Forex Academy Quick Links:
Language:
English

Articles by Michael Radkay

October 14th, 2011 @ 5:54 pm by Michael Radkay

Click here to read the full article.

BY <a href=”http://www.rdstrader.com”>STEPHANIE RADKAY</a>

<div style=”float: right;”><img src=”http://www.rdstrader.com/castle.jpg”></div>Long ago in the ancient land of Tradeopolis there lived a king, King Libra.  This king was a very kind, intelligent, giving, sharing soul.  The thing that was most unique about King Libra compared to any other king was he was more like a God.  His people and the surrounding kingdoms often prayed to him and bowed to him in his presence for he had such great intelligence and knew everything there was to know.  The people in Tradeopolis respected him greatly and when anyone was in need they would go to him to help solve all their problems.

One day one of his people, Fast Market Freddy, came to King Libra and told him he wanted to trade Foreign Currency.  “Ah, yes,” said the King,  “what a brilliant idea.  You know you must have money in your pocket and in the bank to do this, Freddy.”  Fast Market Freddy answered, “Yes, I have that covered, King.”  King Libra said, “You must have the emotional and physical endurance to be successful because not everyone can do this.  You will learn more about yourself than you might ever care to know.”  “I understand,” replied Freddy, “I take care of myself physically by working out and eating right.  I meditate and understand my emotions.  I don’t let them get the best of me.  I am a model citizen in our kingdom, giving to others and respecting my family.” “Perfect”, King Libra replied, “so what is it you need from me?”  “Well”, Fast Market Freddy said,” I want to know how long this will take me to learn.”  “Ah, yes,” replied the King, “to answer your question, you must go to see the three Wise Wizards, TOLI, TOLI-O and TOLI-O-O, in that order.”

<div style=”float: right;”><img src=”http://www.rdstrader.com/tol1.jpg”></div>So off Fast Market Freddy went to first seek the advice of TOLI.  He approached TOLI’s beautiful castle and knocked on the door. “What is it you wish to know?” bellowed the voice behind the door. “It is I, Fast Market Freddy, and King Libra sent me to seek the advise of the Wise Wizard TOLI.  I want to start trading Foreign Currency and I want to know how long it will take me.” The Wise Wizard, TOLI, opened the door, touched Freddy on the chin with his pointer finger and answered, “Six months.”  “Six months?” anxiously replied Freddy, “I don’t have six months to wait.  I have bills to pay, children to feed and a wife who overspends.” “I see. Since you do not appreciate my wise answer, I advise you to go see the Wise Wizard, TOLI-O.”

<div style=”float: right;”><img src=”http://www.rdstrader.com/tol10.jpg”></div>And, off Fast Market Freddy went to seek the advice of Wise Wizard, TOLI-O. He quickly approached TOLI-O’s beautiful castle and knocked heavily on the door. “What is it you wish to know?” bellowed the voice behind the door. “It is I, Fast Market Freddy, and the Wise Wizard TOLI sent me here.  I want to start trading Foreign Currency and I really want to know how long it will take me.” The Wise Wizard, TOLI-O, slowly opened the door, touched Freddy on his forehead with his pointer finger and answered, “One year.”  “One year?” Freddy started to yell, “What’s the matter with you?  One year is ridiculous!  I don’t have the time for this and you are crazy!”   “I see. Since you do not appreciate my wise answer, I advise you to go see the Wise Wizard, TOLI-O-O.”

<div style=”float: right;”><img src=”http://www.rdstrader.com/tol100.jpg”></div>Stomping his feet, Fast Market Freddy marched over to the even more beautiful castle of the Wise Wizard, TOLI-O-O.  He knocked heavily on the door. “What is it you wish to know?” softly questioned the voice behind the door. “It is I, Fast Market Freddy, and the Wise Wizard TOLI-O sent me here.  I want to start trading Foreign Currency and I demand to know how long it will take me.  Now give me the answer I want to hear!” The all-knowing wizard opened the door, touched Freddy gently on the forehead with her closed fist and quietly replied, “A lifetime.”  “Oh, you are out of your mind, TOLI-O-O!  That’s so unreasonable and no one would ever do this!  I am out of here!”  Fast Market Freddy almost put his fist through the Wise Wizard TOLI-O-O’s beautiful Golden Doors and stormed off in a huge huff.

There is a hidden message in this trader’s fable and the hint is knowing the hand signals on the trading floor. If you can figure it out, send an e-mail to info@rdstrader.com

If you are the first “new client” to respond, you will receive a free 45 minute consultation with 20 year professional trader and mentor, Michael Radkay.

Trade Strong!! Trade Smart!!and Always Have Enough to Trade Tomorrow!!

Click here to read the full article.

September 30th, 2011 @ 6:48 pm by Michael Radkay

Click here to read the full article.

