Spread Betting Course

Spread betting course

My new spread betting course is almost ready to launch. I’m really excited about it, as is my partner Chris.

I have been finishing off the last few bits of editing and have been creating and writing a sales page. I’m not really a marketer, but I found a useful sales copy tool here and that has helped me craft an easy to read page that is not to American hard sell [no offence to our American friends]

Chris has been doing all the videos and editing them.

The combination of us creating the course has worked even better than I expected on this occasion, everything really came together professionally.

Private Members Website

We have also built a new private members website to host all the course content. This eliminates any confusion as to where to go for what information and keeps the blog seperate.

The videos are clear and brimming with trading detail. The written content I have created has been done with an easy read style with lots of images to explain the concepts. This is then followed by the video training.

I am also going to keep adding content to the private members area for the spread betting course. This content will be showing live trading and will also include any new trading strategies.

Horses for Courses

The course has four different methods of trading that are all explained in great detail.

The reason for the four strategies is that one single method will not work for everyone. Everyone has different strengths and weaknesses when it comes to trading. These combined strategies will suit most types of trader.

There is no claim to anything in the course being 100% mechanical and set and forget. That is not reality for these strategies.

Some are pretty hands off indeed… but there is still some effort involved on your part, although minimal.

So, if you’re looking for a system that just makes money on auto pilot, then I’m not going to be able to help you there… but good luck in finding it and if you do, please let me know as I want to use it too.

Flagship Spread Betting Course

The work that goes into the creation of these products is very heavy! In fact, it takes such an effort that we will not create any other  trading courses after this.

This spread betting course is to be my flagship system. It will be updated regularly, but I will be not be creating another product again from scratch.

Close Knit Customers

My customers, readers and subscribers are awesome [you know you are]. Even the most awkward and hard work of you I have grown fond off. I want to keep this relationship going and keep offering 110% effort when it comes to customer service. I completely understand that some of you need far more assistance than others and I want to be able to help if the need arises.

To continue to make this possible, I have decided to limit sales of the course to 50.

Only 50 Spaces Available

This may seem low… but emailing and taking care of you is very time consuming; so 50 students is what I believe to be somewhere near manageable without exhausting the hours in my day.

If I get any dropouts then I will offer the place to someone else.

There will be a discount offer on launch day as well and that will run for the first week.

If I fail to fill all the places in that first week, then the price will then go up to its regular price regardless.

Looking Forward to Launching

I’m buzzing about my new spread betting course and I am looking forward to helping you learn how to trade over the coming months.

Keep an eye on the blog and your email for the 24 hour pre-launch notice.

Long Term Trader or Short Term Trader – What are You?

Trading the financial markets can be full of pitfalls and hurdles.

So many conflicting theories and different advice to consider… and that’s before you have even opened a single trade.

However, one key that can help you step into the wealth that trading can offer is discovering and accepting what type of trader you are and trading to those strengths.

Types of Traders

Traders can be whittled down into a few common types of personalities.

  • You are either long term or short term trader
  • You are both long term and short term trader
  • You are a day trader.

When I started trading, I was predominantly a long term trader. My positions stayed open for months at a time and were then rolled over.

I still am a long term trader. I tend to buy actual stocks now and spread bet a little less over the long term.

However, writing this blog is what helped me develop as a shorter term trader too.

I don’t actually need to trade short term from a financial perspective. The fact is that I have enjoyed the challenge of learning how to trade shorter term and also enjoy helping others learn the ropes of short term trading.

But what advice can I give you to start trading or improve your trading from this point today?

Decide on what kind of trader you want to be and stay with it, or accept what trader you are and trade to those advantages.

Obviously you may not know what type of trader you are at the moment. So I’ll give you some examples of the different options above. You’ll then have a clearer picture of what will or may suit you.

Long Term Trader

The long term trader will look to hold multiple positions for months and years. They will take long term spread bet contracts and also buy and hold stocks.

The Long term trader has no pressing engagement to create immediate wealth.

They are delighted to make 30% a year. If they only made 10% they’d still be more than happy.

Long term traders are calm and relaxed when thinking about their portfolios.

The Long and Short Term Trader

The Long and short term trader will look at holding some positions for a points profit target or until various technical indicators give a signal to exit a trade over the short term.

These traders will look at trading over days and weeks, with trades occasionally slipping into a month or more on the short term.

They will buy stocks and ETFs to hold long term and balance their portfolio.

