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ATIC SG How to make US$1,000. a day (or more) Trading the Markets.

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Presentation on theme: "ATIC SG How to make US$1,000. a day (or more) Trading the Markets."— Presentation transcript:

1 ATIC SG How to make US$1,000. a day (or more) Trading the Markets.

2 Essential Knowledge First
Market Structure Fibonacci Trend Chart Patterns Candlesticks Indicators

3 MARKET STRUCTURE PHENOMENA OF 4 STAGES Topping Correcting Trending
Basing Basing

4 MARKET STRUCTURE PHENOMENA OF 4 STAGES Topping Stage IV Correcting
Stage III Correcting Stage II Trending Basing Stage I Basing

5 MARKET STRUCTURE PHENOMENA OF 4 STAGES Basing Stage I
Stage I : Accumulation Market has Bottomed- someone is buying Experienced Traders Value Investors Smart Money Managers

6 MARKET STRUCTURE PHENOMENA OF 4 STAGES Basing Stage I
The Market Emotion Doom & Gloom Discouraged Investors/traders Giving Up. For Every Seller-There’s a buyer. Prices go Flat Sentiment switches from Negative to Neutral

7 MARKET STRUCTURE PHENOMENA OF 4 STAGES Stage II The Market Stabilized
HH HH HL The Market Stabilized Basing HL Early Buyers Technical Traders see that market is putting in higher highs & higher lows Breakout traders Pattern Traders Momentum Traders Recognize market Sentiment is changing

8 MARKET STRUCTURE PHENOMENA OF 4 STAGES Stage II Basing
HH HH HL Basing HL Near End of Trending Phase Late majority jump in Market Volumes up substantially Prices Climb Fast (Unreasonably FAST!!!)

9 MARKET STRUCTURE PHENOMENA OF 4 STAGES Stage II Basing
HH HH HL Basing HL Near End of Trending Phase Late majority getting in Smart Money getting out

10 MARKET STRUCTURE PHENOMENA OF 4 STAGES Stage II Basing
HH Stage II HL Basing HL Doubters & laggards get in Prices leveling - view as good buying opportunity Prices make another Parabolic Leap Buying Climax Large gains in a short period

11 MARKET STRUCTURE PHENOMENA OF 4 STAGES Topping Stage III
Stage III : Topping (Distribution) Bullish Sentiment has changed to mixed sentiment

12 Double Top Head & Shoulders MARKET STRUCTURE
Classic Patterns may appear T T H S S Double Top Head & Shoulders

13 MARKET STRUCTURE PHENOMENA OF 4 STAGES Stage IV Correcting
Stage IV : Decline Pain for Traders in Long Positions Hanging on to losers Down 50% or so. Unwary-Untrained Give Up!

14 Avoid Following the Herd - the wrong majority
MARKET STRUCTURE Buy Signal for Early Birds And So on, And So On!! Important to recognize The Market Cycles Avoid Following the Herd - the wrong majority Buy When others are selling Sell when others are buying

15 Magical fibonaccis .382, .50, .618 Financial Markets
0,1,1,2,3,5,8,13,21,34,55,89,144,…etc. The Main Fibonacci Ratios .382, .50, .618 In Nature In Architecture AND……….. Financial Markets

16 MAGICAL FIBONACCIS click H H .382 .50 .618 click L

17 Trend line becomes resistance
Overcoming Weaknesses – more confirmation THE TRENDLINES DOWN TREND Trend line becomes resistance 2 strength 3 strength

18 Trend Overcoming Weaknesses – more confirmation THE TRENDLINES
UP TREND CHANNEL Up trend: Draw bottom trendline first Create parallel bottom trendline and plot it on the tops (2) (1) Bottom line – support Top line - resistance

19 Trend Overcoming Weaknesses – more confirmation THE TRENDLINES
DOWN TREND CHANNEL Up trend: Draw top trendline first Create parallel bottom trendline and plot it on the tops 2 strength 3 strength (1) (2) Bottom line – support Top line - resistance

20 Trend Overcoming Weaknesses – more confirmation THE TRENDLINES
Resistance Support

21 Trend line becomes support
Overcoming Weaknesses – more confirmation THE TRENDLINES UP TREND Trend line becomes support 4 strength 3 strength 2 strength

22 CHART PATTERNS REVERSAL PATTERNS DOUBLE BOTTOM AND TOP PATTERNS
X Daily X DOUBLE TOP Breakout Neckline

23 When new high is created
CHART PATTERNS REVERSAL PATTERNS DOUBLE BOTTOM AND TOP PATTERNS FAILED DOUBLE TOP FAILED DOUBLE BOTTOM When new high is created When new low is created x x Neckline Neckline x x

