Styles And Methods Of Trade

The style of trading for each trader's unique. The style of the trader's trading on the exchange depends on its initial experience in the management of money and the value of money in his life.

There are many trading styles, but that does not mean that traders are not able to go against their natural preferences, and does not imply that the choice of trading style over another can not be changed.

There are many ways to describe the style of trading. Some people define it markets in which they sell or exchange and the goods they sell. Others use fundamental or technical division, who is described this trade types, such as spreads or options. Further, the different styles, methods of trading:

- Method skalpirovaniya
- Trading on momentum
- Technique
- Trade in mezhrynochnom spread
- Trade in Arbitration

Method skalpirovaniya
Method skalpirovaniya is buying and selling market instruments many times during the day with a small surplus, which in general is a huge profit. This method is not based on profits, at the same time the possibility of loss is much less, so it is fairly safe method.

Traders at skalpirovanii boosting profits on small movements and trade, analyzing one - five-minute intra-day charts, with the duration of the position a few minutes, and a very small profit per transaction. The open positions will not be transferred to another day.

Trading on momentum
The basic idea of trading on momentum is that the rising market-based instruments will continue to rise, and falling further to fall. Trading on momentum requires some of the most common analytical skills.

The basic principle is that you do not buy a market instrument at a minimum, and sell at the maximum. If you do not buy an instrument until you see that he has begun to rise, it means that you missed the opportunity to buy it at the bottom. Similarly, if you do not sell the tool as long as you do not see that it declines, then you missed your opportunity to sell it at the top.

The main technical indicators is a dynamic indicator that accumulate the net change in prices closing tool in a series of fixed intervals. Pulse line is constructed as a tandem line to the price schedule, and shows the zero axis. Positive values indicate upward movement supported, and negative values indicate potentially supported by downward motion. Pedigree or downward direction of the indicator shows "strong motion" tool.

When a trader is confident that he has identified a strong movement of market-based instruments, it carries out the transaction. Skipping the first one or two ticks of motion does not matter, because he was willing to undertake the purchase (or sale) for one of the following periods of momentum.

Trading on momentum is also fraught with dangers that can easily destroy even well-disciplined and knowledgeable trader. With proper understanding of technology, sufficient knowledge of the risks and the willingness to take against accidental loss, momentum trading can be attractive for aggressive traders who like to balance on the edge.

Technical method
Technique applies to all market-based instruments, and is aimed at quick profits. Technical traders assess the history of the company (in the case of shares), analyze the charts and price movements, estimate the trade model in the past and on this basis, predict what may happen in the future and may even trade volume during the period of time.

Technique involves the study of price dvizheniyai trade volumes to determine the model type of head and shoulder, and other formations. Other indicators include the levels of support and resistance, moving averages, etc.

The main disadvantages of a technical method
The main drawback of this method of trading are:
Too much dependence on the past behavior of market-based instruments.
Many technical indicators. There is no ideal indicator for each market instrument.

Trade on spreads mezhrynochnom
Trading on mezhrynochnom spread consists of a long position in one market instruments and short position in another instrument, they are closely linked. The logic at work mezhrynochnom spreads is that the purchase and sale of two different tools to effectively use the correlation between them. Trading on mezhrynochnom spreads felt very difficult because it requires transactions in different markets. Used mainly for commodity futures contracts.

Trading on Arbitration
Also known as "profit risk", the trading system through arbitration is done through the simultaneous purchase and sale of market-based instruments to make a profit from the differential in price. This trading system is usually applied on different exchanges or trading platforms. An investor can earn on the difference in prices of market-based instruments at two different markets due to exchange rate fluctuations.

For example, a trader buys a stock on a foreign stock exchange, which is not adapted to the constantly changing exchange rate. He buys undervalued stock and re-sells the stock, thus earning revenue from the margin.

Another way to trade on the arbitration is that the investor wants to sell a market instrument for a certain price. He places an order to sell at that price and at the same time places an order to buy at higher prices. As a result, other investors can then buy an instrument for the first price, the temptation of higher prices offered in the second warrant. As soon as the first order for the sale is executed, the investor cancels the second warrant to purchase. Thus, he not only gets rid of its non-liquid assets, but also makes good money on this.

