If you trade any financial market, you will be aware that the majority of investors simply don’t make money. It’s not because they lack trading ability – investors don’t make money because they don’t understand trading logic.

A focus on trading logic is essential for any trader who seeks to make money. Forget, opinions and emotions, and focus on the reality of the trading environment - you can then apply trading logic, to make huge profits consistently.

Here are some observations of trading logic, and how you can use them to your advantage.

The Market Price

Firstly, before we look at anything else, we need to look at what moves financial markets:

Supply and demand (fundamentals) + Investor perception = Market price

Therefore, prices are determined not just by supply and demand - but also by people. So, what does this trading logic tell us? - Predictive theories don’t work, but odds theories do work.

There are lots of theories that claim markets move to a scientific theory - this isn’t true - if they did, then everyone would know the price in advance - and there would be no market!

Correct trading logic tells us that while we don’t know exactly where prices are going to go, we can calculate the odds of a move - by studying price history.

While human nature is unpredictable – driven by the emotions of greed and fear, there are patterns that constantly repeat – and this leads us to technical analysis.

Human Psychology Repeats Itself

Trading logic tells us that human psychology repeats itself - because we can see it in charts.

Although there’s never a perfect scenario, we can calculate the odds of success of a trade - based upon what happened in the past. Therefore, by using a soundly based trading method, we can make money - over time.

Day Trading V Long Term Trend Following

From the above, trading logic tells us that day trading is futile. Why? - Because human nature is very unpredictable over short-term time spans. Human nature only becomes predictable over long-term time spans. Look at any currency, (or any financial instrument over time) and you’ll see long-term trends - and they’re the ones you need to focus on.

Emotions are a Trader’s Worst Enemy

Traders hate to trade alone - they constantly seek opinions, and success, from someone else. As the bulk of traders get it wrong, they step into the trading majority and find themselves caught up in a losing mentality.

The only way to trade successfully is in isolation - using trading logic to look at the facts, not what others think.

Trade Entry and Exits

Trading logic tells us that market timing is futile. Why? Because you cannot predict - and that’s what market timing tells us to do. Therefore, you should follow market action - rather than try and predict it. This means leaving top and bottom picking, to the losing majority.

Using the two indicators outlined here, with your currency trading charts, will help you gain a trading edge – and the chance to bank huge profits.

Let’s look at these indicators individually, with currency trading charts - and see how you can combine them for huge profit potential.

Indicator #1 - The Stochastic

This is the best short-term indicator of all, for defining the strength of the trend.

Stochastics are great at warning of corrective moves against the primary trend - and for swing trading in non-trending markets.

Generally speaking, indicator values over 75 are considered overbought, and below 25 oversold. An over bought market simply means that a pullback will occur when the market is over sold, and a rally is due.

In consolidation periods, you’ll see on currency trading charts that this indicator is extremely accurate. However, during strong trends, it can be misleading. In strong trending markets only, consider divergences in the overbought zone to be important. In addition, an up turn from oversold areas - or near midrange, can warn the trend is resuming.

Advantages - use on your currency trading charts for entry and exit positions. Also, use Stochastics in periods of consolidation, to swing trade - and in trending markets, to take profits, or load up positions.

Indicator #2 - The Bollinger Band

If you use futures trading charts, but you have never used this indicator, then you should! Why? - Because, it’s a great indicator for defining entry and exit levels, in trending markets - and it also to warns of trend changes.

Bollinger Bands really are a great indicator - but very few traders really use them properly.

On currency trading charts, the Bollinger band indicates overbought and oversold levels, relative to a central moving average - with a band either side.

On futures trading charts the following rules generally apply:

Contracting bands warn that the market is about to trend:

The bands converge into a “narrow neck” - followed by a strong price movement. Note: The first breakout can be a false move - preceding a strong trend in the opposite direction.

A move that starts at one band normally carries through to the other, in a consolidating market.

A move outside the band indicates that the trend is strong, and likely to continue - unless price quickly reverses.

A trend that hugs one band indicates that the trend is strong and likely to continue. Wait for divergence on a momentum indicator, to signal the end of a trend.