Some of these traders can do exceptionally well, but they are far and few between. Most are far better off just trading long term, but rarely realise it.

Day Traders

The shorter term trader may trade a single indice or multiple forex pairs. Maybe even a combination of both.

They will be looking for quick gains

They rarely trade individual stocks.

Their trading style is full on and they will be busy at trading throughout the day.

Cast iron discipline is needed to be profitable in the day trading arena. Day traders also need the ability to follow a strategy without any sort of deviation what so ever.

Most day traders lose money and are rarely prepared for the reality of financial trading.

Day traders often blow their entire bank within 3 weeks.

Trade to Your personal Strengths

Obviously the above personalities are examples, but they are quite accurate from my experience.

Trading success starts with YOU and the foundations you lay. You need to decide on what you want to achieve from trading before actually starting trading using funds.

Plus, you’ll often find the reality of trading is far different than what you expect. So you will need to adapt and be ready to do so when called for.

Trade to your personal strengths and remember that the style of trading that suits YOU best is the one that makes YOU money… regardless of being long or short term.

Crazy Markets New strategies and Bitcoin

Volatility in the markets has been bonkers over the last couple of weeks.

Everything that shouldn’t happen, seemed to happened for some traders.

On the other side of the coin, some of the volatility has been a bonus to many.

My new German 30 strategy that is included in my new trading course has made some serious profits over the last few weeks. Over 1000 points profit to be more precise.

German 30 strategy

The forex trading strategies in the course are also showing steady profits using 4H charts with simple price action and swing trading.

GBPAUD

Share Prices

Most share prices have taken a hit recently. In my portfolio though, you have to remember that practically all of those positions, I buy the actual share and hold long term. I don’t spread bet shares as often anymore. I do not use stops on those shares either.

If shares lose $10 in a couple of weeks it is of little concern when you know you are likely to hold these for the next few years at least.

A true market crash isn’t going to happen over a single evening. If all pointers were leading to a bear market then I’d be out of my shares and into something else.

You adapt to the markets and prosper… if they change you change.

Of course there is always the option to stay out of the markets completely if you are in doubt.

Bitcoin Trading UK

The financial news has been making me laugh [even more than normal] lately. The reports they dish out regarding cryptos is beyond erratic.

Within 48 hrs , reports read, the bitcoin bubble had really burst and then the following day bitcoin was going to reach $50,000 this year.

How funny.

Better just to watch the price as it doesn’t lie.

I still say bitcoin will go past $25,000 and up to the $50,000.

It has been battered lately yes, but it will find its feet again and there will be a good chance to buy in again this year.

A great way to start bitcoin trading is with the XBT tracker, if you think it is going to rise that is.

However, drawing support and resistance lines and levels is proving to be one of the easiest ways to spread bet and trade bitcoin over the short term.

Bitcoin trading

 

 

How You can Invest in 2018

After a much needed rest, I’m ready to hit 2018 with a clear and stress free head.

I hope that my recent break will be one of many this year; as I am planning to go to Spain and Portugal more often over the coming year to look at properties to buy.

If we don’t buy anything, then we will rent a place long term. It is actually a very cost effective way to holiday more without the commitment of owning. You can rent long term for around 400 euros a month and still be central enough to social life and even beaches.

Whilst buying property sounds or seems like a good investment on the face of things, it’s actually not that great when you analyse the returns. That’s why I think renting is not as bad as it’s made out to be; as long as you are also investing sensibly elsewhere.

How You can Invest in 2018

The returns on our recent house sale equated to just over 3.7% a year with a total return on investment of 39.42% over the 10 year duration.

The average yearly return on the S&P 500 over the last 10 years has been 7%

Add into that, trading the Dogs of the Dow each year, which  has returned on average 9.5% over the last 10 years and you’re looking at a yearly return of around 17%

These ideas are simple, steady and strategically sound investments that anyone can follow and take part in.

You don’t need any special skills, publications or subscriptions to take care of your own wealth if you are looking for slow steady returns.

On top of those return, I make more with the selections I get with Vince Stanzione… His stock picking is absolutely amazing.

Think of Investing Long Term

What have you got planned for investments for the next 10 or 20 years?

You can invest in property like traditional UK homeowners do and get around 3% a year returns, or maybe you can act like a professional and have investments in both?

However you look at it, investing in the mentioned ideas above beat the returns of property investments hands down.