Trade in arbitration is usually practiced by large institutional investors with a multimillion assets. Trade for arbitration is most effective at nizkolikvidnyh markets.

Forex Magazine
based on day-trading-strategy.com

The Strategy Of a Successful Trade

There are many different methods, systems and strategies used by traders as a beginner, and the "pros" to get a profit from price movements. Each trader will argue that his method is the best and most profitable, but the truth is that each trading system has its strengths and weaknesses. The real keys to making money on the Forex market as follows:

1. The existence of a clear and simple system of trading and the consistent use of
2. Clear discipline in asset management
3. Control over their emotions

This article is devoted to the study of each of these three key points separately, in addition, it offers some simple principles that can help traders avoid the pitfalls that inevitably arise in the market.

1. Trade system
There are essentially two types of systems used by traders:
a). Systems following the price.
b). Prices System predictions.

Briefly explore each of them.

Systems following the price
These systems, which rely on dynamic indicators, oscillators and moving averages, simply follow the direction of the market. The simplest of these is the selection of appropriate moving averages and trading in the direction they indicate, with the price on the right side of this medium.

You can add to the diversity of other types of indicators MACD, Stochastics, RSI and Bollinger Bands, etc. Any graphics program that uses traders, has dozens of different indicators, leading to overloading of infinite possible to use combinations. In addition, there are approximately 20 different time formats. Not hard to understand why traders are finishing a well-known "analysis paralysis", which is manifested coma hand with the mouse and osteklenevshimi eyes trader sitting in front of the screen for 12 hours without signing vtorgovlyu.

The key here is simplicity. Select a temporary format, which you will sell ( "skalpiruyuschie market may prefer 5 or 15 minute charts, while the session or day traders may prefer to 1 or 4 hour shift) and find a very simple system, which combines a maximum of 2-3 indicators . Such systems may also include the study of simple trend lines, with trade in the direction of the prevailing trend of a straight line.

When your system fed signals, confidently and consistently go to the trade. Do not give up their practice and do not start looking for another after the first loss.

System price predictions
This system, which are generally longer in duration, applied to a session, day or longer. They are based on the overall direction of the currency pair over a long period of time and then are traded on a "Buy to rollback" or "sell on the reconstruction, depending on the chosen direction. There are various tools to trade for this strategy, such as horizontal lines, trend lines, the levels of Fibonacci, moving averages, and so on. They help:

a) determine the direction of trade.
b) determine the logical point of entry.
c) determine the logical point of exit.

These approaches can then be programmed in software, which itself would serve them, allowing the trader to spend your time on other things. This form of trading requires more skill and experience, but it can be studied over time and some practice.

In fact, for the price of the system are more short-term systems, such as "skalpirovaniya, which include monitoring the screen most of the day. System price predictions are based on strategies for a duration of 8 hours to several days and allow the trader to move away from the screen and enjoy more free time.

Everyone has their preferences, but many observations indicate that the intensive monitoring of the screen can not last too long for most traders, otherwise they would "burn" yourself through what is not weeks or months.

2. Asset Management
While most traders can invent, or explore a reasonable trading system that suits their style of trading, many can not manage to score well enough to prevent large losses or the closing of positions on the margin requirement. Even the best traders are the world suffer from a temporary lack of sanity in this field. For example, interesting historical incidents described in the book Jack Shvadzhera "Market wizards: Interviews with top traders.

There are three simple rules that can be applied:

a) Do not trade with leverage over 10:1, and when your account gets bigger, reduce leverage below 5:1;
b) Never risk more than 5% of your assets in one day, and as your account grows, reducing the rate to less than 2%;
c) Do not enter into commerce, where you risk more than 50% of the projected gains from trade with your "stop-loss". In other words, the ratio of gains / losses (target profit / limited loss) should be 2:1 or higher.

Follow these simple rules, even with half the perfect trading system, will ensure that you may incur losses in 2 out of every 3 transactions and your account will still remain a loss-free.

