Others have the ability to chart price intraday using minute price bars; a minute chart would produce a price bar each hour and a half. The problem with this is that quiet markets have a tendency to become abruptly volatile without any advance notice. Honestly, utilizing a computer system is a superb solution to keep emotion out of your currency trading and. In some scenarios, doing so will prevent the trader from getting all of the contracts filled, but it will also avoid being filled on all five in a declining market at what later turns out to have been an inopportune entry price. If you have any questions on any aspect of trading the futures market I will be glad to assist you in any way possible as I have been doing for traders now for over 16 years in the industry. Foot note : now you are thinking, so I have to risk above the open or below the open if longand I would say "correct". This means that you do not need to have lots of cash merely forex trading addiction brain get going trading with this software.

Thank you for accessing the eBook "My 1 Day Trading Technique ". This book is designed for beginning, intermediate and advanced traders. The presenters in this book are leading experts in trading Stocks, Options, Futures and Forex. You will be exposed to high-probability trading strategies from 8 industry experts. As an added bonus, we have included a trading psychology chapter and a chapter on potential tax advantages for active traders.

Most of the strategies in this book are divided into three sections: In short, you will have all of the information you need to trade your new favorite strategy tomorrow. Some of the things you will learn in this book are: At ChartExpertsit is our sincere hope that you take away several strategies that forex trading addiction brain can use when you are done reading this book. Finally, make sure to subscribe to ChartExperts. We provide free ebooks, weekly articles, on-demand videos and many other publications for active traders.

Our presenters are world-renowned industry experts and our content is provided free of charge in a relaxed and friendly setting. Cheers to your trading success! These fun little strategies take the worry out of doing everyday chores and generally make life easier. Just like you can use life hacks to make life easier, you can use strategies to make trading the Forex easier.

Every trader knows to watch the candlesticks, but how many know candlesticks enough to see their recurring patterns? Few traders realize that candlesticks do more than show what the market is doing in that time frame, they also come together to create formations that expert traders can spot and use for profits. There are a wide variety of candlesticks, and a lot of them have some pretty unique names, but there are a few that are important to remember: Some candlestick formations to take note of are the Bullish Tweezer Bottom, the Bullish Piercing Line, the Bearish Engulfing Candle and the Bearish Shooting Star.

Each of these names gives an indication of the market direction and makes some connection between the candlestick and its wick. Spotting these formations early allows you to get into the market right before a major move occurs, thus increasing your profit potential and allowing you to strike while the iron is hot. Having three trusted strategies for each of these market conditions means that you should be more prepared to quickly review the market, whether the market is making for quick day trading movements, or is experiencing consolidation that spans ten or more days.

You have something to analyze the conditions against, and the forex trading addiction brain to help you take advantage of these moves. The number one question new traders ask is what time frame they should forex trading addiction brain within. The answer to this varies, but the bottom line is You should always be trading on more than one time frame! How can this work? Each one has an effect on the other, and patterns that appear in long-term trades make appearances in short-term trades The rule is to always have your secondary, larger time frame be at least four times the size of your initial time frame.

Think of timeframes of having a parent-child relationship to each other. The larger timeframes will have an effect on the smaller ones, much like parents have an effect on their children. The larger timeframe sets the scene for the smaller timeframes. A monthly time frame typically shows the next A-B-C-D formation for only the next 2, pips-worth of movement.

The daily time frame shows the corresponding movements that create the larger A-B-C-D formation for the next to 1, pips worth of market action. The great thing about this method is that it solves the largest problem that faces many currency traders. That problem is knowing when to stop buying and when to start selling. You have to understand, before going into the market, that every trade you might do comes with it some risk. You also want to be able to put in enough money to make a profit.

After over 20 years of experience, we have figured out that the sweet spot between making money, and not going bankrupt when losing money, falls in the two to five percent range. We recommend beginner or more risk-averse traders to start with risking only two percent of your current trading pool in every trade. Once you become more experienced in the market, or your profits have risen enough, you can move to three, four, or the full five percent.

One of the more famous, and often used, strategies is something called the Head and Shoulders pattern. This happens when a bullish trending market makes a peak and begins to retract. The name comes from the picture the market makes as it peaks and valleys. The highest point is the head, and the two lows on either side of it are the shoulders. Once the market takes out a low of support, it has a tendency to bounce back up and wave before the market finally falls.

In this strategy, your stop would be taken out on that forex trading addiction brain right before the market turned to complete your direction. This extra spike in the market turning the person in a crown allows you to see the true indication of the markets and could lessen the chance you have of taking on losses in the future. Think of the ups and downs of the market as trends like in the fashion industry.

Take leg warmers for instance. Back in the 80s leg warmers were very popular, they were used by a large segment of the population, and then once it hit a certain point it became TOO popular and there was a backlash created against it, making the trend slowly go away. A lot of fashion manufacturers would have loved to have known when the trend was starting to go away.

They would have wished they knew some kind of indicator. There might not be an indicator like that for the fashion industry, but there is for the markets. The stochastic RSI is made up of two lines that serve as a sort of benchmark for when the market is looking to reverse. If the stock is traded too high, it will break that line and begin to trend down.

If the stock is going too low, it will break the bottom line and start trending back up. Having a handle on the two barriers that the stochastic line makes up will give you a sense as to when you should reverse your direction and go from bull to bear, and vice versa. You put in to the market and, like a good trader, you set your stop. However, you find yourself constantly being taken out just before your big win.

This volatility creates higher highs and higher lows, which can spell higher profits for smart traders. Traders make stop losses to prevent themselves from losing their entire account over the course of one trade. By setting a minimum number for the market to hit, once the market hits that number, the trade is automatically ended and the loss is taken. The way to properly use a fluid stop-loss number is to move the minimum number in accordance with the market moves.

The chart below has several yellow circles. These circles represent the stop-loss price at different times in the trading timeframe. Starting from the furthest left circle, you would adjust your stop-loss to match the next lowest number the market hits which is the new yellow circle. Even without the benefit of seeing the actual numbers, you can see the difference between the furthest left and the furthest right circle.

Look for a high or a low that has two candlesticks to the left, and two candlesticks to the right that are either higher or lower from that point. A high will have two lows to the left and right, a low will have two highs to the left and right. Trading occurs in a hour window consisting of three different trading sessions: European, U. The European session has the most movement, followed by the U.

More often than not, the market will reverse directions when one session ends and the other begins. It stands to reason that if the European session is trending bullish that once the American session kicks in, it will set up a reversal and the market will turn into a bear. By utilizing this strategy you can pinpoint the forex trading addiction brain points, take advantage of the market movement, and identify when a market high and low will occur.

With three trading sessions happening per day, there is the potential for 2 reversal points per day, which means that using only one strategy can dictate how you look at three different markets. There are four distinct types of trading personalities. Finding yours could be the key to trading your strengths and limiting your weaknesses. The Now Trader: The now trader wants to get in, get their pips, and get out. They generally use smaller time-frames, spend less time per-day trading and capture smaller pip numbers.

However, because they trade in such short timeframes, the Now Trader tends to trade more often and have more straightforward trading strategies. The In-The-Game Trader: These traders love to check into the market daily, but prefer their action to be longer-lasting and tend to favor larger pip captures over a longer period of time. The daily trader often trades in the more mid-range timeframes and pays close attention to reversals and predictive fibs. The Adrenaline Junkie Trader: These traders only trade once, or a couple times, per month based on major announcements such as quarterly or earnings reports.

They love the riskiness of the market and tend to trade for only a couple hours at a time, but they end up winning big if their strategies hold true. The Low-Maintenance Trader: The ultimate set-it-and-forget-it trader. They like to trade in the long-term by utilizing strategies that end forex trading addiction brain with big profits over many months.

