Overall today we had a good day at the LIVE Trading session. We missed a couple of beautiful trades on the GBP/USD and USD/JPY where we could have made over 150 pips, but I was able to get over it and move on - ending the day up 44 pips.

I trade strictly using my FX Fusion day trading strategy. In today’s market, you have to know how to adjust to the volatility. Since I’m an active trader I trade multiple times per day. For this reason, I’m very cautious and disciplined about when to take profits.

The following two trades happened back to back. My criteria to buy were met, so I went long at 1.2487 and took profits at 1.2507 - for a 20-pip profit. A few minutes later, my criteria to Sell were met, so I went short at 1.2539 and took profits at 1.2515; for +24 pips.

If you’re serious about learning how to become a better day trader, feel free to join us at our next Free Forex Webinar. During the webinar, you’ll find out how to get access to our live Day Trading Room.

It’s been a while since my last swing trade. Trades where I make between 50 and 100 pips, I call swing trades. Today I was able to catch a very nice move triggered by my FX Fusion strategy.

As you may already know, my day trading strategy is based on looking for combinations of “Key Levels.” I executed the following trade once I saw my setup was triggered and confirmed.

10/29/08 USD/CHF = 152 PIPS

One of the great things about the FX Fusion strategy is that I get in knowing where to put my stop loss and where to take my profits ahead of time. In this trade, I took profits at two levels in order to maximize my gains.

If you would like to learn more about Day Trading in the Forex market, register to attend our Free Forex Webinar, where you’ll find out how to get free access to our Forex Trading Room.

Today I found 2 trading opportunities on the USD/CHF currency pair. Three times per week I open my trading room to day traders of all levels to see how I trade LIVE. I make my trading decisions based on my FX Fusion strategy (click here to see this month’s updated trading log).

Today I had two trades on the Dollar/Swiss currency pair. Both of these trades were based on using the scalping version of my day trading strategy for a total of 45 pips.

The concept of my strategy is based on finding entries at combinations of “Key Levels” of support and resistance. On both of the following setups my criteria was met, which caused me to take the trades.

SELL USD/CHF = 30 PIPS

BUY USD/CHF = 15 PIPS

If you would like to learn more about Day Trading in the Forex market, register to attend our Free Forex Webinar, where you’ll find how to get free access to our Forex Day Trading Room.

Despite the volatility we have been experiencing lately in the currency markets, we are up 260 PIPS in the LIVE Day Trading Sessions (Click Here to see this month’s Trade Log).

Here are a couple of examples of today’s trades:

BUY USD/CHF = 25 Pips

BUY USD/JPY = 22 Pips

If you would like to learn more about Day Trading in the Forex market, register to attend our Free Forex Webinar where you’ll find out how to get free access to our Forex Trading Room.

As you all may have already noticed, the volatility and global market meltdowns have had an effect on price action in the currency markets. Although we are seeing interventions to bring stability to the world financial markets I recommend that you trade very carefully.

You have to remember, day trading currencies is very risky and you can sustain big losses if you are not disciplined and consistent with your rules and strategies. I know that with all these big swings in the market, it is very tempting to trade outside of what you normally do; but let me refresh your memory: a successful day trader is the one who can consistently profit while knowing how to manage risk and knowing when to stand aside.

For those of you who are trying to trade Forex for a living remember this: you don’t have to day trade all the time! In fact, sometimes not trading is the best trade of all.

What every trader needs is a clear set of rules which to trade by. IF you are new at Forex or are already trading in any other market, I strongly suggest you join me in our Free Forex Webinar where I will introduce you to some of the rules and strategies that have helped me become a Successful Forex Trader.

Lately, a lot of people have asked me if my trading has been affected by the current global economic situation. Although the pricing activity of currencies does feel different, currency traders like me have not been dramatically affected.

This is one of the benefits of being an active Forex Day Trader. With my FX Fusion trading strategy, I get in and out of the market without getting exposed to major unexpected price movements. Being an Active Day Trader means that I trade multiple times per day, whether the price goes up or down.

