Crude Oil (USOUSD MT5) - SELL - 24th May 2022

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Afternoon team,

If you have been reading the technical analysis tab (Crude oil) you would have known we have been watching crude oil for a short trade opportunity. This is possibly a huge set-up, but we will look to take things down in stages and build into a position over the next week.

Crude Oil – Weekly Chart

All indicators are moving lower, there is about to be a cross over to the downside on the weekly MACD which is a very strong sell signal.

Crude Oil 1 Hour Chart

Bear flag structure, and possibly an ABC corrective rally into the 61% FIB retracement. There has been a 5 wave decline and a counter-trend rally and a bear flag breakdown on the shorter time frame. This is providing the green light to enter the position. Currently, pricing on MT5 providers and Tradingview is different. Ensure your stop loss is above the most recent swing high.

Crude Oil MT5 (Focus Markets)

Trade Setup (Tradingview pricing) Sell market execution, current price 108.95, stop loss 111.95 and take profit 92.95

Trade Setup (MT5, Focus Markets) Sell market execution, current price 111.39, stop loss 114.39 and take profit 94.39

Stop loss: 300 pips

Take profit: 1600 pips

 

 

GBPAUD - BUY - 20th May 2022

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Afternoon team,

Last week we took a shot at the GBPAUD, however, we were taken out at breakeven. I have been watching the price action unfold and there appears to be a 4th wave triangle occurring, which indicates a bullish breakout to the upside.

We are resetting this position ready for a possible break to the upside.

GBPAUD – 1 Hour Chart

Trade Setup: BUY market execution, current price 1.7750, stop loss 1.7630 and take profit 1.8075.

Stop loss: 120 pips

Take profit: 325 pips

All New Trading Floor Members CLICK HERE - Important INFO

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Hi Trading Floor team,

Welcome to the trading floor, Forex Kings wants you to be as successful as we are trading in the Forex Market.

I am sure you have a number of questions, however, please read through these FAQs before asking in the live chat.

Please keep in mind, Forex is a very high-risk investment, you should not trade with equity you can not afford to lose.

We lose trades, that is part of trading. Understanding risk management is the key to success in the Forex market. Forex Kings uses anywhere from a 1% risk to a 5% risk of our total balance.

The amount you chose to risk in the Forex market is solely down to your own discretion.

We highly recommend doing a training period on a demo account whilst you learn. It is better to make mistakes on a demo account rather than your real money.

All positions on this page are setups that Forex Kings are currently trading.

Here are a number of FAQs that you should read through.

  1. Should I close my trade I am in profit? This is entirely down to you when you close your trade, we set parameters for stop losses and take profits. However, Forex Kings also sends alerts out via text message and telegram of when we close out our trades or update our stop loss. Please do not keep asking if you should close your trade. This FOMO mentality is negative for the community. It encourages jumping in and out of positions which is a very bad trading habit.
  2. What is a market execution trade? A market execution is a live trade going in at the current market price. Everyone will have a slightly different entry depending on how long it takes you to place the trade.
  3. What is a BUY STOP, BUY LIMIT, SELL STOP and SELL LIMIT? These are pending trades. We want our trade to be activated at a certain level as the current price isn’t a great entry. Therefore we use a ‘pending order’ to set up a trade at a certain level.
  4. How do I place a trade? Please go to the section on the trading floor that says ‘how to use the trading floor’. There is webinar content that shows you how to place a trade using MT4. Please watch all of the training videos in the trading floor as well. There is an MT4 guide that you can download from your welcome to the trading floor email.
  5. Can I download MT4 on my MacBook? This will depend largely on the broker you have chosen to use. Focus markets offer a MAC version of MT5.
  6. My symbols on MT4 are greyed out and I can not place a trade… Please right-click on the symbols list and select ‘Show All Symbols’. This will show you the symbols you need to trade on. As you are on an ‘ecn’ account you will need to trade symbols with ecn at the end for example EURUSDecn. If you are using the MT4 mobile app please press the + button in the top right-hand corner and select Forexecn
  7. How do I trade Gold and Oil? There is a CFD cheat sheet in the trading floor. This will teach you how to calculate position sizes on CFDs. Each broker will have different position sizes, therefore you may need to consult with your broker.
  8. I am having trouble working out position sizes… Most of our new members use an app called ‘Stinu’. Please download this it will give you the correct position for each trade you complete. To get an understanding of position sizes, please open a demo account to get some practice under your belt.

Any further questions please jump into the live chat, or book a call using the book a call feature in the trading floor.

Leverage X Margin (Explained)

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Leverage & Margin Explained

Leverage

An account with 30:1 leverage means you can multiply your account balance by 30.

For example an account size of $500 X 30 = 15,000 (in available volume).

 

This means you can place a maximum of 15,000 AUD in volume which equates to $1.5 AUD per pip.

 

Position size explained:

 

0.05 volume = 5,000 position = $0.50 per pip

0.1 volume = 10,000 position = $1 per pip

0.2 volume = 20,000 position = $2 per pip

0.3 volume = 30,000 position = $3 per pip

0.4 volume = 40,000 position = $4 per pip

0.5 volume = 50,000 position = $5 per pip

However, remember the volume you use in your position is based on the “base” currency. You will need to convert the volume back into AUD.

Trade Example: 

 

EURUSD BUY – Market price 1.2150 (1 pip = 4th decimal place).

