COT, Commodity trading rules, currency trading strategy and stock market

successful trading strategies found here.  Read

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Peter R. Bain

prbain@tradingsmarts.com

 

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 - October 2003

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

IN THIS ISSUE

Past Editions

Soros’ Partner

Fund World: Déjà Vu?

The Process of Hedging

Are you living in a bubble?

The Forex: The Hottest Market

Hot Commodities, Currencies, Stocks

To Win at Options: The king has spoken.

Market Commentary: The Good, the Bad, and the Ugly

(Please check out the trading tips at the end of Section 7.)

Notice: There will NOT be a Newsletter in November. I will be in Maine during the month of October. If you happen to live in that State, I’ll wave as I pass by. The next issue will come out early in December … just in time for Christmas. Yes, folks! It’s coming up fast. Better start thinking about it now before it’s too late.

Greetings from Peter at www.TradingSmarts.com You are receiving this Newsletter because you either subscribed to it at my site, or bought one of my many 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 given away to a third party under any circumstance. Thank you for your business and readership!

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

You should view this Newsletter while you are connected to the Internet, so that you can see the imbedded charts (if any) and graphics. It may take a while for the charts to load, if you have a slow connection, so don’t panic. If you happen to be reading the PDF version of this Newsletter, you obviously won’t be able to click on the links. But, you can you read the online version with clickable text links at: commodity trading rules, currency trading strategy, and stock market successful trading strategies 

Help! I need 1,426 new subscribers by 6:32 am October 17th. Please feel free to forward this Newsletter to three (or more) of your business associates, colleagues, family members, friends, neighbors, and relatives, and urge them to subscribe by going to www.TradingSmarts.com and accepting the offer when they click away from that page. Thank you! You are encouraged to do so by sending this Newsletter along in its entirety, but portions may not be reproduced or disseminated separately, as it is copyright protected. Thank you for acknowledging this!

Peter’s Rant: It never ceases to amaze me how many newbie traders expect instant gratification from this business, without having to pay the ultimate price of long hours and hard work.

Hear what Richard Wyckoff had to say on this. He was a Wall Street stock trader in the early 1900s. Wyckoff's first job in 1888 was as a 15-year-old stock runner on Wall Street. By the age of 25, he had his own brokerage office. He also published his own market magazine and advisory newsletter.

--- "People are successful in business because, while they make mistakes at first, they study these mistakes, and avoid them in the future. Then, by gradually acquiring a knowledge of the basic principles of success, they develop into good businessmen. But, how many apply this rule to investing and trading? Very few do any studying at all. Very few take the subject seriously. They drift into the market, very often get 'nipped' as the saying is, avoid it for a while, return from time to time with similar results. They then gradually drift away from it, without ever having given themselves a chance to develop into what might be good traders or intelligent investors. This is all wrong. People go seriously into the study of medicine, the law, dentistry, or they take up with strong purpose the business of manufacturing or merchandising. But very few ever go deeply into this vital subject (of trading and investing), which should seriously be undertaken by all." Amen brothers and sisters. My sentiments exactly.

Quotes of the Month: “Weeds grow overnight, but trees take a long time.” (Translation: Be patient.) “Nothing comes easy, except failure.” --- (Dr. Robert Anthony Schuller) “The only time ‘success’ comes before ‘work’ is in the dictionary.” “Prosper others, and you will be prospered.” --- (Roland Courtriers, South Africa)

Got Some Success Stories? If you have a story to tell, please let me know, and I’ll publish it right here – in the very next issue. Don’t be bashful. Share and share alike. Share your secrets with my wide audience. We won’t live long enough to make all the mistakes imaginable in this business. So, let’s help each other. I don’t know all the answers. I am sure you know some beauts. gems.

Other Editions

Commodity Trading Rules

Currency Trading Strategy

Stock Market Successful Trading Strategies

For those of you who missed other issues of this Newsletter, you can read them online by going to: commodity trading rules, currency trading strategy, 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.

Soros' Partner

George Soros, the legendary currency trader, had a partner … Jim Rogers, who was a hyperactive trader in his heyday. He made his fortune, and then retired in 1979 at the ripe old age of 37. These days, he is high on commodities and the currencies of natural resource-based economies.

He likes the New Zealand dollar and the Australian dollar, but is more bullish on the Canadian loonie. He is not a big fan of the greenback because of the dollar-negative policy of the U.S., which is reinforced by all-time low-rates (which aren’t going up any time soon), plentiful money, and an appetite to spend money. He sees further downside potential for the dollar.

While he still likes oil and gas, he is bullish on zinc, sugar, soybean oil, coffee and orange juice, suggesting that commodities do well in a bear market. He especially likes copper and zinc because of the insatiable demand coming out of China, which he predicts will become the world’s pre-eminent economic power this century. Please see my comments on their currency in my last Newsletter by clicking here: commodity trading rules, currency trading strategy, and stock market successful trading strategies

Beyond what Rogers says, it’s a good guess that the Fed will do anything to stimulate the economy in advance of the election next year. Then what?

He is not a big fan of the U.S. stock market, or the bond market for that matter, citing the drag of the “STOCKWRECK” that will linger for years to come. Please read my comments on “Triple Waterfall” and “Locust Cycle” in my last newsletter by clicking here: commodity trading rules, currency trading strategy, and stock market successful trading strategies

If you yourself want to hone your trading skills in commodities, currencies, or stocks, get the very best tips at: commodity trading rules, currency trading strategy, and stock market successful trading strategies

Trading is definitely where it’s at. It is estimated that Goldman Sachs, Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. have made twice as much money this year from trading as they have from their other activities.

Déjà Vu in the Fund World?

Investors are sticking their toes back into the market water, although this time favoring income-generating and dividend-oriented products. They are still wary of “long-term funds.” Not exactly a ringing endorsement of the markets, but at least it’s a first “step.”

John Bollinger, the renowned technical analyst, says that the “buy-and-hold” investment strategy is dead for the foreseeable future. Whichever strategy you use, preservation of capital is the fundamental tenet.

Certainly avoid load funds, especially back-end loads that inhibit the timely exit through costly penalties.

