Video Training Content by Jason Alan Jankovsky
Join us for this informative five video series on various topics. You will be a better trader with these videos.
They are provided courtesy of ForexBriefings.com
Currency Investors Group Videos
Why one commodities trader made the switch to forex trading
Chris McMahon provides insightful Q and A featured on http://forexbriefings.com and http://FuturesMag.com with Jason Alan Jankovsky of Core Financial Group.
Jason is a content provide to Currency Investors Group, Chicago Board of Trade, ForexTV, Online Trading Academy, and other top training and trading firms.
On the art of a trade
From FuturesMag.com
2/26/2009
By Chris McMahon
Before Jason Alan Jankovsky became a forex trader, he traded Chicago Big Board corn, calling his orders in to his broker. But his trading didn’t really take off until he began to understand the relationship between buyers and sellers. When his broker explained the concept of short selling, it dawned on him that he could make money as the market rose or fell. “That was a huge stepping stone to becoming a full-time trader because then every market opportunity became my market opportunity.”
Jankovsky was hooked. He became a registered series three broker in 1987, trading the market of the moment, switching from grains, to oil or gold. And in the days before electronic trading, it would take days or weeks for the market to make a move for him or against him.
“That was wonderful when you were on the right side , because there were days or weeks of price action that would work for you. When I was on the wrong side, it was constant anxiety. I would watch the news or read the newspaper and see that beans were down 10¢ and I’d be like, ‘Oh my god!’ Figuring how much that means to me.”
He made the switch to forex trading in 1997, prompted by the advent of electronic trading. His first impulse was to trade very short time frames, making use of instantaneous execution. But as he gained experience, he came to realize that analyzing order flow in multiple periods allowed him to see the activity of all market participants, and most importantly institutional traders. “You may trade short time frames, but you need to know what long time frames are thinking. The larger time frames are what drive the trade,” he says.
Markets are zero sum transactions, he explains, everyone who executes has to use an opposite side transaction to liquidate. Traders liquidate for a cash loss, or liquidate for a gain , and that order then join’s the dominant order flow, adding to the momentum. “Everyone piles into one side and what we see as price movement is the liquidation of losing positions. That was never explained to me.”
Another implication is that liquidation is what drives the market. For example, in a rising market, Jankovsky says the best place to buy is a long-liquidating break. “You want to buy just about where the selling orders are running out.
“People are taking losses and decide to liquidate and that’s the dominant order flow. When that runs out, then the market moves the other way. What we see is the ebb and flow; we are trying to buy low and sell high but what is typically happening is people are buying high and selling low. To participate, you have to know where the losing order flow is.”
To date, the most import lesson Jankovsky says he learned came from blowing out his account on Sept. 11, 2001. “There was no way you could have prepared for that and that is what was so debilitating for me. What I learned is that there is no way to predict when the market will reverse and what you need to do is be prepared for that every day.”
After taking some time off, he returned to Chicago and to trading as a broker and educator at Infinity Futures, where he put those lessons to use. To protect himself, Jankovsky is always moving his s tops closer to the market , and when he is adding to a position, he has already picked his ‘get - me - out point,’ so if the market reverses, his ord ers will be the first initiated .
“I am always available to reenter the market, which is something most traders don’t do. They put a position in; if they get taken out, they move on to the next trade. There is no next trade. It’s all one trade. It’s always happening. The bottom line is you always have to be thinking about catastrophe because sooner or later that’s going to happen and you w ant to be flat at that point.”
It all comes down to being prepared to act and appreciating the difference between what you can and cannot control, he says. “I don’t care what the market does; this is what I am going to do to protect myself. If I am on the right side of a big kill, that’s wonderful . In the mean time, I can’t lose any money. My effort is to protect my money through the day and start tomorrow with a new position.”
Jankovsky started Core Financial in 2003, trading his own account and mentoring clients. He has written two books, “The Art of the Trade” and “Trading Rules That Work.” He says that he is completely absorbed by the markets and for him to enjoy anytime away from his trading desk, he needs to be flat. “My entire world is the markets. If I am not trading, there is some reason that has to do with getting better at trading,” he says.
Individually Traded Forex Volume Exceeding $105 Billion Daily
Numbers have been tough to come by. This resource may be the closest to real number one may find for a while.