24 CHART PATTERNS REVERSAL PATTERNS Daily HEAD AND SHOULDER Target

25 CHART PATTERNS REVERSAL PATTERNS INVERTED HEAD AND SHOULDER PATTERN
Target

26 CHART PATTERNS BULLISH FLAG

27 CANDLESTICK PATTERNS Bearish Candle Bullish Candle High High Open
Low Close Open High Low Open Close

28 CANDLESTICK PATTERNS Bearish Bar Bullish Bar High High Open Close Open
Low Low

29 CANDLESTICK PATTERNS Hammer

30 Hammer (Bullish after a significant downtrend)
A reversal signal. The long lower shadow must be at least twice the length of the real body. The real body can be any colour. The hammer needs a confirmation candle before we can act on it. We need to see a close above the close.

31 HAMMER – bullish reversal pattern
CANDLESTICK PATTERNS HAMMER – bullish reversal pattern Hammer Hammer failed CONFIRMATION Price above the Previous mid range Or High of Hammer Whichever Higher Failure point (2 days low) Failure point

32 CANDLESTICK PATTERNS Shooting Star

33 SHOOTING STAR – bearish reversal pattern
CANDLESTICK PATTERNS SHOOTING STAR – bearish reversal pattern The Pattern i) A bearish reversal one candle pattern. ii) It is formed after a series of up days (a prevailing up trend). iii) No or very short lower shadow. iv) Body can be white or black. A black body have better winning chance v) Upper shadow longer than body (at least 2x its body).

34 SHOOTING STAR – bearish reversal pattern
CANDLESTICK PATTERNS SHOOTING STAR – bearish reversal pattern Failure level (2 days high) Failure level CONFIRMATION Price breaks below the Previous midrange Or Low of Hammer Whichever is Lower

35 CANDLESTICK PATTERNS Shooting star with Spinning Top Hammer and Spinning Top

36 MOVING AVERAGES Uses of the Moving Average
Identify trend Support & Resistance Trend Identification There are basically 3 methods to identify a trend using the moving average. Location of price against the moving average line Bullish Trend : When price is above and stays above the moving average Bearish Trend : When price is below and stays below the moving average Sideway : When price cuts the moving average frequently

37 MACD Moving Average Convergence/Divergence (MACD)
Developed by Gerald Appel, it basically has 4 uses: Extra note: MACD Calculation Difference between the 26-period exponential moving average and 12-period moving average. (12 period EMA – 26 period EMA) The MACD Indicator consists of 2 lines and a histogram. Line 1 = MACD (in red) Line 2 = 9 period EMA of MACD (in blue) Histogram = MACD – Trigger line

38 MACD There are 4 main uses of MACD :
MACD / Exponential Moving Average (EMA) crossover for trends MACD cross above its EMA – An up trend reversal (short term) MACD cross below its EMA – A down trend reversal (short term) MACD crossover 0 MACD cross above 0 – Up trend reversal (long term) MACD cross below 0 – Down trend reversal (long term) Divergences for momentum Positive divergence – upward momentum increasing (long term) Negative divergence – downward momentum increasing (long term) MACD Histogram for short term momentum MACD Histogram higher – upward momentum increasing (short term) MACD Histogram lower – downward momentum increasing (short term)

39 VOLUME INDICATOR TECHNICAL INDICATORS – VOLUME
A significant movement after a period of uncertainty Low volume indicating uncertainty Low volume indicating uncertainty

40 OR MORE A DAY IN THE MARKETS
US$1,000. a Day NOW – BACK TO - HOW TO EARN US$1,000. OR MORE A DAY IN THE MARKETS

41 US$1,000. a Day FACT: the trading business is a business.
As with any business, proper advance planning is essential. This includes: 1) Setting goals – per month income – self-employed trader – desired life style – financial freedom 2) Maintain a daily schedule 3) Have a clear Trading Plan - meaning: a Method that works and that you are comfortable with. 4) Enforce personal discipline – to follow your plan

42 US$1,000. a Day Consider the costs in operating your business –
1. Computer equipment. Desk top or notebook. 2. Charting software: $0.00 to $600./month. 3. High-speed internet connection 4. Education 5. Trading capital.

43 US$1,000. a Day STRATEGY #1FULL TIME TRADER Account Size: Standard Account – 100:1 Leverage – trading 1 lot at a time. or better yet - Mini Account – 10:1 Leverage – trading 10 lots at a time. Example: EUR/USD or GBPUSD – 1 pip = US$ pips per day X $10. = US$1,000.