As always, buying stocks through a discount broker, ETFs, or low-MER funds are prudent things to do.

Good defensive strategies: U.S. tax-free municipal bonds, cash, short-term debt, high-yielding utility stocks, and ladders of strip bonds held until maturity.

Did you know? Blue-chip companies like Johnson & Johnson and Proctor & Gamble yield 2%, have long records of increasing their payouts, and can cover inflation just with their cash yields.

You will find more on investing and trading strategies at: commodity trading rules, currency trading strategy, and stock market successful trading strategies

The Process of Hedging

Financial derivatives such as futures, options, and swaps allow companies to protect themselves against unnecessary changes in currency values, interest rates, and commodity prices – a process known as hedging. Currency risk is the most frequently hedged exposure.

In my last Newsletter (for September), I announced that gold was shaping up as a good short. Since then, Bob Hoye at Institutional Advisors has said that we shouldn’t worry too much about commitments of traders data showing that commercial traders are selling gold short at record levels. He went on to say the majority of commercial positions are established to hedge a cash position, thereby locking in an acceptable profit margin. Further, he said each time gold has rallied since 1998, this group has shorted gold at higher levels.

I beg to differ with his take on all this. If you look at a COT historical chart of commercial activity-to-price data, you will clearly see that when the commercials have been extremely short the metal, in opposition to the funds’ extreme long positions, price has fallen – without exception. The record speaks for itself.

The involvement of speculators in the gold sector has made it very susceptible to sharp declines, as was evidenced when previous rallies lost steam.

Now, I’m not saying not to buy gold. But, if you want to be shorn with all the other sheep, go for it.

While we’re on the subject of gold, Canada is still a seller. Most analysts expect that Canada will sell off the last of its gold reserves. Countries hold reserves to reassure world markets that they’re capable of meeting debt obligations.

China’s currency is backed by gold, unlike the U.S. dollar and other “fiat” currencies not backed by gold.

Bill Gates’ charitable foundation has invested heavily in TIPS (Treasury Inflation Protected Securities) – as a hedge against higher prices – and to produce positive returns when inflation returns. Demand for TIPS, in general, has increased. The best time to buy TIPS is during a period of low inflation, which we are in now. The equivalent in Canada are the Real Return Bonds.

Surprising move for Gates’ foundation with all the talk of deflation, thanks in part to cheap Chinese imports flooding the U.S. market. Regardless, the U.S. Federal Reserve is nudging inflation back into the economy.

Even if inflation doesn’t materialize, these inflation protection vehicles will still likely outperform most bonds anyway.

Canadians can buy TIPS or equivalent European vehicles and hold them in the foreign content portion of their registered portfolios. France and the U.K have comparable products.

The U.S. also has tax-efficient savings bonds called Inflation Bonds or I Bonds.

Are you living in a bubble?

Some analysts believe the real estate market has topped out, and that it’s only a matter of time before prices fall back to earth with a thud, in what will amount to the biggest decline in property values since the 1930s. Ouch!

Long-term rates have shot up, and the real estate bubble may burst, if it hasn’t already in some areas.

The Federal Reserve has lost control of rates. After 14 cuts, there's nothing left to cut – no more ammo – and long-term rates have soared out of control – crashing the bond market; now the real estate bubble may burst.

It's the worst collapse since 1987. Remember that infamous crash in the stock market? At least the Fed was able to lower rates back then.

The real estate bubble is no different from the tech bubble that fizzled. In both cases, the Federal Reserve released floods of cash into the economy to stave off disaster, thereby facilitating a misallocation of capital and fuelling “air equity.”

When the “TECHWRECK” kicked in, the Federal Reserve cut rates to the bone, triggering a 400% increase in mortgage applications.

The tech bust hardly surprised anyone. It was a speculative "play," plain and simple. This bust, however, could be much worse, because real estate has always been considered a conservative safe haven that we can all “bank” on.

The Mortgage Bankers Association has already projected PLUNGING demand. Mortgage loan application volume has declined 40% since July.

In British Columbia alone, for example, house prices have skyrocketed, thanks to excess liquidity. However, commercial real estate has gone nowhere. Hmmmmm … Watch out below!

You will find the straight bill of goods on trading in my book by clicking here: commodity trading rules, currency trading strategy, and stock market successful trading strategies

The Forex: The Hottest Market

Special Notice” – If you have a flair for marketing, and would like to help me grow my business, drop me a line: prbain@tradingsmarts.com I am always looking for people who love the Forex, and would like to earn some extra cash on the side by running a SOHO business in their spare time that has exciting revenue potential. But, you must be “as hungry as a pit bull on a pork chop” to do this!

This section is all about my own currency trading strategy as it relates to the Forex market.

With the Forex, there is no such thing as a specialist firm acting as a market maker – as is the case in the stock world. Being an OTC all-electronic model, there are NO execution costs, and gaps between bids and offers have declined. And, get this … there are absolutely NO commissions. That’s not a typo.

“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.”

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

“I have been reading up and going on courses for the last two years. The last course I went on was an options course, which lasted for two days. It was only about options and trading stocks, but I still think your book is better.”

“Just to inform you last Friday I started with $38,640 and until yesterday I made $9,900. I can't say thanks enough for your teaching and support.”

“I LOVE YOUR BOOK … I have studied it repeatedly, and now I want to jump in on the Forex markets.”

“It is interesting how may times your program is accurate, and that when it isn’t it is calling a change of guard.” (a long-time stock trader and fund manager)

Important Announcement about FX Solutions

FX Solutions’ GTS remained operational during Blackout of 2003. The same cannot be said of other market maker brokers. As part of FX Solutions’ commitment to reliability and customer satisfaction, their firm has in place measures that ensure these goals are met. FX Solutions has created policies and procedures for seamless operation in the wake of an emergency that would otherwise suspend, or interrupt normal business operations. An event, whether an act of God, or physical failure that disables or interrupts the normal course of business, at FX Solutions, their plan significantly limits and/or eliminates any downtime or interruption.

To protect against power interruptions such as occurred during the Blackout of 2003, FX Solutions employed redundant data connections that allowed them to remain continuously operational without widening their rates or inconveniencing their clients. With staff and servers located outside the major metropolitan areas, they continue to assure their clients of uninterrupted, reliable service.