Rather, they are banking on safer picks that will benefit them in the future. There is no right or wrong way of trading, there is potential to make money in all of them. The key to successful trading is managing your risk, developing your strategy, and making smart decisions based on the charts. However, these tips can provide some insight into the mindset of those who have successfully traded in the past.

Using the tips seen here along with sound risk management, having a secondary source of income is possible by trading the Foreign Exchange. Get more Forex Life Hacks, strategies, and Forex education by ATTENDING A FREE WEBINAR from the experts at Market Traders Institute. Before his days as an expert analyst and trader seen in Trader Planet's Digital JournalYour Trading Edge and FX StreetJosh was your average guy before him became the Forex world's FX Pathfinder.

He knew he wanted to do something he was passionate about for a living, but it seemed like nothing was working out. As a course creator, mentor and active instructor with MTI, you can find Josh in MTI student classes, live training sessions and MTI's free workshop series that are open to the public. What you will learn here is how to identify when the conditions arise to make the trade, the entry points, and exit strategy.

While it is common folklore in the investment industry that institutions, like wolves, travel in packs, the reality is that institutions are not all sitting around at a table conspiring as a group about how to part forex trading addiction brain traders with their money. The institutional investment business is extremely competitive and these firms are very much out for themselves and have their own objectives and performance metrics to achieve to appear most attractive to prospective investors at any given time.

Therefore, this strategy is designed to identify when one or a handful of institutions are moving inventory in and out of the market and are straying away from the markets current path causing a short-term retracement against the trend. We are subsequently looking for the market in question to resume its preexisting trend when those forex trading addiction brain countertrend institutional activities and inventories have dried up. It should be flowing in the same direction.

In general, the sooner i. While many traders are specific dollar target traders, the preferred method is more of a support and resistance target based methodology backed up by a trailing stop to ensure you are not giving back those profits during any snapbacks against your position. Either way a win-win trading opportunity. For maximum comfort with the strategy, it is preferred that you forex trading addiction brain this with your own favorite support and resistance levels.

Figure 3 Live Trade Example: Below the middle chart highlights in yellow the intended target, a pivot point. This gives the trade an opportunity to have one more false breakout move above the target that allows us to pull out a little more profit. Based on the premise of this trading strategy, the forex trading addiction brain upon the entry is that the market will continue into the original direction it was heading after its brief institutionally driven pullback against the trend. Very frequently, after breaking through IRBs, the market will actually rapidly accelerate with fast action and wide ranges as everyone starts to realize that the brief pullback was merely a pause by one or a few institutions against the intended direction as the market moves to catch up with its original intent.

With that said, once a trade is entered, the price should not retrace back beyond the opposite side of the IRB. This strategy was primarily designed to identify and take advantage of trend continuations after counter trend institutional inventory exhaustion. Therefore, this trade is not to be used in a sideways market conditions as continuation failure will frequently occur.

In general, the market tends to trade directionally with as few retail traders on board the correct direction as possible. This strategy is so effective due to its ability to find high probability areas where three things are happening to retail traders in an uptrend: After all of these events above, once a new IRB to the upside appears and is pierced, the market is much more likely to move without all of those traders above on the right side of the market.

After all of these events above, once a new IRB to the downside appears and is pierced, the market is much more likely to move without all of those traders above on the right side of the market. Figure 8 shows one of the seven trades taken using this strategy during the International Trading Competition held in Paris, France. The black vertical arrow highlights the IRB and the black horizontal arrow shows the intended area of entry for trades using this strategy.

No more weight is given to any IRB based on whether its close is above or below the open i. In addition, think about the concept of over extension. This will more likely result in an entry that has a higher likelihood of reversion to the mean as much of the energy and profit opportunity has potentially dissipated leaving the trader with a much smaller profit or perhaps a stop loss. Trail your entries to reduce the risks of reversion to the mean while still giving a trade a chance to push into your intended direction.

In the absence of a well-tested tool of your own, trade in the direction of an approximately 45 degree angled 20 EMA. This strategy has very diverse applications across many markets and asset classes. For instance, in addition to trading conventional equities, futures, options and FOREX instruments, traders can consider using this strategy to analyze underlying equities and then trade high delta, in the money options plays as an example for active options day traders.

So very diverse indeed. What we have shown you here is a simple, award winning strategy that you can take away and explore here today. Rob Hoffman has used this tool to help him secure wins in many of his 19 domestic and international trading competition wins. It is an excellent tool used for identifying where retail traders are misjudging the markets movement. It shows where one or more institutions is temporarily breaking away from the trend due to short-term inventory acquisition or liquidation.

Once that inventory need is exhausted the overall market is free to resume the online options trading course justification trend offering new opportunities for retail traders to trade back in the direction with the overall trend. To learn even more about Rob Hoffman and his award-winning strategy, WATCH THIS IN-DEPTH VIDEO HERE!

Rob Hoffman is the president and CEO of Become A Better Trader, Inc. Rob is also an internationally recognized forex trading addiction brain trader, frequent speaker for top brokerage firms and financial exchanges, skilled educator and passionate mentor to proprietary traders, portfolio managers, and hedge fund managers from around the world. Contact Rob at rob becomeabettertrader. His office number is I will keep it short and sweet, and I will give you all of the information you need to find the trading opportunities for my strategy.

The first thing I highly recommend is for you to figure out what kind of trend you are trading in. If you trade stocks, options, futures or any other type of market intraday, there are several studies you can plot to determine if you are in a valid downtrend or uptrend. When I analyze the markets, I always start with the longer time frames first, and then dial down to the period I am trading. By using the Ichimoku Cloud, I can easily screen for stocks that are in valid uptrends and downtrends.

Hubert Senters is one of the leading active investors and professional traders in the world. His daily trading research is followed by nearlypeople. He is best known for his no BS approach to active investing and trading which is both effective and refreshing. He is also a frequent guest speaker for Many Trading Exchanges including the CME, CBOT, ICE, and Eurex. Hubert currently resides in Versailles, Kentucky with Lisa, his wife of 20 years, and their three kids Mackenzie, Morgan and Mason.

When it comes to day trading, you have to be able to make quick decisions. Over the years I have learned that many stocks have their largest moves in first 30 minutes of the US day market. In particular, the NASDAQ stocks move more than most. Knowing this, I started looking at the NASDAQ futures NQ to see if it moved like the equities.

It took time, but I finally figured out how to take advantage of the move in the NQ in the first 30 minutes. Because many people have computers and listen to the news in the morning, they open their trading platforms or websites and place orders to exit or enter new trades before they go to work. Once the Ding, Ding, Ding, on the New York Stock Exchange at am CT is heard, all these orders get filled.

The problem is that we do not know which direction the market is going to move, so we have to give the market a little bit of time to "wash" these trade out of the market. Once they are gone, the market will then begin to push in one direction up or down does not matter. This push will last about 15 minutes, and then the market will correct that move going into the top of the hour at am CT. The question is, how much time do you give the market to shake out the initial trades?

I have found that it is somewhere in the 3 to 7 minute range. The big thing is to see how it is trading off the open. Let's take a minute and discuss the open. Most look at the close. I always wondered why. At the close you already know who won or lost, and I've never bought a tick to a football game to get there at the end.

In fact, have you ever been able to start the race at the end? So I do everything based off the open. If the market is trading above open, bulls are in control, and if below open, bears are in control. So as we look at this trade, I start looking at how the NQ is trading off the am CT open. Is it higher or lower than open during the minute time period?

If it is holding above open, I look to go long, if trading below open during this time, I look to go short. In Chart 1 below is a 1 minute chart of the NQ futures when we are done you might consider using a 5 minute chart, but we will get to that. The little blue bar is the opening minute at am CT. The yellow line is the open of that bar, which is also the open of the US markets on the NQ futures. Notice, once it opened, it never traded below open.

