Training Materials

01 WHAT IS FUTURES TRADING

Futures trading are the investments that involved a futures contract, whereby futures contract is derivatives that its value derived from the value of one or more underlying assets in the contractual terms.
To start with futures trading, first of all, you need to know that futures are not trade at the stock market, however, they are trade in the well-established futures exchange, for example, the Chicago Board of Trade, the New York Mercantile Exchange, the London Metal Exchange, and in Asia, Hong Kong Futures Exchange, Tokyo Commodity Exchange and Jakarta Futures Exchange.

Some of the known futures markets are:

  • Agriculture futures – These are futures market involving agricultural products such as wheat, corn, rice and soybean.
  • Currency trading – It also known as FOREX (foreign exchange) trading, and involving buying and selling of different currencies from different country such as the US dollars, the Japanese Yen and the Euro.
  • Interest rate futures – This market focuses in financial liquidity on the interest rate and bonds.
  • Energy futures – It is a market involve in gas and oil.
  • Metals – This is one of the most established futures market, better-known products are metals like gold and silver.
Futures contracts are trade at the futures exchange, which clearinghouse is the counterparty to ensure that all trade are completely settle and clear. The contracts at futures exchange are highly standardize, which there are specify underlying instruments, determined quality and quantity of the goods that need to be deliver, pre-set contract size, contractual of time of delivery and the manner of delivery.
  • The corn in your morning cereal which you have for breakfast,
  • The rubber that makes your breakfast-table and chairs
  • The gold on your watch and jewellery,
  • The cotton that makes your clothes,
  • The steel which makes your motor car and the crude oil which runs it and takes you to work,
  • The wheat that makes the bread in your lunchtime sandwiches
  • The beef and potatoes you eat for lunch
  • The currency you use to buy all these things like US dollars, Great Britain Pound and Japanese Yen
  • The petrol you use to mobilize your vehicles
  • The stock indices like Dow Jones, FTSE and S&P.

All these commodities (and dozens more) are trade between the investors all over the world from day to day basis. They are all trying to make a profit by buying a commodity at a low price and selling at a higher price.

Contracts for Difference (CFDs) are derivative instruments that allow traders to speculate on the changing values of an asset without taking ownership of that asset. Due to their complexity, trading CFDs carries a high level of risk, particularly for first-time traders or investors who are not well-educated about the markets.
Learning about the markets and understanding the risks involved does not entirely eliminate the risks inherent in CFD trading, but it may help you make more informed decisions, manage your invested funds more effectively and employ adequate risk management. If you are new to trading, visit our Getting Started page and register for a demo account to learn the basics. Demo accounts are free and unlimited, and are designed to help you practice trading or test your strategies in a risk-free environment.
Futures market is the only way for you to access the derivatives markets. Increased capacity in global markets has accelerated people attention and attracted the interest of traders from around the world. The perspective on the direction of commodity prices, energy prices, metal prices, currencies, interest rates and stock indexes have drawn people eye-sight in investing their fund in the markets.

These are some key terms and concepts that you need to know to trade:

  • Contract Size – By definition, each futures contract has a standardized size that does not change. For example, one contract of gold futures represents 100 troy ounces.
  • Contract Value – Contract value, a contract’s notional value is calculate by multiplying the size of the contract by the current price.
  • Tick Size – The minimum price change in a futures contract is measure in ticks. A tick is the smallest amount that the price of a particular contract can fluctuate. Tick size varies from contract to contract, and every brokerage firm customized their own tick size, for example, at Java Global, in gold futures, every 5 cents movement in gold price accommodate for one tick and it value for USD15 per tick.
  • Margin trading – A facility provided to you in order to conduct a transaction whose contract or trading value exceeds the paid-in capital. The margin serves as collateral that you pay to a futures brokerage as a security deposit, which serves to guarantee that you are able to fulfill the payment obligation.
  • Leverage – A ratio use in margin trading to provide you a trading value that exceeds you paid-in capital. For example, at Java Global, in gold futures, the contract size is 6 lot (600 troy ounces), and the leverage set around 1:250, which means for every 600 troy ounces, the current value is about USD700,000 (600 x current price), but you only need a security deposit of USD3,000 to trade for the value.
  • The wheat that makes the bread in your lunchtime sandwiches
  • The beef and potatoes you eat for lunch
  • The currency you use to buy all these things like US dollars, Great Britain Pound and Japanese Yen
  • The petrol you use to mobilize your vehicles
  • The stock indices like Dow Jones, FTSE and S&P.
There are two basic categories of futures participants: hedgers and speculators. Hedgers use futures for protection against adverse future price movements in the underlying commodity to manage their risk. The rationale of hedging is base upon the price of the commodity and the futures values to move in tandem. Hedgers are very often businesses, or individuals, who deal in the underlying commodity. Speculators are the second major group of futures players. Speculators may be full-time professional traders or individuals / investors who trade.
The things you need to do to begin your journey in the futures market: Start Learning – enhance your knowledge through education, for example, the basic level, intermediate level, advance level and supervisory level offered by Java Global. Create a Trading Plan – This is crucial. You need to outline your goals and objectives in the technical and fundamental analysis as well as your strategies in the sentiment manner. Select a Broker – Select a legalized broker whose offer the services from A – Z.
Credit your fund into segregated account – Segregated account are the account guarantee by the Clearing House, it main purpose is to separate the funds from clients with the companies, banks and government. It is always advisable to select a broker who hold the segregated account maintain by Clearing House.
Derivatives are the financial instrument whose characteristics and value depend upon the characteristics and value of an underlying asset, typically a commodity, bond, equity or currency. Examples of derivatives include futures, options, forward and swap.