Important Announcement from FX Solutions

My currency trading strategy includes recommending the absolute best market maker brokers – at least those that pass my scrutiny, and that of traders whose opinions I respect and value. One such broker is FX Solutions.

FX Solutions are proud to announce their upgraded version of Global Trading System 2.2. The Global Trading System is proprietary software developed in-house by the FX Solutions IT department. Since the creation of G.T.S., their IT department has been constantly working on the enhancement of their superior online trading software. The new Global Trading System 2.2 features:

• Worldwide Access to G.T.S. anywhere, anytime.
• Optimized connection speed ensures faster response time.
• Multiple Rate Views, including two customizable views with trading functionality.
• Streaming Tick Chart displays historical tick data when changed.
• Charting Tab now includes preset data ranges for each chart interval.
• Ability to change currency pair within a chart.
• Additional preset data ranges to existing change of chart interval within a chart.
• Additional four new preset chart schemes and two sample chart schemes that can be used as a template for customizing your personal chart scheme.
• Additional chart options, which allow you to customize and save your chart scheme preferences.

If you are an existing customer, you can upgrade to the new version. If you are a new customer, you can open a demo account, and try it out. If you have any questions or problems, please feel free to e-mail either thomas@fxsol.com or myself. You can reach their Web site by clicking here:
currency trading strategy number two

Effective July 3rd FX Solutions announced 3 pip spread in USD/JPY, making it the lowest in the industry. The EUR/USD was already at 3. They offer 3 - 5 pips spread on all accounts (standard & mini account).

3 in EUR/USD
3 in USD/JPY
4 in GBP/USD
5 in USD/CHF

In addition, they announced that you can now customize the currency pair selection. All you need to do is to bring up the G.T.S. rate view window II, and click the blue arrow to customize currency pairs.

Did you know:

You can customize currency chart layout, chart mechanics, scheme and much more! Just follow the simple steps below.

1. Open any Forex charts on Global Trading System.
2. Click on [ View ].
3. Click on [ Chart Options ].

In addition, FX Solutions have come out with a promotional offer effective August 13, 2003:

• Open a new account for $3000 or more, and receive a $250 bonus.
• Or deposit $3000 to an existing account, and receive a $250 bonus.

Now you know why FX Solutions are one of my favorite picks as a market maker broker. Their trading platform will only get better from here.

At FX Solutions, if you are self-trading a standard account where each lot has a value of 100,000 base currency, you can trade up to 100 lots at a time equaling $10,000,000.00 without any fill/execution problems. To quote Stefan Fudge, “You will never have a need to trade more than one currency (euro) with that kind of liquidity! One hundred lots at once is big-time trading.”

Sick ’n tired of being sick ’n tired with the other markets? Feel like you’re always on tenterhooks? Feel like you’re at the end of your tether? Is your trading vexing you? Thinking of switching to another market? Have you mulled the possibility of the Forex yet? What about a currency trading strategy to go with it?

The trading world is abuzz with talk about the Forex, and my currency trading strategy is fast becoming the talk of the town. People are agog over my program.

Daytrading (as well as position trading) is alive and well in the Forex. To paraphrase Mark Twain, “Reports of daytrading’s death are greatly exaggerated.”

The Forex 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 attracting 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 – especially with my currency trading strategy. 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 underlying 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) for all four pairs 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!

To preview the trading software and register for a free demo account, click here: currency trading strategy number one for offering number one, and click here currency trading strategy number two for offering number two. They’re both equally as good, but I’ll let 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.

When you let me know that you have opened your funded account, you will immediately get access to my own personal Forex trading examples on a daily basis, and receive a “free” copy of my e-book on my own personal currency trading strategy for the Forex called “Before You Press Enter” – just for the asking. Let me know when your account is open, and they’re both yours for FREE. One heckuva deal. See you at the top.

With a demo account at either location, you can trade “virtual” money, until you feel comfortable with the process.

Don’t get me wrong. I like the other markets too. But, this is the new high viz biz, 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? “EVERYBODY’S TRADING IT” is reason enough for you to trade it too.

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.

Come on. Admit it. I’ve whetted your curiosity just a tad. Right? Thirty days from now you’ll either be a Forex trader, or just 30 days older. Don’t be a dilly-dallyer. Quit dawdling, and do it now. “The secret of getting ahead is getting started.” (Mark Twain)

I get tons of kudos about my commodity trading rules, currency trading strategy, and stock market successful trading strategies on a regular basis, but here are just some of the more recent ones:

Gary Gray: “Love your newsletters and your book. I use COT for major decisions, and was pleased to see your statement on corn and soy products. I had already reached those conclusions on my own, but was pleased to see your confirmation. I traded well, entering on the triple bottom, and then the higher bottom using swings.”

Jim Kidwiler: “Your trading information and personal Forex examples are great – the kind of stuff I have been looking for years.”

George Palsa, Exeter, Ontario: “Your book is great. It really got my mind around COT.”

Jay Allen: “I like the newsletter you just sent. It is very informative.”

Victoria Keeling: “I very much enjoy your Newsletter.”

Mike Clements: “Howdy from Texas! Just to let you know I got your material and it is AWESOME!!! Did I say AWESOME!!! Yes I did! It gave me such confidence. Just wanted to say thanks. You are right on Peter. I'm listening.”

R.B., Australia: “It has been a while since we last chatted, but things are hectic, and FX is pumping as usual. I trade in $500K lots now, and am up 116% for the year, which is not too bad considering all the crap in the market, war, terrorists, recession, etc.”

Stephen S. Moss: “I'm a real cynic, and have become quite jaded by scams that pummel me in my e-mail, on the phone, and on the television constantly. Your quick response last night was very encouraging ... forgive me if I offend, but I wanted to test and see if you existed. Thanks again for that response ... ”

Sheldon Dougherty: “Got your book a while back, and have read it a few times. A lot of useful information in it. Thanks for the quick reply. It shows that you are willing to help a small guy.”

Jay Kotak, India: “I’ve been reading your book and files. Your material is fantastic. I feel I’m learning a lot from it.”