3. Control of emotions
All are subject to two (often opposing) forces - reason and emotion. The key to successful trading psychology should prevent your emotions dominate your mind.

Emotions that you experience will vary greatly from fear to greed, of self-doubt to the delight. They are all enemies of a trader and must be suppressed by clear, objective and logical reasoning.

Develop your trading strategy based on its pre-defined system. Implement a system to secure the rules of asset management and eliminate the emotional noise that will try to convince you to close early, limited leverage, too risky etc.

4. Conclusion
It is clear that the best traders are seeking small and constant profits, not looking for "perfect" system, giving a huge profit. Just do not have systems that work reliably day in and day out. Carefully manage your assets and keep their emotions under control in order to succeed.

And in conclusion - a good education really worth the money spent on it. Visit the seminar really active traders and teachers, and read a lot of material on the subject. Do not think that you can go from zero to hero "in the market of Forex, do not spend time, effort and money to study. The money you could save the original, are likely to be later lost repeatedly during the work on the market.

Forex Magazine
based on Yahoo.com

Intra - Day Strategy

Intra - day trading can be very simple
Intra - day trading should not be complicated, and in fact the entire application is a simple way to success. The most successful inside - Day traders use only a few basic strategies.

Some people work with very sophisticated techniques, just because they do not believe that just works. They say: "can not be that easy."

There are many approaches to the intra-day trade. We will not judge any of them better. If they work for you, the goal has been achieved.

Some do not like using too many advanced technical indicators, with intra-day trade. The reason is that too many variables are taken into account. They prefer to receive clear signals of input based on the absolute price (ie the maximum and minimum). This gives them a clearer signal and less room for personal interpretation.

Trading on momentum
Trading on momentum usually lasts approximately 30 seconds to 1 hour. Trading on momentum is based on the strength of price movements and kontrtrendovyh price movements, often caused by the news. Inside - Day traders often use this strategy.

Trading on breakthroughs
Trading on impulse buying is a market instrument, after having moved above a certain price level. (sales vice versa) breakthroughs may occur in any temporal form. The most popular schedules for intra-day traders trading on breakthroughs are 5 minute and 15 minute charts. The period of retention of position varies from a few seconds (skalpirovanie break) until the end of the day.

Trading on rollback
Trading on the rollback is in contrast to trade breakthroughs. Within-day traders selling to downgrade the position when looking for market-based instruments recoil back to the large size (usually up to support), to justify entry. (sales vice versa)
This is a classic intra-day trading, and many prefer to trade for a breakthrough, because the want to be able to confirm the movement of market-based instruments, although the trade rollback can often be a lower foot. The period of trade is usually from several seconds to hours.

Skalpirovanie
Skalpirovanie an "ultra short" intra-day trade. Traders selling method skalpirovaniya try to take advantage of a very small price movements and to close their positions immediately, as soon as they have sufficient surplus or if the market instrument is not in their direction, or moves against them.

Trade on spreads
Trade on spreads may be viewed as a kind skalpirovaniya. Trade means to spread the use of their advantage of spread (price difference between supply and demand). This means the market to buy an instrument for the price of the proposal and then sell it immediately for the price of the demand with a small surplus.

Currently, the implementation of this type of intra-day trading has become much more difficult because of the total reduction of spreads, in virtually all types of market instruments. However, under certain conditions, this strategy can be applied quite successfully.

Recommendations
It is desirable that each intra-day trader to experiment with different strategies and then decided for themselves what strategy suits him most.

Within-day strategy presented here is in any case, are not conclusive and comprehensive. Trade policies should be constantly monitored and adjusted. But this article gives a brief overview of how to operate intra-day traders.

Jens Clover
based on daytradingcoach.com

Interview with trader: Michael Steynhardt

Two weeks ago, I had the privilege to talk with legendary hedge fund manager Michael Steynhardtom. When I was about to take his interview, I most wanted to understand his style of trading and trading strategies. Making $ 100,000 to more than $ 48,000,000 over 28 years (after the payment!) By trading on the stock exchange is not something ordinary. Does Steynhardt some unique trading strategy, or the magic system? The answer is - absolutely "No". Is Steynhardt is a financial genius? In my opinion, he is very good. But probably no better than many other traders.

