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How To Make A Full-Time Income Trading Less Than Part Time

Big Dogs Exposed

Sound familiar? You have spent years surfing the 'Net, and studying books and charts in search of commodity trading rules, a currency trading strategy, stock market successful trading strategies, or information on how to use commitments of traders data. All you really want is the 'Holy Grail' of entry techniques. You usually end up adding one indicator on top of another, switching from one guru to the next, until you are so confused and unsure of your entry system that you are unable to make entry decisions and stay organized. You get so distracted and frustrated that you quit watching the markets all together!

Shows you how FAST you can make money when the BIG DOGS make their move - by shamelessly copying this winning group . Even I am STILL surprised by how much power they have over ALL markets - not just commodities futures, currencies, and stocks.G

Newsletter - June 2003

This is an exact copy of the Newsletter e-mail-out.

Greetings! You are receiving this Newsletter because you either subscribed to it at my site, or bought one of my products. It is e-mailed only to those participants who opted in voluntarily, and is not sent to unwilling partners. Your e-mail address will never be shared with a third party under any circumstances. You are safe with me. I don’t condone spam, nor do I promote it. And, that’s a promise from me to you. You have my personal word on it.

This Newsletter is issued on an if-as-and-when basis – at least once a quarter, but not more often than once a month.

This Newsletter is dedicated to traders around the world who are interested in trading commodities futures, currencies (FX and futures), markets and/or stocks. Obviously, I can’t cover all four bases in any one single edition of this Newsletter due to space limitations, and also out of respect for your time.

Please don’t click away or delete too soon or you’ll miss my stock market investing basics and stock market successful trading strategies coming up shortly. Also, you will find my commodity, currency and stock picks of the month later on in this Newsletter.

Other Editions

Commodity Trading Rules

Currency Trading Strategy

Stock Market Investing Basics

Stock Market Successful Trading Strategies

For those of you who missed other issues of this Newsletter, you can read them online by going to: Other Issues

Those issues deal primarily with commodity trading rules, a currency trading strategy, stock market investing basics, and stock market successful trading strategies.

If your trading is all foam and no beer, then be sure to read my Newsletter on a regular basis. And, please send me suggestions for things you want to hear about.

Death Cross/Golden Cross

In the chart below, we have a perfect illustration of the “Death Cross” and “Golden Cross,” sell and buy signals respectively, both occurring on the same chart within six months of each other. The same logic applies to intraday trading, where you plot the 50 and 200-minute moving averages, and look for cross-overs. That you can do at AskResearch.com.

Just one of the many useful insights to trading you will find at: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

Hear what Manny Dacosta of Mississauga, Ontario, has to say: “Buying your book was the best thing I have done. I read at least a dozen books on trading, and they only left me confused. Your trading techniques are great. Your book is getting me started right. You are a god in my eyes.

Well, it's been seven months now after getting your book. Using your strategies trading only stocks, I have doubled my account again.”

Options Surprise

A lot of traders would say that option writing strategies are where it’s at if you want to make money in the options game. It is a known fact that 80% or more of options contracts expire worthless. Adding to that the time factor working against the option buyer, record premiums, commissions, and the spread between bid and ask prices, it’s little wonder that options buyers face an up-hill battle to win at this game – especially on a consistent basis.

Consider the facts that covered call writing carries less risk than a typical buy and hold strategy that does not involve option writing, and that covered call writing over the long term out-performs a buy and hold strategy that does not involve option writing – especially during periods when the market is rising.

With such compelling evidence that option writing is a superior strategy to option buying, why do so many traders stay in the game of buying options? Probably because of the lure of that one big score – much like continuing to buy lottery tickets every week. After all, you only need your ship to come in once to make it all worth while.

