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Wednesday, November 28, 2012

GCM Resources Shares To Go North


GCM Resources (LSE:GCM) shares currently evince some probability of a northward journey. Right now, the bullish attempts might look desultory, but event on the chart would unfold as extrapolated below.

 

 

Technical Forecast

We can say that the historical traces of buyers and sellers could determine what might unfold in a foreseeable future. Given the visual representation of the price, it would be noticed that the price was going downwards before October 2012. In October, the price was caught in a decisive equilibrium zone, which was marked by the parallel Trendlines.  A break above the upper Trendline on October 22 proved to be a false breakout, because the price could not close above that line. In November 2012, there was another determined bullish breakout, but it was short-lived. The price stalled and broke below the upper Trendline. Now, there was another decisive bullish breakout which occurred on November 22, 2012 (which can be successful this time around). The price closed above the upper Trendline; poised to go up. This assumption is also supported by the fact that the Relative Strength Index 14 period is far above the level 50 and is heading above the level 60.  With all the recent upward breakouts, the price has failed to go determinedly lower.

 

On November 27, 2012, the price on the chart closed at 38.75. This bullish attempt might go as far as 44.75, but it would be assumed that this expectation is invalid, should the price go below the support levels at 37.75, and especially, 36.75. Going short in a bear market should be identical. Lurk till the market repairs beyond the southbound moving line, then when the market starts to repair southward again, and then a position is opened.  

 

Conclusion: When GCM Resources stock goes on with its perpetual northward bias, it would do so with unrestrained exuberance. Whether the market gives us more gain than we anticipated or far less than that, we must acknowledge that the market is always right. The conflict between reasoning and emotion starts only when a speculator becomes subjective.

 

This article is ended with the quote below:

 

“Fear isn’t our friend. It disables us from moving forward and causes us to shrink from doing what’s right.” – Joe Stowell

 

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, November 27, 2012

Rare Earth Minerals: Stay Out Of This Market


The best thing speculator can do on the Rare Earth Minerals plc. (LSE:REM) shares is to stay out of that market. As poignant as it seems, whenever the price rebounds upwards, it plunges precipitously. So be wary and remain safe. The crab makes use of its eyes when doing its self-employed sentinel job.

 

Technical Forecast

In no uncertain terms, this market has been in a bearish mode for too long – and there is no end in sight for this long-term development. Only a stickler for southward biases would make any meaningful returns out of this market. For this analysis, Exponential Moving Average period 21 and Williams’ Percentage Range period 20 are used. The EMA is constantly in a vivid downward trend, while the price remains below it. As long as the price remains below the EMA 21, failing to close above it, the market would remain unfavorable to buyers. The Williams’ % Range has constantly shown oversold readings: whenever the price headed out a little from the oversold region, it would fall back into that region. The current reading of the Williams’ % Range indicator is therefore not a bullish signal.

 

The price was at the level 0.0625 when this article was being prepared. There are supply zones at 0.0700 and 0.0800, while the demand zones at 0.0500 and 0.0400 could be breached to the downside as the present scenario continues. You need not feel antsy about this matter: simply stay away from the market. Staying aside is also a good position.

 

Conclusion: Rare Earth Minerals stock remains a terrible entity, until circumstances change, and there forms a clear bullish confirmation. Technical analyses show the realities in the financial markets. Whenever bulls dread the market negativity in the price and on their portfolios, the stock would definitely plunge. But if they are confident about what they are doing and send many long orders, the price may rise. In opposition to what many think – it would be difficult for this market to pick up – unless there are extremely favorable changes in the markets. There is nothing interesting here.

 

This article is ended with the quote below:

 

“…Simpler charts lead to better trading because of the smaller size of information stored and compared during chart reading. If you know and have experienced several times crossings of indicators and their averages at or very near zero, when this pattern occurs again, you are confident that the processing and decision will be almost instantaneous with a higher probability for success.” – Dan Valcu

 

 

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, November 24, 2012

Edward Seykota: Simple Strategies Make a Big Difference


LEARN FROM GENERALS OF THE MARKETS - PART 14

 

“Profits take care of themselves (hold that thought though), losses never do.” – Dirk Vandycke

 

Born in August 7, 1946, in Netherlands, Edward Seykota attended a high school in Den Haag. His family migrated to the USA later, where he learned some lessons about the markets from his father. He got to know Richard Donchian, and he read an article from him. He developed interest in the markets, started various market-related careers, and had a series of experiences. He developed the earliest auto trading strategies. According to one source, Ed increased the capital of his clients by 250 000% between 1972 and 1988. He achieved this with relatively simple trading systems. Ed Seykota always stuck to the systems through all ups and downs of the markets. During this period and thereafter, he braved the uncertainty of the markets triumphantly. His website is Seykota.com.

 

Lesson

Ed Seykota declared that the biggest secret about success is that there isn’t any big secret about it. The most robust strategies in the markets are the simplest strategies. I’m a witness to this fact. Complicated trading systems can’t be profitable in the long run without the components below.

 

  1. Ride your winners! Ed is a trend-follower.

 

  1. Cut your losses! You should know when you’d go out of the market if a position is going against you.

 

  1. Manage your risk! Only market wizards that can mange risk adroitly can expect to enjoy happy and permanently successful career.

 

  1. Use stops! Stop loss is one of the basic risk control tools. It’s our life insurance policy in the markets.

 

  1. Stick to the system! When you’ve a trading system that works, stick to it. You should know when the strategy works and when it doesn’t. You should know when you’ve to trade and when you shouldn’t.

 

  1. File the news! That has to do with fundamentals, and it pays to pay attention to that.

 

Conclusion: You should always remember that the future is uncertain, knowing your limitations and being aware that you can’t control the market prices. It pays to realize that you can’t be sure of the next direction of the markets, yet you can control what happens to your account. You’re the master of your fate in the markets. While the market movement is out of your control, the losses and profits in your account are within your control.

