Day trade the Japanese yen and the euro wisely*

(Go to http://www.yenman.com)

My mission is to make you above the industry average in annual return as a currency day trader.

Diversify your investment. Whether you invest in the stock market, trade options, hold futures, put your nest egg in hedge or mutual funds, why not look into currency trading. Foreign exchange or Forex trading is a worldwide market. Be part of it.

* Trading hours are from 01:00 to 23:59 Pacific Time (California).

- Open an account with a trading house of your choice that allows you to trade currencies on margin.

- Become a member of my service (yen, euro or both).

- You will receive a daily trading plan via email to follow according to the General Rules (see bottom of page) of the plan.

Thank you for your interest in my improved service. Please note that I do not offer training. Try the companies you are going to trade through; they can probably help you with this matter. Trading companies are all over the Internet, or even in the local newspaper and business journals.

To trade according to my plan, you need to get the same service I use to get the current price of the currency on a personal computer. You need to use the same charting service I use in order to see the same target I am looking at when it is hit to apply The Plan correctly (mainly exit Rule 4). You also need to open an account with a trading house that allows you to buy and sell currency contracts on margin.

For The Yen Plan I suggest a trading account of $50k (based on $2k margin required per open position). You need to modify the calculation below so that it fits the margin requirements with your broker. Use the following as a basis of calculation for minimum account required:

One position by the first entry that may be suggested by the first step of a trading plan.

Another one position (total is 2 open contracts) at the second entry level.

Another one position (total is 3 open contracts) at the third entry level.

Possible estimated floating loss of $777 (average loss on the first three steps of a plan on the long run assuming a normal daily range) on the two positions taken by steps 1, 2 and 3 above.

Add to that two positions just in case a reversal of positions takes place (total is 4 open contracts).

Assume a 24-hour trading margin requirement of $2k per open contract on each of the 4 positions (this is $8k in trading margin). This leaves you with an additional $41,223 safety cushion in the trading account that may be used in covering the bad days plus fees and commissions (some trading companies have a commission free trading policy).

This minimum account size is for your investment safety. You better be prepared for the worst and not deal with having to deposit more money as a margin at a time when you probably can not.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over- compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight (1). No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

The information contained in this site has been compiled in good faith, and in using it, the user agrees that the author and any other entities associated with this site shall not be liable for any direct, indirect, consequential loss arising from this usage, or the use of information and material on the Internet via web links from this site including, but not limited to errors, omissions, defects, interruptions, delays in operation, or transmission, computer viruses, or line failure, to the maximum extent permitted by law. Please note that trading is a risky business. You may lose your entire investment capital and more.

Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program.

One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight (2). In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the market in general or to the implementation of any specific trading program which can not fully be accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

You may need to know that in May of 2000 the CFTC took legal action against me. Here is the story: In late 1998 when I started my service I was not registered as a CTA, and I did not post the required legal disclaimer by the CFTC on my Website, I chose the phrase "the current account size I am trading is $75k" in my mind it was to show traders the account size needed to trade safely following my system (that was before I changed the trading strategy and subsequently reduced the account size to the current level). I got registered, added the disclaimer, and got rid of that phrase. Note that no body complained about my service it was an action taken by the CFTC against me. The sad part is the action does not go away regardless of its reason.

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(1) & (2) My trading system does not benefit from hindsight because I usually send my trading plan to my clients before the move in the market takes place. The result of The Plan is calculated at the end of the day as if a trader is following it to the point in the Forex market. My track record is not based on back testing but on day to day work.

For $50 I will send you via e-mail one yen or euro trading plan ($100 for both) that you can trade accordingly. A trading plan is normally good for one day (01:00 till 23:59 p.m. California Time - Pacific). Visit the account size page for more details. You can check out what some of my clients wrote.

I am off on major US holidays. If you become a member and would like to meet in Los Angeles, CA let me know. The Plan will not be sent to free e-mail addresses. If you provide me with your phone number I may be able to call you in case of emergency. You may pay for one or several plans at a time with a bank transfer (details provided when needed) or with a credit card.

The recipient of The Plan agrees to keep it absolutely confidential, and not to share it with, or disclose it to any person(s) or entity for any purpose. Note that a plan you pay for is meant to cover a trading account of up to $250k in size. Multiples of that size need to pay separate fee as if it was a different client. The user of The Plan further agrees that it is proprietary to Najib Taybi and that any shared use of its contents is a breach of this agreement as well as a violation of California law governing trade secrets.

It seems like trading both currencies at the same time may enhance trading result because since 02/09/04 (euro plan day one) there were only sixty nine times (69) when both the yen and the euro lost money on the same day/plan.

