Shocking final Webinar reveals correlation's Performance

With less than 100 copies left and time running out on the option to become a Correlation Code Owner, Jason thought he'd hold one final webinar this Thursday to REALLY show you what you will be test driving.

The feedback from the brand new owners has been some of the best he's ever seen for ANY trading system he's ever developed (it's really quite astounding and he will be sharing some of it with you in the webinar.)

Link

So:

If you aren't averaging 455 pips / month in under 15 minutes per day (and that's NOT EVEN his scalping trades!)...

If you are not pulling the trigger on ALL of your trades with "absolute" confidence...

If you are not taking your trades with 'laser like" accuracy...

You need to drop by for your final chance to see the Correlation Code in action, before they SLAM their doors shut for good.

Oh, and one more thing, this webinar will be different than the last, because he will be focusing more on the actual performance of the system.

He'll be showing you his "1-2 Stack" system which explains exactly how he "stacks" different trades on top of each other to "Supercharge" his performance (remember some of his trades are over 90% accurate).

Link


PS: Jason has just recorded a new video where he shows you some recent performance with his "Follow The Leader" trade that just might make you a "tad" jealous...

As soon as you register for the webinar you will be redirected to the video, so make sure to enter your email, even if you can't make it, at least that way you'll get to see his latest correlation trades.

100 Points
by Boris Schlossberg and Kathy Lien of GFT Forex

"You guys suck," is refrain I hear often."100 points a month?! I could do that in my sleep. You should be doing 100 points a week at minimum!" Well, I try to point out we the game is a lot more difficult than you think, but the critics do not want to hear it. They proceed to tell me all about their marvelous trading exploits showing me how they just picked a turn to within a pip of the bottom and then went on to bank a thousand points in the trade as they "let the profits run."

My favorite of these demo billionaires was guy who used to write to me with the sole purpose of telling me how stupid our latest trade idea was and how trading was so easy that he was making thousands of pips week. I finally relented and asked him top show me his "portfolio of trades." The guy proudly wrote back that he was was long a wide variety of pairs such as EUR/JPY, AUD/JPY, GBP/JPY and NZD/JPY. I did not have the heart to tell him that this was the same trade levered four times the maximum risk he should have been taking. A few months after that conversation the carry trade collapsed and I never heard from him again. Another trading master of the universe relegated to the dustbin of market history.

They say that you should never watch how sausage or politics are made. To that old adage I would also add investment returns. Since most people only look at year end numbers they are convinced that trading returns accrue with the consistency of a weekly paycheck rising in a straight 45 degree angle towards ultimate wealth. Nothing of course is further from the truth. Take a close look at the audited records of any hedge fund and in fact you will see many months of losses punctuated by a few months of gains, that hopefully eke out to a net positive number at the end of the year.

Investment returns are notoriously lumpy not only on a month over month basis but even on year over year basis. Witness the two of the very best hedge funds in business -Citadel and SAC - posting double digit losses this year. Someone the other day reminded me that despite George Soros vaunted $1 Billion win in the GBP/USD in the early 1990's, a few years later he managed to lose $600M in the yen trade not once but twice in the same year. Everyone remembers the wins but forgets the losses.

One of the nice side benefits for those of you who trade with us at BK is that you get to see how investment returns are actually made on trade by trade basis in real time. As many of you can attest it is hardly a glamorous affair. The reason why trading can be so trying is that you are always operating in an environment of complete uncertainty. You can fail by making a bad trade selection (something that we all fall victim to far more than any of us care to admit) but you can also fail even when all of your analytics are absolutely correct.

K has a marvelously understated term for it. She call it market activity. Market activity can encompass anything from some large player dumping a yard worth currency during the illiquid early Asian session irrespective of price as he hurries to leave the office for tryst with his mistress, to some political official making an offhand remark (see Timmy Geithner) that gets spattered on the Bloomberg terminal a second later. All of this "market activity" can wreck havoc with your best laid plans stopping you out before your trading thesis has a chance to play out.