Let’s look at what an average deposit on a house [£35,000] looks like after compounding interest over the next 20 years compared to investing the same amount in the markets and receiving various other percentages of investment returns.

Investment in 2018

It’s clear and safe to say that there are better investments available than property nowadays.

Another Idea to Invest in 2018

Another strategy to consider is… If you invested as above long term and then had another smaller account to spread bet with short term , then you could just keep reinvesting your short term spread betting profits into a longer term account. You could actually buy shares and hold them. Schwab and HL are good places to buy and sell stocks.

Spread Betting Returns

So what kind of returns can you get? Let’s say you started spread betting trading with £2000 and made 25% returns each month from trading the price movements of shares and the Forex markets…

You could build your spread betting bank up to a figure where you could take out your personal living expenses every month and then also add an affordable £1000 each month to your long term share trading account. Now that’s a plan with sensible leverage.

It is quite possible to do this after a year or so with a good spread betting strategy.

So using our £2000 bank and returning on average 25% each month.

You then compound your profits for a year.

Investments 2018

If you hit a modest 18-25% return, this gives you a bank of more than enough to generate an income to live on, enough to regularly add surplus to a longer term trading account and enough to also keep compounding your initial spread betting bank.

Doing this over 10 or 20 years may sound too long right now, but it isn’t at all. Think how quick the last 5 years have gone?

Growing Your Long Term Bank

Now I understand that not everyone has 35K lying around to invest in a long term trading account as in my example above… but most wealthy people didn’t start out with mountains of cash either.

However, building your wealth slowly and surely is the idea here.

Making around 17-25 % annually may not sound exciting enough to you, but you have just beaten most hedge fund managers annual returns. However…

…Start by growing what you can afford to invest

A small spread betting account making 8% each week [24% Monthly] can grow amazingly fast if you keep reinvesting your profits… and look at what can happen if you hit 10% a week.

spread betting profits

So for example, if you were trading 8 positions over a month, with a realistic 50% strike rate [50% is actually conservative]and your losses were [obviously] kept smaller than your wins we can expect a positive outcome.

If you return a 2/1 basis, then you should be able to make 8% + a week returns on average.

Example: you risk 50 points to make 100 and only half of your trades were ever winners, you’d still have created a successful and profitable edge for yourself.

It doesn’t take long to accomplish these types of returns if you are realistic from the start and if you avoid falling into the trap of overnight success syndrome.

I will be covering more about all of this in my new spread betting course.

Compound Interest Calculator

Here is my Rachel Trader Compound Interest calculator Rachel-Trader-Compound-Interest.xlsx that you can download and keep. You can add your own values in and see what sort of returns you can get.

Remember, be realistic. You won’t make a guaranteed set percentage every week or month… in fact sometimes you might even lose 10 or 20%. Over time though, with a solid strategy and discipline you’ll come out on top.

Also… I have mentioned this book many times before… if you have never read The Richest Man in Babylon, do yourself a huge favour and order a copy. It is one of the best books you’ll ever read on how to create wealth.

Happy New Year

happy new year

Happy New Year

I hope you all have had a lovely Christmas and I hope that the New Year brings all that you wish for.

2017 was a great year for me as a trader. The results from trading alongside Vince have been amazing.

2017

On a personal level, I had a lot to deal with over the last year.

Injuries have kept me from my usual fitness regime; this has had a huge impact on me.

I have often felt deflated and lacking my usual spark. Physical exercise is very important to me as it is to my family. It has been difficult restrict myself from training and keep fit activities.

However, I’m now 90% recovered, hopefully avoided surgery and sooooooo looking forward to getting back to the gym in January.

The case is solve’ed

That last four years have seen me go through a huge and ugly litigation with family members. All of Clouseauwhich should have and could have been avoided!

This year has seen this issue finally bought to its conclusion. It has been emotional to say the least but I am glad that I can move on from it.

It could have taken a lot out of me over the years… instead I decided to take everything I could out of the situation and make it a positive.

I learnt so much about life from having to deal with all that ****. It has shown me a path to becoming a truly better person.

Even though the final outcome was financially positive for me, the main benefit seems to have been what the whole episode has taught me…

NOW

…And that is, that you are far better off to live your life in the NOW… rather than overthinking where you want to be because you think that is what is going to make you happy.

I have been practising living in the NOW ever since reading “The Power of Now” and it has been highly enlightening to my life. So one book I encourage you to read in 2018 is “The Power of Now” by Eckhart Tolle.

