. (Strike Two). And then fail to recognizeadmit when we are wrong. (Strike Three) Itrsquos amazing how utterly convinced we can become about the profit potential of our own fantasies. Of course, casino operators rely on this all too human quirk to keep customers playing as long as possible. But in trading, the trader is the casinohellip the player, the dealer and the pit boss. In other words, therersquos no objective supervision. I used to work in addiction recovery centers. Itrsquos tough to motivate an addict to quit while they still have money to buy drugs and itrsquos just as tough to get a compulsively hope-ium-smoking trader to stop dreaming while heshe still has capital. Once we take action on a fantasy, we become so psychologically invested in our imagined outcome (which constantly shoots dopamine into the brain circuits) that we will ignore all disconfirming information until reality pulls the needle out and slaps us hard upside the head. Unfortunately, intuitive traders rarely learn from their mistakes, which means they keep trying until they run out of funds. Indeed, trading intuitively from the gut is one of the fastest ways to blow up an account. Then I get the call: ldquoCan you help me Irsquove really screwed up. rdquo Therersquos a book entitled Trading from the Gut by one of the original Turtles, Curtis Faith, who did blow up several funds and eventually faced personal bankruptcy. Faith was a math and programming whiz when he was 19 years old, which is why he was selected by Richard Dennis, but he abandoned that skill later in life, went to the opposite extreme and has not yet come back to the middle. For his sake I hope he finds it. MISSING PIECES FOR INTUITIVE TRADERS Whatrsquos missing from gut-level trading Three things. First, an appreciation of the marketrsquos random nature (Read Mark Douglas or Talebrsquos Fooled by Randomness ). Intuitive trading is based on the fantasy that we now have or can have privileged information about the future. I call it mindreading the markethellip but the market doesnrsquot have a mindhellip. or a planhellip and it doesnrsquot know what itrsquos going to do next, so how could we know Just because the market leaves tracks and one can see patterns in the tracks, doesnrsquot mean those patterns could be predicted beforehand. Clouds make patterns, too. I see faces, you see animals, one person sees monsters, another sees angels. For survival purposes, our right brain is designed to identify patterns as quickly as possible. The tiny amygdala that controls fightflight reactions is the size of an almond and can recognize 20,000 faceshellip animals, monsters, angels. Just because you lsquosee itrsquo in your mindrsquos eye, doesnrsquot mean itrsquos really there. Second, risk analysis is lacking, because each intuitive idea feels like a sure thing. The inner gamblerrsquos justification story goes like this: ldquoWhy prepare for loss if I donrsquot expect to loserdquo Third, purely intuitive trading lacks any objective reference. Itrsquos all subjective, all the time. Most intuitive traders trade naked, i. e. without indicators, just levels. BOTTOM LINE If you have a tendency to manufacture intuitive ideas and then act on them without objective confirmation, itrsquos important to nip this tendency in the bud, as this is extremely high risk behavior. My short answer on how to incorporate intuition in onersquos trading goes like this: Trading is like driving. Driving is a discretionary and intuitive activity that gets you from Point A to Point B, but you first need to have a car and know (and obey) the rules of the road. The lsquocarrsquo and the 39rules of the road39 comprise your technical method, which must have a positive expectancy to be effective. Intuition can (and probably should) be used to enhance onersquos driving on the margins, but it is not an adequate substitute for a rule-based method. The video that accompanies this article includes some special affirmations that might help you change this behavior. They are embedded in a special neuroprogramming audio track that promotes whole brain learning. YOU CAN DOWNLOAD THAT FREE VIDEO BY CLICKING HERE You can sign up for more videos HERE Dr. Kenneth Reid is a seasoned trader, trading coach and educator with a Ph. D. in clinical psychology. Dr. Reid began stocks trading for his own account in 1996. In 2001 he was hired by a company in Connecticut as a model portfolio manager, newsletter editor and market strategist. He retired in 2012 to pursue his futures trading and coaching practice full time. Dr. Reid works with private traders, Registered Investment Advisors, as well as hedge fund and bank traders. His website is daytradingpsychology Chapter 10 10 Smart Reasons for Forming a Trading Entity Robert A. Green, CPA, GreenTraderTax Forming an entity can save active investors and business traders significant taxes. Active investors can limit wash sale losses calculated between their individual taxable investment accounts and IRAs with an entity account. Business traders solidify trader tax status (TTS), unlock employee-benefit deductions, gain flexibility with a Section 475 election and revocation and limit wash-sale losses with individual and IRA accounts. For many active traders, an entity solution generates tax savings in excess of entity formation and compliance costs. Active Traders Should Consider An Entity for Tax Savings An entity return consolidates your trading activity on a pass-through tax return (partnership Form 1065 or S-Corp 1120-S), making