George: “I believe that anyone can achieve my goal this safely using your strategies.”

Ken Kowalchuk, British Columbia, Canada: “I really appreciate your new Forex material. I find it is just what I needed.”

Hammer, as posted at a message forum: “Peter has been mentoring me for about five months now. Without a doubt, his methods are the only way to trade the Forex! His program turned my trading around. I paid five grand for a Forex course, and had to unlearn all the BS I was taught in order to make money in this business. You will find Peter R. Bain first class all the way to the bank.”

Another message forum posting: “I also bought the Forex material from Mr. Bain. I am looking forward to unlearning the useless drivel I learned in the US$1,795 course that I purchased. I am still basically starting from scratch, because the only thing useful in that course was the blank trading journal. I’m ready to actually make some money for a change.”

Roland Courtriers, South Africa: “I traded the euro today, and made 70 pips. I am really enjoying your pivot trading method. It is exciting and profitable. I can see this becoming my full-time job in the not-too-distant future. Your daily examples Web page is a fantastic support system for any trader.

Thank you for selling me your information so cheaply. That’s the least I can say as my gratitude for your help. Prosper others and you will be prospered.”

Jeffrey Cronk, Washington: “I have been studying your material, and love it. Five indicators is not too bad, and I love the cockpit analogy. I just started trading last night, and this morning I finished my first trading day with an up-day.”

George Muller, Australia: “I have gone through your material, and find it very exciting. It has impressed me very much.”

DE: “I guess I am still somewhat in awe of how ON those PP can be without any other indicators. Thanks a million. Now, I must ‘unlearn’ what I drilled into my head for weeks.”

Laura (a.k.a. a guy): “I have finished going through your material, and enjoyed my time with it. Overall, it was just what I needed, and I have learned a lot. You know your subject matter, and explain things clearly. It is pretty obvious that you know and love the Forex market (especially the euro/dollar).”

Vincent Chamberlain: “I just want you to know I have purchased several other courses after purchasing yours over a year ago. I have to say, Peter, no other courses have come close to yours. Your course is the only one that focuses mainly on PRICE ACTION! There are some systems out there that have good entry techniques but, without points of reference, how do you know where you are going, where you are, or where you have been? You also need to know where price is going to bounce back to. The other good thing that I like about your Pivot Points is that you can add other strategies and techniques to it. Even if you don't use Pivot Points to enter and exit, you still have points of reference to guide you through your trade. Thanks Peter!!!”

David Thomas: “Peter, I purchased your course, and had great success with it.”
Mark van Greunen, South Africa: “This is letting you know I simply cannot trade without your Pivots Program. It is arguably the most accurate trading tool around. With a little savvy, any trader can get to know how to use it.”

Mark van Greunen, South Africa: “This is letting you know I simply cannot trade without your Pivots Program. It is arguably the most accurate trading tool around. With a little savvy, any trader can get to know how to use it.”

Greg Netherton: “I got your material, and it's excellent. I'm glad you tell the truth about what to expect, instead of filling our heads with hype and crap. Looking at the daily charts really helps, and being able to look at the next few months charts is an excellent idea.”

George C. Smith: “Am loving your material. You are an incredibly good mentor. Thanks.”

Randolf Gevero, Philippines: “I just got your Forex material a few days ago, and have already gone through it several times. The information I got from it is extraordinary. I never thought I would be able to understand Forex trading but, after your course, I felt like I had a personal mentor teaching me by my side. It actually all makes sense now. I'm really so excited about all this.

I'll be telling my friends too, and I wouldn't mind letting people know how great your material is, because IT REALLY IS. I don't think I can emphasize that enough.
Thanks again for your "words-are-not-enough-to-thank-you" Forex material.”

Dean Sim: “Love your training site.”

Mike Clements, Texas: “You are a great teacher and mentor.”

Mark: “I've been really successful trading the euro using your system thus far. I've stuck to my trading plan, and see that it works well over 70% of the time. Those pivot points are excellent guidelines for the intraday trades that we have been making. Once I have mastered my emotions while trading a "live" Mini account, I believe I will be well on my way to a successful trading career in a standard account. Thanks again for sharing your methods with me and my family.”

Currency Trading Strategy News

The mood of the recent G7 meeting was for less government intervention in FX markets, supporting a continued decline in the U.S. dollar. The consensus was for the BOJ to stop devaluing the yen – but, will they? The big deal in all this is that G7 trading partners will have to bear the brunt of a further fall in the U.S. dollar. Not good news for the European and Japanese economies. The Chinese authorities continue to laugh all the way to the bank. They are a force to be reckoned with for sure.

It is estimated that the Chinese government’s eight-year policy of pegging the yuan to the dollar and Japan’s regular selling of the yen have contributed to 2.7 million job losses since January, 2001, and a record current account deficit.

China, the world’s sixth largest economy, has pegged the yuan at 8.3 to the dollar since1995, helping its economy to grow an average annual rate of 8.3% over the past decade.

The Bank of Japan sold a record US$80.5-billion in the first seven months of the year. South Korea, Thailand, Indonesia and Taiwan have also sold their currencies to stem gains that would hurt exports.

The yen: The Greenback/Yen Battle

All eyes are on the U.S. dollar’s moves against the yen. Japanese authorities continually intervene and sell yen heavily in a renewed drive to protect exporters with a weakened yen.

However, the market is betting on further yen strength. At least, the “dumb money” is. But, read on …

Market positioning is the telltale story here. The spec. traders (those who usually lose), including the funds, are EXTREMELY long with their futures positions on the IMM on the Chicago currency futures exchange. The commercial traders (the “smart money”), however, are the exact opposite – EXTREMELY short.

Whenever you see such a huge divergence between these two rival factions, you can usually count on prices following the lead of the commercials – in the futures and Forex worlds.

This was the largest buildup on both sides in four years, and the second highest on record. Just goes to show just how much the specs. are betting on a strong yen. But, the commercials are the BIG DOGS in this business.

However, that all said, the yen is a very difficult market to trade right now, because one never knows when Japan’s Ministry of Finance will once again step in to stop the yen from getting too strong (by propping up the U.S. dollar) and de-railing the country’s export-led recovery.

