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Wednesday, October 31, 2012

Leni Gas & Oil – Price Moves Upwards


Leni Oil & Gas stock (LSE:LGO) has become a kind of pay dirt for speculators. The market, which was in a vivid downtrend until recently, is now in a new and intriguing uptrend. The price aptly apes what is typical of valid northward reversals; as a large chunk of bears’ trail is lopped off.

 

Technical Forecast

As it was mentioned earlier, the market was in a downtrend until last week. Before this, the market was in an equilibrium zone, as marked by the two parallel trendlines on the chart. Last week, the price breached the upper trendline to the upside and eventually closed above it. Since then, the price has gone up significantly. It can also be seen that the Relative Strength Index (RSI) period 14 has long crossed the level 50 to the upside, and is now in the overbought territory. This is expected to cause the price to pull back temporary.

 

The price was at 0.82 as this article was being prepared. There are accumulation zones at 0.70 and 0.65; there are also some vulnerable distribution zones at 0.85 and 0.90. Normally, the market pressure increases in a bear market and decreases in a bull market. At times, however, an exponential bull market could also cause pressure to increase. Pluses and minuses of bearish and bullish pressures apart, the markets dynamic remain the same – just as they were, decades ago. Only that bearish or bullish pressure is more intense. Prices move significantly indeed. Despite the vagary of the financial markets, gains are made consistently by skilled speculators.

 

Conclusion: Speculation is essentially a probabilistic thing. Leni Oil and Gas shares offer a really good opportunity to go LONG. In other areas of human endeavors, certain programs, processes and actions usually produce predictable and calculable results. Such things that work in other areas of human endeavors might not be useful in trading. Yet, there are techniques in trading that work.

 

This article is ended with the quote below:

 

"The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading..."- Victor Sperandeo

 

NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com

 

 

Azeez Mustapha

 

Market Analyst, Trading Signals Provider and Coach

 

Copyright (C) ADVFN PLC

 


 

NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

 

Send the request to: saazalmu@yahoo.com

 

Open an account here: eng.fxclearing.ca/ib/915


 

Tuesday, October 30, 2012

Caza Oil & Gas Stock Is Attractive

Caza Oil and Gas stock (LSE:CAZA) is vividly attractive, as speculators would see. This is not declared because of a herd mentality, but because of a valid technical reason. Panic buying is considered a bloomer, unless the reason for doing so is judicious. Do not chase the markets – a dog must not chase a leopard.

 

Technical Forecast

On the chart below, we can see that the company price chart was in a protracted southward bias prior to the current technical development which makes the stock attractive. In the months of August and September 2012, the market price found some adamant accumulation zones and found it impossible to continue to nosedive gradually as it had done before. After some period of indecision, there was a noteworthy northward breakout. The upward breakout started in September and has continued till now. The Exponential Moving Average (EMA) period 21, and the Williams’ Percentage Range period 20 are used on this chart. This month, the Williams’ % Range reached the oversold region, i.e. below -80, and then moved up sharply towards the overbought region, i.e. above -20. This means that there could be some corrections on the chart before the price continues upwards. Meanwhile, the EMA 21 is below the current price (this is the same indicator that was trending downwards a few months ago). The EMA is now heading upwards as the price remain above it – BUY!

 

The latest candle on the chart is seriously bullish: showing the bulls’ supremacy. The price is now at 9.625, with resistance levels at 10.00 and 10.50. Immediate support levels are at 9.00 and 8.50. Even when your trading rules have been clearly detailed, or you are trading according to a winning technique, you would need to speculate just according to how the rules are laid out. It is a fact that plans are easy to make but difficult to execute. Since you can also make money from this market, it will do you little good to dwell on the things you dislike about the market. Instead, get motivated by considering the benefits that an attractive market like this one proffers.

 

Conclusion: When a stock price is in a bullish mode the price goes up to form higher highs. Alternatively, when a stock price is in a bearish mode the price goes down to form lower lows. Caza Oil & Gas shares have good potential for investors and traders, as gains are compounded from them and other attractive markets. Decent gains are realized when sensible profits accumulate constantly. I would prefer you to be a speculator who becomes wealthy slowly but steadily (as most successful speculators have done). Compounding returns are highly satisfactory in the long run, and this is one of the beauties of trading.  

 

This article is ended with the quote below:

 

“Sometimes the best setup goes wrong and you have to exit the market at your stop-loss without  hesitation… you have to be able to control yourself to be able to control your trading.” – John Netto

 

NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com

 

 

Azeez Mustapha

 

Market Analyst, Trading Signals Provider and Coach

 

Copyright (C) ADVFN PLC

 


 

NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

 

Send the request to: saazalmu@yahoo.com

 

Open an account here: eng.fxclearing.ca/ib/915

Friday, October 26, 2012

Jesse Livermore: The Greatest Stock Market Wizard?


LEARN FROM GENERALS OF THE MARKETS - PART 10


“Trading is a skill. You were not born a great trader.” - Mike Bellafiore

Jesse Livermore lived from July 1877 until November 1940. He made (and also lost) millions of dollars of fortunes by going short when the markets crashed in 1907 and 1929. In 1907, he went short when he noticed a bearish trend in the market. As a result of this, he made three million dollars. He later gave away ninety per cent of that fortune because of some bad trading styles. This made him fell into debt. Later, he regained his fortune during the Second World War, and began to live an affluent life. In 1929, he saw price patterns and fundamental developments that were like the ones that occurred in 1907. Almost everybody lost their portfolios as the markets crashed that year, but Jesse ultimately made one hundred million dollars because he went short during the crash. Unfortunately, his personal life was filled with divorces, eventual failures in the markets, and lost fortunes. Sadly enough, he ended his own life by committing suicide. 