Stop loss = 1.2100 (50 pips difference)

 

If you were looking to risk $50 in the market you would be looking to use a volume of 0.1 which is a 10,000 position in the market. 10,000 position = $1 per pip X 50 pip stop loss which is $50 risk. 

 

However, as you are trading in EUR your position size is calculated in EUR, a 0.1 position is 10,000 EUR. Therefore, if you were looking to risk $50 AUD you would need to bring your position size down to roughly 0.06 which is a 6,000 EUR position, which converts to 9,300 AUD in volume. This will roughly take your risk to $50 AUD when converted.

 

Position size calculator

https://www.myfxbook.com/forex-calculators/position-size

 

Margin 

 

Margin is NOT the cost of the trade, nor is it what you will lose if the trade hits your SL. 

The margin is essentially the amount of money you are required to have in your trading account to place the position. 

 

Trade Example: 

Using the same trade example:

 

EURUSD BUY – Market price 1.2150 (1 pip = 4th decimal place).

Stop loss = 1.2100 (50 pips difference)

 

Using the same position as above (0.6 = 6,000 EURO), the margin requirement is roughly $312. This means you are required to have at least $312 AUD in your account to place this position. Again, this is NOT the cost of the trade. 

 

6,000 EURO = Roughly 9,300 AUD. Therefore you have used just under two thirds of your available 15,000 AUD in volume. This is based on a $500 AUD account with a 30:1 leverage (15,000 available).

 

Margin Call

 

Have you ever heard of a margin call? This is where a hedge fund or bank falls beneath the required equity levels to maintain a position. Essentially, their position has moved against them, and they either need to close down the position, or fund their position to bring their account out of margin call. The bottom line is they run the risk of the position being closed out as they have not got enough equity to cover the margin. 

 

This is the same as a retail trader. If a trade moves against you, your account can move into a “margin call”. This CAN happen even if your SL has not been activated. You may only be risking $100 in the market out of your overall balance, however you may not have sufficient equity to cover your margin requirement. This can result in a trade automatically being closed by the broker. 

 

Margin Calculator

 

https://www.myfxbook.com/forex-calculators/margin-calculator

General rule of thumb:

How to calculate the required position size…

Every one has a different amount of $ they are looking to risk per trade, however the formula is always the same.

$ risk / stop loss distance = $ per pip (in AUD).

Example:

$50 / 50 pips = $1 AUD per pip – Then convert into the “base” currency.

If you have any questions please reach out in the live chat!

BABA - BUY - 20th October 2021

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Good afternoon team,

Slightly different trade from our usual setups as we are not using any leverage on this position. We are just buying the stock outright.

We will be looking to post stock trade setups moving forward as part of the Trading Floor service, for the time being, they will be located inside the Trading Floor open trades until the separate page has been built.

 

ALIBABA

The Chinese market has been beaten down considerably over the past couple of months due to the energy crisis, property market issues and regulation change. However, moving into the Christmas season there could be a number of winners. We feel Alibaba is positioned very well to take advantage over the next few months as they specialise in e-commerce, retail and technology – all will be in high demand moving into Christmas. Typically, there is a “Santa Clause” rally over the next couple of months in the stock market, and the recent pullback across equities lines that up nicely.

Weekly Chart

This stock is trading on the US market, so you will need an international broker or investment app to execute the trade. You will also need to wait for the stock to open later this evening.

 

Trade Setup: BUY 10 units – Mid to long term hold

 

We will be calculating P/L in units, for example, if you invest 10 units and the stock goes up 50% that is a 5 unit return on investment.

GDX Vaneck GOLD miners ETF - BUY - 10th November 2021

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Good morning team,

As you all know we have been bullish on metals for the past few weeks and a breakout on gold and silver looks a high possibility. As we want exposure in the metals market over the longer term we have decided to enter a position on a GOLD ETF. You will need to purchase this asset through your bank or an app like STAKE. This will give you access to the US market. There is a GDX here in Australia which is also an option, however, I prefer the technical structure in the US market. GDX gives investors exposure to a diversified portfolio of companies involved in the gold mining industry.

Stock codes:

NYSEARCA: GDX

ASX:GDX

GOLD – Weekly Charts

Gold looks set for a breakout to the upside, and we will be looking to trade the metal in our FX trading accounts. We are just waiting for a pullback to enter the market.

 

NYSEARCA: GDX – Weekly Chart

The GDX price action has set up a nice rounded bottom, which is also known as a cup & handle structure. There appears to be some nice upside potential here.

 

NYSEARCA: GDX – Daily Chart

The GDX has been in a +1 year-long consolidation phase and the price action has set up an inverted head and shoulders structure which tends to occur at the bottom of a trend. We can see a clear 5 wave impulsive move on the left-hand side followed by a long correction phase in three legs, ABC. These are bullish technical formations.

Trade Setup: BUY 10 units at 33.32. 

If you are purchasing the US ETF you will need to wait until later this evening to enter the position, or you can set a BUY stop/BUY limit up to activate at a certain price.

XRP (RIPPLE) - BUY - 22nd December 2021

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Good morning team,

We have been waiting patiently for ripple to begin the next move to the upside. Based on our Elliott wave count a new bullish trend should be underway as the 3 wave correction is now complete. We are not using leverage here, just buying the crypto outright and using the 0.6541 level as our SL position.

Trade Setup: BUY XRP (ripple), the current price is 0.9430, our SL zone is 0.6541 and the take profit is open ready to hold for the long term. 

If you are using leverage you will need to use the 0.6541 bullish invalidation level as the SL as well.