How We Do It
We trade Currencies, Commodities & Indices. We like trading these markets because they provide high volume and liquidity. Less opportunity for manipulation and much tighter pricing than Stocks. Also we are able to trade in both directions Buy & Sell
Below are some examples of how we analyse the opportunities presented by these markets:
PLATINUM V USD DAILY CHART
Platinum is sitting just below a crucial level for this market. Will price be able to break this level, or will price hold and reject?
If price does breakout higher there is a lot of space to move into which could open the door for breakout trade setups. If price gets rejected by the current resistance Sell signals will come into play.
A key level now being approached and price looks to be grinding through. Have to be careful with these types of trades because price can often close below these types of levels and then bounce back through.
In trending markets, the profits can be immense. If you look at the chart for Kiwi Dollar you will see that we had 13 Sell opportunities on the way down. This is called Position stacking and multiplies the Profits significantly.
Let’s look at the recent price action for Oil – West Texas Crude. Oil has been on a severe downslide recently. Many traders have benefitted in this market. The chart below explains our approach to this type of price movement.
We are always looking to trade in both directions so there is much less chance of being trapped in a losing position. We use Stop losses for every single entry so as to control the amount of risk we take. If we get stopped out for a Profit or a Loss, we dispassionately move on to the next opportunity.
Anyway, we do not propose to go too much into the technical aspects of what we do. Suffice to say that with this trading style of investing one can expect significantly better returns than bank deposits or passive funds management.