If the first 5 minutes, it stayed above open. So, if you take the range in the first 5 minutes and wait until the market breaks out of the range, you would have gotten long. Look at the push it made. The NQ went from to Notice the little correction starting about am CT. This is very common and will spook many traders thinking that the market has fizzled out and the run is over, however, it is usually just taking a breather before continuing on after am CT.

In Chart 2 below is another look at another day. This is a little tougher to trade, but look what it did. It opened and stayed below open in the first 5 minutes. Though it bounced up a little, it never got back above open, which argues that staying short was the right thing to do. Foot note : now you are thinking, so I have to risk above the open or below the open if longand I would say "correct".

Interestingly, on both trades you could have left your stop on the other side of the opening 5 minute range and stayed in until lunch and been paid forex trading addiction brain better. I like to trade this with multiple contracts. I will take 1 off at 2 points profit, and another off at 4 points profit and let the last one ride. What I'm trying to do is finance my stop. If I can make 6 point on the first 2 contracts, that means that I can get stopped out and still make money or lose very little if the market reverses.

Another thing, we will have economic news at am CT often. Knowing this, it can help your trade or it will stop you out. So before the news, I would tighten up the stop just in case. Now, back to the 5 minute chart mentioned earlier. Yes, you can use one. Since we are looking at the first 5 minutes, can you day trade options gold why not use a 5 minute chart.

I don't use charts much when making this trade, but will use a 30 minute chart if I do look at one. I watch my trading platform, or DOM depth of marketand "develop the chart" in my head. I'm a tape reader. Not to say I don't like chart, because I do, I just use daily and weekly charts for bigger trends and use no smaller than a 30 minute chart if looking intraday.

That is just me, and maybe not you. So, use a 1 minute or 5 minute chart if it helps. Finally, you can use this on stocks. The NASDAQ stocks do much of the same thing in the first 30 minutes. Watch GOOG or AMZN and see what they do. You can even use the options on those stocks. Just beware of the bid and ask in the first 5 minutes, because they can be quite wide, so use limit order to enter the options.

Watch it for a couple of day and get the hang of it. It is kind of an "artsy" trade, but it will pay well over time. You will lose a couple every now and then, but that is part of trading. And it will not set up every day. There are some days that the NQ goes above open, then below open, then back above open, and you start wondering what you should do. Do nothing and let the market figure it out, but not with your money.

There will always be another day to trade. Trade to win, and good luck trading! Watch this trade discussed in further detail, SIMPLY CLICK HERE FOR THE VIDEO! SIMPLY CLICK HERE TO RESERVE YOUR SEAT! Geof took an instrumental role in developing the DTI Method. Before coming to DTI, Geof was a pipeline engineer working in Oklahoma and Texas. If you have been trading for any length of time, you forex mini account 25$ acrylic nails probably noticed that the markets are moving sideways A LOT.

Often, ranging strategies are high probability but they do not offer a good Risk to Reward. But today, you will learn a strategy that has both a high win rate and the opportunity for some good R:R. The entire strategy can be boiled down into just a few steps. If you read the report carefully, you should be able to begin implementing the strategy virtually right away. Though, as always, I do recommend trying new strategies on a demo account and getting comfortable with them before trading them live.

A ranging market is simple to identify. We are looking for clearly defined sideways movement that is sustained with several tops and bottoms. One thing to remember is that a sideways market should have similar priced tops and bottoms. You can see in situations, demonstrated by the green example, that a more consistent top and bottom will improve the chances that the market reacts at the expected time so that is what we are looking for.

The red example shows you a sideways market that is not in a cleary defined range. So while the price is certainly going back and forth, the market is less responsive to a clear top or bottom range that we can utilize. In the second example, I used a 20 and 50 EMA to show you how moving averages can also signal a ranging market as they quickly begin to flatten and intertwine with one another. This is, of course, a lagging indicator but for those of you who like indicator confirmations, moving averages are an easy way to confirm a ranging market.

In this step, we are looking for the market to extend itself within a sideways market. More often than not, extended steep moves will pull back to settle toward reasonable prices, but this is even more true when the market is in a defined range. Bollinger Bands are a great indicator for this because they shrink down and quickly define a range which, in turn, makes it obvious when the market is stretching out of that range. When you combine the defined ranges with stretched Bollinger Bands, you get a pretty good idea of when price might make a turn around.

But we also like to use the RSI to make sure that price is clearly overbought or oversold. It simply helps our patience and discipline as we are forced to confirm an overbought or oversold condition before going to the next step. The Bollinger Band and RSI are what allows us to be certain that the market has stretched like a Rubber Band and is ready for a potential snap back in the opposite direction. Now we know that the market is in position for our Rubber Band Reversal, but we do not have the ability to enter the trade yet.

This is where a LOT of traders get tripped up. They see the RSI shoot over 65 or 70 and they are too trigger happy they just begin shorting the market. We do not know how far the rubber band is going to stretch. We wait for the price to pierce the upper Bollinger band and simultaneously, we want RSI levels to be above 65 levels.

Whole numbers are important because of their psychological value. A maximum number of orders are placed closer to the 50 or levels, for example, at the 1. In this shorter time frame, we consider anything ending in a 0 for 4 digits or 00 for digits to be a whole number. The key is that almost every time the market shows rejection around a whole number, we get SOME follow through.

Often, it is only a few pips but when you combine it with the right market conditions like we are doing in this strategy, your odds of catching a reversal that moves 20, 30, 50 or even pips is very, very high. Many times, price pushes slightly above the whole numbers and then quickly reverses, sucking in amateur longs, who get trapped and are forced to cover, thereby aggravating the fall.

On other occasions, the institutional orders push price right at the whole number or even a few pips before. Either way, if you are prepared with a plan to trade around these whole numbers, you can take advantage of these scenarios. Once we see a 15 minute candle show rejection at a whole number, we are ready to place our entry. Here you can see a real trade example of the market spiking through to the tops, piercing the band, above 65 on RSI and getting our 15 Minute rejection candle right at 1.

The midpoint of the BB will change as the trade progresses but it should remain at the price of the midpoint at the time of the entry candle. Here, you have an ENTRY green line right as the candle closes, a TARGET blue line at the midpoint of the BB bands at the time of the entry candle and a STOP LOSS red line a few pips above the high of the piercing candle.

Plus, once you become a Rubber Band Reversal Expert, you can zoom in even closer to a 5 minute chart and get ahead of the momentum. Often, once the rejection of the whole number begins to happen, price falls quickly and waiting for the 15 Minute to close can cost you. So I like to get in early when I see that rejection taking place. With those few steps you can take advantage of the very common consolidating markets we see.

If you have any questions. All traders know that one of the key difficulties in any kind of trading and especially day trading is to get the initial positioning of the entry correct in order to keep the fluctuating price away from our stop. Greetings traders, my name is Mohan and in this special report I will show you the sure fire way to make your day trading more profitable and more peaceful with less grind. I have been working with futures traders since and have trained well over 50, traders through our variety of precision trading services.

So the key to this is to position your trade on the right side of the market force. And as the trade progresses to assure yourself that you stay on the right side of the Market Force or to be able to determine if that MF has changed in any way. The most popular indicators over the years have been developed by brilliant market technicians that have stood the test of time.

The Relative Strength Indicator also commonly known as RSI developed by Welles Wilder, Stochastics forex trading addiction brain Dr. George Lane, and MACD by Gerald Appel. There is such a wide variety of indicators available and so many great technicians whose names I wish I could mention in this short article. However, many of these modern day indicators are just slight variations of these original technical studies. Some newer indicators are combinations of these studies such as running an MACD on a stochastic etc.

Below is a one minute chart of one of my favorite day trading contracts…. The Mini Nasdaq symbol: NQ with the above indicators applied to it. Notice on the chart above that although we are applying some of the best and most popular indicator studies there is no crystal clear discernable area to get long or short in the market. And if you did… where would you place your stop?