Steynhardta advantage lies in its combination of perseverance in gaining knowledge intensive mental work, which few could survive. It is - its ability to measure themselves and their work every hour, every day, for 28 years. Many of itself would be under such intense pressure. But for some, like Michael Steynhardtu that can withstand it, the results are simply staggering.

If you're hoping to find in the interview, a unique trading system, you will be disappointed - it is not here. In his interview with Michael Steynhardt talk about the general "internal" approach, which is required to reach such heights.

Larry: Tell us in brief about your style of trading. This method of peak-ground "? It all starts with the direction of the market? Right?

Steynhardt: Not all, though, many things begin with the market. But the real philosophy is not the point: Every day should begin with the idea that you're dedicating this part of your life, much of your energy for the day to make money. The results of this day will be measured, because the market provides a great opportunity - almost every measure. Success will be when you succeed, but when there is no failure.

This does not work, the results of which you are measured from the occasional or every year or even every month. Do you measure it every day. If you think about it this way, then you think about the opportunities that arise every day. This may be talking to someone who has more information, or a feeling that something has changed, or something you saw in the newspapers, etc. And you start thinking about how to use these opportunities to add some increment to your overall results based on what you saw on that day. Therefore, with regard to your question, it is not only buying and selling at the bottom to the top, as in philosophy.

This is the use of any opportunities of all kinds and types - from the theoretical to the search for new markets and market instruments, as the score itself is my job. And if the results of my work can be improved in some way, I do it.

Larry: Another interesting point I read in your book, is as follows - You say: "These results have been achieved over the years thanks to the principles of long-term investments that governed my obsessive need to have a monthly, weekly or even daily profits." And then just a 10-page, you write: "Warren Baffett said that if you do not want to have a share in over 10 years, then do not even think about buying it for 10 minutes. I have never held the event for 10 years, but have unique and beneficial ownership of the experience of some very good companies for 10 minutes. " How do you combine these two philosophy?

Steynhardt: I'm not sure that these two are combined philosophy, and often they are in conflict with each other, but the technique that I use, based on my experience as an analyst.
In any case, performing analysis and making certain findings, which are by their nature long term, I come to some conclusions that I will be used for long-term views, and for trade. There may be doubts about whether the long-term perspectives in relevant trade. Perhaps these doubts will be resolved by the fact that there is an element of timing that you are doing. Especially if you are focused on companies or industries, and have a feeling that things are changing, and if you can determine more quickly than others, where those changes are, then, even though these changes are by their nature long term, they often have short-term impact.

Larry: The timing happens instinctively and intuitively?

Steynhardt: To some extent - yes, and if I asked myself the question - why I was able over a long period of time to do the best market deals than most people? - I would have replied that it was a matter of intuition. Then another question - what is intuition? - And I think that intuition is a generalized, unconsciously based on the experience of the phenomenon, which leads to decisions about what is best for your business, as compared to the other.

Larry: What does it mean and how different perceptions of a particular trader can use it? If you have taught me to use a different perception of my own trade, what would it mean?

Steynhardt: If you have a belief in something that differs from the general consensus, and your belief is correct, then you can almost always do this profit. In other words, to be more specific: If you believe that in 2002. inflation of 5% or 6%, and the whole world thinks that it will be 3% and you find yourself right, you can almost always do at this money. If you think the dollar is going to collapse next year because the U.S. economy will weaken, and Japan for the first time is going to grow and you find yourself right, you can do at this money.

Larry: But how can I be more right than everyone else?

Steynhardt: This brings us to the issue in which you asked about the long view of things. This is the application of energy, intelligence and analysis of larger areas, which may lead to better conclusions. Some people may deny it. Some may call into question your, mine or someone else the ability to predict some macro-economic developments ahead, given the current level of information dissemination. They are certainly right - today is much harder to outpace the other. But on the other hand, if you devote 100% of your energy on studying in Japan (for example), the result of these efforts, you would have a better understanding of Japan, or feel the changes come faster than others, which would create an appropriate opportunity for you.

