Original subtitles

have NFP and things like FOMC and we have those big interest

it's it's pretty easy to take a sizable hit now on days when we

you're in with 234 pips then you know you you can very very

minutes whatever your personal trade plan states of where you

single trading day. It should be become a part of your

especially be doing this every morning. If you're more of a

time you know you may want to do a little window of 510

prefer to use a Forex factory calendar I think investing have

as well do they have it on the right hand side here yeah so

if you open up the settings of the chart and then you go down

there so definitely something I would recommend and definitely

know is USD right at the New York Open around half one it's

for the week which is also pretty good so on the weekend

tight stops then you need to be very very aware of when those

not going to forget boom high impact news event around that

just move the mouse to there right 130 and then what I would

news by an hour or two and not being aware of it for reasons

right at 1: 30 PM essentially you know it's it's it's a

today let's say we're on Thursday and we have USPPI

and you may want to get rid of sort of the low impact news

currency pair pair or pairs that I'm looking at to trade

rather just kind of keep an eye out on all of them so yeah it

then you also have to be aware that sometimes you know Chinese

economic news can have an impact you know for instance if

just important right you don't want to be missing out on that

know I'm not that computer science sort of technically

resets so just keep an eye on it especially with daylight

if it's something to do with the cookies in the browser you

event you know the the actual results the forecasted result

actually do before you even do any of this make sure that you

kind of rough guide of generally how big these kind of

expect in terms of sort of intraday volatility and then

events tend to be so yellow being the least obviously

main ones are the CPI and then your employment figures as well

impact right obviously you never really know it's not as

Um yeah, it's just pretty useful and and yeah, keeps

that are usually released on the first Friday of every month

market conditions Okay, so there are a few sort of

shows the daily view and then just shows all of the news

news events are government elections. Uh the inflation

large amount of intraday volatility. Now the other

figures so you'll often see these denoted as CPI or the

these can often but not always have a pretty large impact on

manned sorry manned main the other main planned high impact

the market the most are the central bank announcements. So

this is where interest rate decisions are released. And

just you know anything that can cause large economic shocks so

to a potentially large market moving event now most of these

but like I was saying there are also unplanned events that can

you know such as economic data releases speeches by you know

know you know there's an natural disaster or something

they remove their exposure you know to pay any to any

it can do that but this can obviously happen when there are

they do not experience any potential heavy slippage

participants will close out of trades any trades that are in

less in the module on brokers. So don't worry too much about

because you know those those people and those market makers

is something that can be extremely when you are trading

those news events you can you can really get whipped about so

single day and make sure they're on your charts and it

by three pips but you can see you know in each case is quite

liquid periods of the trading day typically as this is when

on currencies that are part of the Asian time zone. So,

it's just not worth trading. Um don't forget to do this every

don't want to trade around that news event you just want to be

on such tight margins you know with tiny stops you know if

low levels of liquidity during those kind of events then yeah

rate decisions from the Fed you can see you know multiple

hundred pips movement that go on for days but yeah during

notes below. Um yeah and just make sure you do this every

are are quite common are good and I'll put them in the in the

easy especially even during CP like this when there's those

things pretty easy. So, this may look how this may be how it

to events here then you can click on show economic events

have these pop ups down here that should be related to the

Um but yeah definitely have these on here and then you want

that wraps it up on news and slippage. Um you know slippage

going to be high impact news very likely we're going to see

yourself in some tricky situations at times. So yeah

paid around with much so yeah I can't really vouch for it but

to just yeah more than be aware of that or you can really find

so yeah you might find that useful you might not I believe

trading routine. Um if you're a day trader you need to

makes most sense to you personally at the moment as you

aware of it and in that way you're not going to forget and

a brilliant one as well. Um I'll just find the ones that

suddenly you know if you start seeing large big spikes like

click on the calendar there so yeah play around with what

caused by US CPI yeah bang 130 yesterday there was CPI let's

introduced it's not something I really personally use or have

on the chart and then if click that and click okay it does

can click on it and then you get all of this kind of pop up

you know something you need to do you need to be aware of now

most common one. It's the one that I typically tend to use.

chart just so I'm you know ready and waiting and knowing

have a quick look on the calendar yesterday 130 yes so

dollar and I would go to where 130 is on my chart so if you

then hop on the charts right so say we're looking at Euro

sing trader then maybe just once a week's enough for you.