How do you determine which direction the Market Force is on using these common indicators on this one minute chart? So the most important element of day trading is to be able to determine what the primary Market Force is at the time you are getting ready to trade. Over my 26 years of day trading I have studied practically every indicator that is out there in the industry.

I have carefully studied and applied hundreds of them to my charts to determine which ones were the best. Well, after doing this type of research for quite some time and becoming somewhat disappointed which I am sure you can relate to I developed my own set of indicators which are extremely accurate. Now take a look at the forex trading addiction brain below with the exact same day and forex trading addiction brain period of the chart shown above with the Boomerang Day Trader Indicators applied using a tick chart.

The first yellow dot after the Arrow which signals the opening of the Trade Channel in that direction is a crystal clear Sell Signal entry. On the buy side the forex trading addiction brain Blue Dot is the Buy entry after the arrow opening up the Buy channel with the Dynamic Trend Bands and all the indicator colors matching. Both were winning trades, there was little or no pressure on the trade entry and you were able to put some money in your pocket.

The Boomerang indicators have been tried and tested under ALL market conditions and have produced millions of dollars in winning trades from our large international group of Boomerang users. In fact, the rise of Boomerang Day Trader to being one of the top, best -selling day trading software in the industry is due to the extreme accuracy of the market force indicators which I developed. You can see that by having the best indicators and knowing how to use them with a proven system can make trading a lot easier and more profitable.

This is my 1 day trading technique and practically the only one I use…. Trading into the prevailing current Market Force! To learn more about my Market Force Indicators you can watch a recent, brief video which was recorded in front of a large audience of Boomerang Day Trader users. We have bi-weekly training classes that you can attend for FREE if you wish by joining us at www. I just want you to succeed at futures trading if you have come this far and are struggling.

Please consider us your resource for relief and a new vision for profitable trading like thousands of traders have. The methods that I describe above can also be used for higher volume active futures, stocks, ETFs and other instruments. If you think about it really it is just common sense. In other words, find the primary force that is underlying the market and place your trades on the side of that force.

This was because their indicators did not alert them accurately to this shift. That is why having the correct precision indicators and proven trading method of how to use them is so important. I have many other resources for you to learn how to day trade on the correct side of the Market Force and I hope you will take advantage of my many years of experience. We are the first, and we have raised the bar very high on trading systems.

This shows our extreme confidence in the trading method and indicators we use. We primarily trade mini Nasdaq NQ futures during the first 2 hours of trading sometimes a bit longer using 5 different trading setups that I have developed over the years. Note: the DTA live trading room is NOT a Boomerang training room. We have our bi-weekly classes for Boomerang and market training.

We have been fortunate to have very excellent success on our stock and ETF picks with all winners since we started that service. In addition to this I make an exact, crystal clear directional bias call for the market almost each trading day. This is extremely valuable for day traders and those trying to manage a larger portfolio like many of our subscribers do.

If you have any questions on any aspect of trading the futures market I will be glad to assist you in any way possible as I have been doing for traders now for over 16 years in the industry. I have made a long career out of assisting traders and would look forward to your email if there forex trading addiction brain any way I can assist you whether you get involved with our services or not.

Here is my email: Mohan daytradersaction. CLICK HERE FOR THE SPECIAL DISCOUNT! Mohan is a 26 year trading veteran and trading coach for over 14 years in the industry. He is also the developer of Boomerang Day Trader, which is one of the top selling day trading software on NinjaTrader. Both groups of traders bring additional liquidity to the marketplace, which is a positive. Traders generally use the same technical indicators and oscillators for day trading as they would position trading, so if you have a winning strategy, why wait weeks for the outcome?

Instead, traders can determine whether they have what it takes to make money within a single trading day. The distinction can be found in when the position was initiated, and whether it was still open at the close of trade. Most of the financial futures markets open in the afternoon prior to the official day session and trade through the end of the day session.

As a result, it is possible to hold a day trade nearly 23 hours per day. If a trader is flat at the close of a trading session, anything done during that particular session is considered a day trade. Of course, there are some things to be aware of. Not all brokerage firms allow their clients to trade overnight; those that do might levy a small fee for holding their position.

Further, many brokerages offer day traders discounted margin rates. Central to p. On a side note, my brokerage service DeCarley Trading is more liberal than most, since we grant day trading margins around the clock. Not being aware of the rules and characteristics of a brokerage is a mistake capable of destroying an otherwise attractive day trading strategy. In fact, it is the opposite. Day traders tend to execute a high quantity of trades, which pads the pockets of brokerage firms.

After all, the more a client trades, the more commission he pays to the broker. Accordingly, brokerage firms work hard to promote day trading via discounted margin rates and lower commission for the highest-volume day traders. They also encourage automated trading systems, which are inclined to be high-volume trading strategies. Further, risk managers at brokerage firms love the idea of their clients being flat overnight.

As you can imagine, this takes much of the stress away from monitoring their client positions throughout the night. Global events and sentiment sway asset prices in real time without any regard to what traders in the US might be doing at the time. Likewise, US traders buy and sell futures contracts throughout their day session without thinking twice about the Europeans, who are forex trading addiction brain. I've been a commodity broker since early and have had the privilege of having a front row seat to the game of retail trading.

Based on my observations, day trading is one of the most difficult strategies to employ successfully. Yet with difficulty comes potential reward for those capable of managing emotions and willing to put the time in to pay their dues. Traders able to uncover a way to make consistent profits might discover the reward is not only lucrative but also extremely convenient. They have the ability to sleep well at night and literally choose their own trading schedule.

There is an unlimited number of strategies that day traders might opt to apply, so discussing that aspect in a single chapter is unrealistic. Hopefully, you will walk away from this section with a better understanding of risks, rewards, and reality. Day traders face modest barriers to entry, but they also face the worst odds for success.

However, much of the dismal performance by day traders can be mitigated by avoiding a few common mistakes. Unfortunately, many of the items on this list are easier said than done because, for many, they contradict some of the advantages of day trading luring them into the markets in the first place. Failing to take these steps shifts the odds of forex trading addiction brain away from the trader and toward his competition, the trading public.

As a reminder, margin requirements for intraday trading are set by the brokerage firm, not by the exchange. As previously mentioned, because brokers generate revenue based on volume commission, they have incentive to entice traders to participate in day trading strategies with low margin rates. To green traders, this sounds like a fabulous proposition, but to those with experience it forex trading addiction brain a clear death sentence to a trading account.

With that said, in the wake of financial crisis volatility, day trading margins have increased. This might appear to be a disadvantage and may frustrate a few traders, but the reality is a far more reasonable amount of leverage. In addition, it is still more than enough leverage to produce large profits and losses in a trading account. Adding salt to the wounds of overleveraged day traders, many discount brokerage firms offering low margins are quick to liquidate client positions should their account equity dip even slightly below the stated day trading margin rate.

This too adds to the likelihood of failure. However, if the market goes against the trade, even slightly, the brokerage will often liquidate the position. Day traders using this much leverage rarely survive the trade long enough to see profits. It should be clear by now that day trading futures in high quantities relative to account size or on a shoestring budget is equivalent forex trading addiction brain playing craps in Las Vegas.

Traders can increase their odds of success by mitigating leverage through sufficient account funding, or at least trading minimal quantities. Aside from the leverage factor, lightly capitalized accounts might not have the means to hold positions overnight when necessary. This does traders a forex trading addiction brain injustice because it prevents their trading strategy from adequately giving each entry signal the time necessary to work out.

Stock index futures might close at p. For instance, a trading strategy could conceivably trigger a sell signal an hour before the close, but the restricted time frame might not allow for the anticipated price change to materialize. Thus, it might be crucial to hold positions into the overnight session, or even the next trading day, to give your strategy a fair chance to succeed.