01.1 EXAMPLE OF FUTURES MARKET TRADING

Margin trading
  • Trading transaction by way of margin trading is a facility provided to you in order to conduct a transaction whose value exceeds the paid-in capital.
  • Margin in gold trading serves as collateral that you pay to the futures brokerage company as a security deposit, which serves to guarantee that you are able to fulfill the payment obligation.

Margin in gold trading serves as collateral that you pay to the futures brokerage company as a security deposit, which serves to guarantee that you are able to fulfill the payment obligation.

Two way trading
  • Basic principle of the two-way opportunity is opening a position that reflects market propensity.
  • One buys (buy new) when the price tends to increase (bullish) and closes by selling (sell close) when the price is higher.
  • One sells (sell new) when the price tends to decline (bearish) and closes by buying (buy close) when the price is lower.

01.2 CAPITAL MARKET AND OTC DERIVATIVES

  • Capital markets provide for the buying and selling of long term debt or equity backed securities

    • 21st century capital markets are mainly hosted on computer based Electronic trading systems; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public
    • Physically the systems are hosted all over the world, though they tend to be concentrated in financial centers like London, New York, and Hong Kong.
  • The term derivative comes from how the price of these contracts is derived from the price of financial contracts. Derivatives are financial contracts whose value is linked to the price of an underlying commodity, asset, rate, index or the occurrence or magnitude of an event.

    • Derivatives markets have been in existence for as long, and even longer than that for securities, it has been the growth in the past 25 years that has made them one of the pillars of financial systems.
    • It is true not only of developed, but also developing economies.
    • It is true not only of developed, but also developing economies.

    • Exchanges and OTC markets:

    • Exchange-traded derivative contracts (ETD) are those derivatives instruments that are traded via specialized derivatives exchanges or other exchanges

    • Interest rate & index products:

    • Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary – The london market – international OTC for gold and silver.
    • Tailor-made derivatives, doesn’t trade on a futures exchange but trades on over-the-counter market
    • Over-the-counter (OTC) or off-exchange trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties
    • Products traded on the futures exchange market must be well standardised for transparent trading
    • Non-standard products are traded in the over-the-counter (OTC) derivatives markets
    • OTC derivatives have less standard structure and are traded bilaterally (between two parties)
    • Unlike exchange-traded derivatives, OTC derivatives are not traded on an exchange, but are rather negotiated between two parties, one typically an investment bank and the other a corporate, which has an economic utility to be addressed by the instrument
    • For example, a manufacturing company may have receivables in US Dollars but incurs costs in Ringgit.

    • A declining US Dollar may prompt the company to hedge its risks against further decline

01.3 OTC DERIVATIVES

    • Synthetic instrument
    • Derive value from underlying asset
    • Rice derivatives traded in Japan at 15th century
    • Stock options traded in 1800s
    • Corn and wheat futures traded on CME today
  • Common type of derivatives

    • Futures
    • Options
    • Forwards
    • Warrants
    • Swaps
    • Hedging
    • Investment
    • Exposure to different market
    • Speculation
    • Leverage
    • Risk transfer
How are derivatives traded?

