Forex Tips – Four Ways You Can Use Pivot Points


Forex market reactions depend largely on pivot points. This is because a large majority of forex traders uses these points as a guiding aspect. If you find the market opening above a pivot point value, you can expect the remaining part of the day trading to be focused on short trades.

You will typically need three pivot points namely R1, actual pivot value and S1. You would ideally need to check for any break or reversal in the values of S1 or R1. You need to use the pivot point values as an indicator of your exit times instead of entry times.

Pivot Points In Forex Day Trading

In the world of Forex trading market conditions change very frequently. The concept of pivot points is very useful but only certain tactics can apply in certain situations. This is where knowing which tactic to apply when becomes most important. Here are four ways in which pivot points can be used as per the situation.

1) Breakout trade: If the day began with being below pivot point value, then you would prefer short trades. You would want to also look for a break for values biased to the downside values. The entry order for selling in such a case would be below lower line of channel with the stop order being above line of upper channel.

2) Pullback trade: The market would typically pass through the S1 value and then come back in value. You need to place your entry order below support and then place your stop just above pullback.

3) Breaking out: In such a case you should place entry order above line channel of the upper value and the stop order below the value of lower line of channel.

4) Advanced: You can use the intersection of two sets of moving averages to determine the breakout. This is an advanced technique in Forex trading using pivot points.

Originally written by Ferris Malone.

Brought to you by Alan’s Forex Blog:

Five Fatal Flaws of Trading

By Jeffrey Kennedy

Close to ninety percent of all traders lose money. The remaining ten percent somehow manage to either break even or even turn a profit – and more importantly, do it consistently. How do they do that?

That’s an age-old question. While there is no magic formula, one of Elliott Wave International’s senior instructors Jeffrey Kennedy has identified five fundamental flaws that, in his opinion, stop most traders from being consistently successful. We don’t claim to have found The Holy Grail of trading here, but sometimes a single idea can change a person’s life. Maybe you’ll find one in Jeffrey’s take on trading? We sincerely hope so.

The following is an excerpt from Jeffrey Kennedy’s Trader’s Classroom Collection. For a limited time, Elliott Wave International is offering Jeffrey Kennedy’s report, How to Use Bar Patterns to Spot Trade Setups, free.

Why Do Traders Lose?

If you’ve been trading for a long time, you no doubt have felt that a monstrous, invisible hand sometimes reaches into your trading account and takes out money. It doesn’t seem to matter how many books you buy, how many seminars you attend or how many hours you spend analyzing price charts, you just can’t seem to prevent that invisible hand from depleting your trading account funds.

Which brings us to the question: Why do traders lose? Or maybe we should ask, ‘How do you stop the Hand?’ Whether you are a seasoned professional or just thinking about opening your first trading account, the ability to stop the Hand is proportional to how well you understand and overcome the Five Fatal Flaws of trading. For each fatal flaw represents a finger on the invisible hand that wreaks havoc with your trading account.

Fatal Flaw No. 1 – Lack of Methodology

If you aim to be a consistently successful trader, then you must have a defined trading methodology, which is simply a clear and concise way of looking at markets. Guessing or going by gut instinct won’t work over the long run. If you don’t have a defined trading methodology, then you don’t have a way to know what constitutes a buy or sell signal. Moreover, you can’t even consistently correctly identify the trend.

How to overcome this fatal flaw? Answer: Write down your methodology. Define in writing what your analytical tools are and, more importantly, how you use them. It doesn’t matter whether you use the Wave Principle, Point and Figure charts, Stochastics, RSI or a combination of all of the above. What does matter is that you actually take the effort to define it (i.e., what constitutes a buy, a sell, your trailing stop and instructions on exiting a position). And the best hint I can give you regarding developing a defined trading methodology is this: If you can’t fit it on the back of a business card, it’s probably too complicated.

Fatal Flaw No. 2 – Lack of Discipline

When you have clearly outlined and identified your trading methodology, then you must have the discipline to follow your system. A Lack of Discipline in this regard is the second fatal flaw. If the way you view a price chart or evaluate a potential trade setup is different from how you did it a month ago, then you have either not identified your methodology or you lack the discipline to follow the methodology you have identified. The formula for success is to consistently apply a proven methodology. So the best advice I can give you to overcome a lack of discipline is to define a trading methodology that works best for you and follow it religiously.

Fatal Flaw No. 3 – Unrealistic Expectations

Between you and me, nothing makes me angrier than those commercials that say something like, “…$5,000 properly positioned in Natural Gas can give you returns of over $40,000…” Advertisements like this are a disservice to the financial industry as a whole and end up costing uneducated investors a lot more than $5,000. In addition, they help to create the third fatal flaw: Unrealistic Expectations.