Jesse Livermore is considered by many speculators as the greatest trader that has ever walked on this planet. He blazed unique trails in the trading world. His valid and winning principles have been explained in details in some books that were published about him.

Lesson
In spite of his success and failure, we can learn good lessons Jesse:

A.        The majority aren’t always right. So, don’t be afraid to be different. Jesse Livermore made fortunes because he followed the line of the least resistance, i.e. he followed the flow of the markets. The markets were crashing, but many people were holding onto their long positions. That was suicidal. Holding your positions against the trends while hoping that the markets would turn in your favor is definitely not a good thing.

B.        Jesse couldn’t safeguard his fortunes, but we can do that. If he knew this and followed it, he mightn’t have lost those fortunes. There are effective risk control principles that can guarantee our everlasting success in the markets. However, this is another topic in my future articles.

C.        Was Jesse really the greatest stock market wizard? To me, I think the greatest thing a trader can do is to focus on losing as little money as possible. We’ll always give back part of our profits, but we want to give back as little as possible. Those who suffer minor roll-downs find it easy to recover when the markets become favorable.


Conclusion: There are no problems in the markets. There are no problems with trading portfolios. The problems lie with traders and investors. You need to be versatile in the markets. You need to know the principles that can guarantee the permanent safety of your capital in the markets. You must get proper education. If you’ve bad trading styles, they’d ruin your prospects prior to the time you really move ahead. The key is to speculate on what the markets are showing instead of what you want the markets to show. Really, pecuniary gain isn’t the most important thing, since it comes when it isn’t thought of as much.”

This article is ended by quotes from Jesse:

1.         "As I said before, a man does not have to marry one side of the market until death do them part.”

2.         "The professional concerns himself with doing the right thing rather than with making money, knowing that the profit takes care of itself if the other things are attended to… It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!" 


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Tuesday, October 23, 2012

Purchase Solo Oil Shares


Solo Oil (LSE:SOLO) shares have shrugged off bearish threats and have started going up. This development is not in isolation (there are other bull markets), because a stock rarely moves in isolation from other stocks.  Buying a bullish breakout in this type of market is one way of making money. Ultimately, this would be in conjunction with some other safe trading techniques. Becoming acquainted with the winning trading techniques is worth the effort.

Technical Forecast
The chart representing Solo Oil was in a serious and protracted bearish mode. For this prediction, the Average Directional Movement Index (ADX) period 14 and the Moving Average Convergence Divergence (MACD) default parameters are used. On September 7, 2012, the market reached a bottom at 0.305 and found it impossible to go lower. In this kind of scenario, one would not take a rash action, since one did not know which way the price would go. Since early September, the ADX and the MACD were gradually forming a Convergence Pattern, for the ADX DM+ has been above its DM- counterpart and the MACD histogram is above the zero line as the signal line neared the latter – something that shows a potential bullish reversal. Since last week, the market has broken out in a significant bullish mode, going up by hundreds of points. The ADX 14 is pointing towards the level 40 (showing strong bullish pressure), while the DM+ is clearly above the DM-. The MACD histogram and the signal lines are far above the zero line. The 2 indicators have formed a Bullish Confirmation Pattern. This is a BUY signal, although it does not mean there cannot be a pullback in the price.

The price closed at 0.515 yesterday. The nearest accumulation zones are 0.400 and 0.300. The nearest distribution zones are at 0.600 and 0.700; and are expected to be breached northwards in due course. If any upper supply level (e.g. on a higher time frame) poses an obstacle to the market move when a bullish push is on, the force of that push could breach that supply level and help the price higher. This is also true of a bear market considering demand zones, whereas if another factor establishes the instrument’s tendency, significant bullish and bearish forces may be experienced in the market.

Conclusion: Sometimes, previous market patterns could be an unreliable yardstick for tomorrow’s prognosis. The Solo Oil is journeying towards the north. Though it was formerly a seemingly hopeless stock, it now has a ray of hope.

This article is ended with the quote below:

“…In addition to all the standard mistakes which every experienced trader should know (no stop-losses and so on) there is one mistake that many traders make but is not too well known: Many traders know too much about the fundamentals of the company they trade and therefore they cannot follow their technical trading rules. But the latter determine the risk/reward-ratio and their drawdowns and it is the first priority to control them. If you do not follow technical trading rules you will trade emotionally and that may cost a lot of money.” – Harry Boxer


NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Monday, October 22, 2012

Long-term Forecast on Direct Line Group


The fact that Direct Line Insurance Group (LSE:DLG) shares are potentially favorable to buyers should not be downplayed. The technical reasons for this assumption are trotted out in this article. Even when there are brief corrections, the price would go as analyzed, as bears and bulls continue their normal activities.

Technical Forecast
Based on the chart below (which shows 60-minute candles for a period of 5 days), the stock price of this great company came into existence on October 11, 2012. That day the price on the chart opened at 181. Technically, two Exponential Moving Averages periods 11 and 56 are used on the chart. The EMA 11 is above the EMA 56, which means the price has been in an uptrend since its inception. This is a ‘buy’ signal. This market closed today, at 193, showing a considerable gain since last week. The resistance levels that would be breached to the upside are 194 and 195, whereas the support levels at 192 and 191 ought to do a good job halting very serious bearish plunge.

