 Then
continue through the Trial Demo or Live Regn signup
process to obtain the necessary Login name and
access codes (you will be able to obtain your
login codes for the platform and RTTC at this
stage) - (To signup for
the demo/live platform login/password - click
here)
The second
area of the trading system is the Real
Time Trade Communicator - offered
by EFT Capital. This is the tool that provides
our traders with the information to make their
decisions. It basically provides the strongest
market entry and exit points so that traders know
when to buy and sell their contracts with the
best chance of making a profit from the trade.
This tool can substitute for years of experience
in trading to allow the not so experienced investors
the opportunity to trade the Futures and FX Markets
like a professional. The system is based on years
of research by experienced traders who have produced
a reactive model using advanced mathematical algorithms
to forecast the movements of the Financial Markets.
By learning how to use this tool, you can make
informed decisions with the use of educated trading
techniques to conduct intra-day trades with a
higher probability of success. (to
find out more about the EFT Capital Real Time
Trade Communicator - click here.)
You
will need to download the necessary Java Applet
extension to run the RTTC applet (to
download the RTTC Java Applet extension - click
here).
You
will then need to signup for the demo or live
RTTC access code and password under the Demo Trial
and Live Regn page - which you can do when obtaining
the login codes for the Trading Platform - (click
here to obtain an RTTC access code and
password)
Combining
these two tools - the Trading Platform(s) and
Real Time Trade Communicator "RTTC",
you are now in a position to trade the Futures/Forex
Markets. Adequate training is however required
to better understand the respective markets and
to be able to correctly use both the trading platform
and RTTC system (click
here for further information on the futures/forex
trading course)
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2.
Risk Management
Every
successful trader should know how much risk he/she
is willing to take, and what profits should result
from a trade. This is the basis of every realistic
trading strategy. For every trade made, a pre-set
profit expectation is taken, which is referred
to as a "profit-limit". This allows
a trader to have the trading platform automatically
close their position when the desired level of
profit has been made. Every trade will also include
a pre-set loss expectation to cap losses to an
acceptable amount, in case the trade goes against
the trader. This is referred to as a "stop-loss".
Both of these
tools allow the investor to make trades in a disciplined
manner so that "greed" and "fear"
do not play a role in the entry and exit decisions.
Once the trade is entered and the profit and loss
boundaries set, the trader lets the system carry
the trade to its completion. If the system provides
clear signals that the trade has turned, then
manual management of the position's exit can be
used. This ensures that
rules are followed and emotions do not influence
the trades. Make no mistake, some trades
will lose, however the aim is to make more profitable
trades than loss trades. This is what the the
total trading system aims to provide.
Knowing how
much profit to take from a trade and the loss
than one can accept depends on the individual
risk profile of each trader. Both "stop-loss"
and "profit-limit" orders are also flexible
tools that can be repositioned during a trade,
depending on the deepness of the move and the
trading techniques being employed by the trader.
Certain situations may allow a trader to ride
a "deeper" move to increase the profit
expectation from a trade depending on the market
conditions. This technique is referred to as a
"trailing-stop" to maximise the upside
potential for a trader during a strong move. Further
detail on setting stop-losses and limit orders
is provided after signing up and during training
sessions.
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3.
Various Schools of Thought
There
are generally two types of traders, those being
technical and fundamental. Both have a radically
different approach to making trading decisions.
Technical
analysts take the approach that all necessary
information that will affect the market is already
built into the current price. This assumes a relatively
efficient market-place and that any information
is pretty much disseminated into the market immediately.
This means that studying price action is all that
is required to make trading decisions. Technical
analysts believe that patterns and trends held
in the movements of the price can help to forecast
that series, so many use charts and graphical
analysis to uncover these patterns.
Fundamental
analysts study the flow-on effects of changes
and expectations around various economic, social
and political indicators, which then influence
supply and demand and therefore the current market
price. The key to fundamental analysis is understanding
what are the key indicators that affect prices
and the expectations that surround these key indicators.
Who's right? Both
really! Basically as the investment time-horizon
of the trader changes, so does the reliance placed
on either technique. In the very short-term, which
is the time-horizon of intra-day traders, fundamental
shifts in various key economic and social indicators
are limited
and don't realistically change each second. Therefore
technical analysis is more suited to the very
short-term. In the longer-term, market trend and
overall direction is more influenced by key indicators
that form the basis of fundamental analysis, so
this is more effective for long term positions.
Fundamental shifts and shocks to the market as
a result of economic, social and political changes
are however very important to a day-trader. Various
times throughout a day such market announcements
are made that will cause immediate corrections
in the market, due to incorrect prior expectations
differing from actual news, or simply through
the market being caught unaware. It is important
to know when such announcements are made and understand
the degree of "momentum" that can ripple
through a market as a result of a fundamental
shock.
Which do
we use? The RTTC charts are based on a proprietory
reactive model of mathematical algorithms to forecast
movements. Basically it's a hybrid of technical
thought coupled with strong reactive market analysis
of those factors that drive the current price.
Supply, demand, momentum, pace, volume etc are
all key short-term factors that determine the
current price and the likely movements around
that time.
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4.
Fundamentals Everyone Should Know
All
Traders should understand that economic releases,
interest rates, unemployment, inflation, market
sentiment etc are all key fundamental indicators
that affect the market. At specific times during
a short-term traders day, such indicators will
be announced or change and will have an immediate
affect upon the market. Understanding the potential
disparity between the markets expectations towards
various indicators and actual results when known,
is key to understanding the moves in the market
around announcements and for establishing market
sentiment for the day. Important announcements
and information is normally released as specific
times during a day. The day-traders full trading
session is normally broken up into sections across
the day, as particular periods are better for
trading, while others are not. These points are
discussed during training sessions and further
information is available to those who wish to
continue through the Trading System.