life easier for you, your accountant and the IRS. Itrsquos important to segregate investments from business trading when claiming TTS, and an entity is most useful in that regard. Itrsquos simple and inexpensive to set up and operate. Additionally, entities help traders elect Section 475 MTM (ordinary-loss treatment) later in the tax year mdash within 75 days of inception mdash if they missed the individual MTM election deadline on April 15. And itrsquos easier for an entity to exit TTS and revoke Section 475 MTM than it is for a sole proprietor. Itrsquos more convenient for a new entity to adopt Section 475 MTM internally from inception, as opposed to an existing taxpayer whom must file a Form 3115 after filing an external election with the IRS. Donrsquot worry, prior capital loss carryovers on the individual level are not lost they still carry over on your individual Schedule D. The new entity can pass through capital gains if you skip the Section 475 MTM election to use up those capital loss carryovers. After using up capital loss carryovers, your entity can elect Section 475 MTM in a subsequent tax year. Business traders often use an S-Corp trading company or an S-Corp or C-Corp management company to pay salary to the owner in connection with a retirement plan contribution, which otherwise isnrsquot possible in a partnership trading company (unless a trader has other sources of earned income or is a dealer member of a futures or options exchange). Trading in an entity can help constitute a performance record for traders looking to launch an investment-management business. Finally, many types of entities are useful for asset protection and business continuity. A separate legal entity gives the presumption of business purpose, but a trader entity still must achieve TTS. Avoid wash sales with an entity Active investors in securities are significantly impacted by permanent and deferred wash sale losses between IRA and individual taxable accounts. Trading in an entity helps avoid these problems. The entity is separate from your individual and IRA accounts for purposes of wash sales since the entity is a different taxpayer. An individual calculates wash sales among all their accounts. Ring fencing active trading into an entity account separates those trades from the individual wash sale loss calculations. The IRS is entitled to apply related party transaction rules (Section 267) if the entity purposely tries to avoid wash sales with the ownerrsquos individual accounts. In that case, the entity will not avoid wash sale loss treatment. If you donrsquot purposely avoid wash sales, you can break the chain on year-to-date wash sales in taxable individual accounts by switching over to an entity account mid-year or at year-end, and prevent further permanent wash-sale losses with IRAs. If the entity qualifies for TTS, it can consider a Section 475 MTM election exempting it from wash sales (on business positions, not investment positions) that also negates related party rules. Play it safe on related party transaction rules by avoiding the repurchase of substantially identical positions in the new entity after taking a loss in the individual accounts. Business traders: consider an entity Many active traders ramp up into qualification for TTS. They wind up filing an individual Schedule C (Profit or Loss from Business) as a sole proprietor business trader the first year. Thatrsquos fine. They deduct trading business expenses on Schedule C and report trading gains and losses on other tax forms. They can even elect Section 475 MTM by April 15 of a given tax year to use ordinary gain or loss treatment (recommended on securities only). But a Schedule C owner may not pay himself compensation and the Schedule C does not generate self-employment income, either of which is required to deduct health insurance premiums and retirement plan contributions from gross income. (The exception is a full-fledged dealermember of an options or futures exchange trading Section 1256 contracts on that exchange they have SEI per Section 1402i.) The business trader needs an entity for those employee-benefit plan deductions. Safeguard use of Section 475 Pass-through entities We recommend pass-through entities for traders. A pass-through entity means the entity is a tax filer, but itrsquos not a taxpayer. The owners are the taxpayers, most often on their individual tax returns. Consider marriage, state residence and state tax rules including minimum taxes, franchise taxes and more when setting up your entity. Report all entity trading gains, losses and expenses on the entity tax return and issue a Schedule K-1 to each owner for their respective share mdash on which income retains its character. For example, the entity can pass through capital gains to utilize individual capital loss carryovers. Or the entity can pass through Section 475 MTM ordinary losses to comprise an individual net operating loss (NOL) carryback for immediate refund. The best types of entities We like the S-Corp because it pays compensation (officerrsquos salary) to the owner, which efficiently unlocks health insurance premium and retirement plan contribution deductions. You can form a single-member LLC or multi-member (spousal) LLC and the LLC can elect S-Corp tax treatment within 75 days of inception or by March 15 of the following tax year. (Another option is to form a corporation and it can elect S-Corp tax treatment, too.) A general partnership can also elect S-Corp status in every state except Connecticut, the District