Bullish and bearish forces, i.e. the potency of resistance and support territories, will inevitably continue to the upside. For buyers and sellers in the stock markets, accurate and timely data is a prerequisite for exercising trading decisions. The market reactions must be seen in real time as fundamental figures come out. The market can only go unremittingly up or down (not baulking). If some other risk factors are also taken into consideration, you would undoubtedly reach a conclusion that it pays to only stick to what ensures survival in the nonzero-sum game.

Conclusion: It stands to reason that Direct Line Group stock would go up. Speculation needs not be daunting if you have come across an appropriate methodology. In the opposite, the more experienced you have as a speculator, the more favorable you would look at the markets – and perhaps maintain your peace of mind no matter what the markets do.

This article is ended with the quote below:

“If you want to succeed as a trader it is not enough to analyze and trade well. You have to grow a thick skin and you have to have nerves of steel!” – Harry Boxer


NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Friday, October 19, 2012

Michael Covel: A Smart Turtle Trader


LEARN FROM GENERALS OF THE MARKETS - PART 8

"Frankly, I don't see markets; I see risks, rewards, and money." - Larry Hite

Michael Covel is the head of Trend Following, which is an institution that boasts students in more than 70 countries. He’s written very popular books, including The Little Book of trading, Trend Commandments, The Complete Turtle Trader, etc. Those books were translated into many tongues. His also made a film whose title is, Broke: The American Dream. He’s known in most parts of the world, where he’s done live presentations.

For Michael, trading isn’t the only calling; teaching also is a calling. His institution has been teaching trend followers since 1996. Michael Covel has vigorously espoused trend following; a great trading and investment strategy. This strategy allows speculators to make money from bear and bull markets. It’s been proven that the art of following the trend is a permanently successful trading method. For more information on how you can benefit from Michael’s trading ideas, you can visit his websites at: Michaelcovel.com, Trendfollowing.com and Turtletrader.com.

Lesson
There are many useful trading hints and techniques we can learn from Michael. Below are some points.

A. It’s possible to imitate top traders, provided we’re disciplined enough to do so. This isn’t hypothetical. Top traders have common attributes that are timeless. If you can study their trading styles and apply them, you’ll soon become a real trading expert.

B. There are losers and winners in the markets. There are losers who refuse to go out of the market that’s moving against them. There are winners who know when to buy and when to sell. They also know how to deal with negative positions. Herd mentality isn’t always a good thing. Trading alongside the trend remains one of the smartest thing you can do in the market. For example, going long when the markets are predominantly bearish can be suicidal. With that kind of market situation, one will just need to go short. Hundreds of billions of dollars have been made by following the flow of the markets.

C. Personally, I don’t believe in the Efficient Markets Hypothesis. Merlin Rohtfield doesn’t believe that the theory is correct. Numerous permanently victorious market wizards across the globe have proven that theory wrong. Ultimately, Michael Covel also thinks that theory is against any beneficial trading knowledge. Efficient market dogma has been proven wrong by impressive track records.

D. Great traders are made, not born. You need no unique gene, or heavenly miracle or inborn ability or special secret or PhD to become a consistently winning trader. Your wishes and opinions aren’t known or respected by the financial markets. These markets can’t be wrong, but you can be wrong. You don’t need to wait for a position that’s moving against you to come back to your entry price. You can manage your risk and minimize your losses in the markets. That’s the only thing you can control.

E. The buy-and-hold strategy is no longer useful. It’s useful only if you’re immortal or you’re a magician who can turn back the hands of the clock.

Review
Going against the trend is very dangerous, no matter what those who think otherwise may say. Many traders feel that an overextended bearish market could be ready to rally and do so protractedly. But the reality is that it might still fall by 600, 800, 1000, 1300 points before it even goes up. One of the major reason traders buy renowned and world-famous stocks is that analysts talk about them and investors are often aware of them. If the overextended market continues in the direction that people don’t expect, then investors get whacked. As a result of this, everybody would be looking forward to strangling the prime economic forecaster, as investors holding other instruments are apprehensive. Invariably, you’d see some suave ape who’s shown on the screen or other type of media, often a forecaster whose studies were published in the previous year and adjusted some days prior to the occurrence, safeguarding his studies by reducing the likelihood while announcing that he still prefers the scenario since it remains overextended. Or it might be that the stock displays a temporary halt in its journey and some speculators feel it’s now great to enter contrary to the established trend and realize gains in counter-trend or mean reversion trading. They may not realized, yet they’ve fallen in love with a wrong direction and would go on opening positions against the trend, usually with heavy losses, till they receive a margin call or forfeit their portfolio.

This article is ended by a few quotes from Michael:

1. “Speculation isn’t evil. Think about what drives a market: millions of investors speculating to make money. That’s evil? That’s life! Recent college graduates speculate that a high-paying job will come after graduation. That’s evil.”

2. “Zero sum battles are life. Someone has to lose for you to win. Forget trying to be loved. Need a friend? Get a dog. If you’re going to win, someone else will lose. Does survival of the fittest make you uneasy? Stay out of the zero sum game.”


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915


Thursday, October 18, 2012

Uncertainty Has Become My Ally

AN INTERVIEW WITH A DOGGED MARKET SPECULATOR

There are winning traders who trade simply from the comfort of their home and make money in their living room. I’ve conducted many interviews with lesser-known successful traders in the past. The short piece featured here is another interview with a humble trader. He lives in West Africa. His name is Segun Oguns. He talks about his life, trading strategy and other aspects of Forex trading. I hope you would have something to gain from this interview. Here we go:

Azeez: Please tell us about yourself.

Segun O: I’m a retired civil servant, formerly working for the federal government at the ministry of finance. I was at a senior level then. Unfortunately, I didn’t consider Forex trading seriously until I was retired. It was after my retirement that I arranged for Forex training, after which I practiced rigorously on demos. Then I went live.

