Tuesday, March 17, 2009

How to make a Profit

The extreme limit, and its use may lead to your success.

In order to write this article, I took a few weeks to see whether such a system and what results it can give. In my opinion, she gave a good result and is likely to show itself and more. In this article I would like to describe the analysis of the work and principles of testing the system.

A very important point in the trade is to gradually enter the market and also confident of it go with a positive result. With all that is necessary to obtain a positive result of at least several months to be sure to claim success in this endeavor.

If you have already learned more than one hundred pages of text material, then surely you remember such a clever phrase. With the simpler the system, so it is more efficient. Exploring different methods of trading, I come to the conclusion that it is actually true and there. Because the market is very chaotic, and some specific reasons for his motion is not, or at least very difficult to determine the cause of premature created a strong movement. Therefore, in order to earn it, we have to learn to sag. It is important to learn to manage the patient because the market severely punishes impatient. Surely you noticed: now open position, and the price went against you, and once the position is closed to foot, the price is gradually changing its meaning. And if you stayed a bit longer, it probably would close with a positive result. To such a case, I do not propose to take advantage of my system and test it on 100 per cent.

Figure 1 - Timetable for EUR / USD

Look carefully at Figure 1. It shows a graph which illustrates the change in price over the three-month period. Now it is very important to find the causes of such dramatic change prices. Typically, such a large price movement is due to several reasons.

1. Business news (some strong economic news), it must be some very important news or report, which was waiting for the whole world. For example: a record of applications for unemployment benefits, the gross national product, the election of the president or parliament. They begin to discuss the news for weeks or even two before leaving. If you carefully follow the events that occur on ryke, it is possible for a few days to prepare for full release of such a strong news.

2. Very interesting. I am sure you are very often asked myself the question why the price drops at a time when some significant reasons for its movement is not observed. And this fall may be a very long period of time some of the day, and sometimes two. So this moment is akin to interventions that are difficult for Japanese to them. When the location of a certain price range, there are price levels, which test, either of Perforation which can provide an impetus to further movement and the subsequent drop in prices, or growth. These levels are called the levels of orders. Few people can just give us a value price, which will allow testing immediately set in motion price. Therefore, banks and brokers announce price levels of the warrants market participants to buy or sell, the levels of mass congestion of warrants. This in turn could presumably to warn us of the sharp drop, or secure. Very often, these movements may allow us to get a good profit, therefore, need to learn how to manage themselves and their money in such periods of time to use it for themselves.

Now that you know the main reasons for the fall, a sharp fall in prices, give the picture number two.

Figure 2 - Numbering relatively quiet time periods.

In this figure I have identified 8 time periods for which it is possible to analyze the movement of prices. Of course, when we are on the market, we can not assume how the market will go, and in what direction will change the price, so we will assume that we do not know what would happen in the future, other than the alleged levels of orders for purchase or for sale as well as economic calendar. Therefore, our task is to find the best time to enter the market. Based on the results, the less risky method of entry is when the market is planned major drop. Because you can not pre-determine or notice offensive of Perforation of the deployment orders, so the best option for the planning of market entry is, of course, some kind of a news story. You can even pre-enter and perestrahovatsya, exposed to stop turn. In this case, if you're right, you can get an instant increase in profits, whereas if you are wrong, your stop-Los match, then the warrant will be executed on a turn. In the case of the wanton growth or fall of prices, you can use the following option. To determine the price of market entry, I use the calculation of the price relative to the previous wave, see figure:

Figure 3 - Determination of the time limit recoil.

Look closely at Figure 3. It shows a long wave and its subsequent correction of 1-2. At such times, in my view, very risky to carry out financial transactions, because the correction could play and his return. Here if a correction is very deep then the probability of response below the warrants is very high, which can guarantee the subsequent movement in a given direction, otherwise the price will return to the previously established price range. Pay attention to the figure that, in such moments of price moves are not instantaneous, but gradually, which means that the stop level should be slightly higher than usual. This in turn increases the risk. Therefore, in order to optimize the calculation of risk-profit, I think the position should be reduced.

In such moments is carried out through the entry of orders based on certain price levels. It is very important to calculate the level of the entrance and placed the foot, because it can seriously help you in the future price movement. Very often there are such moments, when properly located stop working, and then again the price continues to move in the direction you predicted. But if you do not want to risk, you can do to refrain from such a transaction, because there is very little chance of success. We must be professional in order to accurately determine the response time of orders of other participants.

But in this case, the most successful deal could be working on the road, due to the strong financial news, because in such moments in the market there is a strong movement, with very fast, which in turn will allow you to get your earnings, if your orders were placed in the right place. By the way on this occasion I will talk in more detail in my video seminar, so stay tuned. These points will allow entry into the market with a minimum of foot, and in the case of a wrong, you can always roll back to close with minimal foot.

Happy trading to you!



Alexander M. Mazurkevich
AlMaz Fund Management.

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