right and then you got a line there and then maybe you

they've they've got some more information here as well if you

that we're likely going to see a decent inch a day movement

automatically see that so down here I don't know if yes if you

if you click that and then sync it up with where 130 is so boom

another thing that you can use that Training View have

this you go okay boom I had news there I believe this was

then maybe make it red or you know so on before if you can

currency pair that you're obviously viewing at so you can

these line tools and then if you go down to your vertical

and this also typically sees quite a large amount of

want to make it a bit thicker just so you don't miss it and

was what caused this so this is why I would have this on my

do is if you go up here whether you have sort of trend lines on

that was that movement there right this CPI here yes today

fundamental factors but this is a pretty good guide you know

aware of all that stuff but for whatever reason sometimes it's

toolbar and just you need to be looking at this at minimum

make it dot or whatever right and then you know right you're

times on that currency is obviously they're quite heavily

come out yet so it's not going to give us that result

click into here and then you can literally go in you can you

some wine and spreads and some intraday volatility there so I

right right at that time so what I would then do is I would

Chinese currencies or what not you could get rid of that but

jazz and then what we show you for the day is show you the

simple as just you know yellow orange and red that that's

that can also be useful just because if you know there's a

slippage and what not but yeah so once you've got your time

now another main factor for when there can be low quality

connected as trade partners right so it's better I believe

previous results it's got useful graphs and all of that

of a bit more of a simple color code there for what you can

orange being the medium and then red being kind of those

kind of pretty much wraps it up just make sure you have the

which will get into when we talk a little bit more about

and then here you kind of have this color coding system so

times as well just to make sure that you do have these it's

out for in in terms of low liquidity and what tend to move

you know news releases are going to happen so for instance

economic news calendar websites that are really good that you

previous results you can quickly pop out that graph

savited savited saved as a favourite or bookmarked on your

you're looking for those intraday entries with quite

zone set up the the kind of another way you can view it is

so yeah what it would just show you is obviously the date the

anything probably just take off low impact and potentially

every weekend but if you are day training especially if

time of the news the currency that it's most likely to impact

and then the grey one here that is just for bank holidays so

services we don't need to get too caught up on that all we

know read all about it it's kind of more what you'd be

now one thing you can do is you can actually use this filter

you're trading the Australian dollar currency Chinese

medium as well if you wish to do so but yeah personally I'd

obviously you have the description of what the news

on Sunday when I'm you know I'm doing my watches for the week

just to keep that off if you are really going to filter

economic releases can have a quite a bit of an impact at

well so know that you're not going to trade you know any

want to be aware of that that I'm not entering a position

measure of inflation the change of price of finished goods and

the markets for instance like that and you can apply that

saves settings now what I often find is sometimes I don't know

events or potentially even the medium as well but I prefer to

there if you so wish to do so so the first thing I would

filter you can also just do the currencies that you trade as

line and then just save that to your favorites toolbar and then

have the right time synced up to your time so if you click up

US bank holiday then typically there's a lot lower volume in

looks the first time you ever jump on it and it essentially

click save settings now one thing I will say is although it

going to have you know a certain amount of impact on the

market moving potential events of the week ahead that affects

ads now you can see that's synced up to my time and you

ahead I will have a quick scan to see kind of what are the big

notes below the video. The Forex factory is probably the

can just play around with that for whatever you want and then

keep that on typically just get rid of the the low impact ones

obviously the actual result when it comes out this hasn't

release is and if you want a bit more detail you can just

doing if you're kind of really that macro trader and you can

the time on the top left hand side get rid of these annoying

look at all the previous data releases for that specific news

CPIs and the NFP is probably the yeah one of the biggest

but it does show you what the forecast would be and again the

yellow for being sort of the what's expected to be low

real high impact you know bigger movements so that's kind

announcements for sort of the main major currency of the day

can use and I will put a link to a few of them below in the

currency it's going to depend on you know so many different

intraday volatility so yeah do keep an eye on that FOMC the

going to, you know, likely have slightly higher liquidity than

the European a North American currencies during that Asian

in the market is around news events for pretty much the

are going to pull their resting orders from the market until

the news event has occurred so that they remove their exposure

reasons we've just discussed you know market participants

I'll show you where you can view these planned

sort of intraday movers as things stand with the current

sometimes if the market were to you know gap over the weekend

will obviously be on weekends of course when a lot of market

and they'll usually pull and cancel many resting orders that

market rolls over to the next trading day so for about an

the New Zealand dollar for example, you know, if you wish

big events such as elections for example or potentially you

to trade during the Asian session, just because these are

potential event risk that can happen over the weekend so that

they may have before the market closes for the weekend so that

know anything unplanned could happen over the weekend you

that just now. Yeah the other sort of low liquidity period

session timing so we'll talk about this in a bit more depth

choose not trade during this time. However, if the Asian

the the London and New York crossover those are the most

the orders are actually pulled from the market generally it's