That's why 100 points a month is not bad at all. 100 points a month is 12% per year. Drop $20,000 into your retirement account each year and compound it at 12% and after 20 years you have 1.8M. After 30 years you have 6M. That's hardly a plan to becoming a baller overnight, but that's how real money gets made.

Common Flaws found in Free Breakout Forex System

I have been a big fans of forex breakout system because it is a no-brainer and is fairly easy to implement. It is also uncommon that one can find breakout trading systems free in the internet.

This is an example:

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-Determine the 08.00 – 12.00 GMT (0:00am to 4am EST) High Low on EUR/USD and GBP/USD
-Determine the 12.00 – 16.00 GMT High Low on EUR/USD and GBP/USD

-Set Buy Stop at High + 5 pips and SellStop at Low - 5 pips for both time frames and both currencies.

-Set Target Price at entry + 80 pips for EUR/USD and entry + 120 pips for GBP/USD

-Set Stop Loss at entry - 50 pips for EUR/USD and entry - 70 pips for GBP/USD.If the other side of the breakout is within 50 pips for EUR/USD or within 70 pips for BP/USD then the Stop Loss will be that level.(Longtrade:

SL = Low range - 5 pips = Sell Stop; Short trade: SL = High range + 5 pips = Buy Stop)

-Move the SL to breakeven after a gain of 30 pips for EUR/USD and a gain of 40 pips for GBP/USD.

-If a certain position is taken and price turns against you and it breaks the other side of the breakout channel then turn. If the breakout channel is broader then the stop loss first the stoploss will be hit. If the breakout channel is narrower then the stoploss then hitting the other side means that you have to turn your position.There is only one turn per time frame possible .

-At 24.00 CET all orders expiring and close all trades at market On Friday we do the same at 23.00 CET.

Note :

6 – 10 CET or 8 – 12 GMT

10 - 14 CET or 12 - 16 GMT

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Sound easy to implement, huh? However, contrary to free information, no one seems to discuss a big flaw in this type of trading system.

Let me give you an example:

Suppose you have a set-up to buy EUR/USD

EP - 1.2959
PT - 1.3059
SL - 1.2859

Risking 100 pips for 100 pips profit (or RRR 1:1)

Some people will place the system diligently without asking any further questions. Some "smarter" ones will tell you that you should check the range - if it is 80pips or more, the set-up fails. So, you will ask "why 80 pips or more?" You get a response that it has been backtested.

While I found all these craps in the internet, we at the same time realize that market conditions do changes. So, we must be nimble and adaptive to the changing market conditions.

Have you ever wondered that EUR/USD can make 200 pips daily move consistently since last month? This was definitely not the case in 2008. So, relying on 80 pips as a gauge is a complete disregard of the current market conditions. Anyone talking about 80 pips does not know what he is doing.

To be in a better position, ask yourself what's the opening price for EUR/USD say at 5:00pm EST. Suppose the opening price is 1.2800. You roughly know that given a 200 pips average daily move on this pair, hitting a PT of 1.3059 is challenging as the estimated high will only be 1.3000.

You will also realize that different pairs/ crosses have different average daily move, which is something you need to know. As we are getting more experience as a forex trader, this is definitely a relevant question to ask. You will realize that not all set-ups can give us the best bang for the buck. This means that we have to think whether we should still take that trade.

See, this is something you may not find in free websites. However, you realize that you now know this relevant issue by reading my blog. It is easy, isn't it?

Why Does the Average Forex Trading Strategy Lose Money?

The following article (Part I) is a good wake-up call for folks who are looking for the Holy Grail.

http://www.dailyfx.com/story/topheadline/Why_Does_the_Average_Forex_1232461301568.html?print=1

Enjoy!

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Finally, I got wiped out today after several days struggle

I read this note from one forex forum with sorrows. This student just picked up a forex trading class. He said in the forum that he could not control himself. He could not remove any emotion. He could not follow all the strategies and rules. He knew the danger but yet he continued to do it. He told himself he needed to stop not following the rules but he could not do it.

He shared in the forum about what happened a few nights ago. All the indicators were showing the strong uptrend. Yet, he was going for short position. When his trade was stopped, he went to short position again when there was signs of retracement. Worst still, he placed an order without profit target and stop loss. He admitted that he is gambling. So, in the end, his account was wiped out within merely 2 days.

