2. Because Forex is so liquid and leveraged, those who succeed are the smartest, richest and most well informed people on the planet, aka George Soros and his friends. You simply do not have the intelligence, wealth or access to quality information and analysis that they do so why try to compete against them? As evidenced by the recent fraud case against SpongeTech and PennyStockChaser, those promoters and management have the intelligence level of Forrest Gump. I can make a thousand analogies explaining why it’s SO much easier to trade against these morons, but after you try out my free video lessons and begin to see it all yourself, you won’t need me to teach you anymore, you’ll be self-sufficient which is my entire goal!

3. Forex prices move very quickly and the reaction to breaking news happens within seconds and minutes. Because penny stock manipulation takes time to plan and enact and the people trading the stocks are practically illiterate, it takes hours and days for price to fulfill their predictable patterns giving you plenty of time to prepare and participate in each trade. The best analogy is penny stocks are like Little League whereas Forex is the Major Leagues. When you’re coming up to bat would you like a 100mph fastball or a floater thrown by a nine-year old?

4. Penny stocks are simpler. While forex prices gyrate wildly due to rumors, news and those anticipating the rumors and news, volatile penny stock chart patterns are truly straight up and then straight down with very little variation. That is the beauty of trading pump and dumps, the chart patterns are like pendulums and you just need to learn how to buy on the way up and short sell on the way down. Or choose one side and specialize in that.

5. Penny stocks have greater odds of success. Sure, sure, it’s far less money and you don’t get the gambling thrill you do with Forex since down here in the gutter it’s more like taking candy from babies (or those who are have the intelligence of babies), but we are winning approximately 75% of the time.

I’ve put together an in-depth (and free) video lesson series that will teach you everything I know about Pennystocks. Rather than just hearing me talk about my strategy and my thoughts, signup to my free video lesson series so you can learn from the specific trades and patterns themselves.

Tim Sykes
Click here to learn more!

Today I am alerting you to a potential trade that is currently forming in the Eur/Jpy. Let’s take a look at a chart to see what I am talking about:

This is a daily chart of the Eur/Jpy and as you can see from the yellow lines the pair has been stuck in a inside candle patter for most of the month of may. Now the thing about these patterns in that the longer the price action is inside of a candle the larger the move is when it finally breaks out. And considering the fact that this pattern has been in effect for 14 days now. It’s safe to say that when this thing breaks its going to move hard.

There no way to tell when this breakout is going to occur. It could occur today, tomorrow, or two weeks from now but when it does its going to be an amazing opportunity for profit.

Just remember not to take a trade until after the breakout occurs and then trade in the direction of the break. If this trade takes a long time to develop don’t get frustrated just continue your trading as usual and remember to check on it after the close of each daily candle to see if price has closed outside of the yellow lines. Also remember the longer price stays in the pattern the larger the breakout and more potential pips for you.

And if you have any doubt about this technique then look at the chart below:

This is the same exact chart but with the previous inside candle as the focus. Look at how price moved down after the breakout. Price moved down for nearly 1000 pips before there was a pull back.

Now its too late for you to profit on this trade, but I have showed you what you need to do to profit on the next. All you have to do is act. Until next time.

Happy Trading…

If you would like to learn about more patterns like these and how you can discover how you can learn the secrets to trading for a living then visit BeatWallStreetNow.com.

2) Develop a good strategy. Have all your rules set in writing so you don’t even have to think about whether or not to take the trade when you see an opportunity.

3) Find a good broker. Use a broker that’s always available, has good fill times, and it well respected in the industry. Talk to friends and read reviews online to find the best one for you.

4) Only use money you can afford to lose. Remember that you’re not always going to win, in fact, especially when you’re starting out, you’ll probably lose a lot, so only trade with what you can afford to lose. This will also help you make better, rational decisions.

I mean let’s be honest here no one is perfect and even though as people we like to strive for perfection in an attempt to keep our fragile egos intact even the best of us fail. You just have to accept the fact that in this business you are going to be wrong sometimes.

Let’s look at baseball. The best hitters in the game have batting averages of around .300. Do you know what that means? That means that they only get on base 30% of the time that means that they fail 70% of the time. And I don’t know but the last time I checked Derek Jeter wasn’t sitting somewhere beating himself up every time he strikes out.