Yes, it is possible to experience above-average returns trading your own account. However, it’s difficult to do it without taking on above-average risk. So what is a realistic return to shoot for in your first year as a trader – 50%, 100%, 200%? Whoa, let’s rein in those unrealistic expectations. In my opinion, the goal for every trader their first year out should be not to lose money. In other words, shoot for a 0% return your first year. If you can manage that, then in year two, try to beat the Dow or the S&P. These goals may not be flashy but they are realistic, and if you can learn to live with them – and achieve them – you will fend off the Hand.

For a limited time, Elliott Wave International is offering Jeffrey Kennedy’s report, How to Use Bar Patterns to Spot Trade Setups, free.

Fatal Flaw No. 4 – Lack of Patience

The fourth finger of the invisible hand that robs your trading account is Lack of Patience. I forget where, but I once read that markets trend only 20% of the time, and, from my experience, I would say that this is an accurate statement. So think about it, the other 80% of the time the markets are not trending in one clear direction.

That may explain why I believe that for any given time frame, there are only two or three really good trading opportunities. For example, if you’re a long-term trader, there are typically only two or three compelling tradable moves in a market during any given year. Similarly, if you are a short-term trader, there are only two or three high-quality trade setups in a given week.

All too often, because trading is inherently exciting (and anything involving money usually is exciting), it’s easy to feel like you’re missing the party if you don’t trade a lot. As a result, you start taking trade setups of lesser and lesser quality and begin to over-trade.

How do you overcome this lack of patience? The advice I have found to be most valuable is to remind yourself that every week, there is another trade-of-the-year. In other words, don’t worry about missing an opportunity today, because there will be another one tomorrow, next week and next month … I promise.

I remember a line from a movie (either Sergeant York with Gary Cooper or The Patriot with Mel Gibson) in which one character gives advice to another on how to shoot a rifle: ‘Aim small, miss small.’ I offer the same advice in this new context. To aim small requires patience. So be patient, and you’ll miss small.”

Fatal Flaw No. 5 – Lack of Money Management

The final fatal flaw to overcome as a trader is a Lack of Money Management, and this topic deserves more than just a few paragraphs, because money management encompasses risk/reward analysis, probability of success and failure, protective stops and so much more. Even so, I would like to address the subject of money management with a focus on risk as a function of portfolio size.

Now the big boys (i.e., the professional traders) tend to limit their risk on any given position to 1% – 3% of their portfolio. If we apply this rule to ourselves, then for every $5,000 we have in our trading account, we can risk only $50-$150 on any given trade. Stocks might be a little different, but a $50 stop in Corn, which is one point, is simply too tight a stop, especially when the 10-day average trading range in Corn recently has been more than 10 points. A more plausible stop might be five points or 10, in which case, depending on what percentage of your total portfolio you want to risk, you would need an account size between $15,000 and $50,000.

Simply put, I believe that many traders begin to trade either under-funded or without sufficient capital in their trading account to trade the markets they choose to trade. And that doesn’t even address the size that they trade (i.e., multiple contracts).

To overcome this fatal flaw, let me expand on the logic from the ‘aim small, miss small’ movie line. If you have a small trading account, then trade small. You can accomplish this by trading fewer contracts, or trading e-mini contracts or even stocks. Bottom line, on your way to becoming a consistently successful trader, you must realize that one key is longevity. If your risk on any given position is relatively small, then you can weather the rough spots. Conversely, if you risk 25% of your portfolio on each trade, after four consecutive losers, you’re out all together.

Break the Hand’s Grip

Trading successfully is not easy. It’s hard work … damn hard. And if anyone leads you to believe otherwise, run the other way, and fast. But this hard work can be rewarding, above-average gains are possible and the sense of satisfaction one feels after a few nice trades is absolutely priceless. To get to that point, though, you must first break the fingers of the Hand that is holding you back and stealing money from your trading account. I can guarantee that if you attend to the five fatal flaws I’ve outlined, you won’t be caught red-handed stealing from your own account.

For more information on trading successfully, visit Elliott Wave International to download Jeffrey Kennedy’s free report, How to Use Bar Patterns to Spot Trade Setups.

Jeffrey Kennedy is the Chief Commodity Analyst at Elliott Wave International (EWI). With more than 15 years of experience as a technical analyst, he writes and edits Futures Junctures, EWI’s premier commodity forecasting package.

Battle of the EUR vs USD…who’s the winner?