A trend that dips to central band in trending market - if it holds central band, then this normally means that the market will reverse - and continue to primary trend.

Advantages - on currency trading charts, Bollinger bands indicate the strength of the trend, and they can be used to enter and exit positions.

By themselves, Bollinger bands can give many false signals - but combined with the stochastic, they prove to be a very powerful tool.

According to experts, you must think of your trading as a business and the stocks that you hold as its inventory. You can’t allow yourself to fall in love with and thereby hang on to a stock out of loyalty. You will find it especially hard to admit you have made a mistake; nevertheless, you have to bite the bullet and exit the position before you take a huge hit. You will discover that housecleaning and developing successful strategies for keeping your inventory current are important parts of managing a online stock trading portfolio.

Setting a target price for exiting a position before ever trading into it is the best way to protect your business from major losses. Stick with those predetermined price stops and you will avoid a major pitfall that many traders face- holding a position too long and losing everything. You obviously don’t want to turn a profit into a loss, so as your position in a stock produces a profit, you can periodically raise your target exit price while continuing to hold the position to ensure that you keep most of that profit.

Understanding your risks- market risks, investment risks, and trading risks helps you to make better online trading decisions. Understanding the basics of business cycle can help you improve your trading successes. It is important to identify periods of economic growth and recession and how these differing period’s impact bull and bear stock markets. You can also explore sector rotation and how to use it to pick the right sectors for your trading activities.

You can also discover plenty of information about how money supply, inflation rates, deflation, joblessness and consumer confidence impact the mood of the market and stock prices and how the economy can be driven how confidently (or not) political and monetary leaders speak out about it.

All sites that offer futures trading services also have extensive analysis available for market players as well. These services are offered along with the downloadable trading platforms available to subscribers to the site.

Analysis of futures gives information to hedgers and speculators regarding the world markets. Analysis is synthesized from global market performance and takes into account various factors that can affect prices, including weather, reports on stock exchanges and current political news. Since the futures exchange is so dependent on information and inherently sensitive, it requires a lot of understanding to make the right decisions. If you are not so confident on winging it on your own through the futures trading portals, then what you need is current, good analysis that will help you with your decisions.

Most online trading platforms offer these to all their account holders except for those who have taken the discount trading option. The analysis is offered in both text and audio formats, and is tailored to the particular futures you choose to trade in. The analysis is vital for any investor seeking to enter into futures trading since they are more sensitive to extraneous factors than any other kinds of stock, with the exception of actual commodity trading.

It is important, therefore, when choosing your online trading brokerage, to make sure that they offer analysis as well as part of their services – the analysis can be part of the trading platform or be given to the investors through 24-hour customer support executives who will provide analysis to those who request it. It is wise to go through the account options and the services they offer carefully before making a leap into futures trading, since you are investing a lot of money in the market

In case you were wondering, though, we did not get into any trade. So, you didn’t miss any profits.

On another note, please keep an eye on your inbox today. We are going to be sending you all an invitation to join us for the “Trading In Black And White Forex Trading Contest”. This is a brand new contest, and if we may be so bold, a great opportunity for all of you to win some prizes. You’ll see on the webpage that we send you to that there is a reward for just signing up.

So, let’s move on to the trading part of the broadcast.

We had another test of the high 1.8800’s which failed. Not a huge surprise, considering the obvious bearish divergence between the MACD and the price on the Hourly chart.

Over the last few weeks, we have been trading at levels that are very difficult for us to read. The majority of the indicators that we favor have been worthless over this time.

We remain within these “difficult” levels today. So, we tread lightly with our trading as to avoid any major losses.

It is important to know when to put the fuel on the fire and when not to.

With all that being said, let’s move on to looking at tonight’s trading.

While in this “no-man’s” land we tend to favor one sided trading. This means that we do not look for both long and short trades. We look only for one or the other.

We have decided to look for a short trade, but this in no way means that there isn’t a good long trade to be had. This, again, shows why it is so important for you to learn and perfect YOUR OWN trading style.