Exchange traded

  • Exchange central clearing house (CCH) acts as counterparty on both sides of the transaction
  • Credit risk exposure to CCH
  • Margin as required by CCH rules
  • Limited number of standardized products

Over the counter, OTC

  • Private transaction between two parties creates counterparty
  • Credit risk to be managed
  • Collateral negotiated between the parties
  • Huge variety of products

The market for OTC derivatives is significantly larger than for exchange-traded derivatives and was largely unregulated.

  • The Dodd-Frank Wall Street Reform and Consumer Protection Act prescribed new measures to regulate derivatives trading.

The OTC market is composed of banks and other sophisticated market participants.

  • The hedge funds, and because there is no central exchange, traders are exposed to more counterparty risk.

Most of the world’s derivatives trading takes place in the over-the-counter or privately-negotiated markets.

  • This occurs for a number of reasons, including the diverse nature of derivatives contracts, which makes it difficult to match buyers and sellers in an exchange-like trading protocol.
Why OTC?

    OTC derivatives are a widely used risk management tool that can be closely tailored to manage a client’s specific exposures

  • Mandatory clearing is incompatible with customization

    Offsetting an exposure through a customized OTC derivative eliminates unwanted FX, interest rate, or commodity price risk from an underlying transaction and allows companies to focus on their primary business risks.

  • Customized need not mean complex; OTC derivatives can be tailored to match both simple and complex underlying risks

    The hedge accounting rules which require a close fit between a hedge and the underlying risk, highlighting the need for customized OTC derivatives

  • Mandatory clearing or exchange trading reduce the benefits of hedge accounting, including managing earnings volatility

    Clearing houses manage default risk of their members primarily by means of cash collateral posted by members funds

  • Initial (up-front) margin
  • Daily mark-to-market and variation margin
  • Under most clearing arrangements, margin has to be posted in cash or treasury securities and adjusted for market moves twice per day
  • Additional protection provided by strict membership requirements and guarantee funds

    In over-the-counter derivatives, collateral arrangements are common but subject to negotiation

  • For non financial companies, collateral arrangement can be tailored to include use of illiquid assets like plants, machinery, and real estate to avoid using cash needed for daily operations
  • For the economy as a whole, mandatory clearing, with its requirement to post cash margin, would drain liquidity and create additional operational burdens to corporate clients
Exchange traded vs OTC

    Exchange traded

  • Standardized contracts
  • Limited tenor
  • Limited liquidity in deferred periods
  • Higher basis risk because of inability to customize hedge
  • Upfront collateral requires that cash to be tied up
  • Daily margin calls depend on requirement
  • Potential market movement following execution on exchange

    Over the counter, OTC

  • Enables client to customize hedges
  • Volumes
  • Settlement timing
  • Payment timing

    Larger array of products

  • Ability to execute larger
  • Volumes at one price; avoid moving the market
  • Flexible collateral: reduces or eliminates need to tie up liquidity (i.e. cash)
The importance OTC Derivatives

    Trade Customization

  • Buyer and seller can create truly unique transactions to meet their respective needs.
  • These are commonly called, ‘bespoke’ trades.

    Liquidity and Transparency

  • While we think about liquidity, we most often think about exchange markets, but how many exchange based markets can take a single trade to create or offset $100 Million or more in market exposure with close to zero market impact?
  • Those OTC derivatives that have combined this ‘liquidity’ with market standardization have exploded.

    Lower costs

  • Transaction costs, like stamp taxes and exchange fees, can be eliminated when trading in OTC derivatives.
  • In addition, most derivative trades require a small ante, thus, providing a way for managers to own the same underlying market exposure at minimal cost.

    Efficient lower footprint portfolio management

  • OTC derivatives can allow for more efficient management.
  • For example, a manager can either ‘tip their hat’ and buy hard equities or be more elusive via a contract-for-difference at one tenth the cost.
  • The time for a manager to create these exposures can be significant through traditional markets, while exposure via a CFD can take minutes.
Recent Improvements in the OTC Derivatives Market

    Foreword

    This is the third progress report by the FSB on OTC Derivatives markets reform implementation. In September 2009, G20 Leaders agreed in Pittsburgh that: All standardised OTC derivative contracts should be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties by end 2012 at the latest. OTC derivative contracts should be reported to trade repositories. Non-centrally cleared contracts should be subject to higher capital requirements. We ask the FSB and its relevant members to assess regularly implementation and whether it is sufficient to improve transparency in the derivatives markets, mitigate systemic risk, and protect against market abuse.