Although some may find the book difficult to digest, keep at it. It may well be life changing for you. I have the audio version too and I find that simply amazing.

2017 also coincided with our house move. This can be a stressful period for many, but after realising that it as pointless to get stressed over the situation, I decided to just let everything BE…as no point stressing about the things I can’t change of influence any further.  We finally got moved the day after Vince Stanziones Crypto Seminar.

Veganism

I have been a strict vegan for the last 3 months. And considering that I have not be keeping as fit as I like to and demanding even more from my body, I have found that the diet as a whole has really not suited me.

I have struggled to keep my protein levels up, iron high enough and my body in shape. Generally the vegan diet has run me down. If I listen to my body, it has not been happy.

I have had repeated colds and flu, lower energy levels and my poor nails are brittle.

But in the name of ethical farming and trying to stop cruelty and suffering to animals I’m in a tight spot.

I also understand that all the animal farming is battering our planet.

On a positive, going vegan has taught me so much about diet and the dangers of eating any farmed meat, red meat, pork and chicken especially. However, I just do not think that eating supermarket meat is an option for me anymore.

Adding some fish in to my diet may be one viable option, but that also comes with issues… mainly sustainability.

I will keep you updated on what I’m doing.

up or down

Binary Trading

My binary trading service which started off at a gallop slowed down dramatically throughout the year. There could have been many reasons for this.

One major factor was trying to keep everyone happy and get everyone the same results. This has been futile.

Trying to trade longer time periods so everyone can has time to get the trades on and win has been totally detrimental… but… realistically, there is no way that the service could operate at all if I was giving out the faster but far more accurate 15-30  minute trades.

These issues have grated on my soul.

What’s more is that the FCA is now going to regulate binary options from the 3rd January 2018

This means that I will not be able to offer binary advice.

However, you can still make some awesome low risk gains trading binary options yourself. You can start small and build up but also know your exact risk/reward before placing the trade. This is great way to start learning about trading the markets before moving on to spread betting.

Just Me

I’m giving you this run down so that you can take a glimpse of my life and see that I am just a normal everyday person.

I have all the troubles and strife that many others have to deal with.

The trader is just one part of my life.

You can learn to trade too if you wish…. But you’ll still be you. There is no miracle hidden inside the results.

I realised long ago that there is no holy grail to make your dream life come true. Try to live in the now, stop criticizing yourself over not reaching your goals and desires fast enough. Try to be happy now and then everything else will follow.

 

2018

So what have I got planned for 2018.

Well, from now until mid-January I’m having a holiday. There will be no updates during that period.

However, some really exciting news is that I have a new spread betting course planned and in progress.

This will be a thorough course and will explain in detail how to get the edge in spread betting. It’s far more than just choosing up and down in the markets and adding a moving average.

Also… I may personally mentor a very small handful of you on profitable spread betting. This will be coupled with a member’s area and a list of my trades as and when I open and close them.

If I do decide on this then places will be limited.

I shall keep you updated.

Once again, wishing you a very happy Christmas and a Happy New Year that is awesome in every way.

Bitcoin to Reach $50000

Bitcoin to Reach $50,000

I said in my last post that I’d give you my reasoning behind bitcoin to reach $50,000+

So here is my view on why I think we will see bitcoin hit these heights.

Through all the bitcoin mania at the moment, most people who are now investing in bitcoin [and it’s still minuscule], have little if any idea about the true value of bitcoin and what it means.

The minute I heard of bitcoin and mentioned it, I thought to myself that this could be big.

Of course I wish I had followed my hunch and bought loads of coins back then. But that is not the point I’m trying to make.

The point is that back then I thought…that’s very interesting… a way to take payment or move money for anything to anyone.

That is the true value of bitcoin. Being able to transfer wealth from anyone who is anywhere to someone else without using traditional methods like banks, or if you like a middleman.

Bitcoin is the first standalone global currency. It speaks all languages. It is also pretty hard to trace.

Rise of the Bitcoin

The reason that bitcoin grew at such alarming rates is for one simple reason. Crime!

Around 3 years ago, the main use for bitcoin was [and probably still is at the moment] to trade drugs online.

This trading of drugs on websites like Silk Road, then, fuelled the rise in bitcoin’s price and helped get it noticed by the masses which in turn led it to becoming more mainstream.

Now however, there are other crypto currencies that are completely anonymous and I assume criminals will soon start to opt for those over bitcoin. This will again drive the prices of those cryptos higher.