<a href=”http://rdstrader.com”> <img src=”http://rdstrader.com/header.jpg”></a>
BY <a href=”http://www.rdstrader.com”>MICHAEL RADKAY</a>

Is it me or is this sign an oxymoron? A job is right, but isn’t a job the direct result of capitalism? Both company and employee seek a profit and the money earned is used to buy the things that all parties want and need. I do understand the motivation behind the sign as it seems our capitalist society is in need of an overhaul these days. I still believe capitalism works but it takes two to tango and both sides need to open the doors again. Banks need to start lending that “gift money” (sorry – quantitative easing aid) and businesses and employees need to follow through on their commitments.
<div style=”float: right;”><img src=”http://www.rdstrader.com/capitalism.jpg”></div>
I don’t blame the protesters for their anger at the system because obviously they are looking for a job and it seems that things these days are weighted too heavily in favor of the banks. The act of gathering peacefully while bringing a solid clear and precise message however is also a great bi-product of our way of life. The money earned in a capitalist structure has afforded us to build a country that can protect and base itself on freedom.

At least it seems in this case that citizens can demonstrate peacefully for the most part and I hope Washington is hearing the shouts and footsteps as they need to show leadership for the betterment of all involved, not just a select few. Using your freedom to protest and freedom of speech is our right and I am a firm believer that if you have something to say, “say it”, if you have something to shout; “shout it” and if you have something to do; “do it”. My  problem with this photo is that at this moment the writers of this sign are nowhere to be found in this picture? This sign needs a live face all of the time; not just part-time, otherwise it has the same effect as a text message or a resume placed on a stack of others without introducing yourself to the person collecting them and offering the job.

I have given some thought to a solution for the sign maker.  First of all you have skills. You don’t need to occupy wall street; you need to occupy your mind and use the energy you applied to this sign and this protest and focus it on how to best utilize your abilities to land the job you seek. As an educator and motivator I try and help students fulfill their goals and my message to my students is not much different to you. I just become the facilitator to help you see your skills and place you in an area that suits you best. You have the ability to create a buzz and companies love that! With your protest you received free media coverage from all of the major networks and social media outlets; brilliant!! You also have the ability to make signs and slogans to deliver a message. But this picture just looks to me like somebody who got tired of standing in the rain and placed the sign on the ground in hopes that somebody would still get the message and solve your problem. You are never going to get a job that way.

You just are in need of a few follow through skills. Since you have a knack to create a buzz and can make signs and write slogans, I have provided you with a list of sign making companies in the lower Manhattan area (since you are there) that just may want to hire you. Just make sure you are present this time, when the photo shoot comes calling your name. Also; never, never forget to leave a contact number or email on your sign so the company can get in touch, when they hire you.  I’m still bullish the U.S.!!

Here are a list of sign making companies:

A A Awning & Sign
Tel: 212 226 9828171 Bowery
New York NY 10002

Artshne Sign and Supply
Tel: 212 965 818496 Allen Street
New York NY 10002

Chung Wah Sign & Store Inc
Tel: 212 995 795666 Delancey Street
New York NY 10002

Concept Sign Incorporated
Tel: 212 966 108137 Allen Street
New York NY 10002

FedEx Office Print & Ship Center
Tel: 212 228 951121 Astor Place
New York NY 10003

FedEx Office Ship Center
Tel: 212 614 8915125 5th Avenue
New York NY 10003

FedEx World Service Center
Tel: 800 463 333920 E 20th St Grd Fl
New York NY 10003

Fortune Line Trading
Tel: 212 334 826525 Essex Street
New York NY 10002

Gilbey Graphics & Di
Tel: 212 608 4131900 Broadway
New York NY 10003

Hong Qi Sign Corp
Tel: 212 966 318895 Allen Street 1
New York NY 10002

Always Neon Inc
Tel: 212 388 987666 Delancey Street
New York NY 10002

Bowery Sign Production & Supply Inc
Tel: 212 995 1395187 Bowery
New York NY 10002

Concept Sign Inc
Tel: 212 966 108184 Hester Street
New York NY 10002

Creative Signs and Awnings
Tel: 212 625 172655 Delancey Street 1
New York NY 10002

FedEx Office Print & Ship Center
Tel: 212 253 9020250 E Houston Street
New York NY 10002

FedEx Office Ship Center
Tel: 212 353 38604 Union Square E
New York NY 10003

First Signs Co
Tel: 212 966 069071 Eldridge Street
New York NY 10002

Fu Sunsign Construction Co
Tel: 212 941 952074 Canal Street
New York NY 10002

Hester Signs Inc
Tel: 212 625 928923 Orchard Street
New York NY 10002

Hong Qi Sign Corporation
Tel: 212 966 3188101 Allen Street
New York NY 10002

<center><img src=”http://www.rdstrader.com/promote.jpg” width=”450″></center>
Twi-Light Tuesday Trading
<div style=”float: right;”><img src=”http://www.rdstrader.com/rdslogo.gif”></div>
6p Pacific. This webinar is free and there is no obligation.