Larry: This is a kind of intellectual game?

Steynhardt: Yes, that's it.

Larry: If I came to you and said - "I want to start a business with hedge funds. I want to achieve what you have achieved." What would you advise me?

Steynhardt: I would say that the sooner you start. I would advise you to ask yourself questions like - "What I am really worried?", "I feel themselves really comfortable when I do certain things?". You know, many people in this business really love to convince people to do certain things. Many like to deal in securities. Many like to carry out research. There are various things you can do. I really love to be right. This is what I worry about all these years. That is, firstly, you must know yourself and the things that really make you happy. In order for you is important to be right, to make the correct judgments, because, without it you will not have enough perseverance, and without perseverance, you are unlikely to attach the necessary energy to become better than others.

I think a professional job on the stock exchange - as a competitive enterprise, and you should be mindful of the fact that there are legions of faceless people who try to do the same thing that you are doing and trying to outsmart the market. To do this, you must be a better, faster, pressure, etc., etc., etc. Therefore, I would have started to do in life as soon as possible.

Larry: But it is a philosophy that applies not only to be a hedge fund manager, as in any business.

Steynhardt: Probably so. The only difference, if it is, is that in this business you can measure the results of each day or each hour, simply by pressing a computer key. You can not say - "You know, I would have been an excellent year, if it were not for September 11."
Everything is measured in numbers and as soon as you accept the fact that these figures are a full assessment of your work, you must live with that.


Conclusion
Here is your formula for how to turn $ 100,000 into $ 48,000,000 using the style of Michael Steynhardta:
1.Vy trying to get an advantage at the expense of knowledge.
2.Vy doing for 30% of annual income each year for 28 years.
3.Zatem you partition the figure on the quarterly and monthly plans to accomplish its work, calculated at 28 years.
4.I then you apply the incredible perseverance to carry out these plans every hour, every day, every week, every month, every year over 28 years.

based on tradingmarkets.com

Yellow Submarine

Goodbye, yellow submarine

At the very end of the fiscal year in Japan (FY 03/04, 31 March), people found that the Bank of Japan (BoJ) has disappeared from periskopnoy depth. It seems that the last torpedo salvo of the global foreign exchange market BoJ performed on 9 March, when treydery decided to try the patience of the Japanese monetary authorities below the level of 111 yen to the dollar. Time for the chosen wisely, lunch in New York - Tokyo's dark night, the local authorities went for the hamburger. So, somebody big in the hope of a sweet sleep Tokyo sold a lot of dollars against the yen and the course grinbeka collapse of the 111th largest figure to 110.20 yen, where stuknulsya directly on the cast iron head BoJ. Status quo was restored immediately - one American treyder told that "it took time for this so much that I have only once managed to pop eyelashes."

We are in the market have become accustomed to the constant presence of "sweet couple" MoF (Ministry of Finance of Japan) / BoJ. Key to this submarine based vMoF, they determine the "correct" during the Japanese yen and the Bank of Japan is a market with large-scale intervention in the visible as the argument. In fact, over the past year were the sole support of the U.S. intervention in the foreign exchange market MoF / BoJ. Last year they set a new record by selling, mostly against the U.S. dollar more than Y20 trillion (old record was recorded in 1999 at Y7.64 trillion).

The nature of intervention in 2003 was the "smoothing", the Japanese simply do not allow yen strengthened against the dollar and the euro too sharply in the confrontation with the world currency markets. Often a situation arises when the next monthly report on the volume of MoF intervention, people wondered: "They again sold so many yen, but still could not contain the fall in USD-JPY?". In fact, in 2003 the dollar has lost 15% against the euro, while against the yen, it fell to 10% from Y119 to Y107. In fact, it is important to understand that the euro-yen traded around the middle of budget rate of Japanese exporters Y135. Last MoF data show an annual growth of Japanese exports to Asia more than 23%, in Europe more than 12%, and about 5% decline in trade with the States.