For now though the general public and masses are just about to start learning about bitcoin.

Everyone will Accept Bitcoin payments in Due Course. It will change the traditional FIAT monetary system for good.

Bitcoin to Reach $50,000

Once Amazon accepts bitcoin payments [which I think will be very soon], this act alone will make the statement to the world that bitcoin is “Safe”. When that happens, I think that the bitcoin bubble that everyone is talking about now will seem more like a snowflake at the start of a gargantuan snowball.

In all honesty, I think that bitcoin to reach $50,000 is still conservative.

How to Invest in Bitcoin

If you have never invested in crypto’s then the first port of call is to get an account with a trusted broker. I have used bitpanda to buy bitcoins.

When I buy other crypto’s I send the bitcoins from bitpanda to bitfinex and buy them using the bitfinex platform. This seems to be the easiest way to do things.

You can then store those purchased coins in a paper wallet for security.

Bitcoin is Still at Very Early Stages.

You might find that the bitcoin exchanges are slow and even crash regularly. This is unfortunately the way it is at the moment. There are way more customers than there are sales and tech assistants at the moment.

Look at it like this. Herds of customers trying to get into the apple store because they have announced a lightning sale, for one day only and everything is £50… it’s going to take time to get to the front of the Q isn’t it?

That is sort of how the bitcoin exchanges are at the moment… overloaded.

However, this gives you time to start off small and learn how everything works and go from there. It may seem complicated at the moment, but so was flying the first plane.

One day very soon, you’re going to have to learn how to pay with bitcoin and how it all works. You may as well start today.

Vince Stanzione’s Crypto Currency Seminar

Vince Stanzione's Crypto Currency Seminar

We have finally completed and moved home. In fact, the day after Vince Stanzione’s crypto currency seminar we were unpacking everything in our new place.

Chris made it to the seminar, he said it was the best one that he had ever been to.

I have yet to see the videos of the day… although desperate to watch them, by the Monday after we had moved, we all had colds… by the Tuesday it was more like Flu!

I can’t remember being so rough with a cold… so I can only assume that it was some kind of strain of this Aussie Flu that we have all managed to get.

I wish I had had the flu jab! But I thought no way… that’s for OAP’s. fool!

Anyway…

From what I have taken from the feedback that Chris has relayed to me, the speakers at the seminar think that Crypto trading may well be the biggest snowball for traders since the dot.com bubble.

Although I am not surprised at this, what has surprised me is the amount of money that bitcoin can realistically be worth in the next 5 years.

And it’s not only bitcoin that is set for big things… many of the other crypto coins are looking just as promising.

If you are thinking that bitcoin is already overpriced, you need to get real. Cryoto trading is in its infancy. If you always feel like you have missed the boat of opportunity… then this is your chance to jump on at the beginning for once.

I personally think that bitcoin will be worth $50,000 + within the next 10 years. I’ll elaborate on this in my next post. However this figure may be way to conservative.

But there are other coins that you can buy now, for the price of good meal, that could be equally profitable over the coming decade.

I truly believe that crypto’s are the future of money.

Vince Stanzione’s Crypto Currency Seminar

Vince Stanzione has put together a full home study course of the crypto seminar, so if you are interested you can email him here directly to reserve a package.

I do not get anything for recommending you, but you can mention me if you like.

Once I’m back to 100% and this flu has passed, I’ll do another update on crypto’s as I’ll of had time to watch the video’s by then also.

4 Hour Trading System

 

4 Hour Trading System – 74 bets, 54 winners, 20 losses 73% Strike rate

 

Here is the 4 hour trading system that I promised you in my last post.

 

This system is so simple to use you might not believe that it could even be so profitable. But the results that I’m about to share with you will clearly prove otherwise.

 

I had noticed that there may have been an opportunity to develop some kind off trading system using 4 hour candles way back at the beginning of the year, although I just didn’t have the time to follow up.

 

However, due to the house move stalling I have actually had a chance to finish of the test and give you some results.

 

What is the 4 Hour Trading System?

 

The 4 hour trading system is a binary trading system that relies on following the trends that the 4 hour candle charts make.

 

The reason it works so well and is so simple is that it is actually trend trading in nature and the trade entry couldn’t be easier to identify.

 

Before I go into detail, let me share last months results with you.

