daniel-cheungDaniel Cheung is a fitness fanatic who fell into trading in 2010 after watching his friend profit from stocks after just 3 years in the markets. Daniel moved on from trading stocks, due to the high fees, and began working at a brokerage firm where he saw guys making $24k in a day trading Forex.

In the show Daniel reveals:

  • The strange way bank traders approach the market
  • How to make sure you don’t get stung by a dodgy broker
  • A special type of chart that makes it easier to read trends
  • How his favorite Doji entry signal works

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Personal Info

30: From Broker to Forex Trader, Daniel Cheung Reveals the Truth Behind Currency Trading
00:00:00 00:00:00

Preferred Broker/Platform:

  • GKFX (Hint: ask for Pan or email supak.sartsanith at gkfx.com – say Dan sent you and she’ll looked after you)
  • Pro Real Time

Interview Links

Key Lessons

General

  • You always have to keep developing your strategy because the market is always accommodating more and more people
  • Forex is a zero sum game – if you take out the fees
  • Daniel recommends the Heikin-Ashi charts to help make trends easier to spot by seeing the average over time and less fake outs. Click here for more on Heikin-Ashi 
  • Daniel wins 60-80% of trades
  • Intra day profit targets are 1:1 or 1:2+
  • Sometimes he’ll take ¾’s of a position out and move his stop to BE, then trail profits
  • Trades from 8-9am GMT, for the EU UK handover, until 12pm and sometimes 1:30pm for the US opening
  • Success never comes without failure, but you must be disciplined. The key is to learn from your failures
  • Make sure your broker is regulated
  • You may get put on a separate book by your broker when you first open an account and your stop losses may get hit more often than not
  • Bank traders are focused on retention not growth. They want to retain a certain amount of money, keep the trading frequency high and focus on generating commission, not growth. If someone wants to withdraw then they have enough money in the pot to pay the customer
  • Having more “screen time” is the number one thing you should focus on
  • Managing your account size is key to your trading success, i.e. risk management
  • Invest in education and not your trading account first
  • Find an approach to trading that works for you
  • I don’t use Fundamental analysis because banks and companies have more information than retail traders (unless you pay lot of money for the information)
  • It’s all about charting, not trading
  • Intra day: Look for price action levels where the price has stalled at a level and set your stop loss/take profits at these levels
  • Stay clear of FxPro brokerage
  • Spread betting is tax free in the UK

Strategy

DanielCheung-SwingTradingStrategy

Click image to enlarge

  • Trend continuation
  • Swing Trading on a Daily, 4 Hour or 1 Hour charts
  • Draw your retracement using Fibonacci by connecting the trend top to bottom
  • Let the trend retrace, i.e. hit 38.2 or 61, any point
  • Let it hit the level and on the first big bar down enter the trade
  • Set your TP at the previous swing low and the SL just above the swing high aiming for 1:3 risk to reward

Favorite Entry Setup

  • Change of color in a Doji pattern
  • If it’s all green, turns red and then green again

Have a question for Daniel?

You can reach him on CK-Capital.co.uk (Note, Dan was previously at LiveTraders.net, as per the show). You can also email him on dan@ck-capital.co.uk.

Or, leave a comment below… I’ll make sure it gets to him.


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. 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 MARKETS IN GENERAL, OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM, WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

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CFTC - U.S. Government Required Disclaimer:

Forex, futures and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. Our website, product contents, and materials are neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our website or in any materials. The past performance of any trading system or methodology is not necessarily indicative of future results. Substantial risk is involved. Forex trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex markets.

Don't trade with money you can't afford to lose. Nothing in our course or any materials or website(s) shall be deemed a solicitation or an offer to Buy/sell futures and/or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on our site. Also, the past performance of any trading methodology is not necessarily indicative of futures results. Trading involves high risks and you can lose a lot of money.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT 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. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.