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Jay Norris
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Jay Norris is a 20-year CBOT floor veteran, author of the Best Seller "The Secret to Trading Forex, Futures, and ETFs: Risk Tolerance Threshold Theory", "Mastering the Currency Market", McGraw-Hill, 2009, and "Mastering Trade Selection and Management", McGraw-Hill,... More
My company:
Trading University
My blog:
Seeking Alpha
My book:
The Secret to Trading Forex, Futures, and ETF's: Risk Tolerance Threshold
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  • Weekly Forex Forecast For Monday, 2-14-2014

    In this week's market report author and trading instructor Jay Norris highlights potential trading opportunities in the major currency markets.

    To view the YouTube Video go to: Weekly Forex & Futures Forecast

    Trading involves risk of loss and is not suitable for all investors

    Disclosure: I am long UUP.

    Mar 09 10:55 AM | Link | Comment!
  • Trading On Market Generated Information

    Using "market generated information" means using only inputs or information provided by the market itself; for example using only a market's high, low, and closing prices in your analysis. Most of us would be surprised at the amount of information gleaned from just a market's high, low, and closing prices over different slices of time. At Trading University we calculate all the tradable patterns in a market using just those 3-inputs.

    The idea behind a strategy of using market generated info is to remove your own opinion from the equation and allow you to trade the actual market, rather than trade what you believe the market should be doing. I'm sure we have all had times where we have disagreed with what a market was doing, and just as likely we lost money because of it. While it is easy to blame market makers, or primary dealers, or central bankers for the market not doing what it "should have" according to us, there is a much more simple solution. Want what the market wants. Go where the markets takes you. Close out thoughts of where you think the market should go, and incorporate market generated information into your analysis.

    (click to enlarge)
    Figure 1.

    Figure 1 is a trade signal today - Friday March 7th - in the Euro that we've highlighted that is based purely on the information generated from the market's highs and lows for the London and U.S. sessions. For ease of explaining the set-up and signal here is a link to a: YouTube Video. We waited for 3 patterns to align - the long-term, intermediate-term, and a short-term -- and based our profit objective on our risk - hallmarks of market generated intelligence.

    Another advantage to using price only for your analysis is the results lend themselves well to statistical validation. If we are using the same inputs every time it is much easier to quantify and replicate a strategy, which is the assurance most of us need to continue to take the risks we do as traders.

    Jay Norris is a McGraw-Hill author and a trading instructor at Trading University

    Trading involves risk of loss and is not suitable for all investors.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Mar 07 12:38 PM | Link | 2 Comments
  • Predict Less Make More

    It is a paradox of life that the less we care about something the easier it is to obtain, and the more attached we become to an outcome the harder it is to achieve. The same is true in trading, where we can substitute the word "predict" for "care".

    When I go to bed every night I know two things. First that I have no idea what the market is going to do the next day. And second that the method I follow will likely produce winning trade signals. I am very confident of both of these points because number one: predicting the future is a silly proposition. And number two: it is not the method that produces the trade signals I follow, but the market itself. And the market, like the weather, is never wrong. To quote a well-known clothing manufacturer that specializes in outdoor wear, "There is no such thing as inclement weather; just inappropriate attire".

    And there lies the biggest reason why more traders are not as successful as they want to be: because they are using inappropriate techniques for the market environment they are in. If the weather was snowing and cold the day before, I'm guessing you would look out the window or open a door and step out on to the porch to feel the temperature yourself before deciding to wear short pants, right? The same is true in trading. If traders are currently being rewarded for buying dips in the market right now, why would you try to sell it?

    It is a far easier to follow a method that uses market generated set-ups and signals that can be statistically validated than spend your time and energy trying to predict the future.

    My old friend and mentor Bill Williams is fond of saying, "the holy grail is simple. Want what the market wants".

    In other words only take your cue from market behavior. While that is simple, sound advice, we may need to hear it several times to fully appreciate it.

    Jay Norris has written two books on trading for McGraw-Hill and is a trading instructor at Trading University.

    Trading involves risk of loss and is not suitable for all investors

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Mar 04 2:41 PM | Link | Comment!
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