TRAINING ON TRADING CENTER

Traditional investors entering the world of derivatives are exposed to a great number of 'new' risks and they can lose their capital rapidly. Trading the Forex Exchange market, commodities or indices via CFDs, Futures and Options is very different than trading classic stocks or bonds. Training hard before start trading is absolutely essential.

 

1. Identifying Chart Patterns

A chart pattern is a distinct formation on the chart of financial-traded securities. There are many different types of patterns. When a chart pattern is confirmed –there is a high probability that a certain (upward / downward) price movement will occur in the near future. A chart pattern is not able to predict with certainty future price movements but it can indicate a high probability trade.

Two (2) Categories of Chart Patterns (Reversal and Continuation)

There are two major chart pattern categories: the Reversal and the Continuation chart patterns. Reversal patterns are signaling the altering of the current trend while continuation patterns signaling the continuation of the current trend.

• MAJOR REVERSAL CHART PATTERNS

1) Head and Shoulders Patterns

2) Double Tops and Bottoms Patterns

3) Triple Tops and Bottoms Patterns

4) Rounding Top and Bottom Patterns

• MAJOR CONTINUATION CHART PATTERNS

5) Cup and Handle Patterns

6) Triangles Chart Patterns

7) Flag and Pennant Patterns

► Identifying Charts Patterns | ► Harmonic Price Patterns 

2. The Leverage Formula

“Building a Simple Money Management System to Trade Derivatives & Forex”

Money Management is everything when Trading Derivatives. The way we manage our funds should always be oriented towards our current capabilities and our future expected needs. Any chosen trading strategy must be 100% compatible with the way we manage our trading funds. Our Trading Portfolio should be managed according to our individual risk profile but also according to our long-term goals.

The Leverage Formula

The leverage formula that is present in this analysis aims to provide a simple environment of understanding the attractiveness of each trade and therefore choose respectively the ideal leverage ratio. Here is the formula:

◘ Capital Leverage = [ (P/L) * (1/Spread) * (R/2) ] %

► The Trading Leverage Formula

3. ΔMP and Σ(ΔMP) Indicators

ΔMP is the latest technical analysis tool by TradingCenter. ΔMP is an indicator that can be used on any financial asset and almost on any chart timeframe.

The Importance of ΔMP

ΔMP expresses the divergence between the closing price and the mean price. Positive ΔMP values in a row indicate that the price of an asset continuously closes near the highest intraday price. That is a sign of a positive momentum regarding the dynamics of intraday demand/supply. In general, when ΔMP shows highly positive values for a certain period, the odds of winning for that period are better.

Calculation

This is how ΔMP works:

ΔMP reflects the daily difference between the Closing Price and the Mean Price

□ Where:

Mean Price = (Daily High + Daily Low) / 2

ΔMP = {(Closing Price – Mean Price) / Mean Price} %

► More on ΔMP and Σ(ΔMP) Indicators | ► eBook at Amazon including ΔMP Charts & Statistics

4. Trading Center Indicator (TCI)

Trading Center using a wide trading experience created a new trading indicator called TCI. Trading Center Indicator (TCI) can be used to analyze any financial traded asset in any timeframe, both backward and forwards.

TCI Concept: “Looking backward to identify what to buy and then looking forward to deciding when to buy it”

TCI takes into account several daily activity numbers as opening, high and low price, and trading volume/value. TCI is formulated by two moving averages that incorporate all the above trading activity data. Moving Average (1) is producing a daily valuation while Moving Average (2) is correcting the results. Each moving average is measured separately.

Looking Backward and Forward

The two moving averages which form the basic TCI structure can be set up to a desired backward or forward time frame.

(1) When TCI is set backward then overbought/oversold levels may be identified

(2) When TCI is set forward then the best timing to execute trades may be forecasted

► More on TCI Models

5. The Top 10 Trading Rules

These are some important rules for all traders:

1) The Market is Unpredictable (don't try to outsmart the market, instead, build scenarios based on probabilities)

2) Portfolio Diversification is always Crucial (no matter if you are trading stocks or Forex or any other financial instrument)

3) “Smart-Money” cannot be beaten in the Short-Term (widen your trading horizon, don't trade intraday)

4) Buy the Rumour and Sell the Fact (news is immediately incorporated in all asset prices)

5) Think about your transaction cost (the more you trade the higher your transaction cost)

6) Emotional trading is catastrophic (applying a trading system can limit the impact of human emotions)

7) Limit the use of capital leverage (high capital leverage means more risk and higher transaction cost)

8) Identify and follow strong trends (trade always the same direction of the trend)

9) Cut your Losses and Run your Profits (don't be in a rush closing profitable positions)

10) Combine fundamental and technical analysis (fundamentals will tell you what to buy, and technical analysis will tell you when to buy it)

► Stock Market Rules

 

6. Trading-Seminars

Trading seminars can prove an effective method for improving your trading skills. Currently, you can trace a great number of trading seminars –and here are some tips to pick the best of them.

► Trading Seminars and Tips

 

7. Find Trading Books

You may find some interesting Trading Books here.

STOCK-TRADING BOOKS: ► Stock-Trading Books

FOREX TRADING BOOKS: ► Forex Trading Books

COMMODITY TRADING BOOKS: ► Commodity-Trading Books