Several of our traders believe that there are good support levels at 1.8650 and 1.8600. They have valid reasons to believe this, but they do not meet our standards of entering trades.

We, on the other hand are going to look towards the high 1.8700’s and low 1.8800’s for a chance to short Cable.

We know that this has not been one of our most informative newsletters, but we try to share with you our personal thoughts. And, tonight we have not been able to confidently decide anything.

These trading levels are confusing to us. In fact, some of the traders are looking forward to sleeping in tomorrow, since they won’t be making any trades tonight.

This just goes to show you that different trading styles exist, and many of them work. It’s just a matter of finding what makes the most sense to you.

If you use U.S. dollars in large quantities either as an American living in the U.S., or if you are a businessman that lives outside of the U.S but pays vendors in U.S. dollars, or if you are an American expat living overseas crying buckets everyday as the dollar buys less and less of the foreign currency of the country you are living in, then this article is for you.

Don’t be fooled by U.S. Federal Reserve Chairman Bernanke’s comments in mid-2006 which fueled fears about the Feds raising interest rates. Oh this will happen, and the dollar will temporarily strengthen, but after that, say sayonara to the dollar’s strength. If you aren’t familiar with the overhwelming arguments for the dollar continuing to weaken over the next year, then perform a Google search of my article entitled “The Biggest Threat to the Global Stock Markets that You Haven’t Heard About Yet” and read it carefully. But now on to the main point of this article – How to protect yourself against a falling U.S. dollar.

If you’re a business that pays vendors/suppliers in large quantities of U.S. dollars the best strategy to protect yourself against the weakening dollar is to buy forward spot contracts that lock in today’s exchange rates for future accounts payables. Any respectable international banking institution has an F/X (foreign exchange) desk that can handle this. If you’re an individual investor, then the simplest is just to buy foreign currency. Of course you could engage in the much more lucrative active trading of foreign currency, but in this case, I hope you have time to sit in front of your computer all day. So I’m just going to discuss the simpler case of buying foreign currency and the options you have.

If you buy foreign currency from the Foreign Exchange desks of large institutions like Citigroup, often you won’t start getting really good rates unless you purchase blocks of foreign currency worth U.S. $200-250,000 or more. So if you don’t have that much to hedge against a dollar that is most likely to weaken for the remainder of the year, what can you do if you would like to takeadvantage of the falling dollar?

Well if you contact institutions such as Citibank, they offer foreign currency “baskets” usually containing foreign currencies from four or five different countries. For example they offer an Asian foreign currency basket, but initial minimum positions are U.S. $50,000. This is option number one. And you can also buy Euros directly from them although you won't get the more competitive exchange rates at lower purchase amounts.

So what if you don’t want to hedge $50,000 of your current portfolio with foreign currency? Then you can use Everbank. Everbank offers CDs that in essence, or similar in structure to Citigroup’s foreign currency baskets. Actually many banks do, but I'm suggesting Everbank because of the several I scoured, Everbank allows you to buy in at much smaller positions. You can buy 3, 6, 9, or 12 month CDs denominated in a single foreign currency such as the Euro, the Canadian Dollar or the British Pound. Or you can purchase foreign currency “basket” CDs. For example, Everbank’s Asian Advantage CD consists of 40% of the New Zealand dollar, 20% of the Japanese Yen, 20% of the Thai Baht, and 20% of the Singapore Dollar. And you can buy these CDs at a lower minimum investment of only U.S. $20,000.

If you’re a maverick, Everbank even offers a "Bullish on the U.S. dollar" CD, but it's not at the top of my list right now.

Happy Monday. We hope you all had an awesome weekend and that we can get our week off to a nice start.

Just a quick recap of our trading from last week. We did not get into many positions. In fact, we only entered into one.

It was a short at 1.7490 for two positions. The first was closed making 40 pips, and the second making 80 pips. All told, 120 pips on the trade.

And, that was it. We missed one entry by only a few pips, which would have made us an additional 200 plus pips. But that’s ok. That’s how WE trade.

I stress WE, because there are some other traders that we speak to on a daily basis that had a much better week last week.

It just goes to show that any and all of you can outperform us in any given week.