Vice Finance Minister Masakazu Hayyashi, commenting on another January record (the intervention was Y7.1545 trillion ($ 67.56) from 27 December to 28 January) said that Japan will continue to act against speculative volatility in the international currency market, even if this implies astronomical costs of the intervention. "Our position - the currency should reflect the fundamental economic parameters. We will take necessary action against speculative movements of the market. When such movements become excessive, the intervention will inevitably follow, even if this requires huge amounts."

It is important to note that the tactics of the Japanese monetary authorities from January through March unchanged at a very aggressive, for two months, torpedo tubes thrown into the market Y10 trillion. The course is departed from 105.20 dollars to 112.35, as the cork from the champagne. Experienced foreign treydery know that on the eve of the meetings of finance ministers and central bankers, Big Seven (G7) Japanese on the horizon not to be seen. Maybe they skripit a couple of teeth - three weeks of watching the currency market abuses, but did not intervene. This was the normal Japanese mentality - they are not willing to hear criticism from their colleagues for a protectionist policies in favor of domestic exporters. This rule helped to trade. But not this year. Before the G7 in Florida, 6 / 7 February, the Japanese intervenili frankly, saying that the full consent of the major trading partners.

For the second year the situation is so smart that the Japanese buying up cheap dollars with depth in order to ensure the most favorable conditions for their exports, domestic locomotive economy. Dollars gained from intervention, BoJ instantly to the next auction, puts in long-term U.S. Treasury bonds. On the one hand, the Japanese have thus finance the huge budget gap of Americans (estimate $ 521 billion in 2004), on the other - reinforcing its influence in the United States. It is not surprising that at the last G7 meeting in Boca Reyton monetary policy of Japan has not even criticized the Europeans - the absolute triumph.

Foreign exchange reserves of Japan has nearly doubled over the past year, according to data from the March 5, they were at the end of February, $ 776.86 billion (an increase of + $ 35.61 billion to January). Typically, the Japanese placed their foreign exchange reserves in UST reasuries (kaznacheykah) and European gosobligatsiyah. Their total increase in reserves of up to $ 756.59 billion (+ $ 27.79 billion, compared with January).

Now, for many it is already clear that the Japanese at the end of FY03/04 provide an opportunity for our exporters to sell dollars at the high price of Y112, and the Euro is almost at the rate of 140 yen per euro. The end of the fiscal year - this time, the repatriation of the yen when the Japanese business returns around the world the harvest home. It is time for annual reports and tax payments, surplus-buldo yen, of course. Hence we see on price charts that can see - the fall of the dollar from 112 back toward 105 yen to the dollar, the fall of the euro from Y140 to Y128 to date.

As Japanese exports on the rise, To the people expect good corporate annual reports. And not least for the Japanese business, which is the proceeds of EZ euros and dollars in the States you can buy a lot of cheap yen, which after a couple of weeks again becomes very expensive. Nikkey 225 Index traded steadily above 11,000, the influx of foreign investment in Japanese assets has been consistently high throughout the year, and this allows the MoF / BoJ relax for a while.

Yesterday's MoF data showed net purchases by foreigners of Japanese effluent Y1.148 trillion (net, net of sales) for the week of March 15-19 - is an absolute record since the MoF started to publish weekly data in April 2001. The previous record Y1.032 trillion net was raised two weeks earlier. At last week's stock market index Nikkei 225 tumble above 11600 to new 21-month peak, supported by the strengthening of global markets and optimism about the domestic economy. Today the index Nikkey 225 of the barrier and look test 12000, the current price of 11770, which means that the above record proderzhitsya short (MoF data for this week will see next Thursday).

MoF data also revealed a new wave of interest in the Japanese investors to foreign gosobyazatelstvam after heavy sales in the previous week. As a result, the net inflow of portfolio investment amounted to Y589 billion, compared with Y1.460 billion for the week of 8-12 March.