Trading sessions might be on timers but markets and technical indicators are not. If a trader is forced out of a trade at the close of the day session, it is possible he is forgoing the success of the trading signal. Sometimes, to their own detriment, those drawn to day trading tend to have hyperactive personalities, and this often has a negative impact on their trading results. Rather than exercising patience, many day traders force trades out of boredom, or they rush their trading signals.

The best traders are able to develop the discipline necessary to delay entry into the market until their trading strategy returns a verified signal. Further, trading on a whim or a gut feeling in the absence of a true trading signal according to the set parameters is generally a horrible idea. Further, it is doubtful the trader will be able to keep detrimental emotions under wraps; on balance, if the trade is entered based on emotion bible options trading halted logic, the psychological stress is higher.

Poor decision making breeds more poor decision making. It simply means you are human; even the most experienced traders will have cold spells. What differentiates the successful from the unsuccessful is the reaction to hard times in the market. Traders who are overactive and trade without justification from a defined set of rules not only face potential peril from market losses, but they end up with a hefty commission bill that eats away at their trading account.

I often find myself in conversations with traders who assume if they enter a position, and the market fails to move in the desired direction right away, they will just get out. Similarly, beginning day traders frequently express their desire to cut their losses by exiting a trade if it goes against them by a few ticks.

Although the desire for risk management forex trading addiction brain admirable, the result is relatively predictable. This type of trading activity might not create large losses on each individual trade, but over time the transaction costs and small losses produced by the strategy can be substantial. Day traders using overly tight leashes to manage the risk of their trades will soon find small losses eventually leading to a big loss because the market will rarely move in the desired direction without some sort of adverse price move.

A day trader cutting losses on a trade after a few contrary ticks faces a very low probability of catching a move in the desired direction. Brokerage firms love this type of trader. Not only do they pose little risk to the firm, they often pay a substantial amount of their account toward transaction costs. To prevent overtrading, most traders must adjust the way they think about the market and the day trading opportunities it presents.

Green traders look at being flat the market being without a position as a missed opportunity. But traders should see it in the opposite light. Those on the sidelines are not losing money, nor are they at risk of losing money. In addition, they are in a much better position to take advantage of a promising opportunity should it come along. Traders often grow bored with a quiet market and execute a small trade to lessen the pain of watching paint dry.

The problem with this is that quiet markets have a tendency to become abruptly volatile without any advance notice. Perhaps there is a new announcement or simply a large group of forex trading addiction brain orders triggered to force prices outside of the narrow band of trading. In any case, forex trading addiction brain sudden change in volatility can be a painful lesson but also pose significant opportunities for those on the sidelines.

The majority of trading books, courses, and forums teach traders to always use stop orders. When dealing with leveraged futures contracts and theoretically open-ended risk, you may find it preferable to protect a trading account from catastrophic losses. However, stop-loss orders might not be the best way to accomplish this task. In fact, in my opinion, the use of stops often increases the odds of trading failure.

Anybody who has experienced their stop order being filled just before the market reverses understands the emotional turmoil it can cause, not to mention the financial ding to a trading account. Not only was that particular trade a failure but it can have a negative effect on trader psychology going forward, so it could affect future trades as well.

Unfortunately, this occurs frequently. Ironically, the very order intended to protect traders from large losses can easily become the source of the large losses. In the end, several highly certain small losses will eventually add up to crippling amounts. We will debate the use of stop-loss orders and offer alternative risk management techniques further in Chapter In my opinion, utilizing the maximum leverage offered is a horrible idea, inevitably leading to massive losses.

Traders are far better off trading with less leverage than is available to them. Yet, I would venture to say that most day traders execute quantities in excess of what is ideal based on available trading capital. It is easy for traders to get sucked into the mindset that the more contracts traded, the more money made. Even the best trade setups can go awry.

Actually, sometimes trades that look the best on paper are the trades that fail to work. Accordingly, a strategy of loading up on risk on any particular trade is a poor one. The more contracts traded in a single outing exponentially reduces much needed room for error. In this game, it is important to have some breathing room; no trading method is perfect. In addition to the mathematical disadvantage of lower-success probabilities at the hands of being overleveraged, trading a high number of contracts adds to the emotional turmoil a trader will experience.

The avoidance of aggressive position sizing is key to keeping harmful emotions in check such as fear and greed. One might argue trading such size leaves the door open to double an account on a single trade. This is true, but forex trading addiction brain odds are highly against it. Even the most sophisticated and experienced traders require room for error in their trading. How many contracts you trade at a time should be based on personal risk tolerance and available capital.

Of course, you can easily day trade ten or more times this amount with the given account size, but just because you can doesn't mean you should. In a market that generally sees Most people will tell you not to add to your losers. Nevertheless, for those with well-capitalized accounts, I believe adding to a position as a means of adjusting your breakeven point makes sense because it increases the odds of obtaining a better average entry price.

Traders who follow the previous guideline of keeping position sizing reasonable to avoid the stress and risk that comes with overleveraging have the ability to price average. Price averaging for day traders is similar to the act of scale trading for a position trader. The premise is to nibble on futures contracts incrementally rather than buying or selling the entire desired position in a single transaction. If the plan is to go long crude oil with as many as five futures contracts, a day trader might start with a single contract and enter limit forex trading addiction brain to buy the other four contracts at lower prices, perhaps 20 to 40 cents lower.

In some scenarios, doing so will prevent the trader from getting all of the contracts filled, but it will also avoid being filled on all five in a declining market at what later turns out to have been an inopportune entry price. Once the trade is deeply underwater, emotions flare, leading to ill-advised trading decisions. Averaging the entry price will almost always lead to a more achievable breakeven point, and thus, less stress.

Yet the practice of price averaging is something you should treat with care. It doesn't mean you should buy another crude oil futures contract each 20 cents it drops against you without any other considerations. However, if the price of oil falls substantially beneath your initial entry, perhaps that is something to consider. Naturally, it would be wise to peel contracts off at various forex trading addiction brain should the market turn in your favor.

If you scale into a trade, it is often best to scale out of it, too. Day trading is a broad term that can be used to describe a nearly unlimited number of strategies. It is conceivable that the most important decision a day trader makes when developing a trading plan is which time frame to use to chart the futures market—will the technical rules be applied to a chart using one-minute price bars, minute price bars, or something in between?

There are even some day trading platforms and charting software packages that offer traders the ability to chart futures contracts using line charts produced by plotting data points for each and every trade executed on the exchange independent of time. Others have the ability to chart price intraday using minute price bars; a minute chart would produce a price bar each hour and a half. Each of these examples rely on extremes, but most traders work with something in the to minute range.

With that said, I prefer to look at a minute chart. The exact time frame a trader chooses should reflect his personality and risk tolerance. The shorter the time frame used, the more active the strategy will be and the higher the frequency of false signals. Conversely, longer time frames tend to experience less activity, fewer false signals, and less deceptive price moves.

Yet, most technical trading strategies applied to charts with longer price bars will come with higher risks relative to a shorter bar. This is because those playing with stop-loss orders will be required to place stops deeper when using a minute chart than they might with a minute chart. Accordingly, there is a tendency for traders utilizing minute price bars to trade larger quantities than those using minute price bars.

This is because the profit and loss potential per trade is generally smaller using a minute trading trigger. In my opinion, day traders are better served trading less; consequently, using minute bars help to tame the trader. Figure 1: Beware of signals produced by technical oscillators in early morning trade following a tame overnight session.

They are generally unreliable. Technical oscillators are least reliable in the early morning hours Figure 42 ; this is because they are being calculated based on what is often tight range trading in the overnight session. As a result, it is common to see indicators created to identify overbought and oversold market conditions produce false countertrend trading signals. Even worse, during this time of day, the indicator can easily reach highly saturated levels, giving traders a false sense of reliability.

