How do I master technical analysis

axioms of technical analysis - Nils Gajowiy

N I L S G A J O W I Y

TRAD AND INVEST

MY LITTLE MONEY SCHOOL FOR THE SYSTEMATIC PRIVATE

WEALTH BUILDING

NilsGajowiy

05.09.2012


30.03.2011

CONTENT

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Introduction ................................................. .................................................. .................................................. .. 6

About this book ............................................... .................................................. ........................................... 6

First of all: five questions - find your answers! .................................................. .................................... 7

1. Why all this? Set yourself a goal! ............................................ ........................................... 7

2. Do you think like an entrepreneur? .................................................. ................................................. 9

3. Do you invest enough time? .................................................. ............................................ 9

4. Are you investing in your technical and social infrastructure? .................................................. .... 10

5. Do you have enough money? .................................................. .................................................. ...... 11

Part 1: Markets, opponents, weapons .......................................... .................................................. ....................... 13

Raw materials ................................................. .................................................. ................................................ 13

Currencies ................................................. .................................................. ............................................ 13

Bonds ................................................. .................................................. ................................................. 13

Shares ................................................. .................................................. .................................................. ... 14

Indices ................................................. .................................................. .................................................. .. 14

Different trading instruments ................................................ .................................................. ..... 15

The physical base value ............................................... .................................................. ......................... 15

Futures ................................................. .................................................. .................................................. 16

Options ................................................. .................................................. ................................................ 16

Exchange rate difference contracts (CFDs) .............................................. .................................................. ............... 16

Fund ................................................. .................................................. .................................................. .... 17

Certificates, warrants ............................................... .................................................. ..................... 17

Market participants ................................................. .................................................. ....................................... 18

Investors ................................................. .................................................. .............................................. 18

Hedger ................................................. .................................................. .................................................. 18

Arbitrageurs ................................................. .................................................. .......................................... 18

Speculators ................................................. .................................................. ........................................... 19

Broker ................................................. .................................................. .................................................. ...... 19

Deposit insurance and financial stability .............................................. ............................... 19

Markets offered ................................................ .................................................. ........................... 19

Software ................................................. .................................................. .............................................. 19

Service ................................................. .................................................. .................................................. 20th

Initial and continuing education.............................................. .................................................. ........................... 20

Fees ................................................. .................................................. ............................................ 20

Data costs ................................................. .................................................. ....................................... 20

Data quality ................................................. .................................................. ..................................... 20


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Charting tools ............................................... .................................................. ......................................... 20

The equipment ................................................ .................................................. ........................................... 20

Data line ................................................. .................................................. .......................................... 21

Computer ................................................. .................................................. ............................................... 21

Telephone ................................................. .................................................. .................................................. 21

Back office ................................................. .................................................. ............................................... 21

Exercise 1: Orientation .............................................. .................................................. ................................. 21

Part 2: Capital, money, risk - and assets ....................................... .................................................. .... 23

When can you make a living from trading? .................................................. .............................................. 23

How do you get prosperous in the markets? .................................................. ................................ 23

How much will I get as learningthe to lose? .................................................. .......................................... 23

Do I have to be a full-time trathe become? .................................................. .................................................. ...... 23

Part 3: The principles of successful investments ........................................... .............................................. 25

To take responsibility ................................................ .................................................. ................. 25

Manage risks ................................................ .................................................. .................................... 25

Differentiate between price and value .............................................. .................................................. ................. 25

Accept uncertainty ................................................ .................................................. ....................... 25

Mastering the "three Ms of trading success" ........................................ .................................................. 26

Part 4: Risk and Money Management ........................................... .................................................. ........ 27

Different types of risk .............................................. .................................................. ............... 27

Risk management ................................................. .................................................. ............................... 28

Money management ............................................... .................................................. ............................... 28

Who needs that .................................................. .................................................. ................................. 29

Part 5: Risk and money management for investors ....................................... .................................... 30

First question: How much money do you speculate with? .................................................. .............................. 31

Exercise ................................................. .................................................. .................................................. ... 32

Spreading risk - pros and cons ............................................ .................................................. ............... 32

Diversify properly ................................................ .................................................. ............................ 33

The concept of available risk ............................................. .................................................. ...... 34

Portfolio construction with the concept of available risk ......................................... ....................... 35

Exercise ................................................. .................................................. .................................................. ... 36

Asset accumulation as a process ............................................... .................................................. ................ 38

Risk management of profit positions ............................................... ............................................. 39

Pyramidization: the step-by-step creation of positions ........................................... .......................... 40