Using various
information sources to keep track of news is very
important to any trader. Such sites as Briefing.com
and CNN-Money
are good sources of such information.
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5.
Psychology of Trading
The
biggest enemy to most traders is not the market,
but themselves.
You must
always trade with a disciplined plan. The RTTC
system will take the hunch and guess work out
of your trades. Entries are based on the signals
given by the model with strict use of profit-limits
and stop-losses. Applying consistent rules day
in day out is the key to sustainable trading.
Greed may reward a trader one-day, however can
cause severe loss the next. The only thing that
can be relied upon is disciplined techniques that
encourage consistent rational trading.
Too often
the temptation to remove profit-limits and stop-losses
will come into play. Traders take profits too
early or too late without a clear goal in mind.
This can cause uncertainty in your actions and
leave you open to the market hooking back against
you. Sometimes a trader must bite the bullet and
take a loss. Never remove a stop-loss and allow
the trade to continue beyond this level in hope
that the market will come back. This cannot be
relied upon and will burn any trader in the long-run.
You must always plan a trade and trade your plan.
Have contingency situations mapped out so all
possible scenarios are planned for.
The emotions of
a trader while under simulation or demo accounts
are very different to those while trading live.
This is one of the main aspects that can cause
a trader to succeed under "pretend"
paper-trade scenarios and have difficulty with
real trades. Putting real money on the line can
cause reluctance to "pull-the-trigger"
when required and such delays or inefficient/unclear
behaviour associated with the "fear"
of live trading can be the detriment of even the
potentially best trader. This can be a difficult
situation to pass, so after a trader practices
under simulation "paper-trading", they
must try to maintain the same state of mind when
trading live to have the best chance of reproducing
similar results. The RTTC system is an "Emotion
Free Trading" system that shouldn't require
the trader to use "gut" feel, allowing
clear rational trading rules.
The key to success
as a day-trader is determined by perhaps the more
unlikely properties that one must possess. The
world's best technical analyst will not necessarily
be the world's best trader and in fact the best
may have limited guarantee of success. A good
trader must be able to identify good entries (as
with this trading system), understand and define
their risk in every trade, plan their trade in
terms of knowing how to identify and deal with
a successful or loss outcome, use stop-loss and
profit-limit techniques, while understanding their
overall trading and investment plan.
Trading is a game
of probabilities. A trading system such as that
offered here, provides a trader with an edge in
terms of offering the most opportune time in which
to enter and exit the market. It should however
be known that the best trading systems, like this
one, will offer an increased probability of successful
trades in the long-run. However when considering
an individual trade, its outcome is effectively
unknown and anyone who says that they will only
enter a trade if they "know" what the
outcome will be, is fooling themselves. Trades
that are apparently individually random, which
are executed in a concise clear manner based on
a good trade generating system, will produce non-random
outcomes in the long-term. What this means is
that the trading system offered here, will stack
the odds in your favour over a large amount of
trades, and will produce profitable outcomes.
To truly accept the risk of trading does not simply
mean that you are aware of the underlying risks
and hope they will never happen to you. It means
accepting wins with losses as part of a trading
strategy. Only through accepting losing trades
with winning trades will you succeed in the long-term.
Once a risk-taker
has accepted this fact, you then need to clearly
define in each trade when you will take profits,
and when you will exit for a loss. You need to
know what the market will look like for each of
these outcomes to occur. You must always prepare
for either situation as both will occur throughout
your long-term trading. This is what it means
to be a risk-taker. Trading is not a risk-free
source of income that will produce profits with
each and every trade, like a steady income that
you might expect as a wage earner. Some days will
see large growth, some days will see losses, both
of which increase the short-term volatility of
your return significantly. However, higher rewardable
risk like this will offer higher long-term income,
this is an accepted fact throughout investment
finance.
Success as a trader
is therefore not some mystical, unclear path that
only some may stumble down. The key to success
is understood and can be learned, however its
application and execution may be inherently difficult
for some people to accept. Such people are simply
not cut-out to be traders. Those who are overly
concerned with finding a "perfect" entry
system are chasing a holy-grail that does not
exist. They will be continually second-guessing
their decisions because of doubt and uncertainty.
The fact is, there is no certainty with each and
every trade. Certainty comes in consistent disciplined
trading that is obtained over a larger number
of trades. The most successful traders in history
have understood this principal and their stickability
has returned them phenomenal wealth. If there
were a trading system that produced profitable
trades with each and every single entry, everyone
would be using it and effectively there would
be no-risk associated with trading. No-risk means
very little return and that's exactly what those
following this mentality will achieve.
Do not overtrade.
Trading under a leveraged account introduces a
high amount of risk, so it is sensible to only
trade a portion of your capital in any one position.
The double-edged sword of leverage can work as
much against you as it can for you.
A clear asset allocation
and reinvestment system should be employed so
that the investor grows their portfolio in the
most risk efficient and sensible manner. Simply
throwing all profits back on the market is not
always the best wealth manangement strategy. Time
should be spent on clearly detailing how much
of potential returns will be subject to full-risk
back in the market (to make the most through compounding
your returns), while other capital is reallocated
elsewhere.
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Trading Platform and Real Time Trade Communicator.
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