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Category: Trading Rules

Born in 1954, Paul Tudor Jones is a famous American hedge fund manager with average annual returns of about 20%.

 

Paul Tudor Jones Trading Rules

 

■ Trading the Market Reversals

I believe the very best money is made on the market turns. Everyone says you get killed trying to pick tops and bottoms and you make all your money by playing the trend in the middle. Well for twelve years I have been missing the meat in the middle but I have made a lot of money at tops and bottoms. The sweet spot is when you find something with a compelling valuation that is also just beginning to move up. That’s every investor’s dream.

 

■ The 200-day moving average matters

My metric for everything I look at is the 200-day moving average of closing prices. I’ve seen too many things go to zero, stocks, and commodities. The whole trick in investing is: “How do I keep from losing everything?” If you use the 200-day moving average rule, then you get out. You play defense, and you get out.” One principle for sure would be: get out of anything that falls below the 200-day moving average.

 

■ Markets trend 15% of the time and move sideways about 85 percent of the time

My contrarian trading was based on the fact that the markets move sideways about 85 percent of the time. But markets trend 15 percent of the time and you need to follow the trend during those times.

 

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Category: Strategy

Swing-trading involves periods from a few days to several months..

Swing trading is a short to a medium-term trading strategy that aims to profit from strong price changes or else price 'swings'.

 

Major Characteristics of Swing-Trading

Swing traders use fundamental analysis to spot trading opportunities and technical analysis to analyzing patterns and confirm price trends.

  • It involves periods from a few days to several months

  • Swing trading minimizes intraday cost (spreads and commissions are practically irrelevant)

  • As positions remain active overnight, the swap rates become very important

  • Swing trading exposes traders to weekend risk (potential gaps may not activate stop-loss orders)

  • High trading-leverage is not an option for swing trading

  • Only high Reward/Risk trades are compatible with swing trading strategies

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Category: Trade Resources

 

eBook: THINK LIKE A WHALE TRADE AS A SHARK

Buy the book on Amazon

Combining Fundamentals, Technical Analysis, and Market Sentiment to Trade Forex, Equities, and Cryptocurrencies

There are three important conditions to trade successfully in any financial market: a strong fundamental landscape, a nice market structure, and an accurately-measured trading range. If fundamentals agree, and the market structure has proven itself, knowing the trading range is the only thing you need. This book contains a wide variety of technical analysis methods and techniques in order to help investors recognize market structure in early stages, identify support and resistance, and accurately measure the trading range.

» Find the eBook on Amazon

The Contents

This book contains all the essential information you need to trade equities, Foreign Exchange, and cryptocurrencies.

Chapter 1 begins with the basics of fundamental analysis when trading equities, Forex currencies, and cryptocurrencies.

In Chapters, 2, 3, 4, 5, and 6, you will find various technical analysis methods with many examples and charts. Trading charts can be read significantly easier than raw data. Reading charts is useful not only for identifying key trends but also for recognizing major support and resistance levels. Furthermore, you will learn how to use moving averages, RSI, the Fibonacci Numbers, the Fibonacci Retracement, and the definition of the long-term trend in any financial market.

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Category: Brokerage

 

PAMM: Forex Managed Accounts for Currency Investors
Forex Managed Accounts (PAMM)

PAMM stands for Percentage Allocation Money Management and refers to a technology that connects retail Forex investors and successful professional traders (Money Managers) via a Forex platform.

 

Connecting Forex Investors and Money Managers

 

Most Forex traders don’t have the skills, time, and experience to achieve good results in the Foreign Exchange market. This is why many retail traders seek the services of specialized Forex professionals. The PAMM account type provides a unique opportunity for all Forex investors needing to diversify their investments between different trading strategies and achieve stable returns.

Professional Forex traders start with their own capital, but after they can prove their results have the opportunity to become Money Managers (MM).

When a Forex investor joins a PAMM program, he allocates part of his capital (in desired proportion) to the selected Money Manager. This professional manager will trade multiple forex trading accounts using a common trading interface.

Details
Category: Trade Resources

 

Foreign Exchange Cyclicity & The Role of Central Banks

Foreign Exchange CyclicityRecognizing the macroeconomic cycle and decoding the intentions of central banks are the two key elements of the long-term success of any Forex investor.

 

Identifying Two (2) Major Types of Forex Currency Cycles

 

It is important for any Forex investor to take advantage of the cyclical nature of the Foreign Exchange market. There are two main types of cycles in the Foreign Exchange market:

(i) Long-Term Macro Cycles

In the long-run, Forex currencies tend to coordinate with the general macroeconomic environment and follow the interest rate cycle. The monetary goals of Central Banks play a massive role in the macro-cycles of exchange rates.

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Category: Forex Investors

 

Forex Regulation & Forex Investor Protection

Forex regulationBefore opening and funding an account with a Forex broker, Forex investors should seriously consider the safety of their money.

 

Key Factors Ensuring the Safety of Forex Investor's Funds

There are quite a few variables that ensure the safety of money:

(i) Forex broker's regulatory status (license)

(ii) Forex broker's country of headquarters

(iii) Forex broker's compensation scheme in case of corporate insolvency

And after a Forex account is opened and funded:

(iv) protecting the account against internet fraud

(v) protecting the account’s balance against extreme market volatility (trading small sizes and using tight capital leverage)

 

This article emphasizes on the first 3 factors (license, headquarters country, and compensation scheme in case of corporate insolvency).