Forex Swing Trading with Elliott Wave
Elliott Wave Counts
1. Short Covering Wave
2. Pullback
3. Institutional Buying Phase
4. Retracement
5. Retail Buying
I trade using Elliott Wave analysis quite frequently on options and sought to port that strategy to the forex market.
Just like in my option trading I look for the Elliott Oscillator to pull back between 90% and 140% of my wave-3 high to set up the trade. This pullback should correspond to a 38%-62% Fibonacci retracement from the wave-2 extension.
My next step is to look for confirming candle patterns, such as Harami, Tweezers or Harami cross, to trigger the trade. I draw a regression channel and look for a break above or below the channel as confirmation to enter the trade.
I place my stops at the high of the wave-1 advance and trail my stop aggressively once the currency pair has advanced past the wave-3 high. A 3-bar trailing stop is my usual exit strategy.
Look more into Elliott Wave and other strategies on my site as a tool for increasing your forex swing trade opportunities.
FX Trade Central Forex Education Portal
FX Trade Central provides an educational roadmap and portal for forex trading and information. Specifically designed to provide the latest in forex educational news and services for those individuals new to currency trading, as well servicing the needs of the more experienced retail FX traders. FX Trade Central provides recommendation on the top-level educational organizations, such as FX Trainer Financial Services Inc., in the market and a unique approach to developing forex trading athletes.
Are You Kidding Me!!!
Well, as everyone knows by now, I am a forex trader that is on this wonderful journey to freeing myself from a job that I have no passion for and being able to control my time and destiny….
Well I knew there would be bumps along the way and boy did I run into one today! I was speaking to a mentor of mine who is in the real estate business (I have been quietly investing in real estate to build me revenue streams… but that is another topic). My mentor has recently left the rat race world for entrepreneurship. As one that is planning on ‘crossing-over’ soon we began a discussion around medical insurance in the U.S.
Wow! COBRA, carrying your own medical insurance, look back by the medical insurance companies and many more hooks has caused me to rethink the cash reserves I am going to need. DO NOT UNDERESTIMATE YOUR INSURANCE NEEDS!
Yes, I am ranting and no this has little to do with forex trading. If you are looking to trade currencies for a living this is definitely going to be on of those ‘challenges’ to plan and know all of your options!
I welcome any and all expert opinion. You can leave me a comment here or on my website FX Trade Central.
Also, do not forget to check out FX Trainer for all your forex education and training needs! You must take the first step!
Reality Check – Baby Boomers Are You Listening?
I was horrified!
It got worse, much worse!
On the drive back home I started reflecting on current events, from the recent jabs between the Unites States and Venezuela to the news that pension fund after pension fund are dissolving, changing the retirement landscape forever. Today, most people are depending upon their 401k savings and what will be left of social security to provide for them during retirement. I actually heard on CNN a financial planner recommend workers consider holding off on retirement longer. As if the average working has not already worked long enough! The US economy has gone through one of the largest peacetime expansions in history. An economic boom supported by our generation, Baby Boomers. We are also paying our share as we support both children in college and aging parents who where left unprepared this ever-changing global economy. What will happen when this generation decides to retire?
BE PREPARED AND STAY AHEAD OF THE CURVE!
We are living longer in a global economy that will continue to react to geo-political events with America at the center. Hugo Chavez is socializing Latin America, the Iranians are enriching uranium, China will be an economic force equal to the United States in our lifetime and Iraq is on the verge of civil war. Hot spots have always been apart of the global landscape, but at no time in history has the global economies been as linked as they are today. That is why I share with anyone who would listen, my economic philosophy of personal responsibility.
IT IS NEVER TOO LATE TO GET FINANCIALLY LITERATE!
Get educated and created a rock solid investment plan. Take personal responsibility for every last cent of your hard earned money. Learn to invest! In no time you will know more than your financial planner. It is possible to increase your portfolio during market downturns. You must have all the tools in your bag because success is when preparation meets opportunity!
NOW IS THE TIME TO PREPARE AND GET EDUCATED!
I am not an investment diversity junkie. I do believe that being the absolute expert in a few areas is the best risk aversion strategy around. The real risk is being educated in the investment area you are focusing in on, just ask Warren Buffet.
I trade currencies as a tool to take advantage of upside and downside markets. Why? You just read why! Mastering the art of trading now, will allow me to continue to grow my portfolio well into retirement and enjoy the life we are all dreaming of living. I chose FX Trainer as my education partner in forex, because the product set allows for:
1. Classroom or online training.
2. Product mix for all forex ability.
3. The ability to build a community of traders.
4. Increased knowledge through networking with other traders.
5. Ability to further increase your knowledge by mentoring other traders.
I also trade options as well, but the forex market is the only truly global market and this is how I am staying ahead of the curve in this marketplace.
See for yourself why FX Trainer can provide you with the skills necessary to master the forex market.
FX Trade Central specializies in Forex Education and is your source for the latest currency trading education and information.
Forex Trading as a Business
We all have our personality quirks. My quirk is collecting quotes. I have quotes in my trading log, in my success notebook (I will discuss this in another post) and even in my golf bag. One of my favorite quotes is “Act as if!” Act as if means that while you are in training to be a successful currency trader (my definition is one that makes consistent profits no matter the lots size being traded) you have to act as if you were already a successful forex trader.