    In June 2010, G20 Leaders reaffirmed their commitment to achieve these goals. In its October 2010 report on Implementing OTC Derivatives Market Reforms (the October 2010 Report), the FSB made 21 recommendations addressing practical issues that authorities may encounter in implementing the G20 Leaders’ commitments.

    Over-the-Counter Trading, Exchange Trading, and Clearing

  • Over-the-counter derivatives are subjected to centrally cleared if both parties decide to assign the trade to a central counterparty, and if the central counterparty accepts the assignment.
  • Regulators have prioritized the increased use of central clearing for OTC derivatives trades in order to reduce systemic risk.

    OTC derivatives counterparty relationships without a CCP

    Counterparty credit risk can often be reduced by “clearing,” which means obtaining the effect of a guarantee by a central counterparty (CCP), sometimes called a clearing house

  • The NYMEX has created a clearing mechanism for a slate of commonly traded OTC energy derivatives which allow counter parties of many bilateral OTC transactions to mutually agree to transfer the trade to ClearPort, the exchange’s clearing house, thus eliminating credit and performance risk of the initial OTC transaction counterparts.
Clearing trades through a Central Counterparty

  • Trades executed bilaterally or on an exchange
  • Both sides or the exchange will submit the trades to a central counterparty
  • Result: central counterparty becomes party to each side of the trade
OTC Derivatives in Modern Banking

  • OTC derivatives are the significant part of world global finance at this 21st century.
  • The ability to use them to unbundle financial risk into separate components is an important step in the direction of creating more complete and efficient financial markets.
  • OTC derivatives enable economic agents to define more precisely their risk preferences and tolerances, and more effectively to manage them
Conclusion

  • Comprehensive regulation of financial markets, including increased transparency of derivative.
  • The recent development in OTC derivatives in central clearing system has ensure that the transactions are covered by a multi-tiered clearing guarantee system which ensures the safety of payment by the parties
  • The greater freedom of negotiation and customization of the transaction of OTC derivatives has a vital role in the development of any countries economies.

02 MARKET ANALYSIS

  • Let’s look at three ways on how you would analyze and develop ideas to trade the market

    • Technical analysis
    • Fundamental analysis
    • Sentiment analysis
  • Bullish Market

    Bearish Market

  • Technical analysis is the framework in which traders study price movement.

    Technical analysis looks at the price movement of a security and uses this data to predict its future price movements.

  • Fundamental analysis is a way of looking at the market by analyzing economic, social, and political forces that affects the supply and demand of an asset

    Fundamental analysis looks at economics factors.

  • The markets do not simply reflect all the information out there because traders will all just act the same way, it determine the market on current or future outlook

    Sentiment analysis looks at one’s personal judgement or evaluation.

03 Technical ANALYSIS

How to begin?
Types of Charts
  • Line chart
  • Bar chart
  • Candlestick chart
Line chart
  • A simple line chart draws a line from one closing price to the next closing price.
  • When strung together with a line, we can see the general price movement of a currency pair over a period of time.
Bar chart
  • A bar chart is a little more complex. It shows the opening and closing prices, as well as the highs and lows prices


  • Bar charts are also called “OHLC” charts, because they indicate the Open, the High, the Low, and the Close
Candlestick chart
  • Candlestick chart show the same information as a bar chart, but in a prettier, graphic format.
  • Candlestick bars still indicate the high-to-low range with a vertical line.
Candlesticks Movement
Doji Movement
What is Candlestick Trading?
  • Candlesticks can be used for any time frame, whether it be one day, one hour, 30-minutes – whatever you want! Candlesticks are used to describe the price action during the given time frame.
  • Candlesticks are formed using the open, high, low, and close of the chosen time period.

