Copyright 2008 © Toni Hansen & The Bastiat Group, Inc. All rights reserved. Terms of use apply....

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Copyright 2008 © Toni Hansen & The Bastiat Group, Inc. All rights reserved. Terms of use apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law.

Disclaimer: The Bastiat Group, Inc., the holding company for ToniHansen.com, Swingtrader.net and TradingFromMainStreet.com does not make solicitations, recommendations or offers to buy or sell any security or investment. The Bastiat Group, Inc. does not advocate the purchase or sale of any security or investment. The information provided by The Bastiat Group, Inc. should not be construed as investment, financial, tax or legal advice. The Bastiat Group, Inc. is not a registered investment advisor, commodity trading advisor, broker or broker dealer. Trading in securities may not be suitable for all individuals. The Bastiat Group, Inc. and its members, employees, agents, consultants, analysts, representatives, content and/or service providers, affiliates, subsidiaries, successors and assigns (hereinafter collectively, “The Bastiat Indemnities") assume no responsibility or liability for your trading and investment results. Prior to the execution of any securities trade, you should always consult with your broker or other financial advisor. There is a very high degree of risk involved in trading securities. Past results are not indicative of future returns.

Disclaimer and Terms of Use:

PART 1

Selecting a Market

Comparing Markets

Stocks

Commodities

EMini Futures

Forex

Options

Spread Betting (UK)

Stocks - PDT Rule

An NASD & SEC rule which states that in order to engage in pattern daytrading (buying & selling a security in the same trading day 4 or more times in 5 consecutive business days) must maintain an equity balance of at least $25,000 in a margin account.

Commodities Grains

Gold

Beef

Crude oil

Natural gas…

Currencies and Indices

Futures

Virtually 24 hour market – 18:00 ET Sunday – 16:15 ET Friday. Breaks from 16:15-16:30 ET and 17:30-18:00 ET.

Unlike stocks, futures positions are settled in cash on a daily basis.

Futures

Margin requirements: Overnight = $4500 initial & $3600 maintenance. Individual brokers will vary on intraday margin, but $500-$2000 is typical.

Forex

The most active market in the world.

Traded 24 hours a day, 5 ½ days a week.

Cost to trade is the spread, measured in pips.

Forex

The most traded are the U.S. dollar (USD), Canadian dollar (CAD), the euro (EUR), the British pound (GBP), the Swiss franc (CHF), the New Zealand dollar (NZD), the Australian dollar (AUD) and the Japanese yen (JPY)

Options

Give you the right, but not the obligation to buy or sell an underlying asset at a specific prices on or before a certain date.

A call gives the holder the right to buy an asset at a certain price within a specific period of time, while a put give the holder the right to sell that asset at a certain price within a specific period of time.

Spread Betting

Allows a trader to participate in the financial markets without ever taking physical ownership of the underlying instrument.

No capital gains tax or stamp taxes, but less protection.

Cost is the spread.

http://www.financial-spread-betting.com/

PART 2

Focusing on a Time Frame

Time Frame Styles

Scalping

Intraday Trading / Daytrading

Swingtrading

Position Trading

Correction Periods

~9:35 AM

15 & 45 minutes past the hour in the AM

11:00 AM

11:15 AM

30 min. past & on the hour in the PM

Times to Watch in FX

3:00 AM London opens

4:00 AM Tokyo closes

8:00 AM New York opens

12:00 PM London closes

5:00 PM New York closes

7:00 PM Tokyo opens

Utilizing Time Frames

When trading a setup on any time frame, it is imperative that you study both the larger and smaller time frames and not merely the one on which you located your setup.

PART 3

Focusing on a Strategy

Comparing Strategies

Continuation Strategies

(aka Trend-following)

Reversal Strategies

Either/Or Strategies

Continuation Strategies

Breakouts

Flags

2-Wave Continuations

2-Wave Continuation

Chart © 2008 Townsend Analytics

Breakouts & Triangles

#1 & #4 Continuations

Chart © 2008 Townsend Analytics

#3 Continuation

Chart © 2008 Townsend Analytics

Reversal Strategies

Momentum Reversals

2T / 2B

Momentum Reversal

Momentum Reversal

Chart © 2008 IBFX

2T & 2B Reversals

2T Reversal

Chart © 2008 Townsend Analytics

Either/Or Strategies

Phoenixes & Avalanches

Triangles

Phoenix & Avalanche

Phoenix - Buy

Chart © 2008 Townsend Analytics

Triangle Reversal

Triangle Reversal

Chart © 2008 IBFX

PART 4

Incorporating the Different Aspects of Your Plan

Intraday/Swing Strategy

Utilizing gaps can be a great way to improve your accuracy and reward potential on both daytrades as well as swingtrades in equities.

Breakaway GapsThese types of gaps will break a security out of its previous trend and begin a reversal or correction to that trend. These can include breakouts from a base, flag, triangle, etc.

Trading Range Breakaway

Breakaway Gaps

Chart © 2008 Townsend Analytics

2-Wave Pullback

Chart © 2008 Townsend Analytics

Trading Made Simple Series

Toni’s CD bundle:

5 Technical Signals You Cannot Trade Without (7 hours on 4 CDs, 238 page pdf)

Trading Made Simple: No Indicators Necessary (3 hours on 2 CDs, 100 page pdf)

Toni’s Guide to Successful Market Timing (76 pdf manual)

http://www.swingtrader.net

All three products: $279* (*plus shipping. $497 when sold separately.)

Toni’s interactive video courses and manuscripts detailing her trading and investment strategies

http://www.swingtrader.net