Limits of pyramidisene ............................................... .................................................. .................. 43

Closing out profit positions .............................................. .................................................. .. 45

Part 6: Risk Management for Trathe ....................................................................................................... 47

The trading account as part of the market capital ............................................ ........................................... 47


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Where does the fear come from? .................................................. .................................................. .................... 48

Risk diversification or similarthe Focus? .................................................. .................................................. .... 48

Specialthee Risks of day trading .............................................. .................................................. ......... 49

The two percent rule of risk management ........................................ ........................................ 50

The risk-reward ratio ............................................ .................................................. .................. 50

Position sizing ................................................. .................................................. ................ 51

Money management: the six percent rule ........................................ ............................................ 51

Part 7: Technical questions of risk and money management ...................................... ....................... 51

Stop Techniques - Basics ............................................. .................................................. ........... 51

The initial stop to limit losses ............................................. .................................................. .. 52

The ATR stop .............................................. .................................................. ........................................ 52

The stop under the last correction ................................................ ........................................... 52

The stop under the Trend line othe a moving average ................................. 53

The percentage stop ............................................... .................................................. ........................ 53

The Darvas stop .............................................. .................................................. ................................... 53

Following stops (stop trailing) ......................................... .................................................. .. 54

The break-even stop ............................................ .................................................. ............................ 54

The profit protection stop .............................................. .................................................. ............ 54

The profit-taking stop .............................................. .................................................. ............. 54

The ten commandments of risk management ............................................. .................................................. ... 55

Part 8: Technical Analysis: The Geometry the Mass Psychology ................................................. ....... 56

Fundamentals othe technical analysis? ............................................... ................................................. 56

Axioms the Technical analysis ................................................ .................................................. .... 57

What is moving the markets? .................................................. .................................................. ...................... 57

Why technical analysis works .............................................. ................................................. 57

The axioms the Technical analysis ................................................ .................................................. ... 58

The use the three axioms ................................................ .................................................. .................. 59

criticism the Technical analysis ................................................ .................................................. ............. 60

Historical development ................................................ .................................................. ........................ 60

Individual psychology and technical analysis .............................................. ....................................... 62

Part 9: basic knowledge the Technical analysis ................................................ ........................................... 63

Charting ................................................. .................................................. ................................................. 63

The line chart ................................................ .................................................. ...................................... 63

The bar chart ................................................ .................................................. ..................................... 64

The candle chart ................................................ .................................................. ..................................... 64

The point-and-figure chart .......................................... .................................................. ........................ 65

The Heikin-Ashi-Chart ............................................ .................................................. ............................... 66

Other types of charts .............................................. .................................................. ........................ 67


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Candle formations ................................................. .................................................. ............................... 68

1. One-candle formations ........................................... .................................................. ................... 68

2. Two-candle formations ........................................... .................................................. ................. 69

3. Three-candle formations ........................................... .................................................. ................. 71

Medium and long-term formations ............................................. .................................................. ...... 72

Trends and trendanalysis ............................................................................................................................ 74

The psychology of a trend .............................................. .................................................. .................. 76

Correction othe Repentance? .................................................. .................................................. ..................... 77

Corrections etc.the Reverse at Fibonacci retracements ............................................. ....................... 79

Indicators ................................................. .................................................. ................................................ 82

The moving average ............................................... .................................................. .................... 82

The Commodity Change Index (CCI) ........................................... .................................................. ......... 83

The stochastics ................................................ .................................................. ......................................... 84

The momentum ................................................ .................................................. ...................................... 85

The Parabolic Stop-and-Reverse (SAR) ........................................ .................................................. ........ 86

The Directional Movement System .............................................. .................................................. ......... 87

The Moving Average Convergence Divergence (MACD) .......................................... ............................. 89

The force index .............................................. .................................................. ....................................... 90

The Average True Range .............................................. .................................................. .......................... 91

Systematic differences between indicators .............................................. ................................. 92

Part 10: Analysis practice .............................................. .................................................. .................................. 93

The concept of value and price ............................................ .................................................. .............. 93

The triple screen method ............................................ .................................................. ....................... 94

Trade orientation: trend, movement, etc.the Correction? .................................................. .................... 94

Trading with the help of pivot points .......................................... .................................................. ... 96

Use synergies - combine analytical instruments sensibly ............................................ ............... 97

No secret: my indicators ............................................. .................................................. ........ 99

References ................................................. .................................................. .................................... 102


INTRODUCTION

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Would you like to take your financial affairs into your own hands? Whether you do it now

Trading or similarthe Calling investing - it doesn't matter at first. Important is,

that you get involved in this craft of the Pike on to learn

and throwing many clichés overboard.