In my opinion, one of the best ways to trade is when you trade in the direction of the trend. When you have interventions like the SEC eliminating Short Selling from the stock market, it makes it really difficult to trade stocks with limited risk - since even when the trend is going down, you can’t sell many stocks short. If you have funds invested in the stock market, you may have already noticed a Tsunami heading in your direction. If you stand there and do nothing, you could get wiped out!

If the majority of your funds are in the stock market, don’t just sit back and take the relaxed approach. In the Forex market, you have the ability to invest your money in programs that have no market risk with up to a 20% net yearly return - or on more aggressive managed accounts with higher return objectives.

For those that like to do their own trading, we recently started a LIVE Day Trading service where I show you how to look for opportunities using my FX Fusion strategy and my scalping techniques. We are currently offering one free week of access to the live trading room. If you would like to know more about it, sign up and attend our Free LIVE Forex webinar right here.

Americans’ love affair with stocks has caused the delay in many retirements (perpetually in some cases).

This historical credit crisis and real estate bubble blow-up has impacted 401(k) balances across the nation - as well as IRA accounts and non-retirement stock portfolios. Even diversified bond portfolios have gotten whacked, as corporate debt across traditionally “solid” (yeah right!) sectors, such as financial services and insurance, have suffered devastating blows (due to blatant gambling with real estate).

We’ve been warning people against this for years, but unfortunately, the stock-and-bond-centered traditional views of retirement and financial planning are too ingrained in the minds of many investors. It takes a lot of unbrainwashing to bring people out of that spell.

But don’t get me wrong here. I’m not rubbing it in. I feel a lot of sorrow for what our country is going through right now (and it can get A LOT worse). I just want people to throw the traditional investment pyramid in the garbage and open their minds just a little bit. Don’t wait for your stocks to drop to the level of Lehman Brothers (i.e., zero) to take action.

There are other ways to add diversification and safety to your investment portfolio, without lowering your return to that of bank savings accounts. Even though, I’m a fan of day trading (but not with stocks), that should only be a small part of your financial pyramid; assuming you learn to day trade correctly (sign up for our free training and start learning). Most of your pyramid should be composed of investments that provide an attractive return, but with little market risk; investments that your overdressed broker at Merrill doesn’t know about.

During critical times like these, retreating in a fetal position to a dark corner of your closet while sucking your thumb and crying for your momma is not the best solution by far. You need to be proactive and take action early - and don’t wait for any politicians to rescue you (they’re only interested in saving the fat, corporate pigs that caused this mess in the first place).

So what do you do then?

Sign up for our next day trading webinar by clicking here. Believe me; we’re not only going to talk about day trading.

If you want to read the entire article about the heavy toll stock losses are taking on retirement savings, click here.

Day traders; this may sound a bit dramatic, but at the rate the SEC is going with the regulation of short sellers, this might become the next headline!

In my blog post yesterday, “SEC Adopts New Short-selling Rules,” I commented on the SEC’s latest move to regulate naked short-selling. Even though I agree on restricting this activity, I expressed my opposition to wining politicians wanting to ban ALL short-selling of financial companies like banks and insurers. Banning short-selling goes against the principles of free market economics, where supply and demand dictate the price of a commodity. It makes total sense for traders to want to sell stocks short of companies that are in trouble - and now, what a better bunch to sell the crap out of than the glutton banks and insurance companies that fattened their rear ends out of the latest real estate mega bubble?

Early this week, it seemed that the excess was beginning to get squeezed out of the market at full speed when stocks began to suffer severe losses; but then, what happened later in the week? Regulators stepped in with their sloppy, patch-up-the-holes mentality and began regulating the “evil” short sellers. Things got even more dramatic today when the shorting of 799 financial stocks was banned altogether.

In the MarketWatch article, “SEC bans short selling in 799 financial stocks,” SEC Chairman Christopher Cox is quoted saying,

“The emergency order temporarily banning short selling of financial stocks will restore equilibrium to markets. This action, which would not be necessary in a well-functioning market, is temporary in nature and part of the comprehensive set of steps being taken by the Federal Reserve, the Treasury and the Congress.”

