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Welcome to The Alpha Generator’s New Trader Training Webinar Presented by Josh Brown. Introduction to Trading. Trading Terminology Order Types Trading with Technical Analysis Trading with Fundamental Analysis Risk Management & Trading Psychology .
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Welcome to The Alpha Generator’s New Trader Training Webinar Presented by Josh Brown
Introduction to Trading • Trading Terminology • Order Types • Trading with Technical Analysis • Trading with Fundamental Analysis • Risk Management & Trading Psychology
The Alpha Generator – Who we are Services we provide: • Money management services - We offer two types of strategies. Breakout and resistance and a strategy that combines Fundamental, technical and sentimental analysis. • Consultancy Services – We offer our clients the ability to trade in confidence knowing that a professional backup trader is following their trades, providing relevant information at critical times and providing market updates and information on looming events. We ensure stop losses are placed correctly, update the trader on critical events during the day and their account constantly being watched by one of our analysts. • Educational services – We provide educational services to beginners and intermediate traders. We do this via one-on-one interface or with groups. The education is provided via online webinars, netmeetings, emails and skype. We are also able to provide face to face contact which can be arranged by emailing josh@thalphagenerator.com Our company was established in order to help our clients make a profit on a month to month basis. Our results and success as a company are directly related to the profitability of our clients in the derivative markets.
Introduction To Trading • How is trading different from traditional investing? • Simple, Easy and Accessible • Why has it never been a better time to trade • Market Volatility (Buy or sell) • Taking control of your own investments and wealth • 24 hour Trading Market - Currencies
Trading Terminology • Pips (Currency Trading) • Smallest increment – The 0.0001 value • EUR/USD 1.2865 moves to 1.2866 • Leverage • Most brokers offers a 200:1 leverage on our currency pairs meaning that if you have $1000 in your account, you can trade a maximum of $200,000 in trading volume. Some offer 100:1 and some offer 400:1. • The $200,000 lot is the leverage value of your $1000.
Currency Pairs: What does this mean? • Each currency is recognized by a three-letter code. For example, EUR is the EURO. The first currency displayed refers to the "primary currency"; the second currency refers to the "secondary or quoted currency" • The term Foreign Exchange means selling one currency and buying another simultaneously. Therefore, in order to profit from an exchange rate move, you need to buy the currency that you expect will strengthen and sell the other. • Example: You buy the EUR/USD at 1.2931 as you believe that the price of the EUR/USD will increase. The price moves to 1.2971 = a 40 pip profit!!!
Order Types • Market Order • Entry Order • Stop Loss • Trailing Stop • Limit Order • Live examples of Trades on the platform
Trailing Stops • A client places a ‘buy order’ on the EURUSD at the price of 1.5050, with a Trailing Stop of 50 pips. 1.7000 1.6050 1.6000 Buy Order 1.5050 Trailing Stop 1.5000 1.4050
Trailing Stops cont. • As the price of EUR USD moves up to 1.6050, so would your trailing stop. However even though EUR USD has now fallen below 1.4050 your position would be ‘stopped out’ with a 50 pips profit. 1.7000 Current Price 1.6050 New Trailing Stop 1.6000 Original Order 1.5050 1.5000 1.4050
Technical Analysis • The study of prices over time, with charts being the primary tool • This is done by comparing current price action with historical price action to predict the probable future price movement • It determines trends acting as signals to either buy or sell
Technical Analysis – Indicators • Candlestick Chart • Support & Resistance • Trend Lines • Simple Moving Averages Planning a Trade – Exit & Entry Points
Support & Resistance The Resistance Level • A price recognized by technical analysts as a price which is likely to result in a rebound but if broken through is likely to result in a significant price movement. The Support Level • A price level at which there is an expectation of buying to take place, a break in the support often leads to lower prices.
Trend Lines • The Trend is simply the direction of a financial instrument, which way it is moving at any point in time • There are 3 types of trends • Up – Buying Opportunity • Down – Selling opportunity • Sideways – Low market Activity (High Liquidity)
Moving Averages • What does it do and how is it calculated? • Smoothes the data by averaging the last “x” periods closing prices and thus provides a clearer visual picture of the current trend. • Fast & Slow 5/10/20 • Crossovers – Buying & Selling Signals • Lagging Indicator (Strong confirmation of a trend) It is one of the most popular indicators
Putting it all Together • Live Trade on the Platform • Entry Point • Stop, Trailing Stop and Limit Orders • Candle Sticks • Support & Resistance • Trends • Moving Averages
Fundamental Analysis • Definition • Determines the future movements of the financial markets • It is the study of economic, social and political data • Difficult to take into account all economic news • Understand the basics • Look at the main price movers
Economic Indicators • Quantitative announcements released as data • GDP – Gross Domestic Productivity • Interest Rate Decisions • Non Farm Payrolls (US) • Retail Sales • Reflect the financial, social and economic atmosphere • Released at predefined times • They monitor the health and strength of an economy • Traders anticipate the release • Announcements create a surge in trading volume Result:Moves the price of Instruments quickly
Guide to Economic Indicators • Economic Calendar • Know exactly when the information is released • Understanding the Announcement • Anticipation • Difference between market expectation and actual result • Wording following announcements • Understand the release • Unexpected releases - May or may not trigger market Example – EUR/USD Recent Move
Gathering information • Your trading platform • Economic Calendar • Market Review • Commentaries • Pop Ups • Squawk Box • Live release of news data • Discussion of economic numbers • Interviewing experts from all economic areas News Market Review
Gathering information-External Forex Factory (www.forexfactory.com) • Calendar • Daily/weekly monthly • List of all important data releases • Available also on Platform!!! Bloomberg (www.bloomberg.com) • Up to date world news • In -depth reporting • Spot rates on the move • Analysis by group Seeking Alpha – www.seekingalpha.com Forex Crunch – www.forexcrunch.com
Risk Management & Psychology • Risk Management and Money Management - (Critically important) • Small positions –(2% -5% open Positions) • Disciplined and Conservative • Best traders in the world – Win more on winning trades / Lose less on losing trades • Cut your losing trades • Let your winners run • Trade long term • Don’t boredom Trade • Don’t force your Trading
Getting Started… • It is simple and easy to get your trading account set up: • E-mail Josh@thealphagenerator.com or visit www.thealphagenerator.com • Email Josh with your request or ask for a call-back. • We will then discuss your trading requirements and your goals and what we can do for you.
Fund your account today! • For a trading account, depositing into your trading account couldn’t be simpler and faster. • You can use Visa/Mastercard/Diners Club Credit Cards and the funds will go through to your trading platform immediately. • In addition you may also use Wire Transfer, Moneybookers, Webmoney, Paypal and Neteller.