So, we reached our goal of 100 pips last week, and look forward to getting there again this week. Yes, our goal is 20 pips per night, or 100 pips per week. Sometimes it gets spread throughout the week with winners and losers, and sometimes it happens exactly as it did last week.

One trade, one win, one goal.

Now, moving on to tonight’s trading outlook.

We’ve entered into a very tight range of consolidation as of June 8th.

As a general rule, consolidation is usually a pause in a larger move. Also, as a rule, the next move, following consolidation, usually goes in the direction of the move previous to the consolidation.

In this case, down.

So, we are going to look for some good short opportunities on a pullback.

Some resistance levels to watch are 1.8480, 1.8520, 1.8560, and 1.8620. Keep an eye out for good price action at these levels to determine where to enter a trade.

Also, only play levels that make sense to YOU.

Make sure that there are enough reasons that you agree with before entering into any trade.

Other than a pullback, you can also look to get into a trade if Cable breaks below the previous low.

We see a potential support level at 1.8340 which is not far below the previous low of around 1.8360. So, we will not try to play a short there.

However, beneath 1.8340 we really don’t see much until 1.8270. Of course, you will have to watch the whole number at 1.8300 to see what happens there, if you are already short

Trading currency exchange will carry certain level of risk which may not fit all investors' appetite. Prior to trading, investor should take into consideration of their experience level, monetary objectives, financial management plan and risk-bearing. The Traders need to be aware of the following risk as stated below while trading in currency exchange.

Credit risk

Due to the intended or unintended action by counter party, an outstanding currency position may not be paid off as agreed due to voluntary or involuntary action by counter party.

Replacement risk

When you are not able to get refund from the counter party and induce your account deranges, instantly clear off your books to hold the currency price rate.

Settlement risk

Due to different prices at different time zones between you and your counter party, transaction payment may need to be declared insufficient money before payment is executed.

Exchange rate risk

Variation of currency rate is due to the worldwide market supply and demand. Price changes may bring to loss from profitable position.

Interest rate risk

Due to the variation of currency rate in forward spread , there might be some maturity gaps and transaction mismatch.

If you want to make money fast trading you need to catch the big trends and hold them. Most traders fail to catch the moves and if they do, they then fail to make the most of them.

Follow the advice here and you can catch the big trends and make triple digit gains.

1. Understand the long term

Making money fast is all about taking and holding the long term trend. This means focusing on the trends that last for months or even years.

Forget, trying to get small size moves or day trading, you will never cover your losses let alone make a profit!

It’s the big trends you need and they give big profits. PERIOD. Check any currency or commodity chart and you will see them, now its time to catch them.

2. Buy High

Most traders like to be in at the start of a trend, but most big moves start from market highs. As most traders like to buy “low and sell high” they never get in on the trend, they wait for a pullback that never comes.

Check any chart and you will see that the major moves occur from new market highs.

It’s hard to do this (and that’s why traders don’t) as you miss the first bit of profit. This is not a worry however, as you cannot predict a market turn, it’s best to get in on the market and make big profits when it breaks out.

So you missed some?

That doesn’t matter though if the trend piles up triple digit gains! Picking tops and bottoms is impossible, don’t try and predict the move wait for confirmation and follow it.

Don’t forget that a trend in motion is more likely to continue than reverse, so buying new highs is very lucrative.

3. Learn to accept huge gains

Most traders can’t do this, but it is the only way to make money fast.

Most traders get so excited they have a profit; they can’t contain themselves and take it, even if it’s small. They fear losing it, or even worse it turning into a loss. The bigger the profit the more tempted they are to take it.

As the market has normal small dips, they panic and then bank the profit and then see pile up huge gains.

To make money fast, you need the guts to hold the trend LONG TERM and below we will show you ways to make this easier for you.

4. Don’t move stops too quickly

If you trade a breakout to new market highs, the trend normally will accelerate quickly away from the breakout. If this happens, put stop below breakout and don’t move it too quickly.

Keep in your head that you need to allow the trade room to breathe and market to correct. Moving stops too quickly, is major reason traders get bumped out of a trend early, so don’t do it.