On top of which, the yen’s strength has been supported by an improved economic outlook for Japan and a continued influx of foreign capital.

U.S. Dollar: The dividing line between a shrinking and growing job market seems to come in at 400,000. The number of first-time applications edged down below that number. They call this the “job-loss recovery.” Without job growth, the economy has no legs to grow on.

Headwinds for the U.S. dollar include a burgeoning deficit, confusion about the course of Washington’s economic policy, and a deteriorating current account deficit. On the other hand, Canada, Europe and Japan are current account surplus currencies.

The good news is consumer spending is at a record level of gross domestic product, and signs of an improving economy are evident in market reports in recent weeks. However, U.S. economic data is still mixed.

The U.S. dollar fell against its trans-Atlantic counterparts September 12 after weaker-than-expected U.S. retail sales data, but another bout of apparent intervention lifted the U.S. currency against the yen. The U.S. dollar took a drubbing September 12, due to concerns about the pace of the U.S. economy.

The U.S. Federal Reserve left rates on hold September 16. Inflation is low, and they are still worried about deflation. (A flattening of the yield curve is facilitated by expectations of the Federal Reserve maintaining its current policy of holding the overnight federal funds rate at 1%. A sharp slope upward in the yield curve implies investors anticipate rising interest rates in the future by demanding higher yields to compensate for that risk.)

A shift in U.S. monetary policy will drive the U.S. dollar down, and will put a chill on U.S. financial assets in general.

Wake-up Call: The current recovery is the worst in terms of employment growth since the Bureau of Labor Statistics began tracking the job market in 1939. The recovery has been the slowest since the Federal Reserve began tracking industrial production back in 1919. The hiring slump is the worst since the Great Depression. (Sources: Economic Policy Institute in Washington and the National Association of Manufacturing)

See comments made by Soros’ former partner in the second section above.

The Chinese yuan: Annual economic growth in China has been 8.3% during the past ten years. This has boosted many people’s earnings. This sleeping elephant is one to watch.
China said September 14 it will keep the yuan exchange rate stable – pegged at 8.3 to the U.S. dollar.

One way to play the yuan game is to buy financial contracts that allow you to hedge against a revaluation, or benefit from one if it were to happen – which is not likely any time soon.

One version of those contracts, known as non-deliverable forwards, is traded in U.S. dollars, but pegged to the yuan. In trading September 23, the benchmark one-year dollar-yuan NDF contract strengthened to a record 7.98 yuan per dollar. At that rate, market participants are betting the yuan will strengthen three per cent against the dollar a year from now. Meantime, overseas investors continue to move money into China as both a hedge and a bet on the future.

The Canadian loonie: No more bullets Canada cannot afford any more tax cuts or spending increases. The last budget wiped out the surplus, and any chances for further debt reduction, for the next half decade.

The Canadian and U.S. job figures are worrisome. Despite a slowing economy in Canada and inflation slowing to its lowest level in a year in July, the target for overnight loans between banks will more than likely remain stable. However, Canada’s consumer index remained weak in August, underpinning hopes for additional interest rate relief. Canada’s higher-yielding debt (treasury bills, bonds, and other debt) will nevertheless continue to lure traders to the loonie.

Canada’s trade surplus came in higher than expected in July but, with weaker-than-expected retail sales. There are signs of faster economic growth south of the border. The U.S. economy will outpace Canada for some time to come and this will dampen demand for the currency relative to its U.S. counterpart.

If the U.S. dollar continues to sink, the Canadian dollar will probably appreciate faster, which could mean lower interest rates.

At the very least, more weak Canadian inflation data and the continuing fallout from the decline of the U.S. dollar could translate into the low-interest rate environment being around for quite some time to come.

Canada’s dollar has risen along with Australia’s dollar and the euro against the U.S. dollar, as investor concerns mount over deficits in the U.S. budget and current account.
Canada’s Prime Minister-in-waiting Paul Martin will be good for the country and the loonie. He will cut Canada’s debt-to-gross domestic product ratio.

Trivia: Between 1962 and 1970, Canada’s monetary policy was based on a fixed exchange rate with the American dollar (at 92.5 cents). The Canadian dollar is unlikely to be one of the four or five dominant world currencies in 25 years.

Do you know about FX Solutions’ Mini Forex Trading and Free News Service?

In addition to the standard account, FX Solutions also offers a "Mini" account. Created for those new to online currency trading or those with limited investment capital, Mini Forex enables Forex account holders to enjoy the excitement of foreign exchange trading while limiting the amount of financial exposure. The smaller trade size greatly reduces the risk associated with currency trading. A smaller deposit is required to open a Mini account and trading sizes are 1/10th the size of a regular account.

Although the Mini account provides greater leverage than a standard account, clients have the opportunity to maintain a smaller position, taking on less total risk. The Mini account is intended to introduce traders to the excitement of currency trading while minimizing risk.

FX Solutions Mini Forex Features:

• More Staying Power
• Develop Trading Strategy, Focus Less on P/L
• Commission-Free Trading
• 3 - 4 Pips Spreads in majors
• Automatic Trade Execution
• Free G.T.S. Charts
• Advanced Proprietary Windows-Based Dealing Software
• Multi-Lingual Customer Support

Now get Market News International free from FX Solutions. The premier news service used by all the major institutional market makers gives FX Solutions’ clients that all-important edge. Get the news as it happens, stay ahead of the market, trade smarter.
Main display -- Streaming headlines with all the latest financial news. Access each story with one click. Use information to stay ahead of the market. MNI provides you with instantaneous, live, tradable information.

News alert -- Automatically signals you when new articles come in. You may turn this function on or off.

News search -- Allows clients to search for particular news articles in the archives. Just select date, type in the search terms and click.

Real time market news is free for all FX Solutions' clients.

Have you heard about FX Solutions' ADVANCED MARGIN WATCH yet?

FX Solutions' Advanced Margin Watch (AMW) is the first FX margin calculation system in the Forex industry to provide protection to clients in volatile market times and thus ensures longer staying power in the market.

How does AMW work?

When usable margin reaches zero, or falls below zero, all open trades remain open unless marked to market equity drops below 10% of the margin required to maintain the positions (used margin).