* Register at: <a href=”https://www2.gotomeeting.com/register/846717043″>https://www2.gotomeeting.com/register/846717043</a>
* Professional Trader and Educator, Michael Radkay, will introduce to you how he implements his 5 rules to identify the best trade set-ups or:

EURUSD, USDJPY, USDCHF, GBPUSD, AUDUSD
EURJPY, USDCAD, NZDUSD, EURGBP, EURCHF

See the Proprietary Levels / Watch the Trades Develop / Ask Questions Live on Tuesday Nights

“We have been successfully trading live for a living, helping others become independent traders, thinkers and decision makers since 1993 using Treasuries, Equity Indexes, Grains, Metals, Energies and now the Currency Markets”, says RDS Trader LLC’s President and CEO, Michael Radkay

The Rotating Directional System (RDS) is a rule based discretionary strategy that establishes risk management first. Our style offers the trader a trend-side philosophy that predicts time and price objectives using counter-trend reversals as a guide for entries, exits and overall worth of the trade.

Click here to read the full article.

September 16th, 2011 @ 4:45 pm by Michael Radkay

Click here to read the full article.

BY MICHAEL RADKAY

Euro zone officials are in talks to implement or withhold a sixth bailout to Greece because of its financial policies and over-spending. Overall it seems they are willing to go the extra mile to save Greece, but currently are not getting enough in commitments back from Bank of Greece Governor George Provopoulos. It seems the world bank heads are giving a lot of rope to Greece with the latest round of default threats to a country that claims they were the first to start the democratic system that we all enjoy. Maybe the bank heads are waiting for a pinky swear and a nice Mediterranean side salad and a life time supply of Gyro platters before they send more financial aid.

We will probably never truly know the deal but it might not be as far fetched as it sounds since they really don’t have much else to offer other than “I promise” and a nice meal. Greece may have delivered recently as the European Central Bank in conjunction with the Federal Reserve (U.S.), the Bank of England (BOE), the Bank of Japan (BOJ) and the Swiss National Bank (SNB) announced on September 15th to provide as much U.S. dollar liquidity as necessary in three different phases with a maturity of approximately three months that will keep things afloat until the end of the year.

Word of the 6th bail-out without calling it a bailout has given some life to the euro which has been getting hit pretty hard this month against the U.S. dollar and the Yen. The latest round of rescue help has given Euro investors a bit of a breather but whether it is enough remains to be seen. In the meantime you may see a bit more life to the Euro for the remainder of the year with this latest stimulus package unless anything unforeseen hits the airwaves.

EURUSD and EURJPY Daily Chart:


Twi-Light Tuesday Trading

6p Pacific. This webinar is free and there is no obligation.

* Register at: https://www2.gotomeeting.com/register/846717043
* Professional Trader and Educator, Michael Radkay, will introduce to you how he implements his 5 rules to identify the best trade set-ups or:

EURUSD, USDJPY, USDCHF, GBPUSD, AUDUSD
EURJPY, USDCAD, NZDUSD, EURGBP, EURCHF

See the Proprietary Levels / Watch the Trades Develop / Ask Questions Live on Tuesday Nights

“We have been successfully trading live for a living, helping others become independent traders, thinkers and decision makers since 1993 using Treasuries, Equity Indexes, Grains, Metals, Energies and now the Currency Markets”, says RDS Trader LLC’s President and CEO, Michael Radkay

The Rotating Directional System (RDS) is a rule based discretionary strategy that establishes risk management first. Our style offers the trader a trend-side philosophy that predicts time and price objectives using counter-trend reversals as a guide for entries, exits and overall worth of the trade.

Click here to read the full article.

September 2nd, 2011 @ 4:53 pm by Michael Radkay

Click here to read the full article.

BY MICHAEL RADKAY

We always say to the exponential smoothers or those that filter out tops and bottoms to “save it for the board room and keep it away from the trading arena. If we can’t smooth the losses from our account, we will not smooth the wicks and shadows out of our level calculations.”

We prefer to use the exact information because it paints the most accurate picture. Let’s send a nice dose of reality to any of you who are thinking about smoothing your results. Our politicians are the best data smoothers we know. Do you think they would be in office today, if they included the food and energy cost in the Consumer Price Index and the Producer Price Index Data? The U.S. Department of Labor, filters out this data because they claim it’s too volatile of a component to get a true read of inflation. This is a politician’s way to brush under the rug the fact that since 2006, the cost of gas has fluctuated from about $2.50 to $5.00 per gallon and it is holding above $4.00 where it has been sitting for the most part from 2008 – 2011. At one point there was a 100% increase in prices and today resting at and never below a 60% increase from 2006 prices.