Forexmagnates.com from Michael Greenberg
“I know you’ve been expecting it so here it is: The largest and most up-to-date report detailing the average trading volumes by retail Forex brokers. The report shows that all prior estimates were far from the actual figures. Retail forex volume doubled itself in less than two years and the total average daily volume is well above $100B.
Largest retail Forex broker, as you probably already know, is FXCM with Oanda coming in at a distant second place. It looks like FXCM’s domination is all but complete and all that is left for others is the competition for 2nd and 3rd places. Good luck Oanda, Gain, Saxo and GFT.
The numbers as were officially, and to some extent unofficially, released by the brokers themselves:”
The figures are incomplete as some brokers such as FXDD, FX Solutions and CMC simply don’t report or disclose their numbers.
Are you an investor who needs to become a trader?
I’ve been researching some terms lately. Let’s define the terms in traditional ways first, shall we?
Investor - A person who purchases income-producing assets. An investor as opposed to a speculator usually considers safety of principal to be of primary importance. In addition, investors frequently purchase assets with the expectation of holding them for a longer period of time than speculators.
Trader - A person who buys and sells securities with the goal of profiting from short-term price swings.
Both of these definitions come from dictionary.com and in most ways, no one would have any issues with the definitions. They make sense and fit our notions of how we have been taught to view the terms.
Now let’s look at the terms and definitions as it relates to what is happening in the marketplace. There are key distinctions we should note. The primary difference is in the term or time period associated with the “position” in which one puts their money. The investor has traditionally place his money in the hands of someone else, their home, an institution or account of some kind with an understanding and belief that it would somehow miraculously grow without his attending to its care.
The trader places his own money into play with the knowledge that it’s his skill, research, and plan that determine the outcome. In most cases the trader has to accept responsibility for his own actions. He pulled the trigger, he called the ball, and he has to live with the consequences.
The investor has to face the fact that they allowed someone to make the decisions for them. They let the market decide the upside or downside. They let the institution decide what the best course of action was for their hard earned dollars.
In a perfect world, corruption doesn’t exist, we live long enough to make it through tremendous swings in the markets, and our investments all play out over years.
There is a growing sentiment in the market place that its now time for investors to stop considering themselves investors and start considering themselves traders. Its been my contention for months now that investors were actually gamed by companies simply “trading” their investments.
In other words, to keep pace with the market place greed, that’s you and me, and our desire for ever increasing returns, the people that were trusted with making good decisions with investor money, instead fell prey to short term “traders” mentality.
This leaves a majority of investors with some tough choices. Do they ride the wave? Do they get more active? Do they find ways to take control? All will ultimately make a choice. As the Baptist Pastors will all say during the alter call, you’re going to make a decision today one way or another. Leaving without accepting the call is a decision.
We are being called to step up. Circumstance is forcing the hand. For now, buy and hold is dead. It is dead until its not. There are ways to take control of your money.
How investing is changing before our very eyes.
How will investors behave with no newspapers?
Educating “Investors” in Today’s Marketplace
Volatility. In today’s market, it is the only certainty. I am sharing an article today. Give it a quick read. It serves to make an important point.
Turning 401(k) Investors Into Educated Consumers
By John Morgan, Money Management Executive
May 20, 2009
Asking investors to properly maneuver their 401(k) plans in a market like this is akin to an airline pilot stepping aside and telling passengers to take the controls mid-flight.
Workers never asked for so much responsibility in controlling their own retirement future, and most have no idea what to do now that the plane is losing altitude. In fact, most investors seem to be in shock and are doing nothing at all.
A persistent problem with the mutual fund industry is the lack of education among its customers about how to manage their own retirement savings. Ignorance was bliss when equities were historically delivering 10% average returns, but the tide has turned.
The first wave of Baby Boomers realized they did not have enough savings and decided to bet on risky equities to make up for the shortfall. That gamble backfired when equities in nearly every asset class plummeted last year. Now vastly underfunded as they approach retirement, most Boomers are skeptical they will ever get it back.
YouCanTradeCurrency
Financial information is very confusing to the uninitiated. The vocabulary is difficult, the products are complicated, and the professional advice isn’t always right.
If the fund industry can encourage its customers to become more financially savvy, without stepping on any conflict-of-interest tripwires, its investors will be able to shop for the best products at the lowest cost and keep more assets under management.