Azeez: What was your experience after you went live?

Segun O: I went live after a few years of successful trading on demos, but I was surprised to see that I was having losses on the live account. At first, I thought that my broker was doing something against me, but I was wrong. It just happened that my trading system was out of sync with the markets. That’s all. I realized that I was too emotional with my live account. I’d to curb the excessive emotions and apply risk management that helped me control my drawdown. In the end, I broke even and eventually went ahead. The secret is to know when to stay in the markets and when to get out. You ought to know when your system is out of sync with the markets. When the going gets tough, drawdowns must be minimized. I made mistakes and learned from them. When I was facing this challenge, I didn’t allow myself to be discouraged by anybody.

Azeez: What kind of trader are you? What strategy do you use?

Segun O: I’m a swing trader, though I don’t open new orders on Mondays as the markets tend to be difficult to predict during these days. Tuesdays tend to be more predictable. I use the SMA and the RSI to determine the overall market direction. I follow the trend - it’s as simple as that. I buy a strong market and sell a weak market. I use better RRR (risk-to-reward ratio); a minimum of 1:2, and I close my trades as soon as my exit criteria are met. I trade any pair or cross that doesn’t have too much spread on it. Crosses like GBPCAD or GBPNZD are “crazy.” One must have a contingency plan if one is trading them.

Azeez: What are your exit criteria?

Segun O: I exit when my take profit levels are hit or when the overall running profits reach my minimum target. I rarely hold a trade more than 4 days. I exit whenever I get a signal that’s contrary to my current position. I honor my stops as well.

Azeez: Do you use fundamental analysis or technical analysis?

Segun O: A combination of these 2 distinct methods of analysis may be good, but I follow only what I see on the chart. I hardly follow other types of analyses, especially fundamentals. I simply follow my rules and trade only what I see. Discipline is important. When trading, it’s imperative that you use reliable power supply and Internet connection.

Azeez: What about your position sizing?

Segun O: I use 0.01 for each $1000, therefore making it 0.1 for $10000. My stop loss is -100 pips and take profit is usually +200 or +300 pips.

Azeez: How many signals do you take?

Segun O: I trade as many signals as possible. You don’t know which trades would be winners and which trades would be losers. I’ve become adept at handling losses and profits. It’s the unpredictable markets that bring the gains needed by traders. Uncertainties have become my ally. Sometimes, it may be those exotic crosses that’ll give you the profits you want. When I trade I check what’s happening on another timeframes too.

Azeez: Would you want your children to become traders like you?

Segun O: I can’t force my children to become Forex traders. They have to choose what they want to do for a living themselves. Nonetheless, my last born, who would soon graduate from a university, would be encouraged to take up this wonderful profession. I only want him to finish his undergraduate studies before I broach this subject.

Azeez: Than you very much Sir, for granting this interview.


Forex Signals Strategist, Funds Manager &Coach

Open an account here: eng.fxclearing.ca/ib/915

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If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

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NB: Trading has become a calling!


Wednesday, October 17, 2012

Will Leni Oil and Gas Shares Fall Further?


Leni Oil and Gas stock (LSE:LOG) is currently at  a very interesting zone. The market has been in a very long-term trend as shown by the chart – something that would have caused losses to buyers. Negativity is essentially not a harrowing experience provided negative shares are sold; thus making huge profits for speculators. Speculation is consistently favorable only if one knows how to make gains from bull and bear markets.

Technical Forecast
As I said earlier, the overall trend is bearish, and it is possible that the market could go lower (though a bullish breakout and rally is expected soon). Even if the market falls any further, it will be on a short-term basis.  A long-term uptrend is anticipated on this market, and it could happen anytime soon. Technically, 4 exponential moving averages (EMAs) are used in this analysis. They are EMAs 10, 20, 50 and 200. The color that represents each EMA is shown on the top left of the chart below. The EMAs, especially the EMAs 50 and 200, show that the overall bias is down. A temporary bullish retracement could be an opportunity to open new sell orders (though essentially on a very short-term basis). This means it is not advisable to send buy orders right now, as one would need to wait for a confirmation of a change in the trend before going long. When could one buy this stock? The bullish candles that are forming right now are not an indication of a change in the trend, in spite of the fact that the market appears to have reached a bottom. A change in the trend would be affirmed when the EMA 20 crosses the EMA 50 to the upside, while the price closes above them. That would be the time to buy the stock.

The stock was trading at 0.445 when this article was being written. You might prepare yourself for gong long here. This would make you feel at ease as some novices languish from lack of experience. By opening positions according to this technique, you make a decision that makes you grasp with the unpredictable future while standing to be rewarded for your smartness. This may tempt a neophyte to react in a puerile manner and go against the rules of the technique. We all have emotions – and something pushes us to do what we have determined not to do. It is not uncommon for us to force a trade against our rules as a result of some expectation or retaliation. Please try not to do this with this technique. It has been explained in an easy-to-follow way.  

Conclusion: The Leni Oil and Gas market might continue falling, but it would be temporary. Very soon, the stock will rise, and rise and rise – as diligent investors and traders begin to smile. Market wizards know there are only two ways in trading, either one sticks to a winning technique or looks up his schedule to flops. But we are winners, and we will exercise the kind of self-control needed to use this idea successfully. Self-control takes effort, but the payoff is huge!

