L.R. Thomas - How to Catch the Huge Market Moves: How to Predict and Enter the Big Market Moves in Forex,Commodities and the Indices.

How to Catch Huge Market Moves

by LR Thomas

http://10xroitradingsystem.com

http://10xroitradingsystem.com/the-ebooks

All Rights Reserved. No part of this publication may be reproduced in any form or by any means, including scanning, photocopying, or otherwise without prior written permission of the copyright holder. Copyright LR Thomas 2014

Other Books Written by L.R. Thomas

Market Rhythms

The 10XROI Trading System

The Trade Around Your Job System

The High ROI Scalping System

The High ROI Trading End of Day System

Pyramid Your Trades to Profits

Control Your Inner Trader

Overcome Your Fear in Trading

How to Stop Over-Trading

Table of Contents

Why You Should Go For the Huge Moves

If you do any sort of research about trading, the consensus seems to be that a lot of the professional traders follow the 80/20 rule when it come to their profitable trades. That is, most of their trades are either losers or small to medium sized winners and it is the big monster trades that make up for them and add the necessary profits.

This book is all about how to focus on and spend your time catching the big moves in the forex market or indeed any other suitable market. If you liken it to fishing, no longer will you spend your time with your net cast wide taking every sprat or mackerel. No, you are going after the big kahuna of fish, the swordfish or Alaska salmon.

Fishy analogies aside, the message is that you get what you focus on. If you are focusing on catching every little move the market makes then you will get those type of results, small uncertain rewards with no big paydays to make up for the losses.

However if you only focus on getting the big rewards, you will still have losses but you will know that you will be perfectly placed to take advantage of the big moves when they come.

In order to understand the examples presented throughout this book you need to have a basic understanding of technical analysis, however the techniques are very simple and easy to understand as they are based on using multiple time frames combined with chart patterns and support and resistance.

Why Should You Listen to Me

Well the truth is you should only listen to me if your inner voice confirms what I am saying. There are a lot of mixed messages in the trading arena and it is easy to become confused and hop from system to system. I know whereof I speak because I have been trading now for nine years and have taken hundreds of courses.

In the end however I had to listen to what common sense was telling me.

What makes the most sense? fighting it out every day for a few points here and there and missing the big moves because I was unable to focus enough to catch it in time? Or putting everything else aside and deciding to only spend my time on catching trades that offered the best opportunities to profit in the market.

The answer was obvious to me and if that message resonates with you then this may be the most important trading book you ever read and I don't say that lightly!

In this day and age of hundreds of thousands of sources of information all fighting for our attention it is easy to get distracted. However in trading if you want to succeed you have to pick a trading methodology that suits you and makes sense from a mathematical stand point.

As you read though this book I leave it up to you to decide if what I am saying makes sense, and if it does then make the decision to focus only on catching moves that are worth it in order to fulfil your dream of making it as a profitable trader.

Using Compounding and Pyramiding with Huge Moves for Quantum Growth

Another reason that is important to go for the big moves, is that in order to really build your account you may want to use a compounding type of money management and/or pyramiding techniques to multiply your profits. (Details of these techniques can be found in my other books in the resource section)

In order to use pyramiding in your trading you need nice long runs so you can have space between your trades to build up your profits and reduce your risk before you add to the trade.

Likewise if you are using advanced money management techniques you get the most bang for your buck if you have a very high ROI,(Return on Investment). Naturally you want to combine these factors with as high a win rate as possible.

Now while you can't ensure a high win rate there is one factor which helps a lot and that is trade momentum. If you are taking a trade and you are using the hourly chart for entry but you have the momentum of the higher time frames behind you, then it is a lot more likely that your trade will actually move to its take profit.

If you can combine the momentum with using trading techniques that allow you to really narrow down your stop loss area to find the highest probability, lowest risk entries then that really is as good as it gets in trading, that is the real trading holy grail!

These techniques can be used in any market but they are best used in my opinion in a 24 hour market, such as Forex, Gold, Indices etc. The reason is that you don't want to endure big gaps in your trading, particularly when you are using high leverage.

It is also important to note that the term big move is different depending on what time frame you are focusing your trading on.

A position trader will call a big move 5000 points or more, an end of day trader anything from 500 to 1000 points, a swing trader 200 to 500 points and a day trader 70 to 200 points. I am going to show you how to look for these type of moves so this book is applicable whatever time frame you trade.

So what is this book about? This book will show you how to predict and enter the big moves. My examples are from the Forex and Gold markets, however you can apply these techniques to any market that offers clean technical patterns.

The key message of this book however is that you need to abandon the type of trading where you wait for trades every day as if you were waiting for a bus and instead you take a view that you are going to stalk trades as if you were a big game hunter. You turn into a strategic trader where your entire focus is on finding the highest reward trades.

The reason this is important because you simply can't do it all in trading. In order to be successful at some point you are going to have to make a choice. If you are not cut out to be a scalper who enters and exits the market multiple times during the day, (and most people arent) then this book is applicable to you. So lets get on with some trade examples so you can see exactly what I mean.

Example One ...EUR/CAD Trade Multiple Entries

In the image above you see a monthly breakout on the EUR/CAD pair. This move took place between January and May 2010. The break is a combination between a monthly trend line break and break of monthly support. The greyed out area is the area that will have a huge amount of momentum due to the breakout. The reason is that the higher the time frame you go the bigger and stronger the move. So how do you capture this momentum?

The answer is to use the lower time frames to find safe points of entry. See the next charts.

In the chart above the greyed area shows where we would be looking for short entries.

This is a daily chart on the Eur/Cad. We are dropping down to the daily chart to look for patterns and areas of support or resistance to help narrow down some safe areas to enter.