The Plan is a step by step daily trading plan to trade on margin. It costs $US 50.00 per day per currency regardless of the result.

* Wherever a Buy or a Sell is mentioned in The Yen Plan, it means Sell or Buy the US dollar. Example: if we Buy the yen at 111.00 and at the end of the day it goes to 110.00 then we make a profit.

* If you are trading yen futures you should do what The Plan states at the equivalent of that spot price in the futures rate. One simple way to do that is by monitoring the spot and the futures rate at the same time, and once the spot price indicated in The Plan is hit, place your order in the futures market. Use the same strategy to exit according to the General Rules below. For example: if The Yen Plan suggests Buy yen (sell dollar) and the yen goes from 120.00 to 119.00 in the spot rate (Forex) you make a 100 points in profit. At the same time the yen futures price may go from 0.009009 to 0.009091 making about 82 points in profit. In such futures scenario you want to Buy the yen (sell dollar) as well.

Note that day one of The Yen Plan was on November 9, 1998

Targets of the sample plan below were removed intentionally

The Yen Plan for trading day...

Start with the first step below and proceed through the following steps if the market price moves to the level indicated by each step. Use the hourly chart as your guide.

1. Sell one Japanese yen (buy dollar) contract now at 121.55

2. Sell one Japanese yen (buy dollar) contract at 120.45

3. Sell one Japanese yen (buy dollar) contract at 119.96

4. Stop loss at 119.86 Targets hit during the reversal hour to be ignored in that hour only.

5. Buy four Japanese yen (sell dollar) contracts at the stop loss level. The new stop loss on the positions taken by this step would be at 4 points above the recorded high of the day at the time these positions are taken.

Targets List

Yen Highs

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When this plan was prepared (5:00 Pacific Time) the yen was around 121.55 and the day's range 121.82 high - 121.09 low according to yen hourly chart. The targets in this list are used when applying (Rule #4) of The Plan.

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Yen Lows

119.86 (stop loss) 

targets below apply in case of reversal according to the last step of this plan

Results:

1. One Sell at 121.55 out at the close of the session (Rule 1) at 5:00 p.m. Pacific Time. Out at 122.35 = 80 points profit x $8.35 per point = $668.00 profit.

Note that day one of The Euro Plan was on February 9, 2004

Targets of the sample plan below were removed intentionally

The Euro Plan for trading day...

Start with the first step below and proceed through the following steps if the market price moves to the level indicated by each step. Use the hourly chart as your guide.

1. Sell one euro (buy dollar) contract now at 1.3757

2. Sell one euro (buy dollar) contract at 1.3809

3. Sell one euro (buy dollar) contract at 1.3844

4. Stop loss at 1.3854 Targets hit during the reversal hour to be ignored in that hour only.

5. Buy four euro (sell dollar) contracts at the stop loss level. The new stop loss on the positions taken by this step would be at 4 points below the recorded low of the day at the time these positions are taken.

Targets List

1.3854 (stop loss)

targets above apply in case of reversal according to the last step of this plan

Euro Highs

=======

When this plan was prepared (5:00 Pacific Time) the euro was around 1.3757 and the day's range 1.3776 high - 1.3732 low according to euro hourly chart. The targets in this list are used when applying (Rule #4) of The Plan.

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Euro Lows

Results:

1. One Sell at 1.3757 out at the close of the session (Rule 1) at 5:00 p.m. Pacific Time. Out at 1.3745 = 12 points profit = $120.00 profit.

Rule #1. (exit rule based on time) The Plan is sent a little after 01:00 California Time - Pacific Time. All open positions must be liquidated by 23:59 p.m. Monday through Thursday and at noon on Friday.

Rule #2. No hedging (having Buy and Sell positions open at the same time).

Rule #3. The trading account recommended to apply The Yen Plan is $25k ($50k would be great). This may vary depending on margin requirement. Visit account size page for details.

Rule #4. If a target price from the Targets List is hit exactly, or plus or minus up to three points a.k.a. Target Zone (TZ) look at the hourly chart. If the price continues not to break that TZ during the next hourly bar, then take the profit (or loss) on the opening of the following hour a.k.a. Potential Exit Hour (PEH) on one condition. See the F A Qs page for exit strategy.

Rule #5. A change in the interest rates, banks' interventions, major political and economic events, and acts of war may have an adverse effect on The Plan.

Rule #6. You must use the same data feed I use in order to apply The Plan correctly.

- What applies to The Yen Plan applies to The Euro Plan as well.

(go to http://www.yenman.com)