 

4 Hour Trading System Results October 2017

 

Now these results are only using the 6 major currency pairs. I had tested the system on some of the lesser traded pairs with similar results. However, to keep things as clear as possible we will only use the AUD/USD, EUR/USD, GBP/USD USD/CHF USD/CAD and the USD/JPY

So, out of the 6 major currency pairs, there was a total of 74 trades. Of these, 54 were winners with 20 losing trades.

This equates to, 74 bets total, 54 winners, 20 losses = 73% Strike rate, well just a smidgen under.

To work out your strike rate, you divide your total number of winners by the total amount of trades/bets and the x by 100

As you can see, the system generates quite a few trades. So out of the 22 trading days in October 2017 that gives us an average of just over 3 trades a day.

So, if you are looking for a reliable system that gives you a good few trades a day, with an awesome strike rate, that you can start trading with minimal investment, then my 4 hour trading system might be just right for you.

 

Why am I Giving You this for Free?

Well, I wanted to give this to you at Christmas as a thank you for reading my blog. Then it occurred to me that if I gave it to you at Christmas you’d probably not start using it until well into February once you had giving it a good test.

So to give you the heads up and the best chance of starting 2018 with a winning formula, I thought I’d give it to you now.

And as you hopefully already realise, I want to over deliver and give you the absolutely best chance of making money from trading. I genuinely mean that.

This system is also so easy to use that it won’t take up too much [if any] of my time giving support.

Other trading systems that I may offer you, like my binary trading package, are more technical in nature and offering support is to be expected, however time consuming it may be.

Also, products like my trading system enable you to set your own hours to trade and also set alerts as and when to trade. So the whole thing is more complex.

So enough talk… here are the 4 hour trading system rules. I do not know of this strategy being published online anywhere. However I must state that I do not stake any claim that it is solely my creation… although it probably is.

 

4 Hour Trading System Rules

You are looking for 2 four hour candles that are of at least the same size or ideally increasing in size.

The candles need to be trending… Do not try to trade sideways markets.

Good times to enter are therefore obviously in clear trends, after a correction or at reversal points.

Also make sure the candles that have formed are of reasonable size in points. Some currency pairs differ in they way that their points are calculated, but as a basic guideline, you want your first 2candles to be at least 8-10 points in size.

 

4 Hour trading strategy

 

Once you have identified the candles, you then open a trade for 4 hours on binary.com at the very start of the opening 3rd candle.

That is the system in a nut shell. The reason that it works so well is that you are just jumping on to the trend after it has been confirmed by the 2 previous 4 hour candles.

If you didn’t want to do any other analysis then the above rules will serve you well enough.

However, if you want to spend a little bit of time trying to increase strike rates by finding better entry points then here are the price action rules that I have been using.

Price action trading.

As you can see from the following chart images, I have not used any technical indicators at all. The charts are completely clear, they are naked.

This means that you are only using the price to identify the market direction.

What we can use to give some extra conviction to our trades though are candle formations that signal a change in direction or even a continuation after some consolidation or correction. Using support and resistance lines are also super effective.

rachels 4 hour trading system

 

Looking at this zoomed in section of the USD/JPY the results and trades of the 4 hour trading system can be interpreted like this.

Please note…. These are my own personal views on what I see happening. I am not stating these candle entry’s as fact. The best, clearest most perfect trading setup in the world can still go belly up.

 

The First Trade

The first blue arrow you can see on the chart signifies a winning trade on the 6/10/2017 [it looks like it is above the 4th candle in the sequence].

The previous candles in the sequence and their price movement I have evaluated as this…

The very first black candle in the sequence seems to have been formed at a resistance level, thus the price has started to move back down.

The second black candle has had a lot of pressure from the bulls driving the price up during the formation of the candle. This is clear from the long wick. However, the bears have won the battle and pushed the price right back down to form another downward bear candle. This suggest to me that there is plenty of selling pressure and that there is a good chance of the next 4 hours seeing the price move down further. This is a good place to open a trade ‘lower in 4 hours time on binary’. The price moved down for the next 8 hours.

The Second Trade

Our next trade occurs on the 10/10/2017

 

The candle before the first black candle is what is considered a spinning top. These spinning tops can often mean indecision in the market, a continuation of trend after a price correction or even a change in direction depending on where they form.

The following 2 black candles are clearly quite bearish and we can assume that the price will continue moving down.

We enter a trade at the very start of the candle that is after the close of the second long bear candle.

This trade finishes in a another winner.