This article is ended with the quote below:

“..As I have witnessed many times before, shares frequently rise the most when everyone says they can’t go any higher. The same applies to the short side. A stock has never risen too far for a short-term trader a “bargain”. This would-be trading of lows along with hopes of a trend reversal is seldom met with success, which is why newbies in particular are usually doomed to fail when using such an approach.” – Tim Bourquin

NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Tuesday, October 16, 2012

Sacoil Holdings Stock Will Go North


Propitious conditions are currently present on Sacoil Holdings stock (LSE:SAC). A ‘buy’ signal has been generated as the price soldiers on towards the north. As far as trading is concerned, price is king. Therefore the one trait all the best traders and investors share is extreme confidence in what they are doing. This gives credence to the fact that gains can be realized in an uncertain market, including the one being analyzed here.

Technical Forecast
On the chart representing the company, there is a vivid southward bias – a momentum that has long been in the market. On August 30, 2012, the price reached a low of 1.85 and began to consolidate until October 11, 2012. The Relative Strength Index period 14 and 2 parallel trendlines are used for this forecast. During the consolidation phase that was mentioned earlier, the price could not close below the lower trendline (a bearish confirmation could have been in place if it happened as such). Between the end of September and the beginning of October, there were northward breakout attempts, but the price failed to close above the upper trendline. On October 11, there was a noteworthy bullish engulfing candle which eventually closed above the upper trendline. Moreover, the RSI 14 is now above the level 50. This is a ‘buy’ signal which is still pretty early. The market was trading at 2.72 when this forecast was being made, with support levels at 2.00 and 1.50. There are resistance levels at 3.50 and 4.00: it is hoped that the price would eventually break those levels to the upside.

Nonetheless, there are many ways to skin the cat. Forbearance and getting readiness assist in sustaining the secret that safeguards your portfolio.  Anticipating what the price ought to do and getting ready for the normal time – that is to say – fulfilling your rules, allows you to benefit from the secret. We would also need to say that, some indicators also serve as supply and demand areas in the markets and locate the normal move or bias of a pair or an instrument. This has to do with the settings of the indicators; something used by market speculators on all time horizons. Correct indicator settings give correct signals and successful speculation in any market. So, indicators are necessarily used for this trading technique.

Conclusion: Could how individuals would react on this market be predicted? Nevertheless, a neatly improvised speculation idea could be used in a consistent manner. This would make traders make nice gains as the market moves in the predicted direction. The more potent a trading idea is, the more favorable some trading positions would be. The profits that would be made as Sacoil shares go north would be, no doubt, interesting.

This article is ended with the quote below:

“You always have to keep an eye out for how the market reacts to news. It is this reaction that is often much more important than the news itself.” – Scott Redler

NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Saturday, October 13, 2012

Hetty Green: The Witch of the Wall Street


 LEARN FROM MARKET WIZARDS - PART 7

Hetty Green was considered one of the earliest American value investors and the wealthiest female speculator of her own time. She lived from November 21, 1834 until July 3, 1916 (aged 81). She was the first American woman to make a significant effect on the stock market. Her greatest quality is prudent speculation, especially considering the standards of her times. She invested and reaped rewards in unique ways. On the other hand, she was remarkable for being mean and stingy. At the time of her death, she was worth up to $3.8 billion (inflation-adjusted to 2006). Her 2 children inherited her wealth, and after their death, over 50% of the wealth was taken as taxes and the rest went to charity.

Lesson
There are certain lessons you can learn from Hetty Green.

1. Women can become great traders and investors. Successful trading isn’t the birthright of men only. In fact, there are many women all over the world who trade successfully and who’re smarter than some men in the markets.

2. If women are properly educated about the financial markets, they’ll develop very great ability to trade permanently victoriously. Women have certain qualities that can be used to their advantage in the markets; something that’s very rare in men (unless they’re discipline). They tend to be cautious and conservative, while they take risk control very serious.

3. Hetty’s trading methodology - just like that of the Oracle of Omaha (Warren) – is to be greedy when people are fearful and to be fearful when people are greedy. No wonder Hetty is known as the Witch of the Wall Street. When people are extremely and irrationally confident about the stock market, then it’s time to sell. When people dread the markets too much, thus becoming apathetic towards it, it’s time to buy. This has become a timeless market principle.


Conclusion: Are there any changes in your personal life that  prompt you to consider your tomorrow? Are you ready to start making fortune in the markets, though it doesn’t come overnight? Or would you prefer to limit yourself to your monthly salary, including the whims and caprices of your boss? The choice to be a trader may seem daunting, but the future reward makes it worthwhile. If you’re a woman, getting properly educated and making an attempt in trading would really change your perception of the financial markets.

This article is ended by a quote from Hetty:

“There is no great secret in fortune making. All you do is buy cheap and sell dear, act with thrift and shrewdness and be persistent… I buy when things are low and no one wants them. I keep them until they go up, and people are crazy to get them… When I see a thing, going cheap because nobody wants it, I buy a lot of it and tuck it away. Then, when the time comes, they have to hunt me up and pay me a good price for my holdings.”

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Thursday, October 11, 2012

Go Long on BUMI


 The long term bearish wave on BUMI (LSE:BUMI) is being obviated as the bulls receive approbation to continue their normal activities. This means that BUMI stock is expected to continue to rise. This happens at the time when some other stocks are also rising. Nevertheless, positive biases are not the only cause of this bullish wave. If some stocks are moving up at the same time, it does not imply that a certain stock is moving up merely because the others are doing so.