It is far more common when using short time frames. The use of a five-minute chart, relative to a minute chart, will undoubtedly result in a higher number of day trading signals Figure However, the goal of any trading strategy should be to locate and execute quality trades; focusing on quantity is a common misstep. Because shorter time frames disguise market noise as something significant, traders will likely fall victim to a large number of false signals.

Even if the trader manages to keep losses on these high-frequency trades in check, excessive trading volume can quickly result in an expensive commission bill regardless of how low the trader has managed to negotiate his trading fees. Using charts based on short time frames, such as the five-minute chart, requires traders to place tighter stop-losses and therefore increases the odds of being stopped out of the trade prematurely.

Nevertheless, because five-minute charts are so quick to generate signals, it is paramount that the trader keeps risk in check. This is because in low-volatility markets, the five-minute chart might generate a buy signal for countertrend swing traders with a mere 3. Thus, reacting to a shallow dip because the five-minute chart calls for it could put the trader into a massive losing position should he be in the wrong place at the wrong time.

Accordingly, the odds of getting stuck with a massive loser can be mitigated. In Chapter 16, on deliberating risk management, we will debate the use of stop-loss orders and long options to protect futures positions from losses. It is worth mentioning in a discussion of day trading because the difference between success and failure is largely dependent on where, and how, stop-losses are used or not used. Despite widespread chatter suggesting that one should never trade without stops, it might be the sole reason most traders lose money.

Whether traders place stops forex trading addiction brain tight or too loose, stop-loss orders elected prior to favorable market movement is a common occurrence that can devastate trading accounts as well as trader psychology. Nothing hurts more than losing money on a trade despite being right about the market direction. Day traders operating on the premise of quality over quantity by utilizing minute charts, or perhaps even minute charts, are generally aiming at higher profit targets than someone initiating positions based on five- or minute charts.

If you are unfamiliar with weekly options, they are those listed by the futures exchange that expire on a weekly basis rather than a monthly forex trading addiction brain, which has traditionally been the norm. There are also weekly options on some commodities such as the grains and crude oil, but most day traders are applying their efforts to the stock indices due to favorable liquidity.

This approach might not make sense for those traders utilizing extremely short time frames with small profit targets. Again, we will tackle this issue in more detail later on, but I wanted to introduce the idea here because it is relatively unconventional, despite being potentially helpful to a day trading strategy. Stop-loss orders have the ability to cause more harm than good to countless traders. Those who scalp futures contracts are seeking to profit from small market moves that seem inconsequential to most trading strategies.

Scalpers believe because a market never sits still, they can profit from the ebb and flow that occurs as each market participant buys or sells a futures contract. In many cases, scalpers are targeting a mere tick or two in price movement. Because of the relatively low-profit potential per trade, scalpers are playing a volume game. They are rarely trading one or two contracts at a time. In order to make a scalping strategy worthwhile, it is necessary to trade high quantities of contracts in a clip.

As you can imagine, this strategy is a dream come true for those benefiting from the trading costs of a scalping account. Contrary to what most would believe, the futures exchange itself reaps most of the rewards from the transaction costs paid by scalpers because exchange fees are constant regardless of how much commission is paid to the broker. So if you are a scalper and the CME reports better than expected earnings, you should know you played a part in that.

Most scalping strategies involve attempting to buy the ask and sell the bid in any particular futures market. This goes against the norm. A trader placing an order to buy a futures contract at market price would receive a fill at the current ask price, if he placed an order to sell a futures contract at the market he would receive a fill at the current bid price. A trader entering a futures contract at the market price is immediately sustaining a paper loss in the amount of the spread and the transaction costs.

This is easier said than done. From a purely mathematical standpoint, it is difficult to justify a scalping strategy. Yet some traders with quick fingers or computer programming prowess swear by it. To do this, he might place a limit order to sell a contract at the ask and buy at the bid to profit from market ebb and flow. Predicting the ability to do so often stems from judging the working limit orders of other market participants via a depth of market DOM panel.

If you are unfamiliar with a DOM panel, it is a price ladder displayed within most futures trading platforms offering its users a glimpse into the currently working limit orders in a particular market. For instance, it will display the best 10 bids working buy limit orders and the best 10 asks working sell limit orders. Accordingly, traders can see which prices within immediate reach of the market might have the most buying or selling interest. This makes sense, because a market order is filled immediately.

Nonetheless, market orders are done by the most motivated buyers and sellers and often have the biggest impact on price. In general, if there are more sell limit orders working than buy limit orders, the scalper assumes he will be able to buy the bid as those seller orders are filled and prices are temporarily depressed. Likewise, if a trader spots a market with more buy limit orders immediately under the market, he might believe he can sell the ask as those orders are filled and prices are temporarily boosted.

Some scalpers take the opposite approach. They believe if the DOM panel is displaying more sellers than buyers, they will be able to sell a contract and buy it back a tick or two later after the sell orders are filled and prices have fallen accordingly. Similarly, if the DOM panel suggests more buyers at prices near or a tick below the market price, a scalper might go long in hopes the filled orders will cause prices to tick higher.

Once again, you can see there is more than one way of looking at market conditions and signals, and there are even more strategies attempting to exploit them. The only judge is the bottom line of a trading account statement. It is also worth noting that, although these two approaches to scalping involve a vastly different thought process, both methods could work. We cannot deny that even in directionless markets, prices tick up and down as time goes on.

This is all scalpers need to potentially profit. Scalping is a much more refined skill than it appears to be on the surface. Due to extremely high transaction costs and relatively aggressive position sizing, scalpers can make or lose a substantial amount of money quickly. If your preference is to employ a conservative trading strategy, look elsewhere. Despite low monetary risk per contract for most scalping strategies, the price action in such a narrow time frame is largely random, and high transaction costs are a difficult burden to overcome.

In addition, the practice of scalping in the traditional sense requires more nimble fingers than the average trader likely has. It is not suitable for everyone! Sign up for a free trial of our futures trading newsletters by clicking here. Carley Garner is an experienced commodity broker with DeCarley Trading, a division of Zaner, in Las Vegas, Nevada.

After graduating from UNLV as a Magna Cum Laude, Carley jumped into the options and futures industry with both feet in early and quickly became one of the most recognized names in the business. Despite modern technology, two driving forces in the markets remain very influential. What are these two driving forces?

Emotions are inherient in people, thus in the markets too. One can attempt to play the hockey stick to the upside for sure. If right, one can make a good deal of money. How does one know when the hockey stick is about to take off? I am more comfortable doing the opposite…when fear is high and panic is seen in the actions of people on TV, Co-workers, friends, family and sometimes ourselves. I came up with these buy points above by using three different tools …. InVIX hit 40, XIV got smashed and set up a good buy point.

Some day the VIX will hit 30, 40 and could hit 50 again! If the VIX hits 30 to 50, most likely some type of panic is taking place in the world. Help yourself to not fall into the panic trap, by having a plan of what you will do when the VIX turns up like a hockey stick. I am watching the price of XIV, momentum and the fear ratio on a daily basis. I will keep you informed of when to take action from my end…. Also have a plan for yourself too! Kimble Charting Solutions blog CLICK HERE to see Chris discuss the most dominating themes in the markets and forex trading addiction brain pattern analysis and perspectives to empower members to make better investment decisions.

If you would like to receive access to my daily research I post each day, SIGN UP HERE! Chris Kimble is the founder of Kimble Charting Solutions. He has a simple goal for his investment research - to help people to enlarge their portfolios, regardless of market direction, by looking for patterns at extreme points of exhaustion with a high probability of reversing. He calls that TBNM: tops, bottoms, no middles. His intent is to simplify the decision making process. Chris has been in the financial services for over 30 years and has spoken with many individuals and financial professionals.