The U.S. Department of Labor and Federal Reserve all hired and appointed by our Government peg inflation to only rise about 2% – 3% per year. They have been saying that we have been holding in line with that figure for the most part. Using the high end 3% figure; if gas prices were to climb 3% each year, and we started from $2.50 per gallon, that would mean the price of gas should have been $2.57 in 2007 (actual was well over $3), $2.65 in 2008 (never below $4), $2.73 in 2009 (never below $4), $2.81 per gallon in 2010 (never below $4) and $2.89 in 2011 (never below $4). Maybe the next time we fill our car up we should only pay the rate that it should be. See how well that goes over with the gas station attendant….

If you cant get it our of your gas station attendant, maybe our government will give some of the money back. Gas prices in our neighborhood for the most part over the last 4 years has been holding above $4.00 per gallon where at worst prices should have been $2.89, if we were maintaining the 3% pace our nation’s officials tells us things are.

We figure we spend approximately on the low end $70 per week (1 car) on gas over the last 4 years. Even if we used the 2011 price of $2.89 (3% pace) it should have been no more than $50 to fill our car with gas. $20 difference x 52 weeks a year comes to $1040 per year. Over the last 4 years we have been over-charged an extremely conservative estimate of $4160 on gas alone. Do you think they would be kind enough to send us a check right quick? Oh, wait a minute; they filter out energy cost data, I forgot!

I would hate to include the extra food costs we have spent over the last 4 years as well, but lets cut them a break; they have had to work a few more hours this year because they couldn’t figure out how to balance their spending. Oh, I forgot again; they don’t use food data either to calculate inflation, so I’m sure they will have no idea of what I am talking about. None of us need to eat or drive I guess…

I’m not even complaining; this is what just happened to come out of my mouth when somebody told me an exponentially smoothing indicator was better. No, thanks! Sorry to get off on a tangent here but when I see somebody smooth out a high or low that was made, and dismiss it as if it never happened, I quickly know they do not live in reality and most certainly do not trade live money for a living.

Data smoothers beware when you enter the trading arena! Make sure you use these indicators as a guidance source not as something that is full-proof or factual.

Whatever you decide to try; you can’t expect to win, if you don’t have a plan in place.
Trade Strong!! Trade Smart!! and Always Have Enough to Trade Tomorrow!!

Click here to read the full article.

August 19th, 2011 @ 3:38 pm by Michael Radkay

Click here to read the full article.

BY MICHAEL RADKAY

On August 5th when I sent my last post, I spoke of the possibility of the U.S. Dollar being on the mend. In that article it was a “thought” and surprisingly the “thought” came to light on a pair that has been the so called safe-haven at the time – the Swiss Franc (CHF). Prior to the world dealing with the debt ceiling drama and the Fed’s announcement to keep rates at historic lows until mid-2013, the USDCHF was acting as it should (USD prices dropping and CHF prices rising). The currency pair has been acting in kind for quite some time now spanning back almost a decade. The Swiss Franc has been flexing its muscle over the greenback year in and year out.

In the moments just after the Fed’s message prices slammed 600 points that day. But in true fashion after big news that traders have been waiting for hits the wires, prices reacted initially as they should (USDCHF fell dramatically lower). However, after the shock was absorbed and a confirmed bottom was secured (seeing higher highs the next few days), the beaten down side of the market (USD) tends to reverse. The reason is that all of the bad news is now revealed and out in the open. Time for healing to begin so to speak. In the days following the news, prices reversed and started to do what I thought they might, which was for the USDCHF to climb. Since I already had a plan in place, I knew how to implement it precisely so when the opportunity hit , I acted without hesitation and took full advantage on August 11th and 12th. The point I truly want to make is not that these trades worked in my favor but the importance of having a plan.

1. A thought,
2. Knowing how to implement that thought precisely
3. Following through and executing that thought without hesitation
4. Reviewing your performance

Now I was fully prepared for a positive or negative outcome but in either event I would have been pleased with my performance because I had a thought; I had the tools and know how to implement the thought precisely; and I followed through by executing without hesitation.

Many students, business owner wannabees and entrepreneurs alike might know how to dream big and talk big, but do you have the fortitude to take the 3 most important steps following the big idea?