Younger workers-particularly those in my generation-are getting an early and valuable lesson about market volatility. Buy-and-hold investing is obsolete in an era where one bad year can wipe out 20 years of gains. Younger workers still have plenty of time to more than make up for losses, but will be wary going forward of future bear markets.
These investors are plugged in to a myriad of information available instantly at their fingertips. As technology continues to advance, this will lead free-thinking investors who will be able to take responsibility for learning how to navigate their savings. Funds would be wise to become the source and the inspiration for that learning.
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For the second time in as many weeks I am hearing or reading about “Buy and Hold” being a dead investment policy. I like this article due to its bend toward an investor taking personal responsibility for his/her actions. The natural extension of taking personal investment responsibility is to become a trader. It’s time that a significant portion of the investor community become traders. After all someone out of their control was “trading” their investment dollars and look where it left them.
Personal responsibility can lead to results.
Our company is taking a lead in minimizing the training and technology hurdles associated with learning how to trade foreign currency. Take a look at our solution and offer some feedback if you wish. The link leading to our Training and Technology package is http://youcantradecurrency.com.
Weekly FX Outlook
Weekly Forex Outlook
Tue, May 26 2009, 09:01 GMT
Last week’s currency trading review
The Dollar moved dramatically lower on concerns that the AAA debt rating for the US is not sustainable. The focus was initially on the UK economy when Moody’s put that rating on negative watch. The other major negative USD story was the FOMC minutes which showed expansion of the Fed Bond buying program was a possibility. US April housing starts dropped to 0.46M vs. 0.53M previously. The Euro surged towards the 1.4000 level as the market aggressively sold the USD giving the worlds second largest currency a major boost. German Zew Survey showed a nice rebound to 31 vs. 13 previously. May PMI surveys were all better than expected but still comfortably lower than 50 expansion mark. The EUR/USD gained 3.59% closing at 1.3997, after opening the week at 1.3494.
The Japanese Yen strengthened against the friendless USD but was still dramatically weaker against risk currencies who received large boosts from their respective majors. The BOJ held at 0.1% but did upgrade there economic view for the first time in 3 years. The USD/JPY fell -0.47% closing at 94.77 after opening at 95.22. The GBP was the largest gainer against the greenback as resistance at 1.55 gave way. EUR/GBP and GBP/AUD also experienced solid gains as the Pound outpaced. Retail Sales were +0.9% vs. 0.5% previously. GBP/USD gained 4.67% closing at 1.5921 after opening at 1.5177. The AUD surged above 0.7800 to fresh year highs. RBA minutes showed a month to month approach to rate decisions along with a lowering of growth outlooks. Of main concern was the deterioration of the terms of trade. The AUD/USD closed up 4.28% at 0.7825 after opening at 0.7490.
The forex trading week preview
In the States; In a short week due to Memorial Day Monday the highlight will be the revised Q1 GDP. On Tuesday May Consumer Confidence forecast at 43.0 vs. 39.2. On Wednesday, April New Home Sales are forecast at 4.66M vs. 4.57M previously. On Wednesday, Durable Goods Orders are forecast at 0.5% vs. -0.8%. On Thursday, weekly jobless claims are forecast at 630K vs. 631k previously. On Friday Q1 GDP is forecast at -5.5% vs. -6.1% previously. We will provide our previews and reviews of these data releases in the daily summary.
In the Eurozone; On Tuesday German ZEW Economic Sentiment survey forecast at 20.0 vs. 13.0 previously. Also released, Q1 Final GDP is forecast to remain at -3.8% q/q. On Wednesday, German CPI is forecast at -.2% vs. 0.7% previously. On Thursday, the May German Unemployment rate is forecast at 8.4% vs. 8.3% previously. In the UK; on Thursday we have GFK Consumer Confidence forecast at -25 vs. -27 previously. We will provide our previews and reviews of these data releases in the daily summary.
In Japan; On Thursday, Retail Sales are forecast at 0.5% vs. -1.1% previously. On Friday April Industrial Production is forecast at -32.5% y/y. We will provide our previews and reviews of these data releases in the daily summary.
In Australia; Quiet week with Q1 Capex forecast at -5% on Thursday. We will provide our previews and reviews of these data releases in the daily summary.