You will find the straight skinny on options trading in my book by clicking here: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

The Forex: The Hottest Market

“I've recently converted from futures to the FX markets. Needless to say, that was the right move to consistent profitability. Your book and e-books were the main reasons for switching. Many thanks for sharing your insight on this wonderful market. It's so much easier to trade than the E-mini contracts.” (just one of my many happy customers)

And, another customer wrote in, “Can you tell me why people, and someone like myself, have been 'stuck' with trading futures and options for years? I am still puzzled.”

Since the earth cooled, or so it seems, I have been creating, developing, evolving, finding, researching, and trading my own strategy – the same strategy that many of my clients around the world are using right now with tremendous success. I've encountered some amazing truths along the way that I'll gladly share with you when you make your commitment too at currency trading strategy I can’t tell you the number of mountains I’ve climbed and the tribes I’ve befriended to get where I am with the forex, and other markets too, of course.

"Sick 'n Tired" of being "Sick 'n Tired"? Well then, look no further. Give me a try here: currency trading strategy currency trading strategy I won’t goof around with you. It is a well known fact that I provide the best customer service in the industry. I am basically just a good guy doing good business. When you send me an e-mail, I will always get back to you pronto, and that’s no bull. No waiting around and guessing when I’m going to get around to you. Some sites don’t even respond at all. Not with me. Everything’s hunky-dory here. I’m available for you 24X7! Sorry, I do take Christmas off.

More and more people are asking me about the Forex and my failsafe strategy, and they’re hungry for knowledge. That’s where I come in. There probably isn’t anyone around who knows more about the Forex than moi. Not bragging. Just telling you what I’m being told.

Where have all the traders gone? Small retail traders have gradually walked away from the stock markets, and left their brokerage accounts dormant for months on end. Seeking oomph, a lot of them have avoided the naysayers and talking-head pundits and headed on over to the futures markets, or even better still the Forex, where things are always booming. Never a dull moment there. The Forex is the perfect elixir to add fizz to your trading ambitions. Find out more at commodity trading rules and currency trading strategy

Greenback joined at the hip with, would you guess ... The sharp decline in the U.S. dollar against the world’s major currencies has been touted as the perfect fix for the economic woes of the U.S. However, the dollar cannot slide against the Chinese yuan, thanks to a peg that has fixed that currency to the U.S. dollar since 1994. Every time the U.S. dollar goes down, so too does the yuan. And, China has the biggest trade imbalance with the U.S. – it shipping ~US$100-billion more goods to the U.S. than the U.S. ships to China.

Not to worry though, the U.S. current account and trade deficits may not be a lot to stew about. The world has survived current account imbalances before. Take before the First World War, for example. Current account imbalances of the major economies averaged 5% of GDP. They are now half that.

Thinking about the Forex? The trading world is abuzz with talk about the Forex. It does $1.5 trillion per day, which is 30 times the size of all U.S. equity markets – 50 times larger than the NYSE alone! The $30 billion-per-day futures market doesn’t even come close. 95% of all currency trading is conducted over the Forex. By comparison, the currency futures market is shrinking, and represents only one percent of the size of the cash market.

The Forex is the largest financial market and is always liquid 24X7. It is not subject to engineering by any one entity. And, the average daily range for the four major pairs is US$1,040 per lot. Compare that to the other markets, and you’ll soon discover why the Forex is drawing so much attention these days.

Most professional traders catch only three to four really great trades a week, if that! Not so with the Forex. Here, the timeframe is more like a day. And, a professional doesn’t have to worry about 7,800 stocks or 72 commodities, and all the rules that accompany those tradables. With the Forex, a trader only has to think about the four major currency pairs - and pure technical analysis. The average daily range of 104 pips (read, US$1,040 per lot) far surpasses that of any other market. It also has a much longer “length of line” (intraday swings), which offers more “swing-trading” opportunities. Lots of action for both novice and professional alike. Salad days are here at the Forex!

The two Forex market makers I personally recommend offer superior Internet dealing software, fast and efficient execution, instant online trading, and charts – all for free. The efficiency of trading with either of these two market makers means that you no longer have to pay commissions on your futures or stock trades – and Forex trading is commission-free as always. Their free online software improves your trading performance by giving you the edge in execution, market information, and account management.