RDS Trader Alerts Archive August 12, 2011 (all times Pacific):
•(6:13:37 AM): good morning!! today’s reports and chart snapshot: http://www.rdsfx.com
•(6:15:53 AM): not much movement across the board…USDCHF on radar again (Bullish bias)…hasn’t pushed that far but minor support (1L pullback) 0.7687…counter resistance showing up session high to 0.7829 (4L range)
• (6:17:14 AM): buy order pending 0.7687usdchf
•(6:41:52 AM): consumer sentiment report in about 10 min.
•(6:53:45 AM): minor support forming EURUSD at session redline 1.4239 (weekly 1.4240)…don’t really like redline setups…USDCHF looks best so far
•(6:55:20 AM): USDCHF moving back in uptrend on 15min…any longs out there looking for session high to 0.7829
•(7:08:21 AM): prices sloshing around…slight downtrend now on USDCHF…careful any existing longs…I am waiting 7687 buy limit pending
•(7:10:04 AM): EURUSD trading thru 1.4240 mark…I’m going to watch that one …focus on USDCHF
•(7:34:52 AM): quiet Friday so far…
•(7:36:21 AM): USDCHF moving back in downtrend on 15min…support still expected 1st time back in window down to 0.7687
•(7:41:42 AM): long 4 at 0.7687 USDCHF
•(7:42:48 AM): that’s nice of them so far…
•(7:43:21 AM): going for a nice ride!!
•(7:44:13 AM): just took half off @ 0.7707 (+20 on each)…still running long 2 from 0.7687
•(7:47:25 AM): very nice!! still running long …looking for session 0.7764 high to possible 0.7829 -4L range target
•(7:51:45 AM): have a 0.7727 stop on remaining with 10 pip trailer to lock in +40 on remaining 2 long and will move it up if it keeps going
•(7:57:17 AM): glad I laid of EURUSD…hate redline trades…I will take the USDCHF :)flat now… +40 on each of last 2…+120 total on entire trade
•(7:58:32 AM): going to leave on a high note and call it a day. Have a great weekend everybody!!

Here is a snapshot of my open orders book on USDCHF long plays the day earlier on 08/11/11 as well…

Whatever you decide to try; you can’t expect to win, if you don’t have a plan in place
Trade Strong!! Trade Smart!! and Always Have Enough to Trade Tomorrow!!

Click here to read the full article.

August 5th, 2011 @ 3:50 pm by Michael Radkay

Click here to read the full article.

BY MICHAEL RADKAY

With the debt ceiling raised and more of the same out of Washington, what does that mean for the worth of U.S. Dollar in your pocket? Now I can get into a fundamental debate with you or give you the traditional democrat or republican response and express all the things I feel are right and wrong with the debt decision, but I feel there is too much talk. As people express their opinions, they always seem to get clouded with things that will eventually benefit the person delivering the opinion. We have heard politicians say what they believe and of course what they say, if implemented, will benefit their ideals. Debate is necessary in order to make a decision but the drama that the media fills our head with is enough to make it spin off. In the end media opinion doesn’t really make an impression on me, but what has always been important is when the decision makers finally make a decision.

I have been saying in past articles that I have never met an investor that gets involved in hopes of losing money, so recent price action is pretty revealing to help you with upcoming buy/sell decisions of your own based upon what you know . When price moves, somebody bought and somebody sold; a decision has been made!. Right or wrong becomes the only outcome when the game is on. What we get now is a big does of reality.

In trading there are two teams; bulls (buyers) and bears (sellers). Sports and competitions are divided in the same way. For that matter so is Washington with Democrats and Republicans. Step into a court room and there is a plaintiff and a defendant. Walk into a grammar school during recess and see the kids divided into two groups playing dodge-ball or kick-ball.

Life is a series of games; some are playful and some are serious. We all need something to do on this spinning rock so for the time being I am grateful that the supposed smartest people in the world (our U.S. government) came to their senses and didn’t screw-up (at least not totally yet) one of the greatest adult games on the planet; Our Economy! If we don’t have an economy, what would us grown-ups have to do? Maybe we could act in kind as it seems they have and decide who wins with a good game of dodge-ball with winner take all! I don’t mean to make this sound so trivial but I am actually a bit in awe as how immature our government on both sides played politics down to the wire. Nothing like a nice global adrenalin rush to get the party started! I realize they are in their position to make tough decisions that effect billions around the globe. Tough debate is necessary as both sides have a point, but with the world watching our US Government throw up a last minute desperation shot with seconds to spare, Come on!!

In the after-math the Bulls and the Bears that react and make decisions to buy or sell is much like pitting Jordan’s Bulls against Ditka’s Bears. Sounds like a SNL skit? Farley choking on a steak-bone having one of 5 heart-attacks and Jordan’s guest appearance dancing in a hula skirt. Ditka and the ‘Da Bears always seemed to win on that skit but I think players might be seeing a bright spot on the horizon for the Bulls to shine as the U.S. Dollar (USD) seems to be on a bit of a comeback post Debt Ceiling Drama. Higher deficits do not bode well for dollar strength but if spending and taxation get under control, a reversal may be in order and it may be what side-lined and battered USD Bulls have been waiting for. Since I personally can’t move the market myself, I have to rely on what we call the “Big Dogs” to help. The Big Dogs are governments, federal reserves, banks and hedge funds. They can move the markets and it is up to us as individuals to decide which team we want to join.

