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.

Fibonacci Retracement Trading

I have [as always] been looking at different trading ideas… and one that can be used with other indicators to create good short term trades is using the Fibonacci retracement tool on your charts.

Using Fibonacci retracement trading to predict price movement can be very effective as a standalone system.

However… if you add a MACD into the equation and use some simple reversal candle set-ups you have a complete system.

For best results you will want to use at least the 4 hour candles or the daily candles.

Fibonacci Retracement Trading


To draw the Fibonacci grid, you will need to go to your chart and go to drawings. You then just select the draw Fibonacci Retreatment.


fibonacci Retracement trading


Then just drag the grid from the most recent low to the most recent high or vice versa.


You can see from the next diagram of the AUD/USD that the most recent trend has seen the price move up. This means that we draw our Fibonacci retracement from 100% at the low of the trend to the 0% at the high of the trend.


If the trend was down, we’d be drawing the grid from the high 100% to the low 0%


Now once the Fibonacci retracement grid is in place we are looking for a reversal candlestick pattern forming at the 50% level or the 61.8 level.


You can use the 38.2 level but you will get more false signals.


The 50% level has an amazingly uncanny knack of rebounding from this level, so it tends to be the level used by most traders.


If the retracement goes past the 50% level and does not present a reversal candle set-up you will then wait to see if there is a reversal pattern formed at the next level.


As you can see I have drawn the grid to illustrate how this strategy works.


trading fibonacci


So I have drawn in the Fibonacci grid from the recent low to the recent high.


I now wait to see if a reversal pattern forms at the 50% level, if not I will wait until a reversal pattern forms at the next level.


Now if we scroll forward we can see what happens.


Reading The Chart


We can see that there was no reversal pattern at the 50% retracement level. So we wait and see what happens at the next level.


Here at the 61.8 level you can see that the price action stops and there is very little movement. This is combined with a congregation of small doji, hammers and pinbar candles [highlighted and in line with MACD crossover].

This is notifying us that a trade may be about to present itself. You can also read more about candle set-ups here.


Also you can see that the MACD has given a crossover signal to further verify a change in market direction.


Just after the MACD crossover we get a huge bull candle that signifies that the price is reversing and is going to resume the upward trend.

We then enter our trade. A spread bet that nets us a nice stress free 150 points + profit or you could have made a binary bet.

fibonacci retacement


So to recap.


  • Draw your Fibonacci grid from the recent high to low or low to high.


  • Wait for the retracement to reach at least the 50% level and  confirm the reversal with a reversal candlestick pattern. If no pattern forms, then wait the retracement to reach the next level and again confirm reversal with candle patterns.


  • Finally, the last confirmation to enter a trade is that the MACD has made a crossover.


Trading price action


Once you get the hang of things you’ll be able to use just what you see on the charts to predict price movements.

You will be able to remove the MACD and if you get really good then you will be able to gauge the Fibonacci retracements without the grid.


Doing so is trading pure price action. A trait that is well worth acquiring.


This [trading price action] is especially useful when trading currencies.


Currencies tend to move in very noticeable patterns over time.


Here are some more charts that are approaching Fibonacci retracement levels.


See if you can predict the next price movements? All the charts are from this September 2017.

Fibonacci strategy



It’s not so important that you get the results right at this stage. It is more important that you see how the method works and get use to identifying the set ups.

You can see the results beneath. I have removed the Fibonacci grid so that you don’t get confused.





It’s not Complicated

How did you get on? There is nothing complicated to this type of trading, most of it is mechanical so guesswork is eliminated.

The good thing about learning to trade like this is that as I have already mentioned, eventually you will be able to eliminate all indicators if you learn well and wish to do so.

The key benefit from having a naked chart is that you are then reading the price action… the price does not lie.

All chart indicators are lagging. So even though the information an indicator may give you can be useful, it is always dated. And it is not always as clear as the charts above.

Look at this chart of the USD/MXN. Using price action and candle patterns we can see that after a down trend we then meet the same resistance again and a clear engulfing pattern is formed.

By reading this, we then enter on the opening of the next candle. By doing so we get into the trade far earlier than the indicators suggest we should.

If we had waited for verification from both the Moving Average and the MACD then we’d be getting on to the trade the following day or at least 20 ticks later.


In Conclusion

There are many benefits from learning Fibonacci retracement trading, and the reversal signals can be very accurate when combined with candle patterns. It is also a good way to start learning to read the price action rather than to keep relying on lagging indicators.

Bitcoin Code System – Scam

Just a quick heads up on a trading system that you may have been offered or heard of recently.

As you may be aware, bitcoin has been making some traders big money lately, the swings have been enormous.

When these phenomenal movements occur and especially with something that is new and relatively unheard of the charlatans tend to come out selling their systems.

