This page contains a Flash digital edition of a book.
FX TRADING METHOD Two important economic


indicators traders should know - HOW TO TRADE SUCCESSFULLY - PART ONE -


“Most investors say: ‘Don’t take risks.’ The rich investor takes risks.” Robert Kiyosaki


This article is the first in a series of three. The series which can only be read at FX Trader Magazine will explain why only a small minority of traders consistently make money at the expense of the vast majority. It does this by analyzing important but overlooked and misunderstood indicators and applies them to a number of different asset classes. The article also assesses the psychology of how to trade a series of higher lows.


COT: Commitment of Traders Report.


Tis is a weekly report issued every Friday by the Commodity Futures Trading Commission collating the holdings of participants in various futures markets. COT is extremely useful in analyzing flow of capital over


76 FX TRADER MAGAZINE April - June 2014


the medium term in the FX markets. It should therefore be used by retail traders, the majority of whom trade FX.


A good example of this currently is the Canadian Dollar. On Chart 1 we see that whilst both large speculators are holding net short positions close to a rolling 52 week high and small


speculators are also short, clever


money traded by the big commercial organizations and the small group of elite traders hold net long positions virtually at 52 week highs. Tis indicates that clever money continues to buy into every fall and that over the medium term the Canadian Dollar will prove to be a stellar performer.


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