To preview the trading software and register for a free demo account, go to currency trading strategy number one for offering number one, and currency trading strategy number two for offering number two. They’re both equally as good, but you be the judge as to which one you like the best. When you open a funded account at either of these two locations, please mention my name (Peter R. Bain) in the application, and I’ll support you all the way to the bank.

You’ll get access to my own personal Forex trading examples on a regular basis and a “free” copy of my brand new e-book on my own personal trading style for the Forex called “Before You Press Enter” – just for the asking. Let me know when your account is open, and they’re yours. See you at the top.

Don’t get me wrong. I like the other markets too. But, this is the new kid on the block, and it’s hot. If you like futures, you’ll LOVE the Forex! It will really get your trading mojo going. What’s not to like?

I recently spoke with a long-time stock broker who confided in me that he wished he had discovered the Forex a lot sooner. He just recently saw the light and made the switch. It’s never too late.

I get tons of kudos about my currency trading strategy approach on a regular basis, but here are just a few:

Mark van Greunen, South Africa: “It is unbelievable to see how accurate your program is. I am totally blown over, and should you encounter any skeptics, refer them to me for a testimony. I have often complimented you, but more so now.”

Vincent Chamberlain: “I certainly would like for you to be my instructor, because your method is by far the best I've seen.”

Charles Beere, Australia: “I have spent a lot of time searching the ’Net for info., and always found my way back to you. You seem to be the genuine article among the mountains of rubbish available.”

Forex Chart of the Month

Price chart courtesy www.cbfx.com

It is typical to achieve good returns per lot on the Forex, similar to those indicated in the above chart, during any given 24-hour session. I would say the range is ~US$200 to >US$800 per lot. Hard to beat that in any other market! I know of one trader in South Africa who trades 55 lots at a time, and pulls in, on average, US$25,000 per day. Not too shabby to say the least!

U.S. Dollar Outlook: The U.S. economy is strengthening and the U.S. stock market is acting better. Both factors should be good for the dollar. The U.S. currency may rise to US$1.15 per euro within six months. There is speculation that the European Central Bank will cut interest rates this week, eroding the yield advantage Euro-denominated debt securities have over U.S. dollar-denominated debt.

Hot Commodities, Currencies, and Stocks

Hot Commodities

Shameless brag time. You may recall in my last newsletter that I recommended Kansas Wheat. See below. Well, take a look for yourself. It headed north as soon as I pressed enter. How’s that for crystal ball gazing? I am not necessarily invoking bragging rites here. I am merely just trying to reinforce the power of commitments of traders data. Check out the action:

Excerpt from my May Newsletter:

"According to my interpretation of recent COT data and research as of April 26, 2003, Kansas (KCBT) Wheat is shaping up as a good buy. The commercial traders are extremely long with their positions, whereas the big and small specs. are equally short. This type of extreme divergence in sentiment is usually a classic set-up for an upward move.

MACD is a good indicator to help take you into this trade. If you don’t know how to use it, please go to commodity trading rules

Also, please adhere to the 11 commodity trading rules for picking bottoms posted earlier in this Newsletter."

You can read the entire Newsletter for May at commodity trading rules

Commodities Update: This time around I do not see any ironclad set-ups to report. The commercials are extremely short live cattle, soybean meal, and soybean oil. However, the contracts for live cattle and soybean meal have premiums on their respective front months. There is no backwardation with soybean oil, but it has already begun its swoon, and it looks too risky to me to partake at this point. But, keep on eye on these commodities, as good trading opportunities may arise for you.

Hot Currencies

The four major pairs (EUR/USD, USD/JPY, GBP/USD, USD/CHF) are always hot – every day of the week. That never changes from session to session. That’s the nice thing about trading currencies on the Forex. You only have to worry about four entities, rather than 7,800 stocks or 72 commodities.