 

The Third trade.

12/10/2017

 

I didn’t have any reason to doubt that this setup qualified as a trade.

The first black candle engulfs the preceding white candle and also seems to have come up against and met a resistance level as did the previous white candle.

The second candle continues in the main down trend direction. The candle has just about a longer top wick than a bottom wick and this means to me that price is likely to continue down. We will open our trade at the start of the next candle.

The third candle actually doesn’t behave like we think it should and we lose the trade.

The Fourth Trade

18/11/2017

This trade is very clear to me. There has been a strong support level around the 12.1 / 12.2  area. This coincides with the formation of a doji candle and then a spinning top which is the start of our sequence.

The next candle after the spinning top is a huge bull candle that clearly outsizes the spinning top.

I trade at the start of the next 4 hour candle. The result is another big bull candle and another winning trade.

Basic price Action Trading

As you can see, I have only used some basic price action analysis to confirm to me that I should place a trade.

If you can’t fathom price action [although you really need to do so to become a successful trader] you can always just place the trade on the start of the third 4 hour candle if the previous 2 candles are increasing in size.

Doing so will give you more trades, but will also increase both the amount of winners and losers. Although overall results will not be to far from the results using some basic price action analysis the strike rate does dip.

 

Why is this system so effective?

Simplicity… that is one of the key components of this system. In fact, it is so easy to use that a few minutes evaluation of a chart is all that you will need to do once you get the hang of things.

It’s important to understand that you do not need to try and make this system more technical in nature to make it work. You are simply jumping on the trend that is already in place.

The size of the 4 hour candles is [in their most basic form] all that you need to identify a trend and potential trade.

Setting Reminders

Realistically,  you can trade in just the most liquid trading hours by setting alarms on your phone every 4 hours.

As an example, if the chart package you use coincides with candles forming at 8 am, 12 noon, 4 pm and 8 pm…. Just set an alarm on your phone that goes of every 4 hours at a quarter to the start of the candle.

So 7.45 am, 11.45 am, 3.45 pm and 7.45 pm.

This then gives you enough time to get to your PC or get on your mobile and take a look at what is happening with the charts.

Using Alerts on IG

You can set trading alerts on the IG platform that can notify you of certain movements and indicator signals. I cover this in detail in my binary trading course.

Basically though, you can set up an alarm that will notify you of any continuous 4 hour candles.

For example, if you are trading the USD/JPY you set an alarm on the platform by clicking alerts in the top right hand corner.

Click add alert and then set up the continuous candle alert.

The Alerts will then be emailed to you or pushed on your Iphone.

This image beneath is taken from IG Charts. Adding an alert is very easy to do.

4 hour trading system

 

More Charts and Results

Have a look at these other 4 hour charts, these are all of the major pairs charts that I analysed last month and all the wins and losses that I encountered.

If you take time to really study them you will probably, criticize me on some of my entry points and price action analysis.

That however is actually a good sign… it means you are truly considering the movement of the prices. We are not all going to agree on where we think the price is going to go. That is what makes the market in the first place… the bulls and the bears.

 

Four hour trading system trading 4 hour charts trading four hour charts four hour charts for trading 4 hour chart trading

To recap

  • Use 4 hour charts
  • Trade the 3rd candle if the previous 2 candles are at least the same size or ideally increasing in size.
  • Use simple price action, including support and resistance levels and candle formation to fine tune entry points.
  • Don’t underestimate how simple and effective this system is.
  • Don’t overcomplicate things

 

Paper Trade Until the New Year

So from here until the New Year I suggest that you paper trade the system so that you can get to grips with the selection process.

You can open an account at IG or anywhere that you can use some good reliable charts if you haven’t already.

Don’t break the rules and just do what I have outlined in the 4 hour trading system rules.

Keep a spread sheet to record your results and you can get a clear idea of what is going on in the blink of an eye.

Remember that some of the currency pairs will perform better than others. What counts are the result overall on average each month.

To my knowledge this system has not been created or published anywhere else. Please feel free to share and give me a mention if you can. #Rachelthetrader

A Quick Update – Chart Patterns – Trading Books

Trading Books

Just a quick update… I’m actually in the process of moving at the moment and to say that it is dragging on is an understatement.

 

A house full of boxes and not much else has become pretty trying on the entire household.

 

Blogging has had to take a little bit of a back seat while I get sorted… and unfortunately for us we are still waiting to exchange and complete. This was verbally agreed to happen within 3 weeks. And guess what… it didn’t.