  • If the close is above the open, then a hollow candlestick (usually displayed as white) is drawn or in green.
  • If the close is below the open, then a filled candlestick (usually displayed as black) is drawn or in red.
  • The hollow or filled section of the candlestick is called the “real body” or body.
  • The thin lines poking above and below the body display the high/low range and are called shadows.
  • The top of the upper shadow is the “high”.
  • The bottom of the lower shadow is the “low”.
Body
  • Short bodies imply very little buying or-selling activity.
  • Long bodies imply very much buying or selling activity.
  • The Bulls mean buyers and Bears mean sellers.
  • Long white candlesticks show strong buying pressure. The longer the white candlestick, the further the close is above the open.
  • Long black (filled) candlesticks show strong selling pressure. The longer the black candlestick, the further the close is below the open.
Mysterious Shadows
  • The upper and lower shadows on candlesticks provide important clues about the trading session.
  • If a candlestick has a long upper shadow and short lower shadow, this means that buyers bid prices higher.
  • If a candlestick has a long lower shadow and short upper shadow, this means that sellers forced price lower
Basic Candlestick Patterns
  • Single
  • Double
  • Triple and a group
Spinning Tops
  • Candlesticks with a long upper shadow, long lower shadow and small real bodies are called spinning tops
  • The pattern indicates the indecision between the buyers and sellers
Marubozu
  • Marubozu means there are no shadows from the bodies.
  • Depending on whether the candlestick’s body is filled or hollow, the high and low are the same as its open or close.
White Marubozu
  • Contains a long white body with no shadows.
  • The open price equals the low price and the close price equals the high price.
  • This is a very bullish candle.
  • It usually becomes the first part of a bullish continuation or a bullish reversal pattern.
Black Marubozu
  • Contains a long black body with no shadows.
  • The open price equals the high price and the close price equals the low price.
  • This is a very bullish candle.
  • It usually implies bearish continuation or bearish reversal.
Doji
  • Doji candlesticks have the same open and close price or at least their bodies are extremely short.
  • A doji should have a very small body that appears as a thin line.
  • There are four special types of Doji candlesticks.

  • If a Doji forms after a series of candlesticks with long hollow bodies (like White Marubozus), the Doji signals that the buyers are becoming exhausted and weakening.
  • In order for price to continue rising, more buyers are needed but there aren’t anymore!
  • Sellers are licking their chops and are looking to come in and drive the price back down.

  • If a Doji forms after a series of candlesticks with long filled bodies (like Black Marubozus), the Doji signals that sellers are becoming exhausted and weak.
  • In order for price to continue falling, more sellers are needed but sellers are all tapped out!
  • Buyers are foaming in the mouth for a chance to get in cheap price.

  • There are a lot of candlesticks pattern that you need to study!!!
  • - The hammer is a bullish reversal pattern that forms during a downtrend.

    - The hanging man is a bearish reversal pattern that can also mark a top or strong resistance level.


  • Inverted Hammer : The inverted hammer occurs when price has been falling suggests the possibility of a reversal.
  • Shooting Star : The shooting star is a bearish reversal pattern that looks identical to the inverted hammer but occurs when price has been rising.
Single Candlestick
Double Candlestick
Triple Candlestick
Chart pattern
  • You have to know the basic chart patterns and formations
  • When correctly identified, it usually leads to an explosive breakout
  • Our goal is to spot big movements before they happen so that we can ride them out and rake in the cash
Double tops
  • Double top is a reversal pattern that is formed after there is an extended move up
  • The “tops” are peaks which are formed when the price hits a certain level that can’t be broken
  • After hitting this level, the price will bounce off it slightly, but then return back to test the level again.
  • If the price bounces off of that level again, then you have a DOUBLE top!
  • It is telling us that the buying pressure is just about finished.

Double bottoms
  • Double bottom is also a trend reversal formation, but this time we are looking to go long instead of short
  • The “bottoms” are lower peaks which are formed when the price hits a certain level that can’t be broken
  • After the previous downtrend, the price formed two valleys because it wasn’t able to go below a certain level.
  • The second bottom wasn’t able to significantly break the first bottom, then you have double bottoms
  • This is a sign that the selling pressure is about finished.