Now don’t take my word for it about a possible Bull USD run; take a look at how price was reacting leading up to the debt ceiling decision (July) and the couple of days since the decision was made (early August) – see chart. As an individual trader I have to step on the backs of the Big Dogs and go for the ride when I enter the market. I need them to move prices to where I desire. Who is winning becomes the real question. Timing is of course important and making a timely decision is equally important. The daily chart reveals before the debt ceiling decision that many currencies paired against the USD were strengthening. Leading up to August the AUD (Australian Dollar) was climbing vs. USD, the NZD (New Zealand Dollar) was climbing vs. USD, the EUR (Euro) was climbing vs. USD, the GBP (British Pound) was climbing vs. USD, the USD was falling against the JPY (Yen), the USD was falling against the CHF (Swiss) and the USD was falling against the CAD (Canadian). Sounds like Ditka and ‘Da USD Bears were routing Dollar Bulls. But take notice of the recent reversal post debt ceiling decision as we move into the first few days of August. Step back Norm as Jordan and ‘Da Bulls might have some life after all.

The reality is that the recent USD run is due in large part to the Swiss National Bank’s (SNB) rate cut and the Bank of Japan’s (BOJ) intervention to try and stunt strength to their respective currencies. The currencies that seems to not be tied as much to all of the carnage like the JPY and CHF are being sought as safe-haven plays. When comparing the two, it seems the CHF strength across the board signals the globe has been tagging it as supreme so far in 2011. There is always a ripple effect. The SNB acts, the US Government deals with debt and then the BOJ steps in with a move. Big Dogs act when Big Dogs act and we need to pay attention.

If the recent USD Bull Train comes up short and jobs data tumble in the coming months, investors will continue to seek the CHF and the JPY for safety. Now I’m not one for lengthy predictions and since a weatherman doesn’t forecast past a week, I always say, “Why should I?; so I will be adjusting on a weekly basis and riding the backs of the Big Dogs as the news and price shifts. If you do decide to jump on board the USD Bull Train, search for bottoms on your chart and as prices revisit those Big Dog stand-out lows, check your risk and make a decision!

Trade Strong, Trade Smart and Always Have Enough to Trade Tomorrow!!
Prosperity is at your fingertips! All you have to do is grab it!

Trading Commodity Futures and Foreign Currency (Forex) contracts may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your FCM. The material in this newsletter and on our website is intended for educational purposes only.

© 2011 RDS Trader, LLC. Have a specific topic you want to read an article on, email us your requests! info@rdstrader.com

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR ON YOUR WEBSITE? You can, as long as you do not alter the article in anyway and include a credit that reads: Financial Experts and Mentors Mike and Stephanie Radkay publish RDS Trader E-newsletter. If you are ready to ‘Take back your power, Invest with confidence and Protect your assets’ get your free tips now at www.rdstrader.com

Click here to read the full article.

July 22nd, 2011 @ 4:41 pm by Michael Radkay

Click here to read the full article.

BY MICHAEL RADKAY

It was May 12th 1999 and I was trading 30 Year Bonds at the time. Long the market with price running in my favor; things were looking great!! But all of a sudden the foundation on my long play started to buckle. Price began dropping dramatically! WTF!!!  The dollars I was up evaporated and now were running substantially negative. Instead of taking the loss I elbowed the guy next to me and asked “What’s Going On?” He didn’t know… WTF!!! In my hesitation and stubborn mind-set to admit my loss, it grew to a larger deficit because like everybody else we have this deep desire to know why we are wrong and do everything in our power to not admit it. Sound familiar? This is not what champions do! But every champion needs to learn this very lesson I learned 12 years ago. My hesitation angered me upon reflection that evening, because I didn’t need to know the reason why in the heat of the moment; price action told me something just happened. I’m sure if you were in the middle of the Iraqi desert and somebody started shooting at you, your first instinct wouldn’t be to ask your buddy, “Whats Going On?; your initial reaction would be to duck and hit the dirt to avoid getting hit. After watching and actively trading in the market, you build a sense of when something is up. Well in this case the Treasury Secretary of the time, Robert Rubin decided to resign that day. This created a negative effect on bond prices. Even if my neighbor knew the reason the mere fact of asking while in a position created the hesitation and the increased overall loss.

I learned from that day forward to stop elbowing my neighbor to find the reasons why.  I began to cover the bad idea when price action got volatile and turned negative and I began to breath and hang on to the trade if it went in my favor. I asked why later on both accounts. This approach is highly effective because price action always tells you the truth by watching it. It reveals where to buy and where to sell (lows and highs respectively). As price action revisits these areas just remember them and play accordingly favoring the side that is winning. You will also begin to notice when price tends to move at normal speeds (after economic reports are absorbed), fast speeds (during reports or significant world events) and slow speeds (lunch time or bedtime). Watch and remember.

