OMG Millionaire Traders

Did you see the BBC2 documentary on last night, Traders, Millions by the minute??? Everything seemed to point at day trading. It was almost like long term trend trading didn’t exist.

I mean some of the utter madness that they showed was astounding. Computer screens here there and everywhere. Investing with no actual plan, just guessing market direction. No profits for 7 years. Unbelievable.

Funny thing was that they mentioned the richest people on earth of which many were traders. But I bet my last trading penny that none of them were day traders.

If you haven’t seen it, it’s on iplayer and you really must try to watch.

I was writing the script for the programme as it was playing. Like the mum that traded a demo account up to 1.6m. I sat there thinking wait until you use real money. And the guy that had been trading for 7 years and never made a profit. Crazy… why didn’t he try something else?

Also, not once did they mention the type of trading method or system the people were using.

In fact I’m sure some of them had no system at all. Even though some were of the thinking they had some insight, they were just talking garbage and had no idea.

The guy with the porche, who most certainly looked like he was making a good living; never gave an insight into his activities which I think should have at least been mentioned. He said he had been trading for 17 years so maybe he had something to share?

Supplying information on how to profit from the financial markets is not like supplying tips for horse racing. The price is not likely to be affected. So that guy had nothing to lose by spilling the beans really; even if not in its entirety. But he admitted to not making more than a £1000 a day after 17 years of practice. And obviously he had losing days.

There is just no way a day trader will beat a long term trend trader, that’s for sure. Yet so many people think day trading is the golden goose. Yes you could make a profit by the looks of things. But to make certain I’d need to test a system for a year. And there is no way I could honestly manage to do it. Or do it without going bonkers.

Day trading is so stressful. And that’s going to be whatever system you’re using to do it. But I get so many emails asking about it from one angle or another. Just what is the attraction?

One thing is for sure though, a least have a plan of attack before you start to trade. Even if it’s a plan to only break even, you’ll be gaining experience without the cost.

 

Binary Trading System

It seems like I haven’t had 5 minutes to myself over the last few weeks. From the last week of the summer holidays my partner and I have been working on a new website. Well let me re-phrase that, I’ve been doing a lot of writing for him as it’s his new venture.

I have written and re written a course that he will give away on the site, and even though it’s at last almost finished, the finish can’t come soon enough.

It has been really stressful and hard work. They say never work with family or friends, but seriously working with partners can be sooooo trying!

As I’ve said a million times before, trading is so much easier than most other things. But if you are like me and need to have something to do, you’ll find yourself in these situations from time to time.

Anyway his site will hopefully develop over the coming years and become a brand. It’s all to do with writing copy, SEO and advertising. It’s something he really wanted to do because he is very creative. He kept putting it off, amazingly through fear of failure in a roundabout sort of way. But as we all know, winners find a way and losers find an excuse.

So that’s what I’ve been up to, and checking my positions as always once a day.

Binary forex system

I’ve mentioned forex trading and binary’s before, and had planned to include this system in a new eBook. Instead I have decided to detail it in this post.

 

Pinbar Binary System

Binary option trading is a great opportunity to get started trading for a small bank but can also accommodate the largest of traders banks, so there’s plenty of room for you to make some serious money.

There are many ways to trade Binary’s and why many have their merits, I find most over complicated and the other inaccurate.

Unsurprisingly my favourite strategy relies on trends and price movement using simple candle charts and support and resistance lines. All you need to do is make a decision once you have identified the trend.

Getting Started

So first you start with a blank chart, remove all other indicators, so all you are left with is the candlestick chart. Use this for your charting, Meta Trader and it’s free.

Next, identify the direction of the trend. Is the trend moving up so you buy, or down so you sell?

Once the trend has been identified add support and resistance lines using the chart information.

Now what you are looking for is the moment the price rebounds off a support or resistance line and moves in the direction of the trend. This is when you look to place your trade.

This will work with all time frame of charts but the longer the time frame you use the easier it will be to identify a trend that is stronger which will help produce better and more accurate trades.

Take a look at this chart so it’s easier to understand.

Pinbar trading system

 

As you can see, this is clearly a down-trend. You can also see the trend lines that are identifying support and resistance rebounds and our trading opportunities.

OK so now using all the above information we are now looking for a particular candlestick called a pinbar reversal, this will signal that the current mini trend is about to reverse.

A pin bar reversal pattern is made up of a much longer wick and a small body, which will be protruding from above or below the body. They are very easy to identify on your charts with a bit of practice.

pinbar

As a rule the wick should be at least 3 x the length of the body.

Trading a Pin Bar Setup

Firstly you must make sure that the identified pin bar matches the details outlined above. You do this once the candle you are analysing has closed. This is because there is no other way the candle can be identified to confirm a true pin bar.

Next you must make sure the pin bar has formed at the top or bottom of a trend, the ideal scenario being at key support or resistance levels.

If you find the pin bar forms at the top of a trend and this area corresponds to market resistance, this a great sign for a potential short trade, and a pin bar which forms at the bottom of a trend at an area of support is promising for a long trade.

pinbar1

Entry Point

You only want to enter a trade where the pin bar has formed above or below a support or resistance line. This may mean waiting longer for a trade to materialise but your strike rate will be that bit higher.

Then simply buy or sell the trade on Binary using the higher or lower trades. 15 minutes is a good place to start.

binary screen

This is a very simple binary system to use. And as I said, you can use meta trader for your charting and that is free.

As always, don’t rush into this and start with real money. Take it easy and paper trade and see how you get on. It’s has around a 70% strike rate so a good idea is to practice a 100 trades and tally up.