An investor friend in Australia likes to tell the story of one

Visit to the dentist. As he leaned back on the dental chair

asked the Stomatologist after his stock deals. How did he get the last one

Price increase in BHP experienced. "Made some money," grumbled the Patient.

And how was he doing with WOW? "Made a little money," muttered the

Trathe. "How come you make money trading and me

not? "-" Probably for the same reason that I never do much

Could make money as a dentist. "

The majority of all trathe and investors will always lose - they deliver

the money for the few winners. If you want to belong to the latter,

you should take trading seriously. Learn how to make a craft

learned othe studied a subject. Gain experience like it one

Violinist, a master craftsman or similarthe a motorist does. Stay in

Training - like a Bundesliga soccer player, a highly qualified specialist, etc.the

an interpreter.

This book can help you find your way through the jungle the

Find financial markets. It can be a compass - nothing more. You need to

go the way yourself, even the outwardtheget nits out of the way and yourself

determine the goal that should stand at the end of this path. The way is long,

Thorny, leads over mountains and through deep valleys. Whenever you think

you have arrived, a new section opens up around a bend.

Trading and investing is a lifelong journey - no running,

Arrive and "Now I've done it."

But the Way is worth walking.

ABOUT THIS BOOK

In this brochure I summarize my current knowledge and

Level of experience about trading.

It's a systematic review of what I've done over the past nine

Learned about the financial markets for years. Then there is the feedback

several thousand seminar and webinar participants. Eventually flow

materials the Membersthe of the Inner Circle, a group of dedicated trathe,

which have been in the protected area of ​​my website www.gajowiy.com since May 2011

regular market with meanalysisn, coaching and live trading. over

unitythet trades are documented there, dozens of presentations,

Webinar recordings, lecture scripts stored.

The book is structured the way I attend an evening course the

Community College would introduce. Leithe are there such events in

Not Germany, so I wrote "Die kleine Geldschule" myself

have to.


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All tax issues are expressly excluded - on this one

Area i am wethe still empowered to make any statements

to meet. In addition, I limit myself to the primary ones only

Financial markets (stock exchanges, forex markets), but not exotic ones

Investments such as ship orthe Media funds, alternative investments such as

Real estate or similarthe ecological energy production.

Where I am not an expert myself, you will find references to competent ones

Colleagues, literature, resources on the Internet. The bibliography offers

further sources for self-study.

Wethe This book can be exhaustive in breadth and depth to the financial markets

illuminate, nor do I claim that everything I write here is the test

the Eternity exists. I've had the financial markets for almost ten years now

study and learn new things every day.

In this respect, please allow me to be a little smarter tomorrow than I am today. I

will revise and update the book regularly and the readers

of this book will benefit from these updates for free.

IN ADVANCE: FIVE QUESTIONS - FIND YOURS

REPLY!

The reasons why people discover trading for themselves are

differently. It often begins with a vague dissatisfaction. It lacks at

Money. It sucks the Boss. The job is frustrating. At the Search for the way

out of this dissatisfaction the Then interested in that

Promises the Trading industry: three-digit returns, minimal

Time investment, maximum freedom and endless fun. In principle everything will

promised what is missing in the present life.

Beginners are almost always attracted by the fast, large and, above all, easy

earned money. If that doesn't happen, frustration ensues. A mintheis from

prospective trathen makes it up to the Realization: Trading is hard work.

At this point, many trathe off - because I just wanted to work

actually avoid them: "When it's work, I can continue to mean

Do a job - at least I know what I can do and what comes around. "

1. WHY ALL THAT? PLACE YOURSELF

AIM!

So it's obviously not enough just to chase the money. Put

You ask the question: What do I need the money for? What do I want with that

to begin? Imagine at the end of a trading seminar

get a check from the speaker. five

Millions of euros just for you. What would you do with the money? Nice

get closer to your actual motivation.

- You would like to travel extensively to distant countriesthe Companies?

- Do you want to buy a fast motorcycle?

- Do you want to buy a big house?

- Would you like to put something aside for your retirement?

- You would like - what actually?


