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How to Trade the FTSE 100

By Rob on July 23, 2013

Reading Time: 4 minutes

Want to know how to trade the FTSE 100 profitably?

Listen up because you’ve come to the right place! Not only will we tell you how to trade the FTSE profitably, you will then be able to apply this new found style of trading to any market so that you can take advantage of many more opportunities.

You see, what you may be surprised to when discover reading this article is that we trade all instruments or markets in exactly the same way according to the story the chart is telling us, using our set-and-forget style of Lazy Trading.

We look out for the same price-action set-up on the daily timeframe, have our same rules for entry, manage the trade the same way and select our profit target in the same manner.

Imagine having one trading strategy which you can use on currencies, indices and commodities on just one timeframe?

That’s trading price action in the way of The Lazy Trader’s forex training courses – keeping things simple and effortless but with maximum profit potential.

Not only will this style save you an abundance of time and money… it will also save you from jumping from strategy to strategy like a dog chasing his tail. Sound familiar? Face it, we’ve all been there!

So whether it’s trading a pin-bar-reversal on Gold, the FTSE, GBPCAD or USDCHF, we trade it the same way regardless of the instrument is! Our trading style, using price action, not only takes minutes a day to trade but can work universally across all markets and timeframes.  Unlike many others in the market who trade price action, we only stick to the daily and weekly timeframes as it gives us fantastic time/return benefits.

After all, our guess is that you chose trading mainly as a vehicle to make money / capital growth in the most efficient way rather than to be chained to the desk all day watching bars!

So we have now established why trading price action on the higher timeframes is the smart thing to do and that we can apply price action to all markets.

 How to trade the FTSE 100

Even though the FTSE 100 trade is below, we would have analysed the chart and traded it exactly the same way as if it was a currency pair or precious metal…this just happens to be the FTSE 100! We apply market analysis and understanding of price action to arrive at the conclusion: to trade or not to trade.

So how did we trade the FTSE in May? We traded it according to what we saw on the chart.

Multi year high

We saw that price action on the weekly timeframe was at a multi-year high and that the value of the FTSE had not exceeded this point since before the turn of the Millennium! So this gave us a very efficient entry at which to sell. After all, we can see that this chart has been essentially ranging for the past 13 years looking at the chart so it was a case of simply selling the top of the range at a key level of resistance or “supply” where people who were “long” will look to realise their profits. The level of resistance was a veritable concrete ceiling and the probability was the price action was going to shoot off it.

So, the analysis done, we then looked for our entry. After all, we can’t just jump into the market without our signal or “green light” because that’s what amateur traders do in the fear of missing out.

We found our signal though on the weekly – a bearish pin bar reversal which we used as our entry confirmation to enter. Even though we normally trade the daily timeframe the fact that it was the weekly (and a higher order timeframe)  against such a strong level, we took it short and our clients did also.

We calculated the trade’s profit potential to be in excess of 18.6%. It looked like the ‘great kahuna’ run. We set the orders up and walked away.

On the 31st May we took this trade short on the FTSE’s weekly chart and sat patiently in this for five weeks.

The trade went nicely into profit instantly and did not come back! Some clients took profit and exited the trade as the first “take profit” level, making a 6.5% return on their capital in week 4…others held on in there waiting to make more potential profits by leaving their trade open…it was a risk, but where there’s risk, there is reward.

We traded the FTSE according to what we saw on the charts we applied our market analysis and understanding of price action (which works in all markets) and saw the opportunity which was traded exactly the same way as it we were trading Cable, the Loonie or Swissy.

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That’s set-and-forget Lazy trading price action from only minutes a day. To find out how this style of trading can benefit you and how easily you can seamlessly integrate it into your lifestyle, check out our flagship programme: The Lazy trader Ultimate.

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Rob

The Lazy Trader is a publishing brand dedicated putting the fun back into finance, presenting powerful wealth creation strategies for a better world.

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Rob

The Lazy Trader is a publishing brand dedicated putting the fun back into finance, presenting powerful wealth creation strategies for a better world.

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