He is in depression mode. He is remorseful and embarassed. An now he is asking others for help, in particular how to control his emotion.

As far as I am conerned, this is a classic example of why an aspiring trader can easily fail after paying for a seminar. A retail trader has a high tendency to approach trading in the wrong way. He trades without a plan. He trades with emotion, greed and fear. A seminar in itself is not in the position to put a newbie in the position of a professional trader. Instead, the newbie has to take control and makes a decision to follow the rules, and trade with a plan. If he fails, he cannot blame the seminar, the course provider, and the instructor. From this newbie's note, he did not blame anyone. So, it is indeed a good sign. He knows his weakness. He just does not know how to do it. In my mind, there is still hope on this newbie. He had a painful lesson and he will learn from his mistakes.

So, how can we help him? Actually, no one except him can help himself. Why? It is because like I said above, he has to take charge of the outcome. Maybe he should stop trading for a while. Maybe he should start again by paper trading in a demo account. Prove to himself that he can make consistent money before funding a new account. It's very obvious that instructors keep telling newbies not to put real money to trade but practise in demo account first. Not many people I know will follow the rules. In my case, I never trade a system unless I have backtested it and paper trade for a while. Only when I see consistent returns I will put my first $ at risk.. Some people call me nuts and some people disagree with me. Honestly, I don't give a damn. Why? At the end of the day, I am accountable to myself, not to the others. So, why am I concerned with what other people said?

I wish this newbie a successful trading career. Don't give up and take massive action to deal with the psychology part. Like what Conrad and I said to our respective students, it is trading psychology that brings success to a professional trader.

Full-time Trader? Does a full-time trader need to trade full time?

Come across the following questions from Conrad's Board which was raised by an aspiring forex trader. This guy asked

"I have some doubts whether to be a full-time Forex trader after 1 year.

i) My friends told me that it takes as much as S$100k to trade in Forex market.
ii) There is no guarantee to make money in Forex. Otherwise, people will have quitted and traded full-time at home.
iii) Is it a must to work a trading firm to gain experience?

Kindly advise a lost soul like me.

Thank you."

How will you respond if you were asked to answer these questions?

Ans: Yes, your friends are correct in that you need to take as much as $100k to trade in forex market. But where is the leverage? Do you understand the concept of leverage which can be a double-edged sword. It can work for you and against you. So, go figure out what leverage means in forex market and how you should apply leverage correctly.

There is no crystal ball out there. I don't even know what to eat tonight. Let alone what I am doing tomorrow. However, does a full-time trader really need to trade full-time? It has always been a FAQ and a $64K question. I won't sacrifice a 9-5 job because I will trade from 10-4 at night. It is simply switching the work clock. It does not make sense. While a lot of folks have painted a 24x5 feature in forex market, do understand that there are certain hours where the market moves fast for you to make money. I place my forex trades only at 8AM when Tokyo is open, 2PM when Frankfurt is open and 3PM when London is open. So, I don't need to trade forex full time as I have better things to fill my non-forex trading hours. Attend Wealth Academy to understand the concept of primary source income and multiple stream of income. It will blow your mind.

The last question is whether it is a must to work in a trading firm to gain experience. Straight answer is "no". One can gain experience by doing the following:

1. Learn the skill by making mistakes in the martket.
2. Get education to learn the skill, paper trade to gain experience and increase confidence level.

At the end of the day, there are too many folks out there who want to take advantage of the quick-to-be-rich scheme. Here is another classic example!

The $4K Forex Course in Singapore

"The worst fx training ever given by a local company. You trade in order to earn 2 - 3pips per trade! Don't ever join them! You will be cheated 3.5k. I happened"

"I attended XXX and my take on them is they teach retracement. A course in retracement is not worth $400 not to mention $4000!"

"Recently i attended a seminar by XXX too... sounds interesting... but when it comes to the course fees for 2 days... its almost $5k! (round up) Is that too expensive? Or, is there value for it (for anyone who has attended before)."

