80/20 Trading - An EWI Perspective

The 80/20 Trade: "Pounce Like a Cat"
Patience Can Be Rewarding 
June 04, 2012By Elliott Wave International

Copy the tiger when stalking and capturing a "pounce-ready" trade.

Tigers know the prey they covet is elusive: they show great patience and care when stalking the target.

I came across this description of the tiger's technique:

"When hunting, this cat...may take twenty minutes to creep over ground which would be covered in under one minute at a normal walk...the tiger will sometimes pause...move closer and so lessen that critical attack distance...before finally raising its body and charging.

"...they wait until a victim comes close and spring up...This ambush method of hunting uses less energy and has a greater chance of success."

You must "ambush" high confidence trades. Long-time professional trader and teacher Dick Diamond says patience is vital before the ambush.

I talked to Diamond about his famous 80/20 trade, which he means literally -- he says it has at least an 80 percent chance of success. It's the only trade set-up Diamond will take.

Q: Could you tell me about the 80/20 trade?

Diamond: The 80/20 trade is based on indicators that create a specific trading set-up. A trader must act on this set-up immediately. You must wait, and then pounce like a cat when the opportunity presents itself. Then you set stops. In shorter time frames, like trading from a five minute chart, the 80/20 set up may come along a few times a day. If you're trading a longer time frame, like off of a 120 minute or 240 minute chart, the 80/20 will come along less frequently, but when it does, the opportunity will be bigger. The 80/20 trade can be especially rewarding for position traders. Sometimes the indicators reveal what I call 90/10 or even 95/5 trades.

Q: What emotional factors do students need to work on the most?

Diamond: Traders must be calm and confident. You can't be a Nervous Nellie and succeed at trading. Calmness comes from learning the proper trading techniques.

Q: What's different about trading today vs. when you started out in the 1960s?

Diamond: When I started trading, execution took up to five minutes -- now it takes less than a second. Time is money, so computers provide a great advantage to today's trader compared to pre-computer days. At the same time, while computers allow the trader to see multiple indicators on the screen, one must avoid indicator overload. One must learn to narrow down the number of indicator

Forex Hedging With Binary Options

An Intro To Using Binary Options As A Forex Speculation Instrument

Definition of 'Binary Option'  --  (From Investopedia)
A type of option in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money. Also sometimes referred to as "all-or-nothing options" or "digital options".
These binary options are different from "plain vanilla" options.

Using binary options as a vehicle for speculating in the Forex markets is really quite straightforward and uncomplicated. This can allow those who are who have little experience or are just getting into financial markets and Forex to get their feet wet without risking losing their shirt. You could potentially get started with the very modest minimum initial investment of $200 - though $500 as a minimum is recommended for proper money techniques to be implemented.

With returns up to 85% per trade on an hourly basis the potential for profit is enormous if done correctly and smartly. There is also significant risk of losing your initial investment. Which is why proper money management is crucial in binary options trading. The ability to precisely control your risk and risk/reward profile is one of the great draws of Forex binary options trading and when you harness that risk, accept it and use it properly, you can do very well for yourself. We turned $100 into a bit over $1000 in just a couple days last week. We very well may have lost that $100 we started with. But, we could only lose a maximum of that starting $100 and we had the opportunity to profit much much more than $100. So you see, that's the great thing about binary options trading for us.

Opteck Reviews And Resources

Opteck Reviews And Resources - A Short List

A short list indeed. As a binary options broker which is both fairly new and known better outside of the US it can be difficult to find much information on this broker or any kind of Opteck reviews. We thought it might be helpful to throw together a quick post of some Opteck reviews and other resources.

Opteck Review Video

Opteck Facebook page with updates on binary options trade ideas on the opteck trading platform.

There frankly isn't a whole lot out there as far as resources for opteck trading but there is a lot of user feedback and Opteck themselves offers quite a bit in the way of resources. Overall, it's pretty clear that they are popular outside the US for a reason and considering their current aggressive courtship of US binary options traders there doesn't seem to be much doubt that we will be hearing more and more about Opteck in the coming months and years.

Visit the Opteck website and register for your opteck deposit bonus of 40% + $100 in risk-free trades!