Technical Forecast
There has been a long term bearish wave on the chart. On September 24, 2012, the price found a bottom at 120.00, after a gap down that occurred earlier that day. The gap was an exhaustion one. Therefore a gap fills up as the price journeys as influenced, whether it tardily goes upwards or downwards. For this trading method, if the price jumps up after bulls have carried out their activity; it reveals what neophytes are doing. If the price jumps down after bears have already carried out their activities, it reveals what neophytes are doing at that moment. In case you did not know, the major criterion in recognizing a gap that proffers the highest probability is a straightforward process of pinpointing the erroneous actions of novice traders. A trader who goes short after a gap occurs to the downside (accumulation territory), and in a bear market is committing a grave error, i.e. orders are opened by them when the market is poised to move contrary to their wishes.

For this chart analysis, the Exponential Moving Average 21 period and the Williams’ Percentage Range 20 period are used. After the bottom that was experienced towards the latter part of September 2012, the price consolidated to the upside. During the latter part of this week, a bullish engulfing pattern candle pushed the price above the EMA 21, thus enabling the price to close above that indicator. We can also see that the Williams’ % Range that was previously in the oversold region (below -80) has gone up steeply (now around the overbought region). There could be some temporary southward correction before the price continues to go north. While I was preparing this article, the stock was at 273.7. There are support levels of 273.00 and 272.50. There are demand zones at 274.50 and 275.00.

Conclusion: Majority think they know what the market may do next, despite the uncertainty of the future. Nevertheless, after the overextended bearish run that BUMI has experienced in this year, traders and investors would brace to make gains in this humble market. It is not until the stock has made substantial gains – following the period when some dither – that more investors would buy the shares and decide to hold them for a considerable amount of time.

This article is ended with the quote below:

“Losses are just a part of doing business and they will help protect your capital… Your thinking sets the stage for your results.  In order to change your results you must begin with your thinking.” - Dr. Woody Johnson

NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Monthly Trading Signals (October 2012)

“Years ago, when I began trading (before the days of PCs, when all you had was a chart service that came once each week) the only way you could make any money was to trade the trend.” - Joe Ross

There’s no end in sight to the current economic problems the world over. The fact now is that as the economic woes worsen, central banks simply turn out more currency, but the more they do this, the grimmer the economic woes. However economic woes have little effects on successful traders, and perhaps you could be one of them. If you aren’t meticulous about chart reading and trading signals, but meticulous about trade management, trading would be a better experience. You can control many things while trading, save for the market itself. You can control your positivity and negativity. Ideally, if loss trades are smoothed when they reach some negative territory that isn’t too dangerous to your portfolio, your mean negativity won’t be dangerous to the existence of your portfolios.

The crosses analyzed aren’t the only instruments traded with the type of analysis used. Below you’d find some pairs and crosses on which I opened positions on a monthly basis. Personally, this is what I do, not what’s recommended that others should do. Below are 7 of my open trades. I opened only 5 positions this month, because of some directionless instruments and consolidation in the markets. The maximum duration for each trade is one month, and we should note that the orders have been running before this article was written.

1. Instrument: EURCAD
Order: Buy
Entry date: October 1, 2012
Entry price: 1.2670
Stop loss: 1.2470
Take profit: 1.3260
Status: Open
Profit/loss: 86 pips

2. Instrument: GBPCHF
Order: Sell
Entry date: October 1, 2012
Entry price: 1.5030
Stop loss: 1.5230
Take profit: 1.4539
Status: Open
Profit/loss: 121 pips

3. Instrument: AUDJPY
Order: Sell
Entry date: October 1, 2012
Entry price: 80.85
Stop loss: 82.85
Take profit: 74.87
Status: Open
Profit/loss: 70 pips

4. Instrument: NZDJPY
Order: Buy
Entry date: October 1, 2012
Entry price: 64.60
Stop loss: 62.47
Take profit: 70.47
Status: Open
Profit/loss: -33 pips

5. Instrument: NZDCHF
Order: Sell
Entry date: October 1, 2012
Entry price: 0.7775
Stop loss: 0.7554
Take profit: 0.8354
Status: Open
Profit/loss: -181 pips


The position sizing is 0.01 lots for each $2000 (thus making it 0.05 lots for each $10000). When an order goes positive by 70 pips, I move the stop to breakeven. From 200-pip profit upwards, I use 50% trailing stop. Success has nothing to do with generating as many trades as possible. Rather, we could filter our trading methods and have fewer signals with higher hit rate.


Conclusion:  Meanwhile, as chart reading is very much useful, we tend to pay to much attention to it. There are reasons behind this. We want to be right in our trading activities, as it means we can predetermine our fate in the markets. Predetermining our fate as traders or predicting the markets with stunning accuracy means that we’re trading geeks. Traders seek confirmed predictability in an unpredictable arena. We long for confirmed predictability. Using as many indicators as possible makes us feel that we can predetermine our fate. Why? It’s a consensus in the currency markets that analysis paralysis makes sense. Yet, in reality, simple speculation methods can yield decent returns. 

This article is concluded with the quote below:

“One must always realize that traders aren’t paid on the quantity of trades, but on the quality of our trades. I would rather place 5 trades a month to earn 200 pips than 50 trades to earn the same 200 pips!” - Rick Wright
Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach


For more articles at FXempire.com, go to:http://www.fxempire.com/author/mustaphaazeez/

Open an account here: eng.fxclearing.ca/ib/915

Copyright (C): Fx Empire, LLC

If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com


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NB: Trading has become a calling!


New World Oil and Gas – SELL


There is a bearish signal on New World Oil and Gas (LSE:NEW) as explained below. This means that the caparisoned bears have left the bulls in utter discomfiture. As a speculator we would do well to bet on what the price is doing.