The common desire among all, including him, is to enlarge our portfolios with the least amount of risk. If you were caught by surprise in and suffered losses that went beyond tolerance, you are not alone. Many still continue to find it difficult to make confident investment decisions. Chris Kimble believes the noise from media sources, and in our own heads, plays a significant factor in making good self hypnosis for forex trading education decisions, that is why his research is intended to simplify investment decisions and increase confidence with charts that are clear as to the pattern at hand and action to take.

This e-book is about trading techniques, a quintessential topic because without a solid technical method, traders will absolutely drive ourselves crazy. Discretionary trading is psychologically the most challenging work experience you are likely to ever have, unless you are in the military. Because it will feel like your own mind is working against you… which is what crazy people feel.

The personality analysis will then lead directly into a discussion of gut-based trading. This is the only way to have sufficient confidence to endure drawdowns without feeling compelled to re-design the method. If you are constantly changing your method, i. Markets do evolve, of course, but if your method has a positive expectancy, change it as infrequently as possible. Generally, sticking with one method that you have absolutely mastered is better than trying to develop a different method for every market mood.

However, most traders have no idea what their trader personality might be. I use my own 5-Type model, which is easy to understand. Trader personality fundamentally influences how you define risk and reward. A Warrior personality, such as found in most Chicago-trained traders, is generally risk-seeking and much less methodical than an Engineer personality, which is likely to be risk averse and very disciplined.

Warriors will often use market orders to enter in a general area of interest, usually at an extreme, and many are contrarians, forex trading addiction brain look to play reversals. Engineers, on the other hand, tend to feel more comfortable using limit orders for a satisfyingly precise entry after the Warriors have taken their positions, and then might look for trend continuation. Of course not all Warriors are countertrend traders and not all Engineers are trend followers, but I would argue that most Warriors are risk seekers and most Engineers are risk-averse.

Bottom line: Your personality is already influencing your trading because it determines how you define opportunity, risk and reward. According to my research, trader personality is a combination of 5 different styles, and the best traders are not overly expressive of one single type. Rather, they are integrated hybrids and that hybridization process happens slowly, as traders mature. In the end, Warriors must become more methodical and Engineers must become more comfortable with risk in order for each to fulfill their trader potential.

Warrior traders trade from the gut all the forex trading addiction brain. They think with their gut and act from their gut and their account balances usually fluctuate wildly. Fortunately, psychologists recently discovered that there is a brain in the gut, so Warriors do have a fighting chance. Their main challenge is keeping losses small because they are natural risk-seekers.

And regardless of your personality type, the more intuitively you trade, the more carefully you need to manage losses, or they will get out of hand. ARE YOU TRADING RISK OR REWARD? Without a steady supply of risk, Warriors get bored and feel useless. But for the average non-Warrior traderrisk is not their friend. Their ideal fantasy is a market without risk. In analyzing a potential trade, they only think about how much they could make. But if you have not planned and prepared to lose, trading Reward sets you up for shock and disappointment when the market suddenly moves against you.

Every loss is then a small trauma for the blindsided Reward trader. And in that panicked emotional state, you are likely to make mistakes, which will result in some of those small unrealized losses suddenly becoming large realized ones. They are lucky if they can stay at breakeven. Trader development is largely about integrating complementary personality qualities hybridization, as noted above and making the shift from trading Reward to trading Risk. In my own trading, this means using my professional trading to read price action psychologically.

I trade futures and I try to determine where the Reward-driven Traders are likely to stop themselves out. I prefer to wait until a group of Reward Traders suddenly change their minds and now believe that they have made forex trading addiction brain mistake. This motivates them to liquidate their positions at a discount. HOW TO MAKE THE MINDSHIFT.

If you want to make the transition from trading Reward to trading Risk, the following material might be useful for you. Below is a summary of a video I produced on Trading from the Gut and a link to the downloadable video file, which is just 5 minutes long. Looking at a cold chart, trading looks seductively easy. Hindsight is a beautiful thing. The lure of hindsight is that we imagine that somehow we could have or should have known what was going to happen at pivot X… or pivot Y.

We like to imagine that we could have taken advantage of the big drop or the big rally. It fuels the primitive hunter in us who constantly stalks the big trade. Curiously, more dopamine is generated by the thought of potential reward than by the actual reward. This is what kept those hungry hunters going for days and it motivates traders to dream big and be over-focused on reward dinner. If you are chronically low forex trading addiction brain dopamine which has a genetic cause one of the best ways to raise it is to imagine great trades.

The harm comes when we act on the fantasy… with real money. And then use our factual knowledge to justify the imagined scenario. Of course, casino operators rely on this all too human quirk to keep customers playing as long as possible. But in trading, the trader is the casino… the player, the dealer and the pit boss. I used to work in addiction recovery centers.

Once we take action on a fantasy, we become so psychologically invested in our imagined outcome which constantly shoots dopamine into the brain circuits that we will ignore all disconfirming information until reality pulls the needle out and slaps us forex trading addiction brain upside the head. Unfortunately, intuitive traders rarely learn from their mistakes, which means they keep trying until they run out of funds.

Indeed, trading intuitively from the gut is one of the fastest ways to blow up an account. Faith was a math and programming whiz when he was 19 years old, which is why he was selected by Richard Dennis, but he abandoned that skill later in life, went to the opposite extreme and has not yet come back to the middle. For his sake I hope he finds it.

Intuitive trading is based on the fantasy that we now have or can have privileged information about the future. Clouds make patterns, too. I see faces, you see animals, one person sees monsters, another sees angels. For survival purposes, our right brain is designed to identify patterns as quickly as possible. Second, risk analysis is lacking, because each intuitive idea feels like a sure thing. Most intuitive traders trade naked, i. Trading is like driving. Driving forex account demo gymnastics a discretionary and intuitive activity that gets you from Point A to Point B, but you first need to have a car and know and obey the rules of the road.

The video that accompanies this article includes some special affirmations that might help you change this behavior. They are embedded in a special neuroprogramming audio track that promotes whole brain learning. YOU CAN DOWNLOAD THAT FREE VIDEO BY CLICKING HERE! You can sign up for more videos HERE! Kenneth Reid is a seasoned trader, trading coach and educator with a Ph. Reid began stocks trading for his own account in In he was hired by a company in Connecticut as a model portfolio manager, newsletter editor and market strategist.

He retired in to pursue his futures trading and coaching practice full time. Reid works with private traders, Registered Investment Advisors, as well as hedge fund and bank traders. His website is www. Active investors can limit wash sale losses calculated between their individual taxable investment accounts and IRAs with an entity account. Business traders solidify trader tax status TTSunlock employee-benefit deductions, gain flexibility with a Section election and revocation and limit wash-sale losses with individual and IRA accounts.

For many active traders, an entity solution generates tax savings in excess of entity formation and compliance costs. An entity return consolidates your trading activity on a pass-through tax return partnership Form or S-Corp Smaking life easier for you, your accountant and the IRS. Additionally, entities help traders elect Section MTM ordinary-loss treatment later in the tax year — within 75 days of inception — if they missed the individual MTM election deadline on April The new entity can pass through capital gains if you skip the Section MTM election to use up those capital loss carryovers.

After using up capital loss carryovers, your entity can elect Section MTM in a subsequent tax year. Trading in an entity can help constitute a performance record for traders looking to launch an investment-management business. Finally, many types of entities are useful for asset protection and business continuity. A separate legal entity gives the presumption of business purpose, but a trader entity still must achieve TTS.

Avoid wash sales with an entity. Active investors in securities are significantly impacted by permanent and deferred wash sale losses between IRA forex trading addiction brain individual taxable accounts. Trading in an entity helps avoid these problems. The entity is separate from your individual and IRA accounts for purposes of wash sales since the entity is a different taxpayer.

An individual calculates wash sales among all their accounts. In that case, the entity will not avoid wash sale loss treatment. If the entity qualifies for TTS, it can consider a Section MTM election exempting it from wash sales on business positions, not investment positions ; that also negates related party rules. Play it safe on related party transaction rules by avoiding the repurchase of substantially identical positions in the new entity after taking a loss in the individual accounts.

