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02/02/2007 Archived Entry: "More questions."

Bambang wrote:
> Hi Neal,
>
> After exploring through your website, especially the archives and videos, I have several questions I would like to ask you. Your help would be very much appreciated.
>
> 1) What multiple timeframe combination/s would you use to trade the forex? I've observed your videos regarding the forex and it looks like you favour the weekly, daily and the 240 minute, can we look at smaller timeframes like the 60, 30 and 5 minute like in the e-mini?
>
> 2) In the video "Trading with the Trend" lesson A the major trend in the 30 minute was down but using the MACD/Stochastic technique you were able to scalp long in the 5 and 3 minutes, could you please explain to me what was going through your mind on this trade? what was your motive/ trading plan for scalping?
>
> 3) I was wondering if you do pyramiding? would you have set rules for pyramiding? when would you add to position (if you do)?
> 4) I'm interested in starting to trade US stocks and sector, I've noticed that you are using e-signal pro currently I'm using e-signal premier do I need to upgrade my data subscription for US stocks and Sector? Also which exchange do you trade for US stocks and sector is it AMEX? I noticed that the sectors that you put up in the updates are from the AMEX, i just wanted confirmatin on this :) . Secondly I would like to ask you do you trade the stock futures, option or CFD's?
>
> 5) I've observed in your forex videos (24/01/2007) you were analyzing the JApanese yen, Canadian dollar and the Euro dollar. Your comment said something along the lines of " Canadian dollar is bullish" but when i checked the ticker symbol 6C #F (CME e-mini of canadian dollar) the trend was favouring the bears, I was just wondering if the CME e-mini forex works in a opposite direction to what the cash is doing. ie cash is bullish Cross rate is bearish? In other words if i was to trade the Future currency would I trade in the opposite direction that your analysis on the cash? The strange thing is that in the euro your chart the cash and the future (with ticker symbol 6E #F) was trading in the same direction but the canadian and japanese yen were working in opposite, this confuses me a little bit could you please explain why this is.
>
> Kind Regards
>
> Bambang

Hello Bambang, see my reply below.

1. Absolutely, lower time-frames are fine. 1, minute, 5 minute etc. Be careful though, because it can be tougher, more noise and frustration/stress.

2. I don't remember that trade in detail any more. Trading against the trend is possible, but much more risky. Perhaps the daily trend was also up, making for a stronger market?

3. I might add or lighten up a trade, but not strictly pyramiding.

4. I'm not certain about whether you need to upgrade, contact Esignal, they'll help you with that.

Which market you trade depends on your broker to a large degree. Much of the time you will not know which market it being traded, unless you are determined about it, etc. Depending on the size of your account, you may not be able to trade intra-day effectively (USA laws).

The Sector funds just happen to be formulated on the AMEX exchange, actual stocks are often Nasdaq, NYSE, etc.

I have traded options, but would not suggest that you begin there.

5. You might be looking at a CAD/USD or USD/CAD instruments. Also JPY/USD and USD/JPY is possible?

-Neal.