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#1 20-09-2010 08:39:56

johnedward
Admin & Trader
From: Paris - France
Registered: 21-12-2009
Posts: 3069
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Trading conference in Paris on September 17-18 (Part I)

Trading conference in Paris on September 17-18



Unlike the Technical Analysis conference I attended at the beginning of the year, this one focused on all areas of trading, not just the chart-following aspect of things. Additionally, there was a live trading competition featuring 8 top traders from France, Italy, USA, Morocco and Germany.

The trading competition: This was not as exciting as I imagined it would be. The one drawback was that all of the traders were using different trading platforms, so it was a bit difficult to understand what they were doing although they sometimes commented on why they were buying or shorting such a security. Trading instruments varied from forex to futures to indexes to CFDs to stocks. The winner was a Frenchman who seemed to favour CFD trading.

THE CONFERENCES
:

Fausto Pugliese: Fausto is the founder/lead trainer of Cyber Trading University. Both of his conferences were focused on what is known as Level 2 / ECN trading. Although this doesn't really concern forex trading, it's still interesting to see how the stock market works. In a nutshell, he explained that we as traders usually only have access to Level 1 information (the bid and ask price). With Level 2, you can see how many people are bidding on a security, what price they want to buy it at and how much they want to buy, and you can also see the same information regarding the selling. This gives you a clue as to which way the price will move. Fausto's main slogan is to "Follow the money", and this is exactly what he does. He explained that the best times to trade are between 9:30-11:00 AM and 14:30-16:00 PM (New York time). He also mentioned that he uses a "Top 20 List" (common on many platforms and websites) which shows the day's biggest losers and winners; he uses this list to identify stocks that are active and volatile, which have the best opportunities to make money. Finally, he makes it all seem so easy by saying that you only need to trade 1,000 stocks a day with a 20 cent price move to make $200/day (which translates into $4,000/month and $48,000/year). The only thing that bothers me is, how come he lost the trading competition right from the beginning?! He says it's because New York was closed at the time the contest began, yet, if his system is so good, why didn't he just trade European stocks? Nevertheless, the presentation was very interesting, although, after having done some research on the subject, level 2 quoting is subject to very much manipulation (brokers will put in a huge buy limit order to make it look like they want to buy, so as to get other traders to think the market will be going up, and then they will cancel this order before it can be executed, after a bunch of traders have driven the price up!).

Thami Kabbaj: The respected author/professor went over a lot of basic stuff, but he did mention that he uses the RSI indicator to identify trends (I thought this was interesting as most of the speakers at this conference mentioned they don't use them as they are "lagging", they only analyse the past with no link whatsoever to the future). As soon as the RSI crosses over the 50 it is a sign that the trend is reversing, but he confirms this with trendlines that he draws over and under the RSI waves.

André Malpel: He organised this conference and he teaches trading at a prestigious university. His speech highlighted the merits of the Elliott Waves approach to trading. He emphasised that you really want to try to get in on the 3rd (and strongest) wave of a trend. In the below chart this means buying at the beginning of the line that stretches from 2 to 3. He mentioned that he hates Fibonacci retracements, calling them arbitrary. As for forex trading, he predicts that the EUR/USD will fall back to 1.23 by the end of this month, climb back up to 1.44 by mid-January 2011, perhaps falling back down as far as 1.36 and then climbing back up to 1.54 by June! I'm usually not impressed by predictions, but this guy predicted back in on FEBRUARY 3rd (when the EUR/USD was at 1.40!) that the EUR/USD would fall to 1.16 by summer - he was only off by 200 pips! Respect.
http://www.forex-central.net/img/Elliott-waves/basic-cycle.gif


"Anything worth having is worth going for - all the way." - J.R. Ewing

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