These markets have exploded to the upside today as we thought ( see previous articles) and traders who took the stochastic crossover have fantastic gains on the day.

Can this market continue its upward momentum? Let’s look at the trade in more detail.

Low risk and high reward trade

This market was trading near support, so it was a great place to enter if you were bullish, as the contracts were trading right at key nearby support.

While we said traders could enter at the support level, we waited for the stochastic crossover to confirm the move.

One of the most important points in trading an upward move is to look for some upward momentum (Even if you think support is going to hold) get confirmation of strength and the stochastic crossover got us the signal and in the market.

Can this market go to new highs?

We don’t know and neither does anyone else.

This market is driven by trader psychology more than anything else at present, but if we step back and look at the charts, we can see things with a clearer none emotional perspective.

A break above resistance points to test of the highs

The huge move up is seeing prices right at the middle of the Bollinger band (resistance), if prices can close above this level tonight or near the highs we would stay with the trade.

If prices get past the mid bollinger band odds favour a run to new highs.

It’s important here to keep an eye on how the trade finishes on the day and opens tomorrow. Watch for resistance at the mid Bollinger band and stochastic momentum to stay positive.

Note: Stochastics are great timing tool, to get into trades and the bollinger band represents a great way to define resistance, support and objectives. These two tools are a powerful combination when used in conjunction with charts - learn to use them and enhance your trading

Inflation. When inflation rate is down, banks would cut down interest rates to encourage economic activities. On the other hand, during high inflation, banks would increase the interest rates to discourage lending and spending. Hiking up the interest rates boosts the value of the currency. This is true in US where rising of interest rates by the Federal bank would encourage investors to capitalize on higher returns. What is the better way to measure inflation in a certain country rather than to refer its consumer price index? Each country may have different ways of measuring and inflation indication.You can actually identify the inflation rate by watching the housing market in UK which is considered more accurate representation.

Who exactly determines the rates? For the US dollar, the trader would be wise to watch closely interest rate decisions by the Federal Market Open Committee. FOMC meets regularly each year to determine key interest rates and to decide whether to increase or to decrease the money supply through the buying and selling of government securities. In order to know more about these decisions, the trader could read up on the FOMC meetings minutes released three weeks after the date of each policy decision. Speculations of a hike in interest rates would probably boost the dollar up. Playing similar roles is the Europe Central Bank, Bank of Japan, Bank of England and the Swiss National Bank. The Bank of Japan’s role is unique in the sense that it has to monitor the Yen and form monetary policies that will keep their exports from becoming too expensive.

Currencies also influence each other. As mentioned above, the Bank of Japan has to pay close attention to the market to make sure that their currency remains weak in order to maintain their high export rates. This is due to China’s reluctance to revalue the Chinese Yuan thus making China’s products more competitive. Meanwhile, the Euro is nick-named the anti-dollar, meaning that a fall in the dollar value will boost up the Euro. This is due to the Euro becoming the up-and-coming option for reserving currency as there is a possibility of the European economy becoming much stronger and also the chances of the dollar depreciating are risky higher due to long term deficits in trade balance. Plus, Japan holds a large percentage of their reserves in the US dollar.

A good economy means good currency value. A general picture of a country’s economy can be deduced from its GDP because it is a reflection of the country’s economical growth. For example, when dealing with the EUR/USD, the European GDP will help traders determine the growth of the European economy. Otherwise, when dealing with the USD/CHF, you should check up on the Swiss GDP for information on the growth and productivity of the Swiss economy. Similarly, the traders may also take note of the Japanese Industrial Production figures if they are interested in the USD/JPY.

Besides the GDP, there are other publications which provide the traders with invaluable insights of each major economy. The Swiss Institute for Business Cycle Research (KOF) conducts surveys from various industries, the retail and wholesale sectors and they use the data collected to predict the growth of their GDP for the coming 8 months. Such predictions might just help the traders to plan his future strategies in dealing with the Swissy. In Japan, the Tankan Survey is released quarterly each year and reports on the ratio of optimistic businesses versus pessimistic business. When dealing with the Euro, the trader cannot afford to overlook Germany because it is the Europe’s largest economy. Therefore, pay attention to the Germany’s IFO Business Climate Survey which also provides detailed reports and analysis on topics ranging from exchange rates to economic forecasts to social policies.