Hot Stock

In the above chart, courtesy AskResearch.com, you will notice that the Gildan stock has had a good history over the course of six months of staying above its rising 200-day moving average. Its 50-day moving average has also been trending up. This is healthy, and augurs well for continuing to stay with the stock, or even buy more.

One of the most widely followed barometers is the 200-day moving average, a simple tool that depicts the recent trend in a stock’s price, derived from an indicator’s average close of the past 200 sessions. If the stock is above its 200-day moving average, it’s fair to assume that the medium-term trend is higher.

The 200-day moving average is a very strong point of support, well recognized by fundamentalists, as well as technicians. The 50-day moving average can be used as a buy point for those looking to get into the stock for the first time, or a point to add, for those already long, or enjoying a little profit taking.

The 200-day moving average was voted the number one, most popular, and reliable indicator of the 99 in use.

Another one of the numerous trading tactics you will find at: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

Hot Stock: Costco Wholesale Corp. (COST/NASDAQ NM) – Just did a “golden cross” (50X200 moving average cross-over). Please see section two above for details on this indicator. The largest U.S. warehouse-club store chain saw its third-quarter profit climb 18% – more than forecast. Net income and sales are also up.

Bull Market Rising?

A bull market is technically defined as one that has risen 20% or more above a bottom. May 27, the S&P/TSX composite index finally climbed above that threshold, assuming you use the lows of Oct. 9, 2002 as the defined bottom. As of May 27’s close, that would put the index at 20.1% above last year’s lows.

To me, it looks like the S&P 500 Index has been in a sideways channel since last Sep., and needs to seriously turn the 950 level into one of support, rather than resistance, before I would put on my party hat.

If there is any part of this Newsletter than you cannot see because of the e-mail program you are using, please view it online at commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful strategies Or, please send me an e-mail, and I’ll send you a .pdf version of the Newsletter: prbain@tradingsmarts.com

If you don’t already have a copy of my now-famous book “How to Trade Like a Pro in One Hour” and associated “Pivots Program,” you can get your very own copies for the price of a dinner and a bad movie! All you have to do is click here: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

The book and program are for traders who trade any market, not just the Forex.

Please feel free to send your inquiries, be they comments, feedback, questions or suggestions, to me at prbain@tradingsmarts.com

If you have any ideas or suggestions for future articles, they would be most welcome. I especially invite any trading tips, strategies or techniques you may have that you wish to bring forward, and share with others. If I include them in future editions of this Newsletter, you will most certainly get proper credit and recognition. You will also receive a free bonus for your time and trouble.

Happy trades to you, and here’s to your health and happiness and good relationships!

Thank you for reading this Newsletter! Have a great day!

Sincerely,

Peter R. Bain
www.TradingSmarts.com

PS: Help! I need 236,142 new subscribers by 6:32 am May 23rd. Please forward this Newsletter to three of your business associates, colleagues, family members, friends, relatives or neighbors, and urge them to subscribe by clicking here and accepting the offer when they click away from the site. Thank you! You are encouraged to do so by sending it along in its entirety, but portions may not be disseminated or reproduced separately, as it is copyright protected. Thank you for acknowledging this!

PPS: I would be more than glad to give a seminar in your area if you could pull together a large enough audience to make it worth my while.

PPPS: If you wish to unsubscribe from this newsletter, please send an e-mail to webmaster@tradingsmarts.com (Brad Du Preez, MCSE)

Disclaimer: I am basically just a good guy doing good business. I try my absolute darnest to bring you the very best picks and trading strategies, none of which I benefit from. Considering the fact that I don’t know your capabilities, and how well you are going to apply my advice, I am sure you will understand it when I say that I can’t be held responsible for your decisions, and subsequent actions. However, there is no reason why you shouldn’t benefit by following my ideas, techniques and tips. The information in this Newsletter has been thoroughly researched, and is sound. Thank you for acknowledging this, and good trades to you!

E-mail: prbain@tradingsmarts.com
Web site address: www.tradingsmarts.com

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