Technical Forecast
In some cases, there could be irrationality in the market. As the chart shows, the price movement on the market has been so erratic and volatile for a long period of time. Bullish attempts have often been abortive, and bears have refused to capitulate. For this analysis, the Average Directional Movement Index (ADX) period 14 and the Moving Average Divergence Convergence (MACD) default parameters are used. The ADX line is at the level 30 as its DM- (red) is above the DM+ (green) counterpart. This shows a bearish pressure. It also means that once the ADX line leaves the level 30 and points upwards, the bearish strength would even be renewed. The signals lines and the histogram of the MACD are now below the zero line. This is a SELL signal.

The price was trading at 9.375 when this article was being prepared. Immediate distribution levels are 10.000 and 10.500, whereas the accumulation levels at 8.500 and 8.000 are excepted to be breached soon. This is the same scenario that allows a short-seller to ride a seemingly high price lower and eventually become a winner. Traders merely need to stop going against the flow of the markets. It is understood that the past risk is what is now present profit and we are sure that the positions we open are determined carefully with sensible entry and exit levels in advance.

Conclusion: Contrary to the wish of some, the New World Oil and Gas shares could go down lower. The market participants continue to leave their traces on historical data. For us to understand this more, we must not forget that gurus would prefer to go short when the masses think it is safe to purchase: they purchase when the masses think it is safe to go south. Neophytes take positions that are contrary to gurus. Neophytes go long when some have long been bullish and gotten rewarded (with the process reversed when neophytes go short); as experts are ready to go contrary to them. Perhaps they are not aware that when the market is extremely bullish or bearish, a remarkable correction could take place, which could result in a good entry price. No one will commend us for riding losing orders.

This article is ended with the quote below:

“You have reached the pinnacle of success as long as you become uninterested in money, compliments, or publicity.”Dr. O. A. Battista


NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Friday, October 5, 2012

Lex van Dam: BBC Million Dollar Traders Secrets


LEARN FROM MARKET WIZARDS - PART 6

Lex van Dam is a highly successful Dutch trader. He was a student while in Holland. He was attracted to trading because he thought it was a level playing field. He might’ve gone to university but he was still competing against lots of people who didn’t have a degree, yet were really very clever.  In 1992, he started working as a trader for Goldman Sachs in London. In early 2009, Lex started a BBC TV show, titled: Million Dollar Traders. According to one website, the series was based on the premise that he could teach a group of people who had never traded before how to trade in a very short time period. He put his money where his mouth was and gave them $1 million to trade for a period of eight weeks. The result was amazing: the group as a whole did better than the professionals over that period.

Later in the same year, he launched a book titled: How to Make Money Trading, so as to explain further the trading strategies used in the TV series. In November 2010, he founded the famous Lex van Dam Trading Academy. Lex himself says this about the Trading Academy: “The message of my Trading Academy is that you have to be smart about what you do with your money because money is a scarce commodity. Protect what you have, be clever about it and be responsible… Many courses are taught by people who don't trade for a living but teach for a living. They promise to make you rich, normally by focusing on technical analysis of stocks or a few simple rules. I wish I could offer you the same, but unfortunately all I can offer you is a methodology that will work if you have a talent for trading. Luckily a wide variety of people have this talent: the winner of Million Dollar Traders was a full-time mother.” An interviewed with him was published on Trade2win.com on November 26, 2010 (Trade2win.com), and some quotes in this article were taken from that interview. You can learn more about Lex and his products and services at Lexvandam.com. We’re grateful to Lex for all his contributions to the world of trading.

Lesson
There are many simple but powerful secrets that can be learned from Lex. Some of them are mentioned here:

A). Your university degree can’t help you become a successful trader. There are many traders who don’t have degrees, yet they’re far smarter than you when it comes to the game of speculation. Fortunately, the kind of skills you need can be learned: it also comes naturally after years of experience in the markets.

B). If you want to learn about trading you’ll need to master 5 areas of trading. They’re trading and idea generation, company analysis, chart analysis, trading psychology and risk management. Each of these topics is a distinct issue in trading; and once you master them, you’re on your way to financial freedom.

C). Trading for a living is a possible endeavor (though hard). There are many people like Lex who trade for a living. It’s therefore better to take lessons from those who practise what they preach; not from those who preach but have no track record to prove their own expertise.

D). It’s very important that you start building your own track record. That’s the only way to prove to people that you’re good at trading. It’s your gains in the markets that’ll prove that you’re an expert, not your books, articles or knowledge. According to Lex, if you want to trade other people's money, it's really important that you start generating your own track record, which means making 1% steadily per month, over long periods.  If you can do that every month, then you'll be rich. It is not about making 10 to 20% in a month, the risk you need to take to be able to achieve that is way too high.

E). Money management (position sizing) plays a crucial role in trading success. Aiming for high returns will ultimately lead to high losses when the markets turn unfavorable to you. If you trade your own portfolio, you’re responsible to yourself. But if you trade other people’s money, you’re responsible to them. Your investors won’t appreciate huge drawdowns. They know that trading is risky, but they’d be glad to suffer small losses, not huge ones. Small losses are easy to recover, whereas huge losses are never easy to recover. Conservative risk control measures and rock-solid discipline are key in permanent survival in the markets (even if your annual profit is small).

Conclusion: Being able to manage your own portfolios successfully is great. Private ownership has long brought about many revolutionary innovations to the world of trading, and this has made indelible footprints on the financial markets. The emergence of cutting-edge technologies in trading has led to many intriguing developments - even as ever.

I’d like to end this article with more quotes from Lex:

1. “I trade for a living and I've done so for almost 20 years.  I'm a risk averse guy.  I just want to make sure that what I have I'm not going to lose. Of course I am unlikely to ever double my money in a single year but I have to be careful and smart about what I do as if I don’t, my career will finish prematurely. I think for people who trade more as a hobby, it's probably not that different.  You have to take it really seriously.”