Since the beginning of April to start a new FY04/05, and the huge Japanese institutional investors again begin to hunt for long-term foreign assets. These comrades ryschut with their aggressive investments around the world, and the more American kaznacheek they buy, the more dollars for these purchases will have to buy them for their yen. They again will shnyryat across Europe in search of profitable placement of funds in the euro-denominated assets, and we again hope to join this stream, along with all the speculators world. If such a scenario will be realized in reality, the Bank of Japan lost the need chock USD-JPY, the market will go favorably for the MoF / BoJ end in itself. But while in the yard yet FY03/04 relax do not recommend. It is sharp-sighted gaze at the horizon, there is not a brilliant yellow submarine periscopes in the end - very very southern location is now a USD-JPY and EUR-JPY.

Evgeny Romanov
Senior Analyst Company
TeleTRADE

Successful Intra-Day Traders

Successful intra - day traders remain neutral

Staying neutral is to be as emotionally cut off from your intra-day trading decisions.

Being neutral to the profit and loss
You probably know people for whom the world merknet when they take a loss of $ 100, but if they earn $ 1000, you are at the top of the world. Definitely they are not neutral. If this applies to you, your intra-day trade, almost certainly, is controlled by fear and greed: reduced by $ 100, you probably do not want to take a loss just because you know that will suffer emotionally. Rising to $ 1000, you would like more, even if you must, just, take profits. Or you can take profits too early, because they fear that the position could turn against you. All this is not a good intra-day trade.

Professional intra-day traders do not permit daily fluctuations in their bills, disturb them. The results of one week is not important, do not even have the monthly results. This is only a small episode in their trading career. Daily variations actually have little meaning.

Emotional ups and downs is quite normal for beginners intra-day traders. If these emotions affect your shopping decisions too much, it is advisable to go back to trade on paper, in order to acquire confidence. You should not allow these fluctuations to overly influence you.

Being neutral to the price movements
You probably familiar with the situation when the trade goes against you and you start looking for reasons why it is still a good position and you should retain it. This is very dangerous for the intra-day traders, because it leads to their feet and big losses.

strategies in the trading process - the worst thing you can do. You can always find justification for their position to go up or down, but you do not see an objective price movement. You have moved from response to the anticipation! Within-day trader must not, under any circumstances, try to predict future price movements.

As the intra-day trader you must play on the actual price movement rather than on the motion, which must be! Please leave predictions to investors, you will sell during the day.
Most intra-day traders are included in the position, based on fundamental data. They mixed intra-day trade with the investment. It is also very dangerous. At the time, as may be reason to enter the position for the short-term trading, they regarded it as an investment, even if it goes against them.

Consider the famous example of
Think of "Enron".
Yes, were moments during the sale of "Enron", when the purchase was justified. Some bought Enron during the short recovery of $ 8.5 to $ 10. The problem is that if you base their entry on the confidence that the company is cheap and it should go up, you will be more and more inclined to hold their position or even add to it when the price becomes lower. The stronger your opinion about the market-based instruments, the harder to make decisions based on actual price movement.

Within-day traders do not have to do this. We strongly advise you to have a separate account to trade on fundamental data. In intra-day trade with the big lever, you could be tempted to take risks that would be too high!

We are not saying that bad to have expectations, trading within the day: everyone should know what the potential outcome of his position. If these expectations, however, is not true, within-day trader must recognize and respond according to what is actually happening.

Jens Clover
based on daytradingcoach.com

Education MQL II. Lesson 9

Hello dear readers. Today we will write an expert and a custom indicator. The expert will deal with the use of an indicator.



9.1. The algorithm and code indicator



The indicator uses two arrays of data, it consists of two lines. Both lines are moving averages. First we construct the average of the maximum price, the second from the floor. For this purpose we use a standard extended moving average indicator. It is this kind:

iMAEx (period, ma_method, ma_shift, applied_price, shift)



As an indicator, we have an external variable, it defines the period average.



