This forex video shows three back-to-back trades on cable (GBP/USD) on a 15-minute chart. Pay attention to the combination of key levels near the entry price on every trade. This combination of levels is crucial in the execution of the trades.

These trades were executed with the assistance of the FX Fusion Robot.

04/15/09 Multiple GBP/USD Trades using the Day Trading Robot

If the trading video looks too small, click on the image and you’ll see it a bit larger on YouTube.

It’s pretty bad.

I’m glad that in our world of forex trading, stocks just aren’t welcomed! In fact, I have been in favor of alternative investments instead of stocks and the economically-sensitive real estate sector for years.

Since my post, “Stock Market Trades Below Key Support Level,” the Dow has fallen further. Just look at this cool chart to compare the magnitue of our little, never-ending stock market roller coaster ride in the US:

Click on the chart to enlarge it, then hit the Back button to return to this blog post.

The current bear market, which began in late 2007, is still alive and well. So far, only the extremely painful bear market of the Great Depression era (grey graph) is greater in magnitude. It actually took the stock market during that time a painstaking 25 years (from 1929 to 1954) to recover and exceed the peak it established before the bear market began.

Even though no one knows how long the current bear market in US stocks will last, a VERY SLOW recovery (also known as an L-shaped recovery) is a likely outcome.

I strongly believe that traditional investors who haven’t already realized the colossal risks inherent in stocks, will certainly do so during this slow-motion recovery period; especially those who give in to the “buy-at-dirt-cheap-prices” recommendations of many of today’s traditional investment advisors and financial planners.

This realization of the “true risks” of stocks might cause investors (both domestic and foreign) to “reprice” equities in their heads for decades to come, paying relatively lower multiples for each dollar of a company’s earnings. Consequently, annual stock market returns going forward could drop significantly - way below the historical 10%-mark.

Even if we assume a 5% annual rate of return for stocks from this point on, it will take the market over 15 years to recover to the peak value established in 2007 (near 14,200 on the Dow). Is the wait really worth it?

Due to the significant risks and opportunity costs I feel traditional investors will face going forward, I plan on writing a series of blog posts to address these issues in greater detail. My objective will be to educate investors and help them understand the true risk of the investment decisions they make, as well as the advantages of alternative investments.

I think this information is priceless and will help investors pull away from the traditional stock-market-and-real-estate-masses group; a must to survive any future crisis.

The hits just keep on coming as the Dow Jones Industrial Average (Dow), the most popular US stock market index, closed below the 50%-retracement level.

Traders familiar with technical analysis know that when the price of anything falls 50% from a peak, it tends to be “supported” from falling further - but if this level doesn’t hold, the price could accelerate quickly to the downside.

The all-time high for the Dow was 14,198.10 on October 11, 2007. If we take half of that level, we come up with almost 7,100. Last Friday, the Dow closed around 40 points below this level - leaving many wondering what would happen on Monday. Well; on the first day of trading this week, the market was basically on a downhill slide from start to finish, causing the Dow to close at 6,763.29.

Now that we’re obviously past the 50% mark, what may lie in store for the most popular financial market in America? Probably nothing pretty.

Hold on to your hats ladies and gentlemen. My guess is that the wild ride will continue, as the US keeps rewarding crooked giants like AIG and speculators who gambled their ASSets away in real estate.

When will investors learn that the world does not revolve around stocks?!?!? Do I hear anyone say “forex?”

The Forex Robot based on the FX Fusion strategy has come a long way. Here’s an example of two short trades that were opened by the FX Fusion Robot on Wednesday.

EUR/USD (Euro versus the US Dollar) and the GBP/USD (British pound versus the US Dollar) were shorted when the price reached an area where multiple key levels of resistance were present. In this example, the positions are still open at a profit.

The FX Fusion Robot will be released next week. For more information, please visit www.mydaytradingtutor.com.

Abel Gilbert, Senior FX Trader and coach has spearheaded our training program with his free forex webinars and one-on-one coaching sessions.

After six months of One-on-One Coaching and hosting the LIVE Trading Sessions, the results have been outstanding! Hundreds of people have attended these practical webinars and we’ve established very close relationships with traders from all over the world. Nevertheless, most of you have not met Abel or even know what he looks like; until now! Please see below:

Click on Abel Gilbert’s picture above to enlarge it.