That’s just too funny! With the phrase, “restore equilibrium,” the Chairman seems to imply that the market has to go up to be in balance. Nonsense! These financial stocks should suffer for their excessive greed. Why should they go up? The same holds true when he states that the short selling restrictions won’t be necessary in a “well-functioning market.” If it ain’t going up, something must be broken?!?!?

Fellow stock day trader, this is why I strongly suggest that you don’t day trade stocks. What for? The stock market is one of the most manipulated markets in the world with blatant favoritism for rising prices. The forex market is a much “cleaner” and “purer” market for day trading. I strongly suggested that you take our free, live day trading webinar and find out more.

But what about for “longer term” investments; “aren’t stocks the best asset class for that?” - you ask. I know that financial planners and stock brokers have been preaching this since the dinosaurs, but that’s all they know. It’s one of the big lies our society is founded on.

If you want to learn about alternatives that, in my honest opinion, are much better than stocks for the long run, dare to give us a call (305-600-4651). But please note: you will have to make an important choice when you dial - if you want to take the red pill or the blue pill. It will all depend on whether or not you want to find out how deep the rabbit hole goes!

“The SEC [Securities and Exchange Commission] adopts rules against naked short-selling,” writes Marcy Gordon of The Associated Press. I laughed my assets off when I read this headline just a few hours ago. This is why I love forex (or foreign exchange) for day trading so much better than stocks.

I’m not saying that naked short-selling should be allowed, but things like this always happen in the stock market during times of crisis (like today when the Dow dropped over 4%). There are so many stupid regulations in the US stock market to control the price of stocks that one might wonder how “free” of a market the stock market really is.

You never hear forex day traders blurb out terms such as “curbs in” or “halted for news pending,” when referring to the buying and selling of Euros, Dollars, and Yens. It’s really quite silly how regulators attempt to control periods of high volatility in the stock market. Many traditional investors and traders (by that, I mean folks who believe that stocks are the best thing since sliced bread) actually swallow the moronic excuse that such artificial price controls are there to protect investors when the world is “freaking out.” Nonsense.

A free market should be allowed to fluctuate by the laws of supply and demand. If traders want to take the stock of a greedy insurance company who got caught with its hand in the real-estate-bubble cookie jar to zero, so be it (anyone got life insurance with AIG? :). Why does the government have to use my tax dollars to bail them out?!?!

Let the system implode from its own avarice I say. We’ve been screaming bubble when it comes to stocks and real estate for over three years now during our managed account webinars. The best way to get rid of a bubble is to let it blow up; not to patch it up with rules against short selling. If you’re trading stocks, how else would you make money when the market is getting hammered other than by selling short?

Apparently, our government doesn’t even want us to sell short stocks anymore. In the same AP article, Gordon states, “Sens. Charles Schumer and Hillary Clinton, New York Democratics, asked the SEC to temporarily ban all short-selling, not just naked short-selling, of stocks of major financial companies.” That one made me pee in my pants (can I say that here?).

If you are a day trader or want to take up day trading, please do yourself a favor and get out of the stock market. Trading currencies, in my humble opinion, is much better. If you don’t believe me, sign up for our free day trading webinar by clicking here.

If you want to read more about the naked short selling mess in the Associated Press article, here it is: SEC adopts rules against naked short-selling

I believe the most important thing you need to do when you start trading in the Forex market is to determine what type of Trader you are. What I mean by this is that you need to figure out your identity as a trader.

Are you a scalper, swing trader, or position trader?

If you prefer trades that last from seconds to a few minutes, where you can grab 10 pips here and there multiple times per day, you would be considered a Scalper. If you are looking for trades where you can average between 20 and 60 pips and you don’t mind if it will take a few hours to find them, you are a swing trader; And if you like to look for those big moves where you can average 100 pips or more per trade, then you are a Position Trader.

All of these trading styles are great. What you need to figure out is which one is best for you based on your schedule and personality. One of the great things about the Forex market is that it’s open 24 hours a day, 5 days a week; so because of the extended hours, it is easier to fit into most people’s lifestyles.

The next thing you need is to have a Trading Strategy that fits with your Trading style. In our “Free Forex Training Webinar,” I talk about a day trading strategy I created that is appropriate for every style of trading.

Here is an example of what my FX Fusion trading strategy looks like: