Trade Tactics Online Coaching Workbook … number of points you wish to make … What margin in Forex means when trading with an online Forex dealer • The amount of money you need in your …

Contents: BEFORE THE TRADING BEGINS, ABOUT THE TRADING, MORE ABOUT THE TRADING, GETTING DOWN TO TRADING, MORE GETTING DOWN TOTRADING, SHORT-TERM CURRENCY TRADING , NEWS TRADING, PUTTING IT ALL TOGETHER. What the hammer is telling the trader – For that one time period (one candle) the lower price did not stick, buyers overtook sellers at the lower levels of the candle). After a down move this could be an early warning signal that price direction may be ready to reverse or at least go sideways for awhile. • How to trade the hammer – In the next candle, when price gets above the high of the hammer candle you buy and enter a stop-loss order below the low of the hammer candle. Advantage of this trade Stop-loss is very tight so little capital is at risk. Disadvantage of this trade Decision is based upon 1period of price action; chances of this trade working are not that great. How to improve your chances while maintaining the same entry point and stop-loss The answer is additional confirmation and finding that confirmation is easy. Ask yourself the following questions: In terms of finding a buy area set-up we needed to be patient and wait for a re- tracement. The price had jumped 400 points in less than three days. A significant correction (down move) should have been anticipated; furthermore that down move should be followed by another up leg, which is where we hoped to capture a 100-point medium-term trade. Here is where the art of currency forecasting comes into play. While it is much too soon to say an uptrend is forming in this example, we could anticipate that it will and actually begin drawing an anticipated retracement and a potential uptrend line. Medium-term trade exit strategies” • The initial stop-loss on the trade is critical. • The risk taken must be written in your trading plan and strictly adhered to. • If you cannot deal mentally with wide stops then choose the short-term entry techniques like 5 min 60 SMA, news trades, single candlestick patterns, and 3-bar stops on the shorter time frame charts, which have tight stops. • If you are more of a risk taker, then use wider stop strategies on the 4- hour chart, such as: o Buy on first touch of Fibonacci 78.6 retracement line. Exiting at a profit The trade-off is simple; • If you trail your stop too close, you will protect unrealized profits but you will give up potential profits because you will get stopped out on the first meaningful retracement • If you keep your stop far away, you will give back a significant amount of unrealized profits but you will not get stopped out due to normal market volatility…

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