Bitcoin Code System SCAM

The Bitcoin Code System has been plastered all over the place lately claiming untold riches overnight. Same old, same old. They are even using actors from fiverr to do the plastic reviews. Unbelievable.

Anyway, Vince Stanzione had put a warning up on his private members site so I thought I must tell you also.

Bitcoin code system

The sickening part of this type of shite that can be offered for sale is that some poor soul has actually paid for it and that people want to believe it is real and some really need to believe in it.

I remember when I first started out looking for trading systems, I found myself wanting to believe all the sales pitches that I heard.

Fortunately I got wise to all the BS pretty quickly and found myself being extra careful before taking a serious plunge.

The catch with scammers is that they use the same techniques that professional marketers do. So it is always going to tarnish the systems and courses that are genuine.

This doesn’t just apply to trading and money making opportunities.

There are scammers in every line of business using professional techniques to sell bogus products.

From betfair systems to penny share scams… from £999.99 iPhone apps that actual do nothing to fake Manuka Honey.

Crikey… you can even get tattoo artists that are scammers. Although I wonder at what stage one might realise that they have been scammed?

Anyway, if you have been offered the bitcoin code system or where even considering it… You have been warned.


How to Trade – A Beginners guide to Spread Betting

How to Trade.

Learning to trade from September to April is one of the best times of the year to start your trading journey.

The markets tend to spring to life and start trending one way or another come September.

And if you’re new to trading, then learning when the markets are at their most liquid can make the whole process far more enjoyable.

Where to Begin

The biggest challenge to face new traders is just where to start.

Getting duped into the wrong trading style for your own strengths can result in many traders that may have had promising trading careers cut short.

It makes little difference how much you paid for a course at the outset. In the thousands or under a hundred quid… if the style of trading isn’t going to suit you personally then you’re creating more hurdles before you have even started paper trading.


How to Trade 

It took me a long time to find and decide on the course that was ultimately going to start my trading career.

And even after that, there were many mental obstacles to overcome.

To save you a lot of time and trouble here’s a quick heads up on some of the best reads, quizzes and videos on how to start trading… and what’s more, they won’t cost you a penny.

The Best Starts for New Traders

Want to know if trading is for you? Take the trading psych test first

Or this one if you fancy changing things up a bit

One of The best videos on Trading Phycology

If you have never heard of Mark Douglas then here’s a real treat for you…Mark is the undisputed king of trading phycology and his book trading in the zone is a must read for all serious traders.

Here is one of the best videos on trading phycology you’ll ever see…

Strategy Testing

Try testing your strategies out first on one of the trading simulators and from there you can open one of the good demo accounts with a spread betting firm.

Stock Market Game

If gaming is your thing then why not learn to trade with one of the best stock market trading games around? I haven’t ever played this but have heard of it regularly over the years.

You can have a look at Wall Street Survivor or one of the best forex trading apps for Iphone here

The Best Free Trading Resourses

It is difficult to say what are the best free guides available when I have already written so many awesome tutorials for you J

However, if you have got your phycology game plan down then here are some good places to start learning to trade.

A Complete Beginners Guide

The basics of how to start trading and spread betting made as simple as possible.

Here are all the basics of placing your first spread bet on the IG platform.

How to Trade – A Beginners guide to Spread Betting

Candlestick charting

This website has everything you’ll ever need to know about chart patterns. If you’re trading intraday then this site is invaluable.

Trading Support and Resistance Levels

A simple way to trade using support and resistance lines

How to trade the DAX German 30

The German 30 DAX is one of the most heavily traded markets… this easy to use system is a great place to start trading

How to trade using Moving Averages

A beginner’s guide to moving averages 

And how to trade using a triple moving average


Free Books on How to Trade the Markets

Some of the best books on trading that I have read

How I made £2,000,000 on the Stock Market: here 

Reminiscence of a Stock Operator HERE 

Extraordinary Popular Delusions and The Madness Of Crowds HERE 

Trading Parables HERE 


Demo accounts

IG offer the best demo account and their charts are some of the best free ones

If you’re looking to trade binary options then the only place to go is binary.com


Whilst these links I have given maybe familiar for the some of you, Most of you won’t go far wrong with laying great trading foundations from reading and learning from the sites I have listed.


Decide on a Trading Style

As already mentioned, decide on the trading style that is going to suit you personally. Are you a slow steady trader that is happy with longer term trading and funds that can be tied up for years at a time? Or are daily or weekly profits what you are looking for?

This area needs honest and careful consideration if you are going to give yourself the very best chance of trading success.

Use the coming months to get a trading plan together to learn the ropes and you could well be on time to trade the Santa Rally should father Christmas arrive…


Cryptocurrency Trading – The Future of Forex

Cryptocurrency Trading

A few years ago, back in 2013, I wrote about the possibilities of trading cryptocurrency. At that point in time, bitcoin was the main word on everyone’s lips… and still is the most recognised cryptocurrency today… but there are others that have and are making a big noise today too.