Price never lies to me because I have never met an investor or trader that gets into a trade in hopes of losing money. If you don’t agree with what I just said, I’m sure you will tend to agree with me on this point after I explain it a bit further. When price moves up or down, somebody bought and somebody sold. Money is on the line and the only thing left is to be right or wrong. This is the purest moment as a trader as you are not an arm-chair quarterback anymore. As price moves the winners hang on and might even add more to the idea as their money builds and the losers cover the idea to minimize loss and, if they try again in the same direction they cant play as hard because their resources and nerves have taken a punch to the gut. The losers didn’t go in thinking they were going to lose but they eventually have no choice but to join forces with the winners as their accounts dwindle or margin calls come into play. The losers in reality add fuel to the winners fire! This helps me conclude that price cannot lie. It can get over inflated and you might not agree with it but just try and fight against opponents that have unlimited resources.

People and traders naturally gravitate towards a side, the winning side. Lets look to the U.S. Dollar as an example. It is no real news that it has been getting beat up. Lets compare it to the EURUSD (Euro/US Dollar). Since the EUR is first in the pairing and knowing that the news and the outlook to date have been bearish for the U.S. Dollar in-turn bullish for the Euro. Traders are betting that the US government will raise the debt ceiling and allow the U.S. to borrow and spend as usual in hopes of getting our economy on the right track. Whether you agree with it or not is not the point. If the debt ceiling is raised interest rates will remain low in the U.S., confirming the already in place weak U.S. Dollar trend against other currencies. Now of course if the government and congress fail to act we may begin defaulting on our debt which is something my eyes have never seen. It will be interesting but I don’t think it will be entertaining. Economists say that this can create a reverse effect and cause a spike in interest rates as investors will not be attracted to loan the U.S. money receiving such low rates especially if their is default risk. A dose of higher interest rates in a bad economy would not paint the best picture.

Now removing all of the political game playing and can’t trust a word she said/he said debate, lets concentrate on price as it removes the bias and tells the real story. When money is placed on the table and in play; long or short, there is no turning back. Since we can’t move prices ourselves to the desired spot for entry and exit, we need to jump on the backs and watch where the market movers (governments, banks, large financial institutions, hedge funds etc…) fight for control. As the dust settles and a direction is being established we adjust along the way according to the tops and bottoms that are being established. As the range is identified, I’m sure you all heard of the concept buy low and sell high or sell high and buy low; pick the side of the winners and wait for price action to revisit the last known extreme and jump on board. I have provided an example of the action on the EURUSD to illustrate how you can watch tops and bottoms develop. In this case it has been a better idea to go long the EURUSD based on what price has been doing since January 2011 (see EURUSD daily chart 2011). Now lets look at an intra-day 5 minute chart 07/21/11 and see if we cant identify some short term buy opportunities (see EURUSD intra-day 5 min chart).

Our definition of true happiness is actually trying all of the things in life that you say you wanted to try. The result doesn’t define happiness, but the act of trying does!  Whatever you decide to try; you can’t win, if you don’t play!! Prosperity is at your fingertips! All you have to do is grab it!!

Trading Commodity Futures and Foreign Currency (Forex) contracts may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your FCM. The material in this newsletter and on our website is intended for educational purposes only.

© 2011 RDS Trader, LLC.  Have a specific topic you want to read an article on, email us your requests! info@rdstrader.com

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR ON YOUR WEBSITE? You can, as long as you do not alter the article in anyway and include a credit that reads: Financial Experts and Mentors Mike and Stephanie Radkay publish RDS Trader E-newsletter. If you are ready to ‘Take back your power, Invest with confidence and Protect your assets’ get your free tips now at www.rdstrader.com

Click here to read the full article.

July 8th, 2011 @ 3:27 pm by Michael Radkay

Click here to read the full article.

BY MICHAEL RADKAY

Lets turn life’s lemons into lemonade; shall we?! Steph and I just got under-way to put in a 10 mile run on Saturday and 2 blocks from home I stepped off the curb and unknowingly sunk my foot in a hole and rolled my ankle. Finding myself flat on my face as my water bottle and hands skidded across the street my thought was;  “Down goes Frazier”. We thought we would spare you the actual photo of my foot but if you are a gapers block kind of person in need of the gory details, feel free… http://www.rdstrader.com/forex-futures-experts/anklesprain.php As a bonus if you dare, we also left a chart of the EURJPY on 070611 paralleling the bearish outcome for my foot on 070311. I am now calling it the “Sprained Ankle Pattern”!  http://www.rdstrader.com/forex-futures-experts/anklesprain.php Made some money on this trade!

