Five Ways Trade Currencies

5 Ways to Trade Currencies

Kathy Lien Director of Currency Research

DISCLAIMER: GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading, GFT Global Markets Asia Pte. Ltd. and GFT Global Markets UK Limited. [In the United Kingdom,] GFT Global Markets UK Limited is authorized and regulated by the United Kingdom Financial Services Authority. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful. Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. In Australia, GFT means Global Futures & Forex, Ltd. ARBN 103 508 461, AFS License 226625. A Product Disclosure Statement (PDS) is available at _www.gft.com.au. You should read and consider the PDS before making any decision to deal in GFT products. This [advertisement] is published by GFT Global Markets Asia Pte. Ltd. (Company Registration Number 200717665N) in Singapore for informational purposes only and is not an offer or a solicitation to deal in any investment product or to enter into any legal relations, nor an advice or a recommendation with respect to such investment product. © 2009 Global Futures & Forex, Ltd. All rights reserved.

DISCLAIMER: This presentation and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this presentation for your general information. This presentation and its information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision based upon this forum or any information contained within. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading, Boris Schlossberg, and Kathy Lien will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading, Boris Schlossberg, and Kathy Lien do not render investment, legal, accounting, tax or other professional advice. If such advice is sought, or other expert assistance is required, the services of a competent professional should be sought.

Disclaimer

Brain Teasers

3 Trading Perspectives

5 Different Ways to Trade Currencies

What Type of Trader Are You?

Bonus: My Favorite Trading Strategy

Agenda

Exercise Your Brain

Brain Teasers

OTTFFSS _?

Brain Teasers


Fundamental Traders

Technical Traders

Realistic Traders


1. Macro

2. Micro

3. Monetary Policy

3 Ms of Trading

5 Ways to Trade

1. Sticking with the Trend

2. Going for Yield

3. Anticipating News

4. Following the Flow

5. Fading Sentiment

5 Ways to Trade

EUR/USD

Source: DealBook 360

Sticking with the Trend

USD/JPY




How to Trade the Bollinger Bands

1. The First Break

2. Retrace

EUR/USD


The First Break

AUD/JPY


The First Break

GBP/USD


Retrace

USD/CHF


Retrace


Increase Your Chance of Success By Keeping an Eye on Data

Set it and Forget it

Trade Currencies Like Stocks

Interest Rates Matter

Popularity of the Carry Trade

Going for Yield

The views of the author are not necessarily those of GFT, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate.


AUD/USD +45% then -35%

Going for Yield


EUR/JPY +30% the -33%

Going for Yield

Going for Yield

How Can you Determine Where Interest Rates Are Headed?

Put Yourself Into the Shoes of the Central Banker

Be Ahead of the Game

Short Term Trades – Right or Out

Tight Stop, Instant Gratification

Only Problem: Getting the Economic Prediction Right

Anticipating News

Friday January 23, 2009

UK GDP (Q4)

4:30 AM ET

Expectations: -1.2% (QoQ) / -1.4% (YoY)

Previous: -0.6% (QoQ) / 0.3% (YoY)

Our Call: Weaker GDP

Anticipating News


GDP -1.5% QoQ -1.8% YoY

Canadian Retail Sales

What are the Clues?

Anticipating News

Retail Sales + Trade Balance = GDP

Anticipating News

Source: Bloomberg

January 19, 2009

New Zealand Consumer Prices (QoQ)

4:45 PM ET

Expectations: -0.4% QoQ, 3.5% YoY

Previous: 1.5% QoQ , 5.1% YoY

Our Call: Weaker CPI

Anticipating News


NZD CPI -0.5% QoQ 3.4% YoY

New Zealand CPI

Anticipating News

What are the Clues?

German Retail Sales and Factory Orders Were Weak

News Moves Markets

No Guessing

Lasting Impact

Following the Flow


UK GDP Fall More than Expected

0

70 -80 Pips

UK GDP


NZD CPI Weaker than Expected

70 Pips

New Zealand CPI

Picking Tops and Bottoms is Tempting, But Tough!


-35%

-7500 Pips

In 4 months

Fading Market Sentiment


Magazine Covers

Magazine Covers

Trader

What Kind of Trader Are You?

What kind of Trader are You?

1. Short Term vs. Long Term

2. High Probability, High Profit

3. News, Charts or Both

4. Majors or Crosses

Bonus!

Trading Strategy: Extension Fade

Extension Fade

Extension Fade

Extension Fade

Extension Fade

Trading Rules

1. Look for 7 consecutive days of weakness, where the close of each day is lower than the open.

2. Buy at 5pm ET, which is when the next trading candle begins

3. Place stop 30 pips below the entry price

4. Close half of the position when it moves by 2 times the amount risked. Move the stop on the remaining half to your initial entry.

5. Close remaining position when price has moved by 4 times the amount risked or 120 pips.

The views of the author are not necessarily those of GFT, its owners, officers, agents or employees. In addition, any projections or views of the market provided by the author may not prove to be accurate.


Extension Fade


Extension Fade

Extension Fade

Does the Strategy Work for Other Currency Pairs?


USD/CAD Example

Extension Fade

Can the First Target be Altered?

Extension Fade

What Happens if the Move Continues for More than 7 Days?

Extension Fade


GBP/USD Example

Extension Fade

Can You Trade a 6 Day Fade?

Questions?

Agenda

Join Us!

Premium PresentationFeb 23, 4:30pm – 6:00pm

Strategies to EffectivelyAnticipate and React to

Currency News

*Open to new and existing GFT Clients Limited seating. Inquire at GFT

Booth.

Disclaimer

DISCLAIMER: GFT refers to Global Futures & Forex, Ltd. and all of its divisions, branches and subsidiaries, including Global Forex Trading, GFT Global Markets Asia Pte. Ltd. and GFT Global Markets UK Limited. [In the United Kingdom,] GFT Global Markets UK Limited is authorized and regulated by the United Kingdom Financial Services Authority. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful. Trading of foreign exchange contracts, contracts for differences, derivatives and other investment products which are leveraged, can carry a high level of risk, and may not be suitable for all investors. It is possible to lose more than the initial investment. In Australia, GFT means Global Futures & Forex, Ltd. ARBN 103 508 461, AFS License 226625. A Product Disclosure Statement (PDS) is available at _www.gft.com.au. You should read and consider the PDS before making any decision to deal in GFT products. This [advertisement] is published by GFT Global Markets Asia Pte. Ltd. (Company Registration Number 200717665N) in Singapore for informational purposes only and is not an offer or a solicitation to deal in any investment product or to enter into any legal relations, nor an advice or a recommendation with respect to such investment product. © 2009 Global Futures & Forex, Ltd. All rights reserved.

DISCLAIMER: This presentation and the information provided here should not be relied upon as a substitute for extensive independent research before making your investment decisions. Global Forex Trading is merely providing this presentation for your general information. This presentation and its information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision based upon this forum or any information contained within. In addition, any projections or views of the market provided by the author may not prove to be accurate. Global Forex Trading, Boris Schlossberg, and Kathy Lien will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained in this column. Global Forex Trading, Boris Schlossberg, and Kathy Lien do not render investment, legal, accounting, tax or other professional advice. If such advice is sought, or other expert assistance is required, the services of a competent professional should be sought.

CD08BKU.002.021809

Business

Five Ways Trade Currencies