Now I know what you’re probably going to say” but that’s baseball everyone knows you’re not going to get on base the majority of time” And that is my point exactly. You see baseball players have accepted the fact that they aren’t going to hit a homerun or even get on base every time the step up to the plate. They know that sometimes things just don’t go your way and that it would ridiculous for them to expect to be perfect. They have accepted failure as part of the game.

They can do this because they know that they will have another chance and they have removed all unreasonable expectations from themselves. This frees them up to just concentrate on just hitting the ball.

Imagine what the great Hank Aaron’s career batting average would look like if every time he was at bat he kept thinking about the last time he struck out. It would be horrible.

So when you take a loss just accept it as a normal part of doing business and keep it moving. Don’t ever bring the emotional baggage of a previous loss with you on the next trade because I guarantee you it only going to lead to another loss. And before you know it you’ll be sitting in front of your computer looking at an empty trading account. And trust me that’s not a good feeling.

If you would like to learn about more patterns like these and how you can discover how you can learn the secrets to trading for a living then visit BeatWallStreetNow.com.

An inside candle occurs when the body of a candle is  contained entirely within the price action of the previous candle.

Candle Breakout

The third candle from the left is the candle that is containing the four candles following it. The arrow pointing to the fifth candle shows where a breakout occurred as price was able to close outside of the containing candle. A long trade entered here would have been very profitable. Notice also the pink lines at the highs and low of certain candles. Also, notice how whenever a candle closes outside of one of these lines price continues to move in that direction.

So, the rule for trading inside candle breakouts is to open a trade in the direction of the break. If the breakout is at the low you sell, if it’s at the high you buy it’s that simple

Now Lets Look At Some Charts To See How Well This Pattern Works
Here is a chart of the frozen concentrated orange juice futures contract:

The yellow lines represent the highs and lows of the containing candle and the yellow arrows show where the breakouts occurred. The first breakout gave a small gain but look at the second and how the market moved down hard. Imagine all that cash being deposited straight into your account.

The best part about this technique is that it works for all markets including:
Stocks, Forex, Commodities, and Futures.

So take this technique and use it to master the markets and start your journey towards financial independence.

If you would like to learn about more patterns like these and how you can discover how you can learn the secrets to trading for a living then visit BeatWallStreetNow.com.

Dollar Versus Yuan

Got it? OK, good, since it’s the basis of a quick discussion.

If you’re not an avid watcher of exchange rates and think the United States’ complaint about China’s manipulation of the yuan/dollar exchange is just sour grapes, check out the nearby chart – there can be no doubt. Since mid-2008, the exchange rate has barely wavered from $6.80/1.0 yuan. Point being, the accusation is a valid one.

You may have also heard China agreed to let the yuan fully value rather than leave it adjusted at lopsided exchange rates. I hope you didn’t believe it though. China has little to gain from doing so, but lots to lose if the country does so. For that reason, I don’t begrudge their decision to leave it as is, and simply pay lip-service to President Obama’s request …. even if mere politeness.

The impact this has on you is a pretty simple one – China’s still going to be a net exporter compared to the United States. American companies relying on exports to China will find little relief, while Chinese companies will continue to find American customers.

Unfortunately, there is no ‘cure’ for the yuan/dollar problem other than good old-fashioned reinflation of the sawbuck’s value. As the dollar gets stronger, so too will the yuan, which means its other trade partners besides the U.S. will also have a hard time affording Chinese goods. Though the U.S. is China’s “whale”, the country can’t afford to outprice itself to the rest of its customers.

In any case, that’s a quick snapshot of what’s going on, and a little evidence that China’s not yet done what they said they’d do. And, they probably won’t. (I wouldn’t either.)

From Money Blue Book:
ETrade Online Broker: Discount Brokerage Account Review

From ETF DataBase:
The Definitive Oil ETF Guide: Crude Oil ETFs 101

From Pasadena Financial Planner:
Investment Asset Allocation

From Investing With Options:
GOOG Earnings Trade Analysis

From Elliott Wave Trade Analysis:
Danaher Corporation (DHR)

From Exploring the Political Spectrum:
The Dollar: How Weak Is Too Weak?

From ASX newbie:
10 Golden Rules for Making Regular Profits Trading Stocks

From Stock Trading Ideas:
Stock Trade Update: Short Goldman Sachs (GS)

Then get further analysis on GS, GOOG, and DHR.