TECHNICAL COMMENTARY
Euro – 1.4020
Initial support at 1.3728 (May 21 low) followed by 1.3531 (May 19 low). Initial resistance is now located at 1.4058 (Jan 2 high) followed by 1.4148 (Dec 31 high)
Yen – 94.65
Initial support is located at 93.54 (Mar 19 low) followed by 92.52 (Mar 19 low). Initial resistance is now at 96.70 (May 19 high) followed by 97.84 (May 12 high).
Pound – 1.5920
Initial support at 1.5519 (May 21 low) followed by 1.5450 (May 21 low). Initial resistance is now at 1.6198 (Nov 5 high) followed by 1.6464 (Oct 31 high).
Australian Dollar – 0.7825
Initial support at 0.7630 (May 19 low) followed by the 0.7451 (May 18 low). Initial resistance is now at 0.7929 (50% retracement of 0.9847-0.6012 decline) followed by 0.8097 (Sep 30 high).
Gold – 957
Initial support at 936 (May 21 low) followed by 925 (May 20 low). Initial resistance is now at 967 (Mar 20 high) followed by 978 (Feb 25 high).
Trusted Resource for Currency Trading News
This great site recommendation comes from our Cheif Training Officer at Currency Investors Group. When a trader, one that actually makes his living trading, recommends a resource, I tend to listen.
This from http://marketnews.com
Our Mission
The mission of Market News International is to focus all of our organization’s strength, talent, and will toward providing our customers in the financial markets with the most timely, insightful, pertinent, and usable news and intelligence deliverable. To this end, each employee of MNI is committed to:
Treating the needs of the customer as paramount at all times, and doing everything possible to ensure the satisfaction of the customer and to help them attain their goals, while at the same time maintaining the highest level of journalistic and business integrity;
Working relentlessly to win the competitive race, regardless of the size of the competitor;
Delivering increasing value to shareholders and customers each day;
Respecting each of our fellow employees and behaving toward all of them in a professional, cooperative and positive manner, and looking always at what is best for MNI;
Thinking and acting creatively to take full advantage of changes in technology, the information industry, and the financial markets to enhance our ability to offer value to our customers;
Continually enhancing and developing our resources in order to serve our customers more effectively each day.
Just had lunch with a trusted commercial loan “work out or special assets” officer
Greetings,
I just had the good fortune to lunch with a brilliant mind. This individual is a graduate of a prestigious, very prestigious, European School where he did his MBA work in currency theory. Needless to say, he is trader, not just of currencies but some other commodities as well.
Our discussioin went to how he was spending his day and I discovered he was spending the entire time in special assets and work outs. For some reason, this brought it all home to me. A bright, some would say brilliant mind, being spent assisting in the negotiation of bad debt. What a sign of the times.
He discussed the coming real estate bust on the commercial side. The absence of any, that again, ANY commerical money available for lending to the commercial property owners when their bullets come due. Perfectly working, rented, cash flowing, performing properties be sold for 70 cents on the dollar in the future because the trillion plus dollar train wreck is not being addressed. Wow…I was blown away.
I googled an article and share it here. It sheds additional light on this scenerio. My question? How do you see this affecting the currency markets as it pertains to the average spot trader?
Bookmark Worthy Daily Forex Updates
This host of morning updates may help you in trading today. It’s good content with out spam and hype. Bookmark for future use.
Currency Investors Group Sponsors Nashville Career Transition Presentation
Currency Investors Group, LLC will sponsor the Nashville Entrepreneurs Meetup on June 10th for its Career Transition Meeting. The presentation, given by Career Transition Expert, Ed Condon, will feature pertinent information for those in career transition.
Sherman Mohr, CEO of Currency Investors Group, LLC speaks of the company involvement this way, “Career transitions are a way of life in today’s environment. Entrepreneurial ventures may be one way an individual secures a future that they otherwise might have not thought possible. Ed Condon is a professoinal and the Nashville Entrepreneur Meetup fosters startups, new business ventures, and collaboration in tremendous ways. The evening of training, networking, and community is just one way Currency Investors Group gives back.”
Currency Investors Group, CEO
Those interested in the evening may click the link below to reserve their spot.
Nashville Entrepreneurial Career Transition to Business Meeting