My football day ankle sprains shot that memorable pain like a lightening bolt through my foot and inside my brain as I hobbled to the sidewalk. Even the most resilient consistent performers go through a bump in the road; well in my case a hole in the road leaving a nice colored purple foot and ankle.  It kind of reminded me of a chalk outline and my version of CSI-LA. Its been a long time since I had to alter my work-out schedule. Push-ups and sit-ups are back in style while my foot heals, but I have soon found myself back on the LA road-ways with walk-runs the last couple of days. You just cant keep me sitting still.

I bring this up because when you experience an obstacle a few key things happen to not only teach you a lesson but also help you get better at handling it the next time something slows you down. I knew just what to do from my football days with buckets of ice water and foot soaks and anti-inflammatory ointments to help the swelling. This knowledge has gotten me back on my feet and doing walk runs and if all goes well back to running again all within a week.

It is not much different as to how I learned to be flexible with the financial markets. The government about 10 years ago pulled the rug from under my feet. They stopped issuing 30 Year Bonds one day (the market I traded at the time). At that very moment I should have been able to shift to the next hot like-minded market of interest, which at the time would have been the 10 Year Note. Initially I didn’t budge as fear of change and fixing what I thought wasn’t broke held me in place. The inner chatter in my head kept talking me into staying; “Even if they stop issuing the Long Bond, they still have open interest going well out into my retirement years. Trade just wasn’t going to stop and I was doing great!

But I found later that the world wasn’t telling me to leave the 30 Years just then but it was actually telling me to begin preparing to trade other markets. Money and popularity of markets shifts constantly and flows to bonds or to stocks or to currencies or to gold or even to the crazy oil market. Well when I left the trading floor near the end of 2004 to trade 100% in an office on the computer I found the 30 Year Bonds only moving in tight 4 tick range. Learning how to move from market to market when I was getting the sign would have come in handy at this point. There was no movement in the 30 Years back then and as a trader you need price movement to gain opportunity. I’m not saying at the time that the 10 year note would have been a better choice as it wasn’t moving either, but just the mere sign that what the world was telling me earlier was to be prepared to move from market to market. Well now I had no choice; if I wanted to survive and thrive in this business it was time to be a true trader, which is one who can take their game to any market. I did the work and I did just that.

Well fast forward to present tense and in this case I was prepared on both accounts. Experience taught me to treat my ankle to ensure a speedy recovery just as trading other markets got me in on the right side of the “Sprained Ankle Pattern”. You will see by clicking on the link that the EURJPY  market fell hard and limped along with an appropriate retrace to short (sell) it. If you missed the first wave, price action gave you another chance to short just below the original ankle formation as prices toppled to new lows. In our book it was equivalent to a 5 rule trade anyway but the real story was the fact that these days I now trade markets that weren’t even close to being on my radar in my early days.  I didn’t even care what the <a href=”http://www.rdstrader.com/forex-futures-experts/anklesprain.php”>EURJPY</a> was doing back then. Yeah, I knew it existed and I watched currencies from time to time to help my bond trading decisions but trading something other than 30 Years was not in my vocabulary. Well, now it pays dividends to be able to use the computer and the internet for what it was designed to do, which is to help you shop the best market of the time (one that is moving) with ease and seize the opportunity. Remember that pain is temporary but learning from it and acting the next time with experience will pay life long dividends!

Whatever you decide to try; you can’t win, if you don’t play!! Prosperity is at your fingertips! All you have to do is grab it!!

Trading Commodity Futures and Foreign Currency (Forex) contracts may not be suitable for all investors. You may lose a substantial amount of money in a very short period of time. The amount you may lose is potentially unlimited and can exceed the amount you originally deposit with your FCM. The material on this website is intended for educational purposes only.

© 2011 RDS Trader, LLC.  Have a specific topic you want to read an article on, email us your requests! info@rdstrader.com

WANT TO USE THIS ARTICLE IN YOUR E-ZINE OR ON YOUR WEBSITE? You can, as long as you do not alter the article in anyway and include a credit that reads: Financial Experts and Mentors Mike and Stephanie Radkay publish RDS Trader E-newsletter. If you are ready to ‘Take back your power, Invest with confidence and Protect your assets’ get your free tips now at www.rdstrader.com

Click here to read the full article.
  • Page 1 of 2
  • 1
  • 2
  • >

Our Global Forex Community

Follow us on Twitter! Join us on Facebook! Watch us on YouTube! Stumble Us!

Advertising

Next Free Forex Webinar

Free Market Commentaries

Advertising

Blog Archive

Forex Links

Educational Partners

The Geek Knows
AgriMoney.com
Traders' Magazine

Finance Blogs Blogarama - The Blog Directory