For example: Client buys 10 mini lots of USD/JPY - required margin is $1000 at 100:1 leverage. This client will not receive a margin call unless equity drops below $100 (10% of used margin).

FX Solutions' advanced dealing software ensures that customers’ accounts balance will never be negative.

• Clients open positions will not close when usable margin reaches zero.
• AMW provides longer staying power for FX Solutions' clients.

FX Solutions introduces Global Trading System's new feature - Pending Orders Report. The ‘Pending Orders Report’ provides a summary of all essential data for each account’s ‘pending’ or outstanding G.T.S. orders. Information includes: account identification number, ticket identification number (for each order), type of order (market, limit, stop, entry limit, entry stop), lots (10,000 or 100,000 of traded currency per lot), amount (in traded currency), buy or sell, requested deal rate (rate requested for execution of the order), bid or ask (market level when the report is printed), stop and limit (OCO orders attached to entry stops or limits), and the time and date when the order was placed on G.T.S. The ‘report print’ option permits a hard copy to be printed for reference or permanent record keeping.

How to determine OHLC at FX Solutions to approximate mine, thanks to Stef Baartman:

Do not use the FXSOL Daily Chart values for midnight. Although the label reads '12:00:00pm,' it actually refers to the period 5:00pm-4:59pm. Derive your values by looking at the FXSOL Hourly chart for the period 12:00am to 11:59pm.

In other words, look at the 24 bars individually, and determine the OHLC that way. By comparing these values to mine, it appears to be a satisfactory method for you to rely on.

Look for the lowest visible bar, and then use that as the low. Sometimes the numbers do not agree 100% with mine, but they are very close, and usually get blended in when you do the pivot point calculations using my Pivots Program. It is available when you purchase my book at: commodity trading rules, currency trading strategy, and stock market successful trading strategies

Usually assign a tolerance of plus or minus two points to any given pivot point, since there are quite a few variables at play – an example being most Market Makers with their four-to-five point spread on the Euro, versus FXSOL with their three. If you keep a watchful eye on the instantaneous values of a particular currency on two different market maker's screens as they occur, you'll notice that they differ considerably.

Big Kahunas: Hot Commodities, Currencies, and Stocks

Hot Commodities

According to my interpretation of the latest commitments of traders data, the following commodities futures represent good trading opportunities to the long side: crude oil light, natural gas, and No. 2 heating oil.

Copper, cotton, and gold are good short candidates.

Please adhere to the 11 commodity trading rules outlined in the May/03 edition of this Newsletter. You can read it by going to: commodity trading rules

Caution

Be sure to observe the rules around trading active contract months – i.e., open interest and volume. FutureSource.com is a good “source” of such information. That was all explained in my May/03 issue of this Newsletter. You can go there by clicking here: commodity trading rules 

MACD is a good indicator to help you trade commodities. You can read all about it at: commodity trading rules

My book was originally inspired by commodities futures, and the profit potential they stood for. You too can get your very own copy at: commodity trading rules

Hot Currencies

The four major pairs (EUR/USD, USD/JPY, GBP/USD, USD/CHF) are always hot – each and 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. Of course, you can get the scoop at: currency trading strategy

Hot Stocks and Real Gems

With the market doing quite nicely up until recently, traders were piling in. But, not SO fast.

In their rush to "do something," many of them are simply trading the WRONG stocks.

A struggling manufacturing sector, a huge trade gap, and high unemployment add up to an economy that's not firing on all cylinders - YET. And when it comes to individual companies, results are all over the map.

SO, trade only the very best marquee stocks, and play it safe … with this pared-down list of 16 cult hotties I have ferreted out for you, after wading through all the gobbledygook. This is not just some ragtag collection. No “dead man walking” stocks here:

Davita Inc. (DVA/NYSE): Dialysis treatments ... Baby boomers ... Get it?

7-Eleven Inc. (SE/NYSE): Solid sales increases.

Solectron Corp. (SLR/NYSE): Makes electronics for other companies.

The Talbots Inc. (TLB/NYSE): Fashion retailer.

Staples Inc. (SPLS/NASDAQ): Office supplies business.

Mariott Intl. Inc. (MAR/NYSE): Hotel chain.

American Express (AXP/NYSE): Court ruling favorable to them issuing cards through banks that are members of rival Visa and MasterCard.

Ecollege Com (ECLG/NASDAQ): Runs instructional Web sites for colleges and trade schools. (Highly speculative)

SanDisk Corp. (SNDK/NASDAQ): Makes flash memory cards for digital cameras, cell phones, and portable devices.

Sanmina Corp. (SANM/NASDAQ): Third-largest maker of electronics for brand-name companies.

Barr Laboratories Inc. (BRL/NYSE): Specializes in women’s health care products, such as oral contraceptives and hormone replacement therapy.

Boston Scientific Corp. (BSX/NYSE): Researchers said its new heart device is effective at treating clogged heart arteries, and reduced the need for repeat procedures.

VCA Antech Inc. (WOOF/NASDAQ): Specializes in animal health care services with a network of veterinary diagnostic laboratories and full-services animal hospitals in the U.S.

QUALCOMM Inc. (QCOM/NASDAQ): Strong demand for its mobile phone chips and for phones using its wireless technology.

Sonus Networks Inc. (SONS/NASDAQ): Their gear enables phone companies to send voice calls over ’Net-style networks. (Highly speculative)

Starwood Hotels & Resorts Wrldwd. (HOT/NYSE): Hotel chain.

Trading Techniques

No Hail Mary passes or fancy knee-jerk gizmos here … just stuff that rocks – but, even Muhammad Ali lost a few fights. Say “Hasta La Vista” to bad trades. Hit the “sweet spot” of trading successes with these trading tips, and don’t forget that almighty tight …

For stocks: Please refer to the Hot Stocks section of the July/03 newsletter: stock market successful trading strategies

If you would like a “free” copy of my special report on trading stocks the way the Big Dogs do, just drop me a line: prbain@tradingsmarts.com 

For currencies: See the Forex section in the August/03 newsletter: currency trading strategy one and be sure to read the entire newsletter for April/03: currency trading strategy two 

Statistical Charting Tip from FX Solutions: Standard deviation is a statistical measure, which provides a good indication of volatility, or price movement. It measures how widely numbers, such as closing prices, are dispersed around their average. A large difference between a closing price and its average results in a higher value for standard deviation and volatility. Correspondingly, a small difference between a closing price and its average results in a lower value for standard deviation and volatility.

