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High Risk Investment Disclaimer

High Risk Investment Disclaimer.

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High Risk Investment Disclaimer

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  1. High Risk Investment Disclaimer Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. Any opinions, news, research, analysis, prices, or other information contained is provided as general market commentary, and does not constitute investment advice. ThinkForex Capital Markets Limited will not accept liability for any losses or damages, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. This content is provided for the sole purpose of assisting traders to make independent investment decisions. ThinkForex has taken reasonable measures to ensure the accuracy of this information, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from this content. This content is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or investments referred to are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of the recipient to ascertain the terms of and comply with any local law or regulation to which they are subject.

  2. Justin Butler Justin Butler Institutional Sales Manager, ThinkForex Years of Experience 7+ Years Specialization Institutional Forex Services Retail Trading Strategy

  3. EDUCATION DRIVES SUCCESS Strategies of a Professional FX Trader Justin Butler – ThinkForex.com April 26th, 2012

  4. Agenda • Review of Trading Strategies • Key Elements of Successful Trading Strategies • Trend Identification • Defined Entry & Exit Signals • Strict Money Management

  5. Examples of Some Basic Strategies • Trend Following • Moving Averages Cross • Channel Breakout • Short-Term Range Breakouts

  6. Example Trading Strategies – Trend Following Moving Average Cross 34 / 100 Daily EMA Example Rules Entry • Buy when 34 EMA crosses above 100 EMA • Sell when 34 EMA crosses Below 100 EMA • Close trade when 34 EMA crosses 100 EMA in opposite direction of entry Style - Slow • Long view traders • Generates a small amount of trades and few false signals Exit

  7. Trading Strategies – Channel Breakout Short-Term Range Breakout– Various Forms – 15 min Chart Rules • Identify trading ranges • Buy / Sell on breakout • Close - Depends on custom target Sell Signal Sell Signal Style – Moderate Speed False Buy Signal • Mid to short-term traders • Generates numerous trades • Greater chance of false signals Buy Signal False Sell Signal

  8. Elements of Successful Trading Strategies Trend Identification Defined Entry & Exit Signals Strict Money Management Complete Strategy

  9. Trend Identification - How to Filter Global Information News & Events move the markets more than ever! ? ? ? ? ? Where is money flowing to or from and why? Reserve or secondary currency? Impact Perception?

  10. Trend Identification - Trade with the Trend Signals in the direction of the trend have a higher probability of success 200 Daily EMA • When price crosses below the 200 EMA the trend is down • When price crosses below the 200 EMA the trend is Up

  11. Defined Entry & Exit Signals - Remove Emotion • Keep it Simple • Limit entry / exit signals to trigger on a specific indicator or combination of 2 indicators – Avoid false signals • Remove the emotion of the decision process • Never trade on a non-signal Conflicting Signals – 3 EMA Combination Cross signals Buy, RSI signals sell – No Trade

  12. Strict Money Management – Control Risk Every Time! Successful traders are not right they are consistent. • Most traders are wrong a large % of the time • Successful trader limit loss • You can be wrong and still be profitable • Use a Risk/Reward ratio of 1: 2 or greater

  13. Strategies of a Professional FX Trader - Recap Successful traders use a systematic process that include: • Trend Identification • Defined Entry & Exit Signals • Strict Money Management

  14. EDUCATION DRIVES SUCCESS Email me directly for a copy of the presentation. Jbutler@ThinkForex.com

  15. EDUCATION DRIVES SUCCESS Strategies of a Professional FX Trader Justin Butler – ThinkForex.com April 26th, 2012

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