of Columbia, Michigan, New Hampshire, New Jersey and Tennessee. But the S-Corp is not feasible alone in some states or cities, including California and New York City. In those places, we suggest a trading company partnership return mdash either a general partnership or LLC mdash and a management company S-Corp or C-Corp. You can convey interests in the pass-through entity to family revocable trusts or even irrevocable trusts. Year-end Entity planning There are important tax matters to execute with entities before year-end. For example, S-corps and C-corps should execute payroll before year-end. A Solo 401(k) defined contribution plan or defined benefit retirement plan must be established before year-end. Top 10 Tax Deductions for Active Traders Active traders qualifying for trader tax status (TTS) maximize these deductions in the following ways: Use the square footage or rooms method to allocate every expense of your home including mortgage interest, real estate taxes, rent, utilities, repairs and maintenance, insurance and depreciation. The IRS limits use of HO expenses by requiring business income to offset the deduction, except for the mortgage interest and real estate tax portion. Link the HO Form 8829 to TTS trading gains or transfer some to Schedule C to unlock the HO deduction. If you have trading losses, carry over unallowed HO deductions to subsequent tax year(s). Converting personal home expenses to business use is great. 2. Additions and improvements to office Consider an addition or improvements to your home office like building more space, replacing windows, walls, and flooring. Depreciate residential real property over 39 years on a straight-line basis. If you rent or own an outside office, depreciation rules are more attractive. The Protecting Americans From Tax Hikes (PATH) Act of 2015 created ldquoqualified improvement property. rdquo Itrsquos a new class of nonresidential real property, excluding additions like increasing square footage. Use 50 fx depreciation on qualified improvement property placed in service in 2016. PATH extended fx depreciation through 2019. 3. Tangible property expensing Expense new tangible property items up to 2,500 per item. Before 2015, the IRS threshold for capitalization with depreciation vs. full expensing was 500. When you purchase a new trading computer system its best to arrange separate invoices for each item not exceeding 2,500. 4. Section 179 (100) depreciation For equipment, furniture and fixtures above the tangible property threshold (2,500), use Section 179 depreciation allowing 100 depreciation expense in the first year. PATH made permanent generous Section 179 limits. The 2016 limit is 500,000 on new and used equipment including off-the-shelf computer software. The IRS limits the use of Section 179 depreciation by requiring income to offset the deduction. Look to business trading gains, other business income or wages, from either spouse, if filing joint. 5. Automated trading systems Increasingly, traders are writing computer code for developing automated trading systems. The IRS allows a few different choices for expensing ldquointernal-use software. rdquo If you qualify for TTS before incurring software development costs, deduct them like other research expenses in Section 174(a) in the year paid. If you donrsquot qualify for TTS before incurring software development costs, capitalize them under Section 174(b). Two choices: When you complete the software and qualify for TTS, amortize (expense) the intangible asset over 60 months. Or, wait until you place the software in service with qualification for TTS to amortize (expense) the intangible asset over 36 months. Traders may qualify for TTS using automated trading systems providing they write the code or have other significant involvement with creation and modification of the automated trading systems. Conversely, if a trader purchases an off-the-shelf automated trading system providing entry and exit signals and trade execution, the trader probably doesnrsquot get credit for the volume and frequency of trades made by the automated trading system. 6. Education, mentoring and seminars All three are considered education expenses and tax deductibility hinges on qualification for TTS. Education business expenses paid after the start of your business are allowed for maintaining and improving your business. Learning a new business before starting that business is not allowed as a business expense. If you are learning about investing while carrying on an investment activity, that education expense is not allowed as a Section 212 investment expense by Section 274(h)(7). Tip: If you pay for trading education services before qualifying for TTS, consider using Section 195 start-up expenditures treatment below. 7. Section 195 start-up expenditures Go back a reasonable period (six months) before qualifying for TTS to capitalize a reasonable amount (15,000) of start-up costs. Start-up expenses include costs to investigate and inquire about a new business. Costs capitalized in Section 195 would have to qualify as a business expense if paid after business commencement. Section 195 allows an expense allowance in the first year up to 5,000. Start a calendar year business late in the year and still get the full 5,000 expense allowance. Amortize the remainder of the costs over 180 months on a straight-line basis. If you exit the trading business, you may write off the unamortized balance. 