Momentum (courtesy FX Solutions) - As a leading indicator, momentum measures a currency's rate-of-change.

The ongoing plot forms an oscillator that moves above and below 100. Bullish and bearish interpretations are found by looking for divergences, centerline crossovers and extreme readings.

Momentum = Price / Price (n periods ago) x 100

Momentum can also refer to a particular investing or trading style. The rationale is that the hot get hotter and the cold get colder. Bullish momentum players buy currency pairs or commodities that are popular or that they believe will become popular. As the word spreads and popularity grows, the advance will accelerate. Price acceleration is the same as an increase in momentum.

Hedging - How to protect yourself from volatile market time? How should you appropriately apply risk management rules? The one tool often used in Forex trading is Stop Loss order. It is an order to buy/sell at an agreed price, whereby an open position is automatically liquidated when a specified price is reached or passed.

Are there other risk management tools that are available in Forex trading? Yes. FX Solutions offers Hedge to all customers. Hedge is an investment position or combination of positions that reduces the volatility of your portfolio value. One can take an offsetting position in the same currency pair.

Why can FX Solutions offer hedge and other competitions can't?

FX Solutions is a primary market maker in Forex trading. They set today's highest standards in foreign exchange trading. To achieve this goal, FX Solutions specializes exclusively in the foreign exchange market. As one of the largest and most respected firms in the industry, they provide individual speculators, hedge funds and corporate clients with highest level of service in online Forex trading. With clients from more than 100 countries and a monthly turnover of billions of dollars, their professionalism in this industry cannot be matched.

For commodities: Please go to the May/03 Newsletter: commodity trading rules 0503 Also, please visit the June/03 edition: commodity trading rules 0603  And, the September/03 issue: commodity trading rules 0903

For information on when to cut and run in a commodities trade, the meaning and use of the 200-day moving average, the purpose of trendlines, the Relative Strength Index indicator, and the “4-9-18 Formula,” please refer to the last edition of this Newsletter by going to: commodity trading rules, currency trading strategy, and stock market successful trading strategies  

Just one of the many trading tips you will find at: commodity trading rules, currency trading strategy, and stock market successful trading strategies

To win at options: The king has spoken.

Larry Williams: “I like to write options when the advisors are real bullish and price is in a downtrend.”

Here are two covered option strategies that work best when markets are flat or rising slightly. The first one entails selling near-term (i.e., one-month) close-to-the-money calls against a long position. The second is a “covered straddle,” which involves the simultaneous sale of a close-to-the-money call (i.e., the call with a strike price that is closest to the current value of the underlying tradable) against a long position and a close-to-the-money put (i.e., the put with a strike price that is closest to the current value of the underlying tradable), which is secured by cash.

Selling options is a great way to reduce equity risk. Compared to a passive buy-and-hold strategy, covered writing will reduce the volatility of your overall portfolio.

Option sales generate added income, which provides a cushion in times of flat-to-declining markets. On the flip side, the ceiling imposed by the short options has a negative impact on the performance of your portfolio when the market is rising rapidly.

However, most of the time, stocks trade within a relatively narrow channel, and much of the market’s return occurs on just a few trading days. So, most of the time you are better off selling options.

Only when the market has a major move to the upside is the option writer in an inferior position. Based on historical evidence, that does not occur very often.

My book addresses commodities, currencies, market indexes, stocks – and, of course, options too. It's all waiting for you at: commodity trading rules, currency trading strategy, and stock market successful trading strategies

Market Commentary: The Good, the Bad, and the Ugly

The market has been alight, but the much-ballyhooed correction may be in the offing – a great time to buy quality stocks at better prices. October is upon us, and it can be a treacherous month for equities. After peaking at 15-month highs the week ending September 19/03, U.S. stock indexes retreated the following week.

The latest market stats – as at September 29/03:

Comment: “Long-term momentum is bullish and not over-extended, the S&P is above its 12 month moving average, short-term rates are below their 12-month moving average, and the advance/decline line is positive. However, there is a risk of an intermediate correction into October.” (Martin Pring)

Market vulnerabilities exist during the volatile September-October period. With volume relatively light and overall market valuation relatively high, volatility continues to be the defining feature of equity markets.

Put/Call Ratio: .70 – This is the total volume of equity-only put options divided by call options – exclusive of index options. Like most tools, there is a lag time with the put/call ratio.

This is a sentiment measure that tells us how many calls were traded in relation to puts on any given day. The results should really be viewed as a contrarian indicator. In other words, if there is an inordinate number of puts traded relative to calls, i.e., the ratio rises above 1.00, that reflects a bearish bias amongst traders, which one could just as easily say is positive towards the market – in the contrarian sense. More fodder for the bulls.

A ratio of put to call buying on the Chicago Board Options Exchange [CBOE] of 1.00 indicates an almost equal amount of put and call buying on the first and largest US options exchange. A reading of 1.00 is relatively high – i.e., a sign of growing put buying and pessimism among options traders, reflecting market angst – but giving more ammunition to the bulls.

This ratio turns bearish when it falls below 1.00, and readings of .60 or less are extremely rare.

The numbers can be distorted somewhat by option expiration.

Comment: I have excluded index options from the above put/call calculation, as they historically have a skew toward more put buying – due to the index put option hedging done by portfolio managers.

The reason I exclude index options is to focus on equity options only, the purview of the speculative crowd – the “dumb money” – who are usually on the wrong side of the ledger. The old saying, “Don’t follow the crowd.” Most speculators are not successful. They invariably lose money on balance. They’re not right very often, regardless of whether, as a group, they are bullish or bearish.

VIX Volatility Index (a.k.a. the market’s fear gauge): 22.24 – The VIX measures the level of option premiums on the Standard & Poor’s 100 index (OEX), one of the most active U.S. index option contracts. Another way of putting it, the VIX index is a measure of “implied volatility” on Standard & Poor’s 100 index options – the volatility being implied by the close-to-the-money options on the S&P 100 index.