Business traders: consider an entity. Many active traders ramp up into qualification for TTS. They wind up filing an individual Schedule C Profit or Loss from Business as a sole proprietor business trader the first year. They deduct trading business expenses on Schedule C and report trading gains and losses on other tax forms.

They can even elect Section MTM by April 15 of a given tax year to use ordinary gain or loss treatment recommended on securities only. But a Schedule C owner may not pay himself compensation and the Schedule C does not generate self-employment income, either of which is required to deduct health insurance premiums and retirement plan contributions from gross income. The business trader needs an entity for those employee-benefit plan deductions. We recommend pass-through entities for traders.

The owners are the taxpayers, most often on their individual tax returns. Consider marriage, state residence and state tax rules including minimum taxes, franchise taxes and more when setting up your entity. Report all entity trading gains, losses and expenses on the entity tax return and issue a Schedule K-1 to each owner for their respective share — on which income retains its character.

For example, the entity can pass through capital gains to utilize individual capital loss carryovers. Or the entity can pass through Section MTM ordinary losses to comprise an individual net operating loss NOL carryback for immediate refund. The best types of entities. You can form a single-member LLC or multi-member spousal LLC and the LLC can elect S-Corp tax treatment within 75 days of inception or by March 15 of the following tax year.

Another option is to form a corporation and it can elect S-Corp tax treatment, too. A general partnership can also elect S-Corp status in every state except Connecticut, the District of Columbia, Michigan, New Hampshire, New Jersey and Tennessee. But the S-Corp is not feasible alone in some states or cities, including California and New York City. In those places, we suggest a trading company partnership return — either a general partnership or LLC — and a management company S-Corp or C-Corp.

You can convey interests in the pass-through entity to family forex trading addiction brain trusts or even irrevocable trusts. There are important tax matters to execute with entities before year-end. For example, S-corps and C-corps should execute payroll before year-end. A Solo k defined contribution plan or defined benefit retirement plan must be established before year-end. Active traders qualifying for trader tax status TTS maximize these deductions in the following ways: Use the square footage or rooms method to allocate every expense of your home including mortgage interest, real estate taxes, rent, utilities, repairs and maintenance, insurance and depreciation.

The IRS limits use of HO expenses by requiring business income to offset the deduction, except for the mortgage interest and real estate tax portion. Link the HO Form to TTS trading gains or transfer some to Schedule C to unlock the HO deduction. If you have trading losses, carry over unallowed HO deductions to subsequent tax year s. Converting personal home expenses to business use is great. Additions and improvements to office. Consider an addition or improvements to your home office like building more space, replacing windows, walls, and flooring.

Depreciate residential real property over 39 years on a straight-line basis. If you rent or own an outside office, depreciation rules are more attractive. PATH extended bonus depreciation through Beforethe Forex trading addiction brain threshold for capitalization with depreciation vs. PATH made permanent generous Section limits. The IRS limits the use of Section depreciation by requiring income to offset the deduction.

Look to business trading gains, other business income or wages, from either spouse, if filing joint. Increasingly, traders are writing computer code for developing automated trading systems. Traders may qualify for TTS using automated trading systems providing they write the code or have other significant involvement with creation and modification of the automated trading systems. Education, mentoring and seminars. All three are considered education expenses and tax deductibility hinges on qualification for TTS.

Education business expenses paid after the start of your business are allowed for maintaining and improving your business. Learning a new business before starting that business is not allowed as a business expense. If you are learning about investing while carrying on an investment activity, that education expense is not allowed as a Section investment expense by Section h 7.

Tip: If you pay for trading education services before qualifying for TTS, consider using Section start-up expenditures treatment below. Section start-up expenditures. Start-up expenses include costs to investigate and inquire about a new business. Costs capitalized in Section would have to qualify as a business expense if paid after business commencement.

Amortize the remainder of the costs over months on a straight-line basis. If you exit the trading business, you may write off the unamortized balance. Under Section for corporations and Section for partnerships, treat expenses to organize or form an entity in a similar manner as Section start-up expenditures. Deduct health insurance premiums from individual AGI if you have an S-Corp trading company paying you W-2 wages which include your premiums.

The plan must be in association with your small business and not a third-party employer plan for you or your spouse. Deduct health insurance premiums during the entity period, not before. This S-Corp wage component for health insurance premiums is not subject to social security and Medicare taxes, so enjoy the income tax savings with no offsetting payroll tax costs.

A C-Corp management company deducts health insurance premiums on the corporate tax return. Most traders with TTS should consider a Solo k retirement plan. Consistently high-income traders with TTS should consider a defined benefit plan if they are close to age With one exception: Futures traders using full exchange membership have self-employment income Section i.

Work with an actuary on complex DBP calculations. Business traders have a wide variety of other expenses including independent contractors and employees for trade assistance and IT, market data providers, charting software, chat rooms and trading groups, subscriptions, books, periodicals, attorneys, accountants, tax advisors and more. Upper-income taxpayers face additional limitations: a Pease itemized deduction phase-out and AMT taxes since investment expenses are an AMT preference item.

Learn how to qualify for TTS on GreenTraderTax. He has also appeared on CNBC, Bloomberg Television and Forbes. He is the main tax speaker at the MoneyShow University and Traders Expo, and he teaches trader tax for CCH and state CPA societies. Green develops and leads our tax strategies, including our trader tax niche. Green is forex trading addiction brain involved with tax controversy, including IRS and state exams, appeals and tax court.

Green co-manages operations on the CPA firm, too. There is a very high degree of risk involved in trading. Past results are not indicative of future returns. The indicators, strategies, columns, articles and all other features are for educational purposes only and should not be construed as investment advice. Information for futures trading observations are obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information.

Your use of the trading observations is entirely at your own risk and it is your sole responsibility to evaluate the accuracy, completeness and usefulness of the information. By accessing this book your information may be shared with our educational partners. You must assess the risk of any trade with your broker and make your own independent decisions regarding any securities mentioned herein.

Printed in the United States of America. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of Sir Isaac Publishing. How to Get the Most Out of This Book. Most of the strategies in this book are divided into three sections:.

The strategy is then thoroughly explained along with illustrations and examples. In short, you will have all of the information you need to trade your new favorite forex trading addiction brain tomorrow. Some of the things you will learn in this book are:. How to Spot High-Probability Setups with the Ichimoku Cloud. How to Eliminate the Noise of Popular Indicators and Find Precise Entries. Using a Simple Strategy that Targets Moves by Institutional Investors. And much, much, more.

At ChartExpertsit is our sincere hope that you take away several strategies that you can use when you are done reading this book. Joshua Martinez, MarketTraders, Inc. This FREE guide reveals. My 1 Day Trading Technique: The Hoffman Inventory Retracement Bar IRB Trade. By Rob Hoffman, BecomeABetterTrader. Rob Hoffman is time domestic and international trading champion trader who has won more live, real-money only, domestic and international trading competitions than any other trader in the entire world.

My Favorite Day Trading Technique. By Hubert Senters, HubertSenters. My Favorite Day Trading Strategy. The Rubber Band Reversal Strategy. At Learn to Trade for Profit, we have one goal and it's pretty easy to guess- we want to help traders and investors of all levels, all walks of life, all types of goals and motivations, anywhere in the world, aspiring to trade any market Learn to Trade FOR PROFIT.

We don't sell anything, we just offer the best training and education at no cost. By Mohan Wolfe, BoomerangDayTrader. Day Trading and Algorithmic Trading in Futures. By Carley Garner, www. Taking Advantage of Falling Fear. By Chris Kimble, KimbleChartingSolutions. Trading From the Gut: Is it a Good Thing?

Forex Trading versus Gambling at the Casino

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