Thanks to Abel, his FX Fusion Day Trading Robot is now made availabe to all clients.

Here’s a short video of the day trading robot (click triangle to play):

If the robot video looks too small, click here to see a larger, high-definition version on Vimeo.

Paul T. graduated from the forex coaching program run by professional trader, Abel Gilbert, on December 5th, 2008. He recently sent us this video testimonial about the one-on-one coaching program based on Abel’s FX Fusion strategy.

Paul’s day trading log during the coaching was added to the end of the video.

Day Trading Testimonial from Paul T.

If the testimonail video looks too small, click on the image and you’ll see it a bit larger on YouTube.

Paul, I’m glad you found the one-on-one forex coaching program so helpful and I wish you the utmost success in your forex trading career!

Here’s an FX video of two back-to-back trades on cable (GBP/USD). This was a great trade because, by remaining disciplined, I was able to capture two straight profitable longs on the Pound-Dollar. The chart below is on the 15-minute timeframe. The entries are marked with a small, blue arrow pointing to the right.

A forex day trader always want to be ready for a potential situation where he may have to re-enter the market quickly. In the first trade, the buy entry was 1.5038 at different FX Fusion levels of support and I took my profits at the next level of resistance (1.5074).

When I noticed that the price had came back down to the support area where I had entered originally, I decided to go long again; so the second buy was at at 1.5038 and the exit was also 36 pips higher.

01/08/09 Two Back-to-Back GBP/USD Longs

If the forex video looks too small, click on the image and you’ll see it a bit larger on YouTube.

This forex video shows a trade I took during the early hours of the European session using the one-hour chart. I went long GBP/USD and got out using multiple exits.

I personally love finding trading opportunities on the one-hour chart because it gives me a good probability to make larger profits. On this specific trade, I was looking at current key levels as well as levels from the previous day. I did not need to wait for trend confirmation on this trade because I was sure that the price activity that occurred during the early hours of the Euro session was going to give my trade a good chance of achieving its goal.

01/06/09 Long GBP/USD Trade with Multiple Exits

If the trading video looks too small, click on the image and you’ll see it a bit larger on YouTube.

This trade on cable happened during the US session. At the same time that I was executing the order for this trade, one of the members of our LIVE Day Trading room session announced it. Great job! Although the price did go against me about 13 pips before going in my favor, overall this was a good trade. The key levels were right where I wanted them and the take profit was met nicely.

1/5/09 Short GBP/USD Trade

If the trading video looks too small, click on the image and you’ll see it a bit larger on YouTube.

These are the first in a series of day trading videos I want to post on a regular basis to help our FX Trader Pro trainees and the readers of our blog. These trades really took place two days ago, but we’re just getting acquainted with this YouTube stuff!

I apologize if the quality of these forex videos is not the best, but YouTube seems to compress the videos no matter what we do; so we’re still trying to find the settings that make them look the nicest possible. Please bear with us!

12/15/08 Long GBP/USD Trade

This trade happened during the US session. Originally I was attracted to this potential FX Fusion setup because it was going in the direction of the weakness of the dollar. As soon as I found the combination of the 3 key levels, I entered the trade on the Pound-Dollar; however, I didn’t know it would turn out to be a back-to-back trade.

If the trading video looks too small, click on the image and you’ll see it a bit larger on YouTube.

12/15/08 Short USD/CHF Trade

This trade happened during the US session. I really liked this trade when I entered it because the Dollar-Swiss retraced to a perfect combination of key levels. The dollar was showing lots of weakness and MACD was agreeing with the direction of my trade. I took my profits at the next combination of Key Levels for a profit of 23 pips.

If the trading video looks too small, click on the image and you’ll see it a bit larger on YouTube.

If you have already participated in any of our FX Trader Pro webinars or gone through our live trading or one-on-one coaching sessions, we would like you to take the opportunity and post your comments and feedback every time I post a trading video (including this one). These discussions will serve as a great learning tool for all of the traders who visit the Day Trading Tutor blog or website.