So what is cryptocurrency? Well obviously it is a currency, but just not as we know it.


I love this explanation.


“Virtual currencies, perhaps most notably Bitcoin, have captured the imagination of some, struck fear among others, and confused the heck out of the rest of us.” – Thomas Carper, US-Senator


The reason I like that quote is that it is just so accurate. It really is, cutting edge, fearful and confusing. Much like the first man to wear a top hat in public. OK, maybe not quite as outrageous. But it is certainly making headlines.


It’s All New and Confusing


Now even though I mentioned bitcoin way back, I’m certainly not going to claim I know the ins and outs of bitcoin or any other cryptocurrency for that matter. In fact, I’m probably as clueless as the rest of the masses.


If you want to know more, you can read more here about cryptocurrency and what it is and what it’s all about.


Cryptocurrency Trading


The reason I’m mentioning it today is that an insider email I got from Vince Stanzione highlighted a massive opportunity that is about to come us trader’s way… what’s more is that it is something that everyone has the chance to get in on.


Now you’re not going to need to know all the technical details about cryptocurrency to be able to cash in on this.


All you’re going to need to know is how to spread bet the forex markets or place a trade on binary [once they add it].


Now, I can’t say much about the opportunity at the moment, but as soon as I have all the details from Vince I’ll drop you a link.


In the meantime, have a read about cryptocurrencies and try and get your head round it. It’s not that difficult if you keep it simple.


The Next Big Thing


If you can remember the dot.com bubble then it may just pay to be ahead of the pack on this one too.


I have told you before, that Vince is the undisputed king of finding emerging markets… and this one might be a financial game changer for many.


Let’s hope so.


Fear of Losing – the Traders Biggest Hurdle

Fear of losing

It’s easy to trade the markets for a living… or at least that is what most sales pages confess to being able to teach you.

And yes it is, mostly… but that is only once you have learnt the right route to take to get you there.

However, after years of learning to trade… the biggest tip I can give to any new trader is this ‘learn to lose gracefully.

I’m a notoriously bad loser. I’m ultra-competitive… be it a board game or team sport, losing is not an option… I like to win!

So learning to lose was something of a hurdle to overcome when I started out.

Also you have to remember the style of trading that Vince Stanzione has taught me added to my predicament. Vince trades long term as you know. So holding a trade open for months at a time to then close for a loss was hugely frustrating.

But over the space of a year or so, after all the worrying and stress, I was in profit.

Fear of Losing

Now, the point is this, even though I had been biting my nails on many occasions during my initiation, guess what? It didn’t change my results.

The amount of times I questioned Vince’s selections and advice was/is probably legendry. But once I stood back and took in the view, I realised that this game is all about doing and forgetting. Not doing and praying to the trading gods for luck.

On average, what I began to see was a pattern of trades that looked something like this.

I had open, at any one time, a dozen trades or so.

Roughly 4-6 of these trades resulted in a loss, 2-4 may do nothing and trade in a range… 4 absolutely flew.

The losses were always smaller than the wins. The sideways positions were closed for small losses or minuscule gains and funds reinvested. The winners were rolled over again and again.

Once again, there is no amount of worrying that could have impacted these results.

I relied on someone’s expertise [Vince’s trade selections] and I had to roll with that.

In hindsight I didn’t have to be concerned at all… but at the time the fear of losing was very real. I was literally scared of it.


Take it Easy

If you learn from my advice and remember that trading is just a game that over time will return a positive [wins] over [negative] losses [if obviously you are using a reliable strategy], you’ll then be able to sleep at night.

No amount of worry will change the direction of a position.

So just follow the signals that you are using and walk away.

You can use the alert service on IG to notify you of your indicator alerts. So if you get a message you can take the necessary action on the position.

Do you think that Vince Stanzione, George Soros or Warren Buffet lay awake at night, sweating and worrying about their open positions? It’s quite a comical thought, but I really doubt that they do.

Your Fear of losing is imaginary.

Your actual fear of losing is self-inflicted. You are worrying about something that hasn’t yet happened.

When your position is open, whether it is in profit or not, you have not won or lost at that moment in time.

If you close your position for a loss, then it is a loss. There is no longer any fear of losing in itself. Are you frightened of the loss once it arrives? Do you call your friend, wife or mother and say “I’m really scared, there is a loss on my trading account… it’s really frightening me”. ??? Of course you don’t. They’d have no idea of what you were talking about and are more likely to come rushing round to see if you still have all your marbles in place.

So, when you are afraid of losing you are only beating yourself up. Because once you have lost [if you lose] there is no more fear. You may be upset about the loss, but you will not be in fear of it.

Try this Trading Test

Select any 6 shares, currencies, indices at random.  You can use the charts beneath that I have chosen if you prefer.

Add this exponential moving average [EMA] to the charts 10/50

Set the time frame of the candles to 1 Day

Now, paper trade and work out your profits over the last year.

I have randomly chosen the shares that are listed in position 1, 6, 12, 18, 24, 30 from the Dow Jones

So I have…

  • 3m Co
  • Chevron
  • Goldman Sachs
  • McDonalds
  • Travelers Companies INC
  • Walt Disney


Here are their charts from the last year with moving averages added. 

Fear of losing








Now work out overall how many points profit you’d have made overall just trading the crossover signals. Buying and selling.

Be brutal… Really give the charts a conservative hammering.

Could you have made a profit over the last year, just buying and selling on the crossovers?

It’s plain to see. Of course you could have.

Not only could have you made a profit, the actual amount of profit is in the £1000s even trading at .50p a point.

There were thousands upon thousands of points profits to be made.

In hindsight then… was there any fear of losing when looking at the above charts and results? So why be in fear of losing when actually trading?


Why Fear Stops Traders Making Money

It boils down to a few key areas although not limited to these that I am identifying here. However, one way or another they all point back to fear.

  • To bigger size stakes for bank size. So when a trade goes against you the loss seems magnified and you panic and close the trade early.
  • Using stop losses and setting stop losses to close to market You are using a stop loss because you are afraid of losing.  Stop losses are a pain in the rear. If you really want to use them make sure that they are set at the correct distance. 25 day highs and lows are a good place to start.
  • The money is in the waiting, some people just can’t wait it out. Impatience normally comes from the fear of losing the profits that you have already made. So you close the position too early.
  • No faith in the strategy you are using. When you start trading and encounter losing streaks it is [of course] the strategy or system that you are using that are at fault. So, in fear losing your bank and wasting your money, you stop using the system and buy into something else.

Everyone is Unique

Ultimately everyone sees things from their own angle when looking at a chart and deciding on a trade.

If you are struggling to make trading pay, identify your fears, as this will probably help you to rectify at least some off your negative trading.

Also learning to trade with someone that actually walks the walk can pay back hugely. Someone that understands what trading is and what you need to do to get things right… having a good mentor in these situations is invaluable.

Take a look at Vince Stanziones course, it’s how I started out and I can’t recommend it enough for newbies.

If spread betting is a bit too adventurous at the moment, you can learn how to make money trading binary options with my course here.

In Conclusion

Trading can be easy, but it is the fear of losing that is the biggest hurdle to overcome for almost all traders. Manage your fears and the rest will fall into place.

Beginners guide to Moving Averages

Moving averages

Quick guide for Using Moving Averages


Moving averages [MA’s] are among the most important financial and stock trading indicators a trader can have in their arsenal. Moving averages can help identify trends and reversals and this alone can be enough to help you profit from the markets.  What’s more is that they, [Moving averages] can also offer clarification to support and resistance levels.


The fact that much of my trading success has revolved around using moving averages at some stage, is enough to tell you that they work and that they are very simple to use.

But… stating the fact does not give them the true credit that they deserve.


Moving Averages 

Most traders know the importance of trends, and the moving average are the key indicator that can be used to identify trends.

MA’s are what are classed as lagging indicators. This means that they are formed from historic data, meaning that they can help you speculate where the price is likely to go not where the price is going to go.

Moving Averages work by smoothing out the past data to create lines that make the price of a chart easier to identify with.

Investors can hold a trading position when they can see that the price is above or below their moving average/s.


Different Kinds of Moving Averages

The two most common types of moving averages include the SMA and EMA. SMA stands for the simple moving average, while the EMA stands for the exponential moving average. There are differences and similarities between the two.


Simple Moving Average SMA

The Simple Moving Average or SMA, is calculated by adding the closing price of the security for a number of time periods and then dividing this total by the number of time periods. This is [unsurprisingly] the most basic of the moving averages.


Exponential Moving Average EMA

The Exponential moving average [EMA] is very similar to that off the simple moving average. However, the difference is in their sensitivity to market movement. The EMA will track and hug the price of the security, far closer than that of the SMA.


The EMA is more suited for shorter term trading [10 minute- 1 hour charts] and you will often see Day Traders using them in their set ups.

The SMA is slower to react to market price, therefore it can keep you in the trade longer with less false price movements, but can also get you into a trade later too. The SMA is preferred by medium to longer term trend traders that use end of day charts.


Weighted Moving Average WMA

The weighted moving average is calculated in the same way as the simple moving average is calculated. However, there are differences in the value. The values/price can be linearly weighted. This ensures that recent prices of the given security impact more on the average.

Some traders prefer the WMA moving average as it is that bit faster again at identifying price movements than the EMA. It can be more useful in a faster moving market where you are using 1 or 5 minute candles for example.


VIDYA Moving Average

The most recent addition to the moving average family is the VIDYA, which stands for Variable Index Dynamic Average. This moving average is commonly credited to Tushar Chande.

The VIDYA moving average is unique in the sense that it adjusts itself when there are changes in market volatility. When there is higher volatility the VIDYA reacts by becoming more sensitive. In periods of lower volatility, you’ll see the VIDYA less sensitive to market conditions.

The VIDYA is a combined indicator of the exponential moving average and the Chande momentum oscillator.

The VIDYA moving average is an indicator that I see a huge potential for traders, especially new traders. It [the VIDYA] takes a lot of false movements out off your trading when using the appropriate timeframes.

This means that you will come accustomed to riding the trading waves [price movement] without so much conflicting emotion.

When Vince Stanzione first started using the VIDYA I really wasn’t a fan. Now… I’m going to be basing far more emphasis on trading with it.

Why the shift in opinion? Because it’s awesome, and I’ve been back testing recently and it makes trading even easier.

You won’t find the VIDYA on many chart packages at the moment though. Sharescope have it pre installed however.

Most of the other chart packages are still playing catch up on installing the VIDYA as it is quite a complicated bit of programming to do [apparently].


In Conclusion


Moving averages smooth out price to make it easier to identify trends

Simple moving averages are the slowest moving averages to react to price movements and are therefore better for trading medium to longer term trends.

Exponential Moving Averages are useful for trading shorter time frames as the EMA will track the price closer than that of the SMA .

Weighted moving averages are better for fast day trading strategies and fast moving markets.

The VIDYA moving average is a combination of the EMA and an Oscillator. This moving average will keep you in trades longer with less chance of stops being hit and false signals

Remember, the faster the time frame of the charts and moving averages that you use, the more you will need to be prepared to deal with false trading signals.

11 Ways Trading from Home Can Improve Your Life

trading from home

Looking for a good work from home opportunity has many pitfalls… but in all honesty, the most common and certainly what were considered the easiest means of working from home are just not so easy anymore.


eBay, Amazon, Google AdSense have long been the staple for many that wish to leave the rat race.

But that’s changing.


It’s Way More Difficult Today


The problem nowadays is that these forms of income are becoming increasingly complicated options to start from home single handedly.


Amazon for example, are seemingly bringing in so much red tape to clear before you get started selling on their platform, that I can only imagine they are scaring off more new businesses than gaining.


If you are not a tech type of person, and can’t create original content, write adverts, run social media marketing campaigns, import goods from China, handle the shipping in the UK, do your accounts, deal with customers, take product photos, create a listing, learn how to get your products ranked and selling… then Amazon probably wont be for you.


eBay, even though somewhat easier to get started on, still has many areas of complexity to digest and tackle before you start making any kind of regular profits.




Only a few years ago, Google AdSense was considered a mainstream income… but that too has become way harder to make income from.


Consumers are battered online with advertising from every possible angle… so much so that we have become immune to the adverts. This means that the adverts that you use to get commissions are less effective.


Blogging, which is mine and many entrepreneur’s best advice on how to start a new business online has also become harder to profit from. With 2.7 Million blog posts published every day in 2017… how does a new blogger stand out?  It’s difficult. Not undoable… just harder than it used to be.


Why Trading from Home Could be a Good Bet

Trading for a living


When you consider the amount of logistics that need to be addressed before you are even making a sale online, you can see why trading is becoming a far easier option for the modern entrepreneur.


After comparing the pro’s and cons that trading for a living can offer, compared to what other online businesses offer, then I can only see the trend [no pun intended] of new traders continuing to rise.


Here are some of the biggest benefits that trading can offer you if you are thinking about or looking for a way to generate an income online.


It’s easy to start

You don’t need any special equipment to get started. Once you have chosen a broker or spread betting company you are good to go. All the reputable services provide you with the necessary charts that you’ll need.


You Don’t Need Much Capital

Contrary to popular belief, you really don’t need mountains of money to start trading. In fact, you can risk far less start up funds deciding if trading is going to be your thing than you can buying stock from China to resell.


A few hundred quid is enough to test the waters out. If you decide that it is not for you, you can just close your account after you have withdrawn your funds.


You Only Need to Rely on Yourself

Unlike the other opportunities I mentioned earlier, with trading you are in control of your own destiny.


I have heard many unfortunate stories of entrepreneurs that have had there selling privileges removed by Amazon and eBay for what can only be considered unfair reasons… basically putting the person out of business quicker than you could say crash!


This never happened to me, but I’ve had my fair share of grievances with these selling channels and it regularly reminded me that you could be out on your ear for the slightest and leanest of issues.


When you think about it, it’s the same as being made redundant without pay or any clear explanation on any random morning that you arrive for work.


Spread betting or trading binary options carry no such hazard.


It Really can be Done from Home

You wont need to go to the post office, petrol station, market, cash and carry, library or any other shop or establishment to trade the markets successfully. Trading from home can genuinely be done on a laptop, in your pyjamas at the kitchen table if you wish.


Weekends are Always Free

With the financial markets and banks being closed from Friday evening until Monday morning, you have all weekend to do as you please. No overtime to do, ever!


No Staff 

Obviously, if you do decide to give trading from home a go, you are never going to need any staff.


This removes the entrapment of asking friends or family for favours.



make money trading

Learning to trade the markets can really free up your time.


Vince Stanzione says that you need no more than 15 minutes a day to make money trading… you know what… he’s totally right.


Of course though, you’ll need a little more time if you’re day trading.


Creates other opportunity’s

The fact that you will have more free time available to you once you do become a successful trader can open the doors to all sorts of other opportunities.


Time to learn new skills and take up hobbies, indulge in subjects that have always interested you, travel, self-improvement, fitness, cooking classes, improving your social life… whatever takes your fancy becomes a realistic possibility.


Discovering the Law of Attraction

It isn’t luck that falls into the laps of successful and happy people; it is more a case of belief creates the world that they live in.


If you start with good foundations and a solid trading strategy, you’ll gain belief in what you are doing and trying to achieve when trading from home; then, the more life will unfold for you. This means getting more of what you want… in our case, trading success.


The angry trader that curses his stupidity and berates his own monitor or iPhone on every loss is mentally attracting more of the same into his life… trading failure.


Start as you mean to go on… Learn well, trade easily.




Winning at anything is obviously more satisfying than losing [for most of us anyway] but winning at trading seems to carry a greater feeling of satisfaction than other successes.


The sheer emotional and psychological fact that you are winning trades and money on a regular basis, that is then compounding from month on month is truly exciting.


The result is true self-satisfaction.



As most of us are striving towards creating more money, then last but certainly not least, the most obvious attraction of trading from home is the financial wealth that it can generate and offer.


The bookshelves and internet are littered with stories and successes of rags to riches investors. It can most certainly be done.


Although I must point out, as I have developed as an individual over the years, I believe that happiness is a far deeper and more soulful state than just being financially rich.


However, I do totally understand where this ideal of financial salvation comes from… after all, I used to think the same.


There is a certain level of financial gain that will undoubtedly lead many to a happier existence. But it is not infinite; more money does not equal more happiness.


Vince Stanzione has declared on numerous occasions that the first couple of million that he made, did most certainly make his life sweeter… after that, he said that nothing else really changed.


In Conclusion


I hope I haven’t gone to spiritual on you and that whatever you want to get from trading for a living you find.


It is worth remembering though that although trading from home can offer many benefits and can enhance your life in many ways… it’s too shallow to assume that money will make your life complete. It might help, and help a lot… but it’s not everything.

DAX Trading System

trade the dax 30

The German 30 or DAX if you prefer, is one of the most heavily traded markets. This is certainly true for day traders as it can be one of the easiest markets to predict spread betting price movement on from a day to day basis.


It also moves more than most currency markets from a daily point perspective. This adds to it as ideal market to spread bet.


There are many strategies and systems floating around online that can show you various ways on how you can make money from trading the German 30 DAX… I hope though, that none are going to be as simple and quick as this one.


Although this strategy is for financial spread betting [so you will need an account with one of the financial spread betting firms]. You could easily convert it to a binary trading system… I’ll show you how later.


Ok, with that said, lets get down to business and look at how we can trade the DAX.


DAX Trading System


I’m currently working on a day trading system for the DAX. It is looking very promising and I am now testing with real funds.


However, it has been whilst testing this new system that I spotted this little niche and I thought that I must share it with you now.


There are no technical indicators other than support and resistance lines to use.


All you need are some live charts.


NOTE: If it [this strategy] or something similar has already been published somewhere, then hey ho… I’m not claiming any rights to it.


The Rules of the DAX Trading System


Firstly, you need to open up your charting package and select the German 30 index.


Once selected you need to set the candles on the chart to 10 minutes.


I’m using the IG charts in these examples. They are good charts and are free even if you’re not trading on IG platform.


Now that I have selected the correct candles, I now need to look at the range of price movement from 7am – 9am


It is the price breakout from this range that we are going to be trading.


Whilst developing my new DAX trading strategy, I noticed that the first 2 hours of the DAX from 7.00am gave some major swings back and forth. Although you could try and trade this volatility alone, I thought it safer to trade the price breakouts from this range.


What is important to remember here is that we are not trying to get in on the start of any major movement and get out just as it finishes. Although a nice ideal it’s unlikely to happen with any regular occurrence.