All four major currencies involve the US dollar and so it is only natural that a trader should pay attention to the US. Besides its GDP, watch out for reports on the US current account and the US trade balance. The US current account has been on the deficit for some time but a prolonged deficit is not necessarily a sign of a weak economy or depreciation in the value of the dollar. By monitoring the state of the US current account, the trader will be provided with merely an approximation of the US comparative advantage or disadvantage in the global economy which might influence the market. Similarly, a trade deficit does not necessarily reflect a bad economy. In fact, the trade deficit in the US has resulted in a fairly strong dollar compared to other currencies. Still, for economies which depend largely on export such as Japan, it is important that their exports exceed imports especially when China is beginning to be very competitive. Also for European countries, an excess of imports might just weaken the currency.

But a good economy also needs to be supported by a healthy employment rate in the country. For the US market, the trader can safely gauge the condition of the market by referring to the US Non Farm Payrolls which show the number of workers in various industries in the US, excluding employees working with the general government, private households, nonprofit organizations and farms. The market has become sensitive to these monthly reports due to the rumored possibility of a jobless recovery. Although the economy seems to be picking up, a slow employment growth seems to indicate a fragile economy which will have its impact on the market. Meanwhile, watch out for the UK unemployment figures when trading the GBP/USD and the German’s unemployment figures when trading EUR/USD. Again, the focus is on Germany because being Europe’s largest economy, its unemployment situation can be used as a representative of Europe’s current economic condition. At the same time, the US TIC data allows the trader to keep track of the total US securities being bought by foreign entities and also the exactly how much money it gets to finance itself. A decreasing TIC inflow may indicate that the fall of the dollar value. Nevertheless, consumer spending is also an important factor to pay attention to. Healthy spending is good news for the US because it will then reaffirm the dollar. This is the same for Japan. While the Japanese economy is driven primarily by its export sector, consumer spending is an important gauge of economic activity and prosperity.

In Part 2, of Designing a Trading System in MetaStock I covered how to code the first two of the four major components of a mechanical entry system. I had explained the coding of price and liquidity. In this article, I will cover the steps for coding the remaining two components, trend and volatility, into MetaStock. In the end, you will have the complete codes for a mechanical entry system.

Let's begin with trend identification. Remember, 'the trend is your friend' when trading. You always want to trade with the trend, not against it. Think of it this way, if you were swimming in the sea, and got yourself caught in a rip tide, is it easier to swim with the current or against it? It is the same with trading with a trend.

There are many ways to identify trends, and it's not particularly important which method you use. You just need to use one. One of my preferred methods for identifying trending stocks is to find stocks that are trading at their current highs. You can do this by stipulating that the highest high price must have been achieved in the last 'x' number of days.

Once again, the variables you use will depend on the time frame you are trading. But for this example, you want the highest high price in the last 240 days to have occurred in the last 20 days.

Using the formula reference section in the MetaStock Programming Study Guide, you can find the syntax of the highest high function, and then plug in the details. Then, using the 'less than' symbol, you can specify the number of days must be less than 20. In MetaStock language that would be:

HHVBars(H,240) 1.5 and

ATR(21)/Mov(C,21,S)*100 1 and

Mov(v,21,s)*C > 200000 and

HHVBars(H,240) 1.5 and

ATR(21)/Mov(C,21,S)*100 < 6

You now have now a workable entry system. Not only did you construct a robust system, but it also adheres to the KISS principal (Keep It Simple Simon). This system can be cut and pasted into the Explorer within MetaStock. However, the entry is only the beginning of a successful trading system. In later parts of this series, you'll find the rest of the components that you need to design a profitable trading system.

If you look at the leading 10 Exchange Traded Funds so far this year, you will see many of these funds are Emerging Market Funds. In general these funds are doing better then US Funds.