So I began following and speaking with successful retail spot currency traders to gleam some insight into the characteristics of successful forex trading. Unlike those dentist commercial were 9 out of 10 recommends a product, 100% of all the forex traders I have spoken with said treating their forex trading as if it were a business was a key component of there success formula. In addition to merely treating their activities as a business, that their trading was done through a legal business structure. Businesses have plans, projections, profits target and capital spending; and so should your trading. All the FX traders I emulate trade through corporate entities, and now so do I!. If that is the path to success, then I am going down that road also and TRADE as if I were a business with all the planning aspects and legal framework associated with that action.
The tax code in the United States is generally established to collect tax from the employees of businesses and not the business themselves. Case in point, we as individual tax payers pay our taxes THEN expenses with after tax dollars. The business pays for expenses and THEN is taxed on the remaining amount (if any). Forex trading through a business entity makes sense from a tax standpoint; after all it is my business!
I am not a legal or tax professional, but I discovered that of the many structures to becoming a legal entity that there was one that fit the bill of turning my forex trading into a business perfectly; the Limited Liability Company, as a matter of fact I trade with my broker and educational company, FX TRAINER, as an LLC.
There are essentially 4 main business frameworks:
Sole Proprietorship
Partnerships (General and Limited)
Corporations (C- and S-Corporation)
Limited Liability Companies (LLC)
LLCs offer many advantages including:
No lists of advantages are complete without a corresponding list of disadvantages including:
All in all, there is never any substitution for seeking professional legal and tax advice in forming a business entity. There are many factors associated with developing a sound business framework such as; location, estate planning and other assets, but one thing is for sure, forming a business plan and trading currencies as a business is another directional sign on the road to successful forex trading.
For more information please visit FX TRADE CENTRAL as well as the following links:
Anderson Law Group http://www.alglaw.com/
Success DNA www.successdna.com
Nolo http://www.nolo.com/
Inc, Guides www.inc.com/guides/start_biz/20676.html
Happy Trading!
The Forex Educational Roadmap
To Roadmap to Successful Forex Training is broken down into 4 sequential destinations:
1. Education
Education is the key to understanding the forex market and mastery of the necessary skills to become successful. There is no substitute for hard work and dedication here and no short cuts as well. The best site by far is FX Trainer. I have found no other organziation that can so effectively grow and continue to provide igh quality training as you grow as a forex trader. Their community of traders are unmatched. You get to meet traders from all levels and gain from their experiences. That is an asset no trader should be without!
2. Personal Self-Mastery
Personal mastery is bringing balance into all aspects of your life to achieve the necessary harmony which will heighten your education and bring a razor sharp mental focus to all your trading activities. Personal mastery will go a long way in developing your FX trading psychology and philosophy. Two books are must reads in this category; Think and Grow Rich and The Power of Full Engagement!
3. Forex Systems and Tools
One could be the best ditch digger, but if you only had a spoon to dig with your ditch would not be nearly as successful as another one with a back-hoe. Developing a comprehensive trading plan and philosophy will be a critical step on this portion of your journey.
4. Live Forex Trading
Demo accounts and simulated trading is good, but nothing is a substitute for live trading. It is only through live trading that you can accurately assess your skill and balance in mastery of your previous roadmap destinations. Remember, there is no such thing as failure, there is only feedback! This is a personal preference. Open as manay demo accounts as possible and go witht the broker you feel most comfortable with. Just make sure the broker is regulated by CFTC and NFA.
5. Continuous Education and Training
In forex trading, as in many aspects of life, many individuals quite before achieving their desired level of success. It has been said that, like a flower, if an individual stops growing and learning, the dying process has begun. Having a true thirst for knowledge is a guarantee formula for success.
I have dedicated my website FX Trade Central to provide a holistic approach to forex trading education. This site highlights my roadmap to Successful Forex Trading!
When I was growing up in my native New England, USA, my parents, like all parents of my generation, focused on the value of obtaining a college education, transitioning into a "good" job and retiring to a comfortable pension. So I went to school, got good grades and transitioned into a that "good" job. Then something happened, something my parents never prepared me for; I was climbing the corporate ladder and realized that my ladder was against the wrong wall! The economy crumbled and even though I was never downsized, I watched friend after friend get told their services were no longer needed. I listened while my friends struggled to come to grips with the anxiety layoffs create, the decision about work and family, and even more important the psychological damage that was being done as my friends discussed their options. This caused me to pause and reflect.
Do we have any control over our futures? That was the question. I came to the conclusion that working for others was turning over the power to control the outcome of our lives to our corporate managers. As glamorous as having a nice career seemed, we were essentially trading hours for dollars and in reality had only minor control over our future. It was then that I realized that I was never satisfied with my career, because in this Information Age we have less control over the outcome of our careers. Change was happening rapidly and it was time to take action. We needed to leverage ourselves or we were going to be leveraged by someone else! The world our parents lived in no longer existed. Pensions are dwindling, 401K's are only a partial solution and no one is training the personal financial skills that are going to be required to flourish in a global economy. That is when I decided to begin replacing my earned income with business and passive income. I decided to exploit 5 wealth vehicles to allow myself to re-gain that control and provide a degree of freedom for myself and my family. Trading currencies is on top of this list.
This blog will take you with me on my journey in leveraging the forex market. The forex market offers great leverage and opportunity to to succeed in any market conditions. There are countless sites that can explore the technical side of the forex market. However, this blog will share the softer side, the side that I have found that few people talk about in great depth, but have the greatest impact on your journey in becoming a successful trader, the mental and educational aspects of currency trading. I screen and publish the information I receive on FX TRADE CENTRAL. You can always email me direct!!!
Join me as my co-pilot in our journey to forex trading success!