Many folks in Singapore must be confronted with rising cost of living. Hence, some daring folks are looking around for quick to be rich scheme. There is a variety of schemes available in Singapore - stocks, options, futures, forex etc. You name it, Singapore has it.

Out of curiosity, one of my trading buddies asked me for websites on forex education. It prompted me to one and I saw some folks discuss the forex courses that are conducted in Singapore. In fact, my trading buddies overseas asked me how I got my forex trading education. What I told them was that Singapore ranks Number 2 in the world int terms of the number of forex traders. So, we are spoilt by choice.

I am a firm believer of education before putting money at risk. So, I was one of those who paid a few thousand dollars for these courses. I did not do only one but a few courses over the period of three months. I also plan to do a popular forex course next month, after I postponed it for three times because of my overseas assignments in options teaching. I also have plan to do an advanced forex course in the first half of 2009.

So, does it work for me after paying a few thousand dollars on forex education? The real answer is that these courses work. Why are they not working for some people? To be frank, I believe it is people that make these courses not work. Why? Let me ask your these questions. Why do you trade? If your answer is "money", then please run. Don't walk away. As my mentor, Tom Gentile, said, money is the result of successful traders and should never be a goal.

Money itself does not motivate us to do something. It's the emotion we attach to the money that drives us. Something I learnt in Patterns of Excellence @ AKLTG. So, if you haven't figured out the answer to "why trade?, perhaps you should not spend that kind of money to get education. You are not even ready to start a trading business.

As far as I am concerned, that course which a lot of folks have negative feedback works for me extremely well. To be frank, Dr. Lim has given me a lot of inspiration simply because he is a believer of looking at the price chart without using any technical indicators. When I was asked by others how I trade forex, my response is I don't use any technical indicators at all. One guy questioned me and sought confirmation. I re-confirmed that I don't even use an indicator such as moving average. How amazing it is to trade forex this way.

The FAST2 is a beginner strategy. It laid down the important concept of having a Profit Target and a Stop Loss in forex. Having a PT and a SL in forex is a must because of the volatility of the forex market, especially during the European and US trading hours. However, newbies tend to focus on the outcome of a trade and not the process of practising to make the skill perfect. Worst still, some newbies can't wait to recoup their course fees and start trading with real money. Guess what will happen? Losing money? Most likely. It is not the strategy that does not work. Newbies simply do not have the requisite skill set yet to trade live. That's the whole point.

Have you ever wondered trading FAST2 in certain hours only? Have you ever wondered not to trade FAST 2 in certain time? Have you done a basic fundamental analysis of what is going on in the global economy? Have you studied the inter-relationship between the stock market, bond market, commodity market and the currency market? So, if you have no clue what I am asking above, you are not ready yet. The above questions are important as far as FAST2's performance is concerned.

A lot of folks do not discuss FX104, which is a daily trading system given by Dr. Lim in the supplementary course which costs us only $20. Yes, I did FX104 under the old regime. FX102, 103 and 104 are blended in a one-day course already but it is still $20. It's amazing how FX104 performed since I started trading it on 28 May 2008. In my case, I started paper trading this system for two months before I go live. I proved to myself that the system can generate consistent paper money for two months (which was 1,400 pips out of 14 trades) before I put the system on live. So far, in my real account for FX104, I have done 4 trades already , and profited around 200 pips. As I am writing this post, a FX104 short trade is in the process and it is already broken even.

So, you may ask why FAST2 and FX104 work for me but there are so many folks who complain about them. Like I said, before you go trade anything, you must do your due diligence. Having a trader's attitude and approach trading as a business.

In my recent Seven Essential Credentials of Successful Traders series written for Optionetics, I said that all successful traders have the following things in common:

1. A Strong Self-Belief that trading is a viable business
2. Have good traders habits
3. Have S.M.A.R.T Goals
4. Have a Master Plan for this trading business
5. Have Winning Strategies
6. Willing to "Kaizen" - continous improvement
7. Know how to protect this business

So, aspriing traders - have you got what it takes to be a trader by having all the above credentials? If not, you are not in the 5% Club yet I must say. You still need to work hard in order to leave the 95% Club.

Take care!