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Presentation example 1Date 2013

Building blocks of trading

strategy

Vito HenjotoSenior Technical StrategistJuly 2013Twitter @vhenjoto

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General Advice and Risk Warning

Please note that any advice given by Invast staff is deemed to be GENERAL advice, as the information or advice given does not take into account your particular objectives, financial situation or needs.

Therefore at all times you should consider the appropriateness of the advice before you act further.

CFDs and Forex are leveraged products and carry a high level of risk and are not suitable for everyone. You can lose more than your initial deposit so you should ensure CFD and Forex trading meets your investment objectives. We recommend you seek independent advice. Strategies and charts used in this presentation are for example only. You are reminded that past performance is not indicative of future performance.

Invast Financial Services is regulated by ASIC. It's important for you to read and consider the relevant Product Disclosure Statement and Financial Services Guide which contains details of our fees and charges before you decide whether or not to acquire any financial products. These documents are available at www.invast.com.au

Invast Financial Services Pty Ltd ABN: 48 162 400 035. Australian Financial Services Licence No.438 283

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Agenda• Identify your style

• Time-frame consideration

• Analysis methods• Price analysis

• Indicator based analysis

• Important Tips to consider

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Identify your trading styleAre you a :

• Scalper

• Intraday trader

• Swing trader

• Position trader

A trading Strategy will vary depending on the trading style.

The same strategy that works for one trader might not work for another because of this.

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Example GBP/USD 15-Minutes

Source: Invast Mt4

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Example GBP/USD 5-Minutes

Source: Invast Mt4

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Things to consider

• Same entry strategies but likely a different- exit

strategies.

• This is due to range of the market as reflected on a

different time periods

• Consider price range when creating a strategy.

• Ideally, every trader have multiple trading strategies to

accommodate different market conditions

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Tools of Choice

• Fundamental analysis

• Technical Analysis• Price Analysis

• Indicator Based Analysis

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Price Analysis• Trendlines

• Chart Patterns

• Elliot Wave Theory

• Harmonic Patterns

• Fibonacci based analysis

• Candlestick Patterns

• Renko

Advantage

Quick to react to price changes

No Ambiguity

Precise Exit Levels laid out

Disadvantage

Takes time and experience to properly utilize

Can be subjective if the signs are not obvious or rules misunderstood

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Chart Pattern Examples

Source: Invast Mt4

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Fibonacci Examples

Source: Invast Mt4

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Indicator Based Analysis

Most Commonly Used Indicators

• Moving Average

• Bollinger bands

• Stochastics

• RSI

• MACD

Advantage

Relatively easy to learn

Widely used by traders of all levels

Can be easily adjusted to suit different needs

Some Indicators able to filter out market noises

Disadvantage

Majority of Indicators are lagging

Reacts slower to market changes

Entry and Exit not optimal

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Technical Indicator

• Metrics derived from price/value

• Aim to Predict future market movement

• All Technical Indicators are based on past price information

• Categorize into 3 main type:

Trend Confirmation

Oscillator (Overbought/Oversold)

Market Limiter

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Bollinger Bands

Envelope indicator based on Moving Average and standard deviation of price.

Bollinger bands consist of the following:

• Middle Band = N period SMA.

• Upper Band = Middle band + 2 Standard Deviation.

• Lower Band = Middle Band – 2 Standard Deviation.

Bands = volatility of the market.

Wide Apart = Higher Volatility

Narrow = Lower Volatility

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Bollinger Band Examples

Source: Invast Mt4

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Bollinger Band Examples

Source: Invast Mt4

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Other important tidbits

• Exit Planning

• Keep a Journal (see Note)

• Learn to properly manage your position

• Market volatility created by traders trading the market

• Market is trader against trader

• Market mentality = herd mentality

• Key to success – figure out which side you have to be on, BEFORE

the herd has moved

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Summary• Identifying trading style is crucial

• There is no such thing as a multi purpose trading strategies

• Always have multiple strategies available to suit different market conditions

• Keep a record of your trading

• Understand the nature of the market

• Understand what is the current market condition

• Review your strategy every few months, market is dynamic and ever-changing

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$100 Deposit Bonus – Invast Expo Special

How to Claim your bonus

1. Open an account between 19th – 31st July 2013

2. Deposit $1,000 or more into your trading account

Speak to our friendly staff for more details

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Invast Seminar Schedule Friday & Saturday

Time Title Presenter Location

10:15am Biggest moves overnight – identifying the key levels to plan ahead

Vito Henjoto Stand 326

11:00am Strategies to unlock and ride the big trends Vito Henjoto Stand 326

11:45am Post Aussie Dollar and Resources Market Slump – Where the Smart Money is flowing Now

Peter Esho Exhibitor Seminar Room 1

12:00pm From 80’s cowboys to the high-tech present day – How FX trading has evolved

Gavin White Stand 326

1:00pm From Amateur to Professional Trader – the No.1 Missing element

Ashley Jessen Stand 326

2:00pm Two quick ways to value a stock for quality investment decision making

Peter Esho Stand 326

3:00pm Professional versus Amateur Mindset – Are you making these mistakes

Vito Henjoto Stand 326

4:00pm How to create High probability trading strategies Vito Henjoto Stand 326

Register at the Invast Stand [326] and receive:• All Slides emailed to you• Invite to our advanced trading webinar• Free $20,000 Demo Account

During this webinar Peter &Vito will cover:• Analysis of the Forex markets• Analysis of the leading Aussie stocks• Live Q&A Session

Bring your favourite charts for the team to provide analysis over.

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