Look at this chart image of the DAX German 30


DAX trading System


Dax Trading Zones

This image is of the first 2 hours of price movement. You can see that from 7 am until 9 am that the price has consistently swung back and forth from 12418 to 12382. I have highlighted this with the blue support and resistance lines.


This price zone gives us a 36-point range. That is actually quite a small range for the DAX and we can realistically expect a price breakout at some stage over the course of the day.


NOTE: Sometimes when trading this system, you can easily [and regularly do] get a price range of 100 + points. When the range is this large it’s better to leave this strategy and trade moving average crossovers.


So, from here we are looking for the price [our 10 minute candles] to close over or under one of our blue support or resistance lines. To simplify this we can set a price notification.


So the next thing you need to do is set the price alerts. Doing this saves having to be at your pc all day or checking your phone every 10 minutes.


Here’s how you create the alerts.


  • On the right hand side of the ig screen you’ll see the alert tab. Click that and then click the price level tab.


  • Enter the price levels of where you have drawn your support and resistance lines.


  • Click the set alert button.


German 30 trading system


Now when the price reaches one of these levels you can check to see if the candle will then close over or below the level, and if so we can then consider opening a trade on the following candle.


Opening a trade


To open a trade, we need to be clear and sure that the price has truly broken out of its trading range. It is important the price hasn’t just tested the levels and is going to reverse.


To do this and be confident that the price is breaking out from range, we are looking for a big bull or bear candle to break the S&R lines.


As you can see from our chart… the price continues to move sideways until we get a good bull candle that clearly breaks the resistance line.


Once you are ready to enter the trade, you just hit the buy or sell buttons in the top right hand corner of the IG screen.


Trade the DAX


With our breakout candle you can see that there is a small wick that formed at the top of the candle. Ideally you should enter the trade once the next candle has broken this level.


This can help ensure that the price will continue to move in our direction with minimal drawdown.

dax trading


Using Binary.com to Trade


If you don’t fancy trading on IG by spread betting this DAX trading system, then you can still trade it on binary.com


To do so just trade the German 30 will be higher or lower in 2 hours’ time.

This 2 hour time frame seems to suit this strategy really well.

You can’t start the trade now on binary.com so you will need to set the time of the trade to start a minimum of 5 minutes into the future.


Using Resistance Levels Versus Moving Averages


Resistance levels are one of the key indicators for day traders, but as you know, moving averages are probably the most used indicator in any form of financial trading.


Moving averages are awesome… but if you look at our chart with one of the most popular short term moving averages set ups added, you can see the issues with this type of indicator in sideways markets.


Using moving averages that are this small has cut us to smithereens. In and out of the markets all day and paying the spread each time as well as having our banks battered.


As you can see we have had a 7 crossover signals [blue dotted vertical lines] in the morning session alone. Most of which didn’t materialise into anything noticeable.

DAX System



A better moving average for the DAX Trading System.


However, if you use a longer moving average you can manage to stay out of most the noise and still get a clear entry point that can help clarify a breakout.


I have been looking at how effective the 10/50 EMA is on the DAX and currencies for a few months now and I can say that I have been impressed with the results.


The combination keeps you out of much of the sideways movement and noise but give a good buy or sell signal to boot.


DAX day trading system


Only 1 false signal out of 2 using the 10/50 EMA crossover and the 2nd signal [crossover] signified the start of the breakout.


Using a good reliable moving average can help anticipate the price movement as well as keeping you out of choppy unpredictable movements.


So the 10/50 EMA can be very useful, but you really do not need it for signalling an entry point when trading this strategy.

You can use it however [or another moving average] to exit the trade as I’ll explain shortly.


Closing the position.


How long will the trend last? I have absolutely no idea… but I do know that once you are in on it then long may it continue. But that doesn’t help you get out of the trade.


The best way to exit a trade using this strategy is following the moving average crossovers. So basically you are in the trade until the moving averages crossover. This is the easiest solution.


You can easily use a 10/50 Exponential moving average as an exit signal. This will keep you in the trend longer but can cost you more as the trend finishes.


If you want to keep your profits a little tighter then a 5/10 Exponential Moving average may work better for you.


You can also close the trade if the price moves back under/over S&R levels or if you are using trailing stops [I don’t use them very often] when and if your stop is hit.


You can also just manually close your trade when the London session closes at 16.30pm or even when the DAX closes, although much of the price movement is often over by then.


Using stop losses

Stop losses can be great… but also a great pain in the rear.


I occasionally use them and have done when testing day trading strategies.


The question always is and always has been, where do you put a stop loss? Stating how much you want to risk on any trade is not a great idea even though popular. If you say you are happy to risk 2% of your bank on any 1 trade then why let the stop get hit in the first place? If the price seems to be bolting in the opposite direction, why let the stop get triggered?