when the market then reopens you know it's pretty rare that

currencies such as the Japanese yen, the Australian dollar, and

window now the other big factor to consider is the daily

and when New York opens whilst London is still open so we have

they do not wish to pay the rollover spot fees which we're

hour to two hours you what you'll see is that majority of

but this is where you may potentially want to concentrate

it is still more than possible to trade it profit profitably

the charts, you know, depending on your job and your lifestyle,

that you're going to want to be keeping an eye out on and

announcements in a second but the main ones to keep an eye

later in the program but essentially the London session

non-farm payroll and that is the American Employment figures

rollover and this occurs at 10 PM GMT every weekday when the

that's from the US Central Bank which usually will see a pretty

are events which you can track in an economic news calendar

going to talk about in a lot more detail in the trading cost

their initial announcement. Now FOMC is probably the main one

the forex market so therefore the Asian session you know

so again in brackets there we have NFP which stands for

typically has much lower liquidity and most traders

economists and politicians as well as government elections

slippage is a lot less costly because that only represents

the majority of the world's trading volume is executed in

session is the only time period in which you can be active on

loss sizes because slippage is going to be something you know

second example where you have a 30 pip stop loss three pip

hit the market without warning such as natural disasters or

10% of your initial pip risk so if you risk 1% of your account

your account size even though both trade stop losses were

So how can we try to anticipate where there will be low

experiencing you know negative slippage. Well liquid really

right because you only intended to obviously risk three pips

really need to pay you know special and close attention to.

liquidity so that we can potentially avoid trading

a big difference in terms of the actual loss that you book

a trader who trades with relatively you know small stop

depends on many factors but some of the main ones are

around these times in order to reduce our risk of potentially

slipped by the same amount right both trades were slipped

even more so than potentially other traders that you really

risk 1% of your total account balance on the trade you would

onto your account. So you know really bears in mind if you are

three pip slippage right so a six pip list sorry a six pip

actually end up taking a minus 2% hit instead now in the

balance on this trade you would then only take a 1. 1% hit to

loss is double what you had initially intended to risk

now you've lost six so that's you know 100% of your initial

risk so in this case on this trade if you had intended to

level than you had intended to close your trade app now

vary between brokers and will ultimately depend on the depth

only three pips that means that you actually be stopped out for

generally slippage can you know be anywhere from a micro pip to

of pips and in some rare circumstances sometimes even

a minus six pip loss in total when of course you include the

aware of those news announcements and periods where

what happens if you have a three pip negative slippage. So

there is likely to be that low liquidity and we're going to

essentially closing you out of the trade at a better price

of their available liquidity at the time now probably the main

can benefit from positive slippage by your broker

your favor however with your take profit orders where you

take a look at a couple of trade examples just to kind of

on this first trade example where your stop loss size is

hundreds or potentially even thousands of pips now it will

to be closed out of your position at a worse price than

level but like I said at the start this can also work in

you had initially intended which means that you're

you want to be closed out of your position if there are no

really drive this point home where we're going to look at

until you are filled at wherever that next available

going to essentially book a larger loss than you had

smaller your stop loss size is then the more you need to be

thing I want you to take away from this lesson is that the

anticipated due to being slipped and filled at a worse

out of your position then price is just going to keep moving

other orders at that level for you to trade with right to get

level of liquidity might be which means that you're likely

occur and go through so for example let's say price comes

with an equivalent buy order for that trade to actually

equivalent sell order and you know vice versa for every

to the level at which you set your stop loss order at where

seller order in the market to be filled it must be matched

bids and offers at pretty much every single price level but

in the market. So, the market is liquid there's going to be

to put through a reason order right it's going to eat up all

it's like that because remember for every buy order in the

market to actually be filled it must be matched with an

lower too right so this is where you know if someone was

or offers at certain price levels and all the quantity of

also with a large amount of volume on each of those price

levels right so it's going to take a lot of money to move

through that to to make price move up and down through those

next best available order and price can be quite erratic when

will often see price sort of gapping up or down to fill the

pretty quickly and this type of market condition is where you

of those bids or offers right and smash through those orders

orders however if it's a liquid then there may not be any bids

supply and demand at those price levels might be a lot

So, it's the ease to which a market can be traded without

Now, market liquidity is just essentially the amount of

slippage is almost always due to low available liquidity.

really affecting its price. So, this diagram here, it basically

demand and supply that is in a market at any point in time.

you had intended to for slightly more profit now

lines that you see here, each line represents a price level

illustrates what liquidity looks like in terms of an order

book in the market. So, all of these lines, each of these

position at a higher or better price level I should say than

order and then you can be slipped and stopped out of your

can also work in your favor too say if you set a take profit

at a worse price level than you had actually anticipated but it

be entered into a position or maybe stopped out of a position

initially set in your order so what this means is that you can

So slippage refers to when a stop or a market order is

executed at a different price level than you had actually

will save you a potential headache.