The VIX is a sentiment indicator. When option premiums are high, market technicians view that as an indication of a change in direction, as in the topping process of a bull market.

The CBOE volatility index (VIX) has been below 25% since the first of May, making this the longest period of low volatility since the March through June period in 2002. That period was just before the S&P 500 index swoon of 300 points.

Usually when options players are extremely inactive, that’s a good thing. That’s frequently a good time to buy stock.

$TICK: 832 - The indicator measures upticks verses downticks on the NYSE. Readings above 1,400 are rare. A spike in TICK to that level and beyond is a sign of aggressive buying, and helps to explain a rally that helps push stocks from negative to positive territory.

NYSE/DOW Crash Index: 0 (invested) – In distribution mode

NASDAQ 100/S&P 500 Crash Index: -2 & 2 respectively (invested) – In distribution mode (A buy occurs when an index goes to a +6 from a sell, or a crash alert status. A sell occurs when an index goes to a -6, and a crash alert occurs when an index hits -10.)

NYSE Advancing/Declining Issues: 22966.00 (lower than September’s reading, which was the highest of June, July and August)

COT (Commitments of Traders) – Commercial traders net positions

DJIA – Neutral, but going shorter
NASDAQ 100 Stock Index – Headed to neutral from extreme short
S&P 500 Stock Index – Neutral, but going longer

And now for the funnymentals

Ouch 1: High-tech investment grew by 20% on average each year from 1995-2000. However, investment outside the IT arena in such things like mining equipment, office buildings, plains and trains – has been shrinking for 40 years – reflecting the continuing exodus of manufacturing activity in the U.S. to lower-cost offshore producers.

Ouch 2: The NASDAQ is up 40% since the end of March. The tech stock valuations are 70% above the rest of the market on a forward earnings basis. The technical momentum indicators are breaking down, tech insiders are selling heavily into the rally, and volatility indexes are low, suggesting investor complacency is high. It would not be unreasonable to expect a correction by the end of the year in this market.

Ouch 3: Dresdner Kleinwort Wasserstein, a major Wall Street firm, said September 18 it expects the Fed to resume cutting interest rates in 2005. This call came on the heels of the Fed deciding to keep interest rates at 1% - a 45-year low – citing deflation as still a risk and the economy still not generating any jobs, despite sharply improved growth. The firm further stated that economic growth will likely slow to “near recession levels” in 2005.

Ouch 4: Bond markets are under the cloud of mounting U.S. budget deficits and resultant expectations of a steady stream of new U.S. bond supply.

Ouch 5: The slowing pace of mortgage re-financings, less government stimulus and a weaker dollar will all weaken consumer spending over the next year.

Ouch 6: The dollar is sinking, the bond bear market is bearish (the first in 20+ years), earnings are flat, the recovery is fragile, and we have investors throwing money at the market. It's a heady mix. ANY "scary news" now could spook investors, and trigger a stampede to the exits. We are clearly at a “tipping point” – wherein even little problems can tip the balance.

Ouch 7: Mr. Galbraith sees Bush’s policies as economy-negative and debunks low interest rates. He says that they “have a little effect on the housing industry, but any larger economic effect is one of the great hoaxes and errors of our time.”

Ouch 8: The U.S. imports ~US$1.5 billion more than it exports each day. To fund that difference, the country relies on inflows of foreign capital. To balance its payments, the U.S. needs to attract US$50-billion monthly. Foreigners (private investors and central banks) hold 46% of total U.S. treasuries (U.S. bond market) outstanding, which raises the specter that they could slow their accumulation of U.S. debt, or sell it outright. That, in turn, could result in a sharp drop in the dollar. To offset the risk of holding depreciating dollars, and to attract foreign capital at the rate that is currently required, the Fed will be under pressure to raise interest rates.

Ouch 9: U.S. stocks and bonds are looking less attractive. A foreigner who buys U.S. stocks may gain value in U.S. dollars, but would lose those gains once the currency translation is taken into account.

Ouch 10: Eric Sprott is a hedge fund manager who has made a fortune off gold stocks and shorting tech stocks. Not given to hyperbole, he says of investors that, “They have gone completely insane. It’s déjà vu all over again.” Translation: Watch out below!

Investors are snapping up record volumes of commodity futures, as is evidenced by traditionally conservative pension funds starting to dip into that market. Many investment banks are expanding their commodity trading desks. New investment funds are being set up. A handful of funds are turning to commodities as a way of diversifying away from equities and bonds. However, investment in commodities remains a tiny fraction of that poured into equities and bonds. This is probably the time to be overweight in equities because equities move the most in anticipation of a future event, whereas commodities reflect better what is happening now in the economy.

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, and stock market successful trading strategies 

Or, please send me an e-mail, and I’ll send you a PDF version of the Newsletter: prbain@tradingsmarts.com It could be that you are not online while viewing the Newsletter, as we pull the charts and graphics down from our site – to save having to send them out with each e-mail copy of the Newsletter.

If you don’t already have a copy of my now-famous book “How to Trade Like a Pro in One Hour” and associated software, you can get your very own copies for the price of 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 from me for your time and trouble.

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

Thank you for reading this Newsletter! Go forth and multiply your income!

Sincerely,

Peter R. Bain
www.tradingsmarts.com

PS: 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.

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

Disclaimer: I do not promote or make any promises about short-term predictions or daring speculations.

There is a risk to investing and trading, so please use money you have set aside for that purpose, and guard it with your life by using good money management practices and principles, and good trading technique. Please don’t invest or trade money you can ill afford to lose.

I am not responsible for your decisions, and subsequent actions, based on the information contained in this Newsletter.

Please note: The Securities Commission in the jurisdiction where I live and work precludes me from giving you trading advice or recommendations when it comes to any form of security. So, I present my picks for educational and informational purposes only, and do not personally benefit from their inclusion in this Newsletter, or for any other reason. Nor am I imputing my views to you. Please proceed at your own risk, should you decide to act upon any of the tradables mentioned in this Newsletter.

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

Copyright© 2003, Peter R. Bain (All rights reserved)

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