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Imagine the daily routine when your account balance suddenly reaches eight digits

would. Would you gobble up a spoonful of caviar for breakfast and take it with you

Rinse champagne? Othe you would rather be the Type, the more muesli

and yoghurt, preferred with the morning newspaper and a cup of coffee? And

what if you had all your material wishes fulfilled? How many cars

Houses and trips are allowed before you realize: You can only walk on one

Sit chair. Othe as it goes in a classic film: “Behind how many

Can you actually water-ski yachts? "Money doesn't make you happy -

even if no money can make you unhappy.

This idea may seem aloof to the beginner. "Leave me alone for now

Earn money, then I'll know what to do with it. one

after thatthen. “Fallacy.

Because the Way to the first million (if it is earned through trading

should be) is long and rocky, a crystal clear motivation is necessary. you

must be able to see yourself at the goal of your wishes - and this picture must be you

drive.

Michael Schumacher started driving at the age of six. As

In his youth he trained when his peers around the houses

pulled. As an adult, he has his trailer right next to it the

Training route set up to save time. He didn't do it because he

it had to, sonthen because he wanted to. Because something drove him inside.

Warren Buffett made his first dollars when he was six. At eleven

he had the clear goal: "At 35 I am a millionaire." All his life

he has subordinated this great idea - and achieved his goal. The

Focusing on his goal has brought him to where he is today - on

place 3 the Forbes list the richest people the World.

Effort precedes success, and that is what trading is all about

above average. You have to go against social

Rebel conditions. You have to think like a business owner and

act. You have to pay for your education - with your own money.

You need time and patience.

Years pass before profitable trading is achieved. I personally have after three

Completed my first profitable year in years. Atthee only need one

Othe two years, but most of them never make it.

If an apprenticeship as a baker, car mechanic or similarthe Insurance salesman

already takes three years - why should it be the Training to become a trathe

be less? Otherwise we would havethe Auto mechanic, still a baker, still

Office clerks. We would not have lawyers or similarthe Surgeons When Trading

could be learned quickly.

You will always like on the way to the destinationthe Feel the urge to hit the shotgun

to throw in the grain. You will find dozens of ways how to use your

Earn money more easily. Friends will talk you out of trading.

The message is clear: the path to a successful trathe is a marathon

not a walk. Only those who know the goal know which way to go

has running.


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Set a goal that is SMART. SMART stands for specific,

executable, measurable, realistic, timed. “I reach 30% annually

Return "is a positive, realistic, time-limited, demanding one

Aim. “I want to live from trading”, on the other hand, is vague wishful thinking.

W E R N I C H T W E I ß, W O E R H I N W I L L, M U S S S I C H N I C H T

W U N D E R N, W O E R A N K O M M T.

2. DO YOU THINK LIKE AN ENTREPRENEUR?

Many trathe do not understand that trading is not a hobby, it isthen a

entrepreneurial activity. There is a clear intention to make a profit

behind. Entrepreneurship is an outsider job in Germany. who

Setting up your own company to earn money reaps quickly

Comments like “Didn't find a job? Haven't you studied

You could do something decent, couldn't you? ”Who is in his

Entrepreneurship not onthee, sonthen relies only on himself,

take responsibility. But that is something that the Germans have been doing

is consistently weaned for at least 40 years. To health

takes care the Health Minister and the health insurance fund to the pension

the pension fund to the job the Works council and the

Unemployment insurance. Many Germans let the system go the social

Lull all-round care, enjoy the infantilization and

Incapacitation. This unconscious social conditioning leads

to that everthe, the atthes thinks and acts, is quickly stigmatized.

Trading means: I am responsible for myself, for every profit, for everyone

Loss. I decide when to get in and out, when not to trade

make. I know I have to invest in my trading - above all

Energy, time, money. I know that I violate social norms

must to win. I supposetheen their money away. Do you want that?

Can you live with that?

Finally: Trathe face tough competition. 90 percent the

Trathe pay in - 10 percent the Trathe live from the losses the

attheen. Can you live the rest of your life in this tough one

To face competition? When you take the leap to profitability

it doesn't get any easier. Who once the top the Bundesliga-

Table in football, the Tennis orthe Formula 1 world rankings

therefore no subscription to success. He has to work harder than

everyone who chases him.

3. DO YOU INVEST ENOUGH TIME?

Trading doesn't have to be a full-time job. Sure it is possible to like all day

Staring mesmerized at a screen. But honestly: is that your goal?

The dream of the Freedom - does he look like this? The courses don't move

Point faster because you are sitting in front of the computer and the DAX® at the

Rise othe Watching the fall. The market also exists without you having to do anything.