8. Organization costs Under Section 248 for corporations and Section 709 for partnerships, treat expenses to organize or form an entity in a similar manner as Section 195 start-up expenditures. There is a separate first-year expense allowance up to 5,000, and the balance is amortizable over 180 months on a straight-line basis. 9. Health insurance premiums Deduct health insurance premiums from individual AGI if you have an S-Corp trading company paying you W-2 wages which include your premiums. The plan must be in association with your small business and not a third-party employer plan for you or your spouse. Deduct health insurance premiums during the entity period, not before. This S-Corp wage component for health insurance premiums is not subject to social security and Medicare taxes, so enjoy the income tax savings with no offsetting payroll tax costs. A C-Corp management company deducts health insurance premiums on the corporate tax return. 10. Retirement plans Most traders with TTS should consider a Solo 401(k) retirement plan. Consistently high-income traders with TTS should consider a defined benefit plan if they are close to age 50. Retail traders need an entity like an S-Corp trading company or C-Corp management company to arrange retirement plan deductions since sole proprietor traders donrsquot have earned income required for employee benefit plan deductions. With one exception: Futures traders using full exchange membership have self-employment income (Section 1402i). Solo 410(k) plan . S-Corp officer wages of 140,000 unlock the maximum 53,000 contributiondeduction or 59,000 if age 50 or older with the 6,000 catch-up provision. The 100-deductible elective deferral up to 18,000, or 24,000 with the catch-up provision, provides the greatest income tax savings vs. payroll tax costs. The 25-deductible profit-sharing plan up to 35,000 is good if you have sufficient cash flow to invest in tax-free compounded growth within the plan. Defined-benefit plan (DBP) . With consistent high trading income, arrange a 100,000 plus contributiondeduction with a defined-benefit plan. Work with an actuary on complex DBP calculations. Business traders have a wide variety of other expenses including independent contractors and employees for trade assistance and IT, market data providers, charting software, chat rooms and trading groups, subscriptions, books, periodicals, attorneys, accountants, tax advisors and more. Commissions are not expenses they are part of the trading capital gain or loss. Business expenses are deductible ldquoabove the linerdquo from gross income, whereas investment expenses face significant limitations ldquobelow the line. rdquo Section 212 investment expenses exclude home office, start-up expenditures, employee benefits and education. They are part of miscellaneous itemized deductions, which must first exceed a 2 of AGI threshold. Upper-income taxpayers face additional limitations: a Pease itemized deduction phase-out and AMT taxes since investment expenses are an AMT preference item. Learn how to qualify for TTS on GreenTraderTax Robert A. Green is a leading authority on trader tax, author of The Tax Guide for Traders (McGraw-Hill, 2004), Greenrsquos Trader Tax Guide . the ldquoBusiness of Tradingrdquo column for Active Trader magazine and blogger for Forbes. Mr. Green is frequently interviewed and has appeared in Barronrsquos, the New York Times, Wall Street Journal and Forbes. He has also appeared on CNBC, Bloomberg Television and Forbes Video Network. He is the main tax speaker at the MoneyShow University and Traders Expo, and he teaches trader tax for CCH and state CPA societies. As founder and CPACEO of Green amp Company Inc. Mr. Green develops and leads our tax strategies, including our trader tax niche. Mr. Green handles our content generation, speaking, writing, advocacy, marketing, business development, alliances, events and more. As Managing Member of Green, Neuschwander amp Manning, LLC our CPA firm, Robert Green is involved with tax strategies, tax treatment, opportunities, problems, client relations, reporting standards, working with tax attorneys and more. He handles many consultations with clients and entity formations using our outside attorneys. Mr. Green is also involved with tax controversy, including IRS and state exams, appeals and tax court. Mr. Green co-manages operations on the CPA firm, too. TABLE OF CONTENTS 8 Forex Life Hacks To Make You a Better Trader MY 1 DAY TRADING TECHNIQUE:THE HOFFMAN INVENTORY RETRACEMENT BAR (IRB) TRADE MY FAVORITE DAY TRADING TECHNIQUE MY FAVORITE DAY TRADING STRATEGY THE RUBBER BAND REVERSAL STRATEGY USING PRECISION INDICATORS TO DAY TRADE ON THE RIGHT SIDE OF THE MARKET FORCE DAY TRADING AND ALGORITHMIC TRADING IN FUTURES TAKING ADVANTAGE OF FALLING FEAR TRADING FROM THE GUT: IS IT A GOOD THING 10 SMART REASONS FOR FORMING A TRADING ENTITY Risk Disclaimer There is a very high degree of risk involved in trading. Past results are not indicative of future returns. ChartExperts and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By accessing this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein. Affiliates of ChartExperts may have a position or effect transactions in the securities described herein (or options thereon) andor otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Copyright 2016 by Sir Isaac Publishing. 37 N Orange Ave STE 500 Orlando, FL 32801 chartexperts All rights reserved. Printed in the United States of America. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Sir Isaac Publishing
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