Today I’ll be looking at the Euro versus the US dollar.

The big question is, are all the “Trade Triangles” lined up for this trade? The answer is yes, and then some. In my new video I step you through a detailed analysis of this market.

You will see how I measure moves and how this particular move could be a really good one. I will also share with you how MarketClub’s charts can help you determine price swings in the market.

You can watch this video with my compliments and there is no registration requirements.

All the best,

Adam Hewison
Co-creator, MarketClub

Do you have this Forex trick up your sleeve?

Dear Trader,

If someone was about to giveaway their number one Forex
trading trick — would you want it?

I thought you would!

Well, right now, you can get the favorite trading trick of
34+ year trading veteran Bill Poulos, which you can use
again & again to dramatically increase your odds of success
in the Forex markets.

And the best part is, you can have it ON THE HOUSE, right

Now, as you know, Forex trading CAN be profitable. However,
the big problem is knowing WHEN any given market is

That’s critical to your potential success because a trending
market tends to keep going in the same direction.

And when you find a market that’s trending, you can jump on
board and ride it for a potential profit, as many times as
you like.

Bill has traded the markets since 1974, and in all that
time, I’ve rarely seen a technique that’s more simple and
effective than the one you’re about to learn…F.R.E.E.

Grab this trick right now and try it for yourself.

Good Trading,

Fapturbo Evolution Sold Out!

It looks like the Fapturbo guys weren’t lying when they said only 2000 copies would be made available. I visited their Fapturbo Evolution homepage two minutes ago and noticed that big image you see above. The official explanation is this:

Sorry guys, we have sold almost all 2000 licenses and the doors are now closed because we need to see how the brokerage can deal with the signups and the workload to get each and every user setup.”

They’ve setup a “waiting list” for people who are “still interested in one of the few remaining copies that we will put for sale eventually later” Are they trying to be clever? Who knows, but anyways, you can join their “waiting list” here:

Those of you who’ve got a copy already, if you feel like sharing your trading performance with the world you may do so at the Forex Autopilot forum here:


Happy trading everyone.

FapTurbo Evolution Is NOT For Everyone

I feel I owe you guys an apology. I completely missed a VERY important detail about the Fapturbo Evolution/Dukascopy brokerage setup. Thankfully a member of the Forex Autopilot Forum clued me in on this one and I owe him a big thanks (lookup the username “Limitup” on Forex Nirvana or Forex Autopilot Forum). Now here comes the kick in the gut. With Dukascopy  “you have to prove that you have 100K net worth per year. If you can’t prove that then you can’t trade Evolution”

Yeah it’s true. Dukascopy is not a bucketshop that will take just anyone.  Now notice that it says “net worth” and not net income which is a different concept. So my guess is that your house and other such assets  will count toward your total net worth per year – and probably the majority of you own houses that easily push beyond $100K,  so you just may qualify. But I’m not 100% sure about this so it would be best to get in touch with a Dukascopy representative. I’m gonna do the same and once I find out I will try to let you guys know.

Anyways, let me say once again that I’m sorry. Good luck to those of you who’ve bought this product, and to all those who didn’t.



Fapturbo Evolution Sales Page Open


Just a quick news update post to let you know that the Fapturbo Evolution sales page is now open for business. Everyone who is quick to act can now buy their own copy.

Once again if the server is slow and you can’t click the buy button, refresh the page until you can. I wish the Fapturbo crew placed a counter letting us know how many copies are left, but as it stands I have no clue as to how many out of the total 2000 copies are still available.

You can grab a Fapturbo Evolution copy over here:

Once again good luck with it.


Fapturbo Evolution Is Out!


Hello everyone. I’ve got some good news for those of you who’ve been waiting to get their hands on the new Fapturbo Evolution forex robot. It’s now officially out and ready to be bought. If you visit the Fapturbo Evolution Edition homepage it may look like you can’t buy it just yet, but not to worry as the sales page will go live at 9:00AM EST, so you have some time to prepare and get in “early” sort of speak.

I heard that before the launch they had over 150,000 visitors checking out the webinar and performance proof proof materials. Once the sales page goes live their services may not be able to cope with the load of so many people trying to buy Fapturbo Evolution at once. Should the servers crash make sure to reload the site a couple of times…eventually you should be able to fully see the sales page.

Without further ado, here is the Fapturbo Evolution Edition website link:

Go there and patiently await 9:00am EST and snap up a copy before someone beats you to it. I suggest showing up to the website 10 minutes before it goes live – even 30 minutes to be on the safe side.

Good luck, hope you manage to get a copy!

Happy trading,