Your life so far has followed certain paths: work, family, friends,

Hobbies, social obligations. You should continue to do all of this in the future

care for. See the 168 hours that everthe Person per week


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Has available, the time window that you regularly occupy with trading

want. Build trading into your daily routine at a specific point

a. It has to become a habit like brushing your teeth every day.

The reason for this is simple: explore tradingthet constant training

and practice. Anyone who uses a musical instrument, a sport, etc.the a foreign language

learned, understood it long ago: Continuous preoccupation with the matter

(even if it is only 10 minutes a day) lead to the goal more than sporadic ones

Knock-out actions. Muscles need to grow, that's what they need

regular exercise. Neural pathways in the brain also only grow

through the permanent separationthesetting with one thing.

Trading is for the most part routine, by howtheobtained

Self-confidence. Are you ready to take the time to learn this routine too

invest?

4. INVEST IN YOUR TECHNICAL AND

SOCIAL INFRASTRUCTURE?

Trading is also so tempting because investing in it

Commercial appearing quite manageable. A computer with internet access

I call many their own and so is the most important utensil for success

Trading apparently already exists. Business registration, customer acquisition,

Payroll accounting, order management, unpaid invoices? All these

Has a headache the “Entrepreneur Trathe" Not.

Indeed you should thetechnical Infrastructure a certain amount of attention

give. Computers and internet access are compulsory. A ready to hand

Charged cell phone for the emergency call to the broker, if internet and electricity

failing is a must. This includes backups of all important data. you

want to invest several hours in trading every day? Then would be a

Separate study important, plus at least two good monitors

Quality, an ergonomic office chair, a functional shelf.

But what many trathe Completely underestimate: Trading needs a social one

Infrastructure. Business is lonely and often frustrating. Trathe

therefore need an exchange of ideas with an othe several

Like-minded people. Finding it can take a year or so without any problemsthe longer in

Claim. Trathe one does not meet in the urban

Shopping boulevard, they are a shy species, you have to look for them. Also

There are very few honest tra on the internetthe. Then you have a handful

real trathe found, must also be among them thebe the one with the

one confidently about his gains and losses, his mistakes and

Weaknesses, but also want to talk about his successes. The chemistry has to be

voices.

Also in a circle the Family you have to get support. Knowledge

Spouse and kinthewhat are you doing? If you approve, you are entitled to it

Them? How do your relatives look to you when you suddenly announce:

“In ten years I'll be a millionaire!” Earn pitying looks or somethingthe

encouraging pat on the back?


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5. DO YOU HAVE ENOUGH MONEY?

Today there are brokers who promise quick fortune if you are at 200

Dollar opened a trading account. Such lock offers should be the

Keep your fingers off. On the subject of money, there are three thoughts that I have here

want to discuss:

H A B E N S I E E I N R E G E L M Ä ß I G E S E I N K O M M E N?

This question should be clear at the very beginning: It makes a difference whether you

trades and the rent is paid, etc.the whether you are trading to pay your rent

to be able to. There are situations where it is better to stay away from the market. who

then has no regular income, it quickly becomes unreasonable or similarthe

place suboptimal trades. The family, the annual vacation, the

Occasional visits to restaurants and the theater - all of this must be affordable

and stay. Trading has to start away from the daily cash flow, with money,

that is actually "left over". It will be in the first few months, probably

even years of money lost. You should plan this surcharge,

without falling into existential fears.

K Ö N N E N S I E E I N E N B E D E U T S A M E N B E T R A G I N I H R T R A D I N G

I N V E S T I E R E N?

When it comes to trading, many start out with a very small account. Accepted,

I open an account with 1,000 euros. Suppose I score over the course

30 percent return of a trading year. Then I work for a year

300 Euro. This seems ridiculous to many beginners - so with the

One thousand euros gambled to push the return. The outcome of this

Gambling is usually fatal. But it doesn't matter, because then we willthe 1.000

Euro deposited and the game starts all over again. At some point you will

land the jackpot trade.

Small accounts are used by many aspiring trathen as "play money"

considered, they are already mentally written off. With the corollary that

you don't make an effort for the play money either, butthen it with

playfully loses hand. The howtheprocurement value of a small one

Account is low - after a few weeks you can howthe 1,000 euros

transfer and start the next round.

This is why it is important to have a significant amount in your trading account

to deposit. Only then will you be tooth and nail at every penny

fight. Only if the Loss causes pain, are we ready

Lessons to be learned. Only if we have long saved to the account

capitalize, we are also ready to defend this capital. The

concrete sum must varythe set for yourself, because for one are

already the said thousand euros a lot of money. Atthee sink but

like ten times the amount without worrying about it.