 

However, not one to drag my heels, my family and I managed to get a quick break to Dubai.

 

The weather was fantastic, service amazing and the sites fantastic.

 

I have been to Dubai before but was only there for a couple of days. So this time I got to see and do far more.

 

Although we missed the storms whilst away, we came back to more BS from solicitors and still no completion date… Ahhhhhh. But that’s how moving can pan out.

 

If we have no forward momentum and positive news by the first week of November, then I will be unpacking and getting set to enjoy Christmas where we are!

 

Blogging

 

The thing about blogging is that you do really need to be focused to be able to write content that is worth reading.

 

When your mind is not on the ball, writing becomes a chore. I have found that out before… and as much as I have lot’s of mental blog posts that are ready to go and organised, trying to write them at the moment is just not happening.

 

My office is semi packed, and that is annoying me. My business books are all in boxes along with vast amounts of trading books, information manuals and courses from Vince Stanzione.

 

Although I can’t read everything all at once, I do love having everything in its place. A clean and tidy uncluttered office is my sanctuary.

 

On a positive

 

Fortunately, the one thing that I have been able to do with intensity is chart study and read [new books] that will then need to be packed into boxes… the irony.

 

I have always enjoyed looking at the charts when trading longer term, I like trying to analyse the patterns and price movements.

 

Chart study has been something that has become common practice since I started researching day trading. I do really enjoy it too.

 

Recently I have spotted some interesting trends that will help new and experienced traders add profits to their accounts. I will do a super duper blog post for you in November explaining, or as soon as I know where we are with the house move.

 

Trading Books

 

Hedge fund managersOne of the trading books I’m reading at the moment is “More Money than God” it is all about hedge fund managers and how they did what they did and it starts out from the very first of these managers, Alfred Winslow Jones.

 

From there, it takes you along the history of various hedge fund managers and explains in detail their mind-set and how they made it to the top of their game.

 

The book is superbly written and I’m enjoying it immensely, check it out here on Amazon.

Why do chart packages all differ?

Beginner traders might think that all chart packages are the same… but they are far from it. If you look at these charts beneath you will see that they are all of the same currency pair AUD/CAD on 4 hour bars.

 

However, all of these charts are slightly different.

 

This isn’t such an issue if you are trading long-term and using daily charts/candles. But for the short-term trader it can pose confusion, especially if you don’t actually know that all charts are not identical, so it’s worth taking note of

 

Using the charts from CMC markets, IG and Sharepad,  we will be able to see that there is variation in the data that is displayed.

 

You need to look closely. But the candles and patterns are different in places.

Chart packages

I have questioned this with IG and Sharescope and they confirm that the differences are because of the way that they receive their data and the sources the data come from.

 

When I first noticed this, I sent pictures [screenshot of the discrepancies] to IG. After they gave me their reasons for the differences, I checked the chart again and the actual candle in question i had pointed out to IG had been changed to mirror the results on the other chart that I had compared it to.

 

Why they [IG] done this I don’t know, however you must be aware that all chart packages are actually different and will supply different data.

 

Are Traders Being Hamstrung?

 

My first impressions of these chart contradictions were negative.

 

I immediately jumped to conclusions that there was some sort of conspiracy to manipulate short-term and new traders.

 

However, I don’t think this is the case at all. I do just think that the data is delivered at different speeds and times from company to company and source to source.

 

Stay With the Same Chart Packages

 

If you are continuously using the same chart package, then these variations obviously make no difference to you as your results will be consistent.

 

The main point to take from this is that your results will or can get affected if you are switching from chart package to chart package. These results may be positive or negative.

 

So when it comes to using the various charging packages, it is best to find one that you are at ease with and stay with them. They all have their own little quirks and differences and that doesn’t just stop with the data.

 

If you begrudge paying for chart data then just use the free ones on IG or any other platform like yahoo, tradingview or even googlecharts and stay with them.

 

If you want charts with a bit more oomph that offer something more than the free ones, try share pad. I do like these charts and they also have the VIDYA indicator added [very useful if you are trading with Vince Stanzione].

 

Prorealtime charts are also very good but there are differences from the sharepad platform that do not suit me. On the contrary, there are features on sharepad that are better on prorealtime. Although sharepad still edges it for me.

 

Someday there might be a chart package that is perfect for me… for now though, I’m staying with sharepad.