2. “…It always goes back to that because everybody goes through great periods and if you have a great year you'll make a lot of money anyway.  It's just making sure that when you have that bad period that you just stay in the game.  Rule one is stay in the game. Always be able to get back to your trading screen the next day, no matter how bad the previous few months have been; you should still be around so when the market starts going your way you can profit from it.”

3. “If you do want to get into [trading] at all you have to be prepared and work hard and work smart.  Also if you do any courses you have to be very careful about which ones you choose and which people you listen to. There are some very high quality honest educators out there who want you to be successful but there are many other people out there who think they can make a quick buck by pretending to be successful themselves and promising to teach you their ‘secret’ insights. I think the investment and trading education market should be properly regulated.”

NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Copyright (C) ADVFN PLC


NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Open an account here: eng.fxclearing.ca/ib/915

Monthly Market Updates on Exotic Crosses (October 2012)


“If the market conditions are not optimal, you have a choice: Stand aside and wait for conditions to change, or adapt to the reality of the current conditions… Over the years, I found that I can't always trade my favorite markets. I have to trade in markets where I'm able to make money.” - Joe Ross

Irrespective of the timeframe used in your analysis, one thing remains important in trading, that’s the methodology that enables you to follow the trend. It’s now vivid that when Smart Money maintains long positions, pullbacks to support levels would be expected so that new long orders could be opened at those levels.

Below is the summary of some of my trading forecasts this month:

AUDUSD
Primary trend: Bullish
The AUDUSD pair experienced mixed results last month. It went up by over 350 pips and later fell by more than 200 pips. On the chart, we have a Convergence Pattern - meaning that the current bearish threat is weakening (indicated by the trendless ADX which has gone far below the level 30) as the MACD gives a new ‘buy’ signal. For this month, a long trade is preferred.

AUDJPY
Primary trend: Bearish
There were also mixed results on the AUDJPY cross last week: the first half of the month witnessed a rally and the second half of the same month saw a pullback. There is what looks like a potential bearish move on the chart. The MACD is already giving a ‘sell’ signal (as confirmed by the ADX -DI which goes up above its +DI counterpart). This new trend would be confirmed as strong when the ADX line goes above the level at 30.


EURNZD
Primary trend: Bullish
 In the context of the current bullish trend, this cross dropped by over 300 pips in the month September. The primary trend is still northward - giving one possibility of a buying lower in an uptrend. The ADX is trying to cross the level 30 to the upside, and when this is done, the condition on the MACD will showcase the next signal. If the signal line and the histogram are still above the zero line, then it is a ‘buy’ signal. Otherwise, it is a ‘sell’ signal.

EURCAD
Primary trend: Bullish
The EURCAD is still in a valid uptrend - only that the steam in the market is not that strong at the moment. I can say that there is a Convergence Pattern on the chart. The MACD still displays a clear bullish victory, and a new entry level would be confirmed if the ADX (which is presently below the level 30) crosses the level 30 upwards. If not so, the MACD histogram would be going towards zero line as the northward bias is currently violated.


AUDNZD
Primary trend: Bearish
The AUD is vividly weaker than the NZD: the AUDNZD crossed plummeted by over 360 pips last month. And it looks like this will continue, The ADX line is above the level 45 as the MACD shows a strong selling pressure in the markets. What we have now is a Divergence Pattern - a bearish confirmation pattern for that matter. Trend followers would do well to call a short trade.


GBPCHF
Primary trend: Bearish
The GBPCHF did not experience much activity last month. There was no significant movement on either side (whether bearish or bullish). However, the MACD proves that the underlying trend still looks bearish. Nonetheless, this is not supported by the -DI that is situated below the +DI. The ADX is above the level 30, trying to point upwards. If the ADX continues like this, the market may turn bullish. But it is advisable to remain neutral right now.


Conclusion: When some instruments go up, some instruments fall down. All instruments cannot fall at the same time or go up at the same time. Although, when some instruments nose-dive, they do so continually and thus generate clean returns. Why is this so? Southward moves tend to be more rapid and extended than northward moves.  As certain instruments fall, it portends economic problems in some areas. For instance, inflation - which is a common economic problem, isn’t just a plague of modern-day life. But whatever the economic situation says, you can become financially free as a trader.

The article is ended by the quote below. It is a food for thought by Dr. Janice Dorn:

“The answer is really quite simple, and—just like so many secrets—is hidden in plain view. The type of thinking that made you successful in life outside the markets is the mirror image of that in the markets. In “regular” jobs, in the world of real life—there are rules. These rules are set down by other people. Other people make rules and you follow them. If you do not follow the rules, you risk for losing your job or your license. Think of medicine: a doctor must abide by many rules set forth by state medical boards. If they do not, they are warned, disciplined and may have their licenses revoked. The rules are out there and doctors follow them—or don’t (at their own peril and that of their patients.)… In other words, the same type of thinking that brought you so much success in the world outside the markets will not bring you success in the markets.”

Your questions and opinions are highly welcome.

Thank you.

With best regards,

Azeez Mustapha

Forex Signals Strategist, Funds Manager &Coach

For more articles at FXempire.com, go to:http://www.fxempire.com/author/mustaphaazeez/

Open an account here: eng.fxclearing.ca/ib/915

Copyright (C): Fx Empire, LLC

If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

Send the request to: saazalmu@yahoo.com

Yahoo! Messenger ID: saazalmu

NB: Trading has become a calling!

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