Find your pain threshold and trade with an account whose

Size is slightly below.


W I E G R O ß D A R F M E I N T R A D I N G - K O N T O S E I N?

P a g e | 12th

Accounts that are too large can also be a mistake. Anyone with six and

seven-figure amounts without being juggled by the artisanal side

who knows a lot about trading is a welcome prey for those who are successful

Trathe. Trading with a large account holds for the typical German

Employees a great, latent danger: he sees complete here in minutes

Monthly salaries pass his eye, regardless of whether it is a profit or somethingthe

Loss. These unusually large sums make it difficult to be emotionless

to follow your own trading plan. For 50 euros you can become your own

Don't break the rules - but for 5,000 euros you can. It's hard to get to the

To believe the insignificance of the single trade when you watch two

Has sunk monthly salaries and knows that might be like in the next tradethe

happen. Profitra calls it the “slipping factor”the Michael Voigt the sum

at the a trathe starts shifting nervously on the chair. This one

You have to sound out the amount.

It is therefore a good idea to trade with an account that is large enough to

that the Loss would hurt, but small enough to be personal

Slipping factor not to be achieved. When the trading account is slow

grows, grows too the Slipping factor. Who today is over 100 euros

Losing your head agonized, turns ten in the year the TratheCareer

probably not even thinking about this amount anymore and only at

get nervous about an amount of 10,000 euros.

From my personal experience I can say: First of all, I have a for

I traded too large an account, it was 25,000 euros - almost the whole

Compensation for my salaried job in 2003. Four years later I have

to the House building break with a 3,000 euro account trading likethe

recorded. The amount of money was large enough to meet my long-term goal

reach and small enough not to break the rules that i own myself

had imposed. I now trade an account that is more than ten times that

is big without thinking about the sums. It's about the clean one

Process - not about the money.


PART 1: MARKETS, ENEMIES, WEAPONS

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There is usually a lot of energy going into finding more promising

Used market opportunities. To give the impatient learner a quick

To enable entry into active trading, we give at this point

an overview of the Besontheunits the individual markets without already

to be able to go in depth.

In general, the Trathe five asset classes available that he

can watch. Everthe this market has a number of special featuresthehits that

he should consider.

RAW MATERIALS

These markets are considered illiquid, even if oil and gold, for example, are in

have increased significantly in liquidity in recent years. Lots

professional commodity traders, producers and consumers of these

Commodities are among the market participants against which the "Hobby-Trathe

occurs. In addition, speculators (hedge funds,

institutional and private trathe) to be found in this market segment. The

Commodity markets are heavily regulated. Seasonal movements are common.

It is important to have contract specifications, reference exchanges and trading hours

to know exactly. Raw materials are considered to be trendy. Specialthethey are

rapid trend reversal. On the ground the there is little liquidity

extremely rare double tops or similarthe Raised floors. This represents high

Requesttheungen to the timing of the raw material trathes. Usually there is wethe For

the entry, and the exit a "second chance", so that for the

Beginners these markets are only suitable to a limited extent. Who use raw materials

want, should be on the ground the high absolute volatility the rules the

Use position sizing extremely defensively.

CURRENCIES

In contrast to raw materials, this market is highly liquidthe Market with

a daily turnover of more than $ 4 trillion. It is a matter of

a pure interbank market, the not regulated by regulatory authorities

is because it does not take place on any stock exchange. There are a lot of people in this segment

dubious providers their mischief. Market participants are central banks, big ones

Commercial banks and international companies, hedge funds, in

Increasingly private investors in recent years. Currencies are subject to strong

political influences, such as economic developments and

Interest rate decisions. Currencies create strong, long-lasting trends.

They are traded 24 hours a day on weekdays. Even if they

are generally not very volatile in percentage terms, the low margin rates ensure

and the resulting large position size for strong movements in

the Tratheaccounts. This market is correspondingly smaller for beginners

Position size and strict risk management well suited. Currencies

are very suitable for technical analysis.

BORROW


P a g e | 14th

Bonds (in the context of this book: government bonds) are wrongly used by

neglected by most investors. They are used by many institutional

Traded to investors. Pension funds, insurance companies, pension and

Mutual funds often invest in government bonds. They are highly liquid

and trend stable. You are in to the stock markets the Usually negative

correlated, apply in falling timesthe Share prices and risethe uncertainty

as "safe havens". Economic and interest rate developments have an impact

Bond prices off. Bonds are not considered to be very volatile and are therefore happy to use them