In my opinion every trade is different… even if you are trading the same market. So therefore stop losses and where you are placing them are too.


This means that they need to be adapted as such. Plus, if you’re day trading, you need to be around to trade anyway. So you can hit the stop [close position] button as and when.

Longer term Trading

Long term trend trading is a far slower moving game. Price rarely go boom or bust in a day. So stop losses are not needed as much.


Long term trading is easier if your stop loss is whatever you are risking on that trade. Let me explain briefly.


So [an example of this] I may buy SOSO stock at £2 a point but I may be willing to risk £500 on that trade… however, instead of using a stop that keeps getting triggered every minor retracement and costing me £100 each time it does, I have a set risk in my mind. And I use moving averages to exit positions so I rarely if ever lose my amount risked.


The times I have seen my trade get stopped out, only to then see the price continue in the right direction was so irritating. And maybe even more annoying is paying extra spread for the privilege to see it happen.


Personally, with this strategy I’d be using moving averages to signal my moves, all I need to do is admit I’m wrong if need be and go the other way if I choose.


Anyway I digress, if you want to use a stop with this strategy then you are probably best putting it just beneath or above the breakout S&R lines… since you are expecting the price to move from there anyhow it is obviously far better to cut your losses sooner rather than later.


How Profitable Can Trading the DAX Breakouts be?


These breakouts on this DAX trading system can be very profitable. In fact, I’d say that even if this was your only trading system that you ever used then you’d be realistically able to grab 300 + points each month as a complete beginner.


Let’s look at what happened to our trade.


Dax strategy


Our breakout resulted in just over 50 points profit if we closed our trade as the market closes at 16.30.


Considering that this trade never had any losing periods or drawdown since opening the trade, it is a nice stress free result.


The awesome thing with this type of trading is that your downside is limited but the upside is unrestricted.


Another Example

german 30 day trading system

If you look at this next example of a breakout you can see that many more points can be made.


This trade resulted in 75 points profit if we had traded out when the 5/10 moving averages crossed over just before market close.


Often the breakouts can last a day and longer, and if the breakouts occur earlier in the day the you can ride the trend for longer if it is profitable.


In this next example you can see that the entry crossover candle was quite small but not once did the price move back over the morning support level.


This trade gave a very generous and easy 106 points profit if you had closed out at 16.30 or just over 110 points profit if you had waited and traded out at at the crossover.


how to trade the dax


Leaving Trades Overnight


If you are thinking about leaving a trade over night because you have been in a good winning move and you think that it is likely to continue, this is a one of the times it can actually be a good idea to add a stop loss.


You could add a 20 point trailing stop so that you can stay in the move should it continue over night, but you also get the safety and peace of mind that if it goes against you that you can lock in most of your profits from earlier in the day.


In conclusion


  • Open 10 Minute chart of the German 30
  • Draw support and resistance lines of highs and lows from 7am – 9am
  • Wait for a strong 10-minute bull or bear candle to close past the S&R levels.
  • Open trade on the start of the next candle if price movement continues.
  • Exit trade when moving averages have crossed over or at close of day.
  • Let profits run.
  • If using a stop, place it just beneath or above the S&R levels.


This really is a great stand alone DAX trading system that can be used on a regular daily basis if the morning support and resistance levels are broken.


You might not get to trade every day, but when you do, the minor risk compared to the rewards will easily see you in profit over the months.


Stay in Line – Don’t chop and change

Stay in line

At his recent seminar, Vince Stanzione played an smart video clip that highlighted the importance of not chopping and changing from one strategy to the next. [I’ve seen the videos now]


He said that many new traders want to make £100 a day and that they look at trading like it is going to pay like a regular job.


This ideal is not realistic in many cases.


He went on to say that some days he could lose £200,000 and another day make £400,000 and that he uses different systems/strategies throughout the year.


And it is over the years that all the profits come together.


He doesn’t look at trading profits as wages.


His results are from across the board… and that some part of his portfolio might be in profit whilst another strategy is running at a loss.


Although I don’t think that new traders should take on too much at once, trading a few winning strategies over time is a good way to increase your exposure to the markets without having all your eggs in one basket.

Stay in Line

That said… firstly you need to find a winning strategy and stay with it.


So once you find a system that you are interested in trading and after you have traded with real funds and got use to the concept of winning and losing, then and only then should you consider adding another string to your bow with another trading idea.


Here is the video from the seminar that Vince used to explain what most people do when looking for a winning opportunity.


They can’t handle the losses, slow pace, or whatever else, so they move about from one system to another looking for the golden goose… ultimately to get nowhere fast nor anywhere better.


If you know a system or strategy works, then you should stay with it.


The biggest part of any trading system that you use is going to be self control; fully accepting the ups, downs and the sideways… every system you find will require the same… so better to just stay in line as the video suggests.