44 Don’t quit your day job just yet!
US$1,000. a Day Recommended account size: Minimum US$12,000. Required Skills: Advanced Technical analysis and able To trade both trend and counter- trend price activity. Don’t quit your day job just yet!

45 US$1,000. a Day STRATEGY #2 SLOW AND STEADY Starting from almost ‘Zero Capital’ Account Size: Mini account. 1 pip =$1.00 Capital - $1,000. Aiming for an average of 20 pips per day profit. 3% rule: Actual risk (stop loss) – 3% of trading capital 3% of $1,000. = $30 (= 30 pips) Aiming for 20 pips/day while risking 30 is a poor risk/reward ratio This is only viable when you have a method that delivers a high win/loss ratio.

46 US$1,000. a Day STRATEGY #2, cont’d. SLOW AND STEADY Week 1 – 20pips profit X 5 days = $100. Therefore: Week 1 to week 10 – Total profit $1,000. Now you can trade 2 mini lots per trade. Week 11 – 15: 20pips X 2 lots =40 pips X 5 days = $200. per week 5 weeks X $200. = $1,000. Total profit to date = $2,000. Your account balance is now: $2,000. profit + $1,000. original capital = $3,000. You can now trade 3 mini lots per trade.

47 US$1,000. a Day STRATEGY #2, cont’d. SLOW AND STEADY Week 16-20
20pips X 3 lots =60 pips X 5 days = $300. per week 5 weeks X $300. = $1,500. Total profit to date = $3,500. Your account balance is now: $3,500. profit + $1,000. original capital = $4.500. You can now trade 4 lots

48 US$1,000. a Day STRATEGY #2, cont’d. SLOW AND STEADY Week pips X 4 lots =80 pips X 5 days = $400. per week 5 weeks X $400. = $2,000. Total profit to date = $5,500. You can now trade 6 lots

49 US$1,000. a Day STRATEGY #2, cont’d. SLOW AND STEADY Week pips X 6 lots =120 pips X 5 days = $600. per week 5 weeks X $600. = $3,000. You can now trade 9 lots Week pips X 9 lots =180 pips X 5 days = $900. per 5 weeks X $900. = $4,500. You can now trade 14 lots

50 US$1,000. a Day STRATEGY #2, cont’d. SLOW AND STEADY Week pips X 14 lots = 280 pips X 5 days = $1,400. per week 5 weeks X $1,400. = $7,000. You can now trade 21 lots Week pips X 21 lots = 420 pips X 5 days = $2,100. per 5 weeks X $2,100. = $10,500. You can now trade 31 lots

51 Einstein Einstein trading concept The greatest power in the
Universe is Compound Interest

52 US$1,000. a Day SLOW AND STEADY Week 41-45
STRATEGY #2, cont’d. SLOW AND STEADY Week 41-45 5 weeks X $4,700. = $23,500. 20pips X 31 lots = 620 pips X 5 days = $3,100. per week 5 weeks X $3,100. = $15,500. You can now trade 47 lots Week 46-50 20pips X 47 lots = 940 pips X 5 days = $4,700. per week Take a couple of weeks off! You deserve it!!

53 US$1,000. a Day STRATEGY #2, cont’d. SLOW AND STEADY
Within one more week of trading you’ll surpass $1,000. a day profit. Your account balance - profit $69,000. Original capital 1,000. ___________ Total $70,000.

54 STRATEGY #3 EXTREME TRADING Not for the faint of heart
STRATEGY #3 EXTREME TRADING Not for the faint of heart! Main rule – Preserve your original capital. First, double your capital by conservative trading. Then, withdraw your original capital. You’re now trading with ‘House Money’. No more than 3 – 5% at risk per trade. Trade up to 100% of your account in each trade.

55 US$1,000. a Day STRATEGY #4 RETIREMENT MODE Don’t live to trade – trade to enjoy life Time needed to trade each day – 15M to 1H. Trading size – 10 standard size lots. Minimum pip objective – 10 pips profit. 10 pips X $10./pip X 10 lots = $1,000. per day. Again, enjoy life!

56 Enjoy Make your choices.

57 US$1,000. a Day Any of these strategies can be achieved on the
following conditions: 1) You have a clear ‘high probability’ trading plan. That means a method that works consistently. 2) You are willing to follow the plan. Check out my Trade and Prosper in Forex Trading Course. For your trading success – Don Schellenberg

58 Don Schellenberg Senior Market Strategist don@nextview.com
THANK YOU Don Schellenberg Senior Market Strategist


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