Head and Shoulders
  • It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder).
  • A “neckline” is drawn by connecting the lowest points of the two troughs.
Inverse Head and Shoulders
  • A valley is formed (shoulder), followed by an even lower valley (head), and then another higher valley (shoulder)
  • A “neckline” is drawn by connecting the highest points of the two troughs
Support and Resistance
  • Support and resistance represent key junctures where the forces of supply and demand meet
  • In the financial markets, prices are driven by excessive supply (down) and demand (up)
  • Supply is synonymous with bearish, bears and selling
  • Demand is synonymous with bullish, bulls and buying
  • Support and resistance is one of the most widely used concepts in trading.
  • Support and Resistance are like a floor and ceiling while the price is located between them.
  • The main objective is to help us knowing price trends, chart patterns and determining whether the trend is likely to continue or reverse.
  • Support and Resistance exist because traders have memories. They tend to repeat actions took place in the past.
  • Resistance is a price level where seller’s action is strong enough to interfere or reverse an uptrend. (Sellers overcome buyers)
  • Resistance can be drawn by a horizontal (or near horizontal) line connecting a few price tops.
  • Resistance also helps traders to decide when to sell.
  • Support is a price level where buyer’s action is strong enough to interfere or reverse a downtrend. (Buyers overcome sellers)
  • Support can be drawn by a horizontal (or near horizontal) line connecting a few price bottoms.
  • Support also helps traders to decide when to buy.
How to draw???
  • Its better to draw support and resistance lines by drawing horizontal lines through lower and upper edges of congestion areas rather than extreme points
  • When the price passes through resistance, that resistance could potentially become
  • The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is.
Trend Lines
  • To draw trend lines properly, all you have to do is locate two major tops or bottoms and connect them.
Channels
  • If we take the trend line theory one step further and draw a parallel line at the same angle of the uptrend or downtrend
  • We will have created a channel
The Bounce
  • One method of trading support and resistance levels is right after the bounce.
The Break
  • There are two ways to play breaks :
    Aggressive way and Conservative way.
Fibonacchi
  • Fibonacci ratios will be used a lot in our trading.
  • Fibonacci arise from the following number series: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144…
  • Fibonacci Retracement Levels 0, 0.236, 0.382, 0.500, 0.618, 0.764, 1.
  • Fibonacci Extension Levels 0, 0.382, 0.618, 1.000, 1.382, 1.618.
  • Parallax Effect
  • Responsive Design
  • Many Home Page Versions
  • Many Blog Pages
Indicator
  • To find the right time to enter.
  • Set at default setting – in mathematic form – in mathematic formula.
Parabolic SAR
  • Indicator that can help us determine where a trend might be ending is the Parabolic SAR (Stop And Reversal)
  • Parabolic SAR places dots, or points, on a chart that indicate potential reversals in price movement.
How to Trade Using Parabolic SAR
  • When the first dots are below the candles, it is a buy signal.
  • When the first dots are above the candles, it is a sell signal.
Stochastic
  • Stochastic is another indicator that helps us determine where a trend might be ending.
  • Stochastic is an oscillator that measures overbought and oversold conditions in the market.
How to Trade Using the Stochastic
  • Stochastic tells us when the market is overbought or oversold. The Stochastic is scaled from 0 to 100.
  • When the Stochastic lines are above 80 (the red dotted line in the chart above), then it means the market is overbought.
  • When the Stochastic lines are below 20 (the blue dotted line), then it means that the market is oversold.
Moving average
  • Moving averages smooth the price data to form a trend following indicator. They do not predict price direction, but rather define the current direction with a lag.
  • Closing price.
  • The trend.
More active, closer to candlestick
    Moving average – 5 periods.
An example
  • Moving average (5) is the most active line, if this line cross up to moving average (20) - There is a signal of uptrend market.
  • Moving average (5) is the most active line, if this line cross down to moving average (20) - There is a signal of downtrend market.

04 Fundamental analysis

Fundamental Analysis

  • At the first Friday of every month, US will release the fundamental report on their economy status , for example Non farm pay roll, unemployment rate, and more.
  • At the first Friday of July, (8-July-2011), US release the data, the non farm pay roll was a much less-than-expected 18,000 in June, less than the expected of 90,000.
  • The unemployment rate was 9.2% and was the highest in the year SO US currency will ↓↓↓↓↓


05 Sentiment Analysis

Sentiment Analysis

06 RISK CONTROL

  • Risk Control

    • How to control risk.
    • Every trading there must be a target.
    • Trading system.

06.1 RISK MANAGEMENT

  • Locking is a technique used to minimise the loss via performing a new transaction in the opposite direction of the former transaction (using the same lot size) as it will aid in locking the trading position.
    Unlocking is a technique to recover the loss and/or profit from the locked trading position.

  • Switching is one of the techniques used to change the transaction direction to the opposition direction via performing a new transaction in the opposite direction from the former transaction (by doubling up the lots) as it will switch the risk of the transaction and profit from it. Hence, the switch covers the loss and gain you profit.

  • Rolling is one of the techniques used to gain additional profit via performing a new transaction by doubling up in the same direction from the former transaction, as it used to gain the equal if not more profit in the same or faster time taken than the previous transaction.

07 WHEN TO TRADE

When to trade?

When start to trade, you need to know the below analysis.

And follow the Golden rules.


Conclusion

There are many factors to influence you in trading. So, develop your own trading system, and abide to this system whenever you enter trade.

08 TYPE OF TRADING

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