In spite of there strong performance, all Emerging Market Funds are not the same. You need to see what the underlying Equities are that make up these funds, and then look for trends.

The Foreign ETFs that are invested more in manufacturing are doing the best in this area now. This is a shift from what we have seen in the past. The Emerging market ETFs that previously have had the best performance were those that have invested in companies that income was based on commodities, especially oil.

Two of the leading emerging market exchange traded funds are iShares MSCI Brazil (EWZ) and iShares FTSE.XINHUA China 25 Index Fund (FXI). These funds are doing well and institutional investors are still showing confidence in these ETFs. This is a trend that has been developing over the last year.

The sector of Emerging Market Funds that now are showing signs of pullback are ETFs that invest in companies based on commodities. These commodities have been primarily oil and gold. Emerging market funds that have invested in this area have headed straight up in the last few years. At this point it looks like these funds are taking a breather.

One up and coming fund is iShares MSCI Japan Index Fund (EWJ). Japans economy is picking up and also giving a boost to other Asian stocks. Institutional investors are showing interest in this fund.

If you want to make money fast trading you need to catch the big trends and hold them. Most traders fail to catch the moves and if they do, they then fail to make the most of them.

Follow the advice here and you can catch the big trends and make triple digit gains.

1. Understand the long term

Making money fast is all about taking and holding the long term trend. This means focusing on the trends that last for months or even years.

Forget, trying to get small size moves or day trading, you will never cover your losses let alone make a profit!

It’s the big trends you need and they give big profits. PERIOD. Check any currency or commodity chart and you will see them, now its time to catch them.

2. Buy High

Most traders like to be in at the start of a trend, but most big moves start from market highs. As most traders like to buy “low and sell high” they never get in on the trend, they wait for a pullback that never comes.

Check any chart and you will see that the major moves occur from new market highs.

It’s hard to do this (and that’s why traders don’t) as you miss the first bit of profit. This is not a worry however, as you cannot predict a market turn, it’s best to get in on the market and make big profits when it breaks out.

So you missed some?

That doesn’t matter though if the trend piles up triple digit gains! Picking tops and bottoms is impossible, don’t try and predict the move wait for confirmation and follow it.

Don’t forget that a trend in motion is more likely to continue than reverse, so buying new highs is very lucrative.

3. Learn to accept huge gains

Most traders can’t do this, but it is the only way to make money fast.

Most traders get so excited they have a profit; they can’t contain themselves and take it, even if it’s small. They fear losing it, or even worse it turning into a loss. The bigger the profit the more tempted they are to take it.

As the market has normal small dips, they panic and then bank the profit and then see pile up huge gains.

To make money fast, you need the guts to hold the trend LONG TERM and below we will show you ways to make this easier for you.

These markets have exploded to the upside today as we thought ( see previous articles) and traders who took the stochastic crossover have fantastic gains on the day.

Can this market continue its upward momentum? Let’s look at the trade in more detail.

Low risk and high reward trade

This market was trading near support, so it was a great place to enter if you were bullish, as the contracts were trading right at key nearby support.

While we said traders could enter at the support level, we waited for the stochastic crossover to confirm the move.

One of the most important points in trading an upward move is to look for some upward momentum (Even if you think support is going to hold) get confirmation of strength and the stochastic crossover got us the signal and in the market.

Can this market go to new highs?

We don’t know and neither does anyone else.

This market is driven by trader psychology more than anything else at present, but if we step back and look at the charts, we can see things with a clearer none emotional perspective.

A break above resistance points to test of the highs

The huge move up is seeing prices right at the middle of the Bollinger band (resistance), if prices can close above this level tonight or near the highs we would stay with the trade.

If prices get past the mid bollinger band odds favour a run to new highs.

It’s important here to keep an eye on how the trade finishes on the day and opens tomorrow. Watch for resistance at the mid Bollinger band and stochastic momentum to stay positive.

Note: Stochastics are great timing tool, to get into trades and the bollinger band represents a great way to define resistance, support and objectives. These two tools are a powerful combination when used in conjunction with charts - learn to use them and enhance your trading.