/ * [[

Name: = urovni

Author: = forextimes

Link: = artur@fxtest.ru

Separate Window: = NoFirst

Color: = Blue

First Draw Type: = Line

First Symbol: = 217

Use Second Data: = Yes

Second Color: = Red

Second Draw Type: = Line

Second Symbol: = 218

]] * /

Inputs: per (21);



Variable: shift (0), HMa (0), lMa (0);



SetLoopCount (0);

/ / Loop from first bar to current bar (with shift = 0)

For shift = Bars-1 Downto 0 Begin



HMa = iMAEx (per, MODE_EMA, 0, PRICE_HIGH, shift);

LMa = iMAEx (per, MODE_EMA, 0, PRICE_LOW, shift);



SetIndexValue (shift, HMa);

SetIndexValue2 (shift, LMa);

End;



The algorithm is very simple, so I did not write an explanation.



9.2. The algorithm and code expert



The expert verifies the existence of trends and track the status of the price indicator on the line. The presence of a very primitive trend is verified by checking the last three value moving average, if each following the previous trend is more bullish, or bearish. If the bull trend price lower than the average user indicator, is buying, if the price trend bear more top line indicator sells.



Withdrawal shall be effected as to stop orders and under the condition, condition of entry is to the opposite line of custom indicator.



There are two external variables, the first -defines the period indicator, - defines the period of determining the average trend.



It is necessary to limit the time for the opening position. This is done in order not to open multiple positions in one bar. The condition has the form:



if curtime-LastTradeTime <4 * 3600 then exit;

figure before the <* 3600>, the value taymfrema Hours



/ * [[

Name: = expertUrovni

Author: = forextimes

Link: = fxtest.ru

Lots: = 1.00

Stop Loss: = 30

Take Profit: = 50

Trailing Stop: = 0

]] * /

defines: per (5), perMa (21);

var: HMa0 (0), LMa0 (0), Ma1 (0), Ma2 (0), Ma3 (0), cnt (0);



if curtime-LastTradeTime <4 * 3600 then exit;



/ *



HMa0 = iCustom ( "urovni", per, MODE_FIRST, 0);

LMa0 = iCustom ( "urovni", per, MODE_SECOND, 0);



* /



HMa0 = iMAEx (per, MODE_EMA, 0, PRICE_HIGH, 0);

LMa0 = iMAEx (per, MODE_EMA, 0, PRICE_LOW, 0);



Ma1 = iMAEx (perMa, MODE_EMA, 0, PRICE_close, 1);

Ma2 = iMAEx (perMa, MODE_EMA, 0, PRICE_close, 2);

Ma3 = iMAEx (perMa, MODE_EMA, 0, PRICE_close, 3);



if TotalTrades = 0 then (



if Ma1-Ma2> 0 and Ma2-Ma3> 0 and ask
then (SetOrder (op_buy, lots, ask, 3, bid-stoploss * point, bid + takeprofit * point, blue); exit;);



if Ma3-Ma2> 0 and Ma2-Ma1> 0 and bid> HMa0

then (SetOrder (op_sell, lots, bid, 3, ask + stoploss * point, ask-takeprofit * point, red); exit;);

);

if TotalTrades> 0 then

(

for cnt = 1 to TotalTrades

(

if OrderValue (cnt, VAL_TYPE) <= OP_SELL and

OrderValue (cnt, VAL_SYMBOL) = Symbol then

(

If OrderValue (cnt, VAL_TYPE) = OP_BUY then

(

if bid> HMa0 then

(

CloseOrder (OrderValue (cnt, VAL_TICKET), OrderValue (cnt, VAL_LOTS), Bid, 3, Violet);



Exit;

);



);



If OrderValue (cnt, VAL_TYPE) = OP_SELL then

(

if ask
(

CloseOrder (OrderValue (cnt, VAL_TICKET), OrderValue (cnt, VAL_LOTS), ask, 3, Violet);



Exit;

);



);



);

);)





As testing expert with the use of custom indicators is very slow, variable, using a custom indicator is commented out. Comments can be removed for inspection of the indicator.



The next lesson will also be practical if you have the desire to implement an interesting algorithm, be sure to write.

Halhalyan Arthur

Technical support for traders