 

This article is concluded with some quotes from Ed:

 

(a). “Win or lose, everybody gets what they want out of the market. Some people seem to like to lose, so they win by losing money… Fundamentalists and anticipators may have difficulties with risk control because a trade keeps looking ‘better’ the more it goes against them.”

 

(b). “John (Bollinger) tells me audiences can sit for hours and listen to him describe his famous, and simple, equation. They cannot, however, stand to listen to advice about risk management or sticking with a system.”

 

(c). “Embracing the moment, celebrating the pain, and finding the positive intention, tends to transform pain into wisdom. Trying to avoid the bad stuff only tends to institutionalize it, and miss it’s positive intention.”

 

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

Wednesday, November 21, 2012

Noventa Stock Is Now At A Wholesale price

Noventa Limited (LSE:NVTA) stock currently offers a great money-making opportunity for traders and investors. Shorting or purchasing opportunities creep into the markets anyway. Looking at the chart, the current significant bullish outbreak might make the enamored bear to short further, therefore signing a warrant that would eventually make them lose their socks. The present market situation is a casus belli for the warlike bull. It is time for the bull to start a battle they can win!

 

 

Technical Forecast

Where is there an abysmal chance to rake in some profits in this market? Over a very long period of time, this stock has been in a downtrend. Then, the price moved sideways from the beginning of August 2012 to the middle of November 2012. During this period, the price could not go lower any longer because it had found an agreed-upon wholesale price territory. After much hesitation between buyers and sellers, the price broke upward out of the indecisive range on Monday, November 19, 2012. Technically, the Average Directional Movement Index (ADX) period 14, and the MACD default parameters signal a Bullish Confirmation Pattern. For the ADX, the DM+ is far above its DM- counterpart, while the ADX line itself (the black line) is threatening to go above the level at 30. Both the MACD histogram and the signal line are above the zero line.

 

 

Here, there are support levels at 6.00 and 5.00: the resistance levels are at 8.00 and 9.00, as sellers feel some qualms in the present context of the market. There could be some bearish retracements as the prices journeys upwards. All northward instruments experience pullbacks as prices shed some gains. And all southward instruments get involved in short-term rallies where prices make minor gains. Speculating for weeks often makes traders benefit from those price phenomena and transacting in the markets based on this assumption for a long period of time.

 

Conclusion: Noventa shares are bound to go up. A correct risk-controlled strategy does not guarantee huge profits in short- period of time. Contrary to this, a judicious trading method allows a measure of control in the face of tomorrow, which leads to average gains that are more than average losses. This really entails discipline and some period. Only brave market speculators who use time-tested trading techniques would experience ultimate triumph in the markets.

 

This article is ended with the quote below:

 

If you know your limits, stay within them, and do the best you can do with what you have, in all likelihood you'll be a success. And considering that less than 5% of novice traders make it into the elite group of traders who achieve enduring financial success, trading at your own pace and during optimal times may put you with the champions rather than with the masses who find they must feed their accounts at the end of the month to prevent their closure. – Joe Ross

 

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, November 19, 2012

Tangiers Petroleum: Will the Stock Plunge?


The forecast below shows whether Tangiers Petroleum Limited (LSE:TPET) shares will plunge or not. When rifling through stock charts, I stumbled on this inimitable stock, which requires skill and experience to handle.

 

Technical Forecast

Irrespective of the large zigzag movements on the chart (caused by strong volatility arising from the battle between bulls and bears), the ring of truth about this market is that it has been in a bullish phase since October 2012. Here, 4 exponential moving averages (EMAs) are used. Their periods are 10, 20, 50 and 200. The color representing each moving average is indicated at the top left part of the chart. The major trend – as indicated by the EMA 200 – shows that the market has been in a long-term downtrend. Now the long-term downtrend is being threatened by buyers, and if this kind of scenario continues for a few more days, the sellers’ reign would be over. Earlier this month, it can be seen that the there was a northward price spike which attempted to go above the EMA 200, but failed to be sustained above it. Does this mean the end of the bullish phase? Certainly no. You can see that the EMA 10 is above the EMA 20, while the EMA 50 is below them all. This is a bullish confirmation signal.

 

What is happening right now on the market simply depicts an opportunity to buy a serious pullback in the context of a new uptrend. One may buy as the price touches the EMA 20 and decides to bounce up. There are great accumulation zones around 25.00 and 24.00, whereas there are weak distribution zones at 26.00 and 27.00.While approaching this market, short-termism would be of a little help.

 

Conclusion: Against the plunging possibility on Tangiers Petroleum, the market is expected to pick up and start rallying. How should speculators react to this forecast? What an average interested individual would do depends on their view of the market. Next year could see bullish pressure in the market as a result of some positive fundamental factors. Prior to taking a serious decision in this direction, nevertheless, the sane speculator would base his action on what the price does. No matter what the news says, it is what the price says that matters. This is because the effects of the news (whether in line whether your expectation or contrary to your expectation) has already been factored in by the price. This is not a far-fetched fact. In every part of human endeavor, the most skillful people were not born with those skills, they acquired the skills.

 

This article is ended with the quote below:

 

“It’s the best traders, not the style, which make the most money.” – Nick McDonald

 

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, November 16, 2012

Brett N. Steenbarger: Survive the Market Uncertainty


LEARN FROM GENERALS OF THE MARKETS - PART 13

 

“Discipline is the bridge between goals and accomplishment.” - Jim Rohn

 

Dr. Brett N. Steenbarger, who holds a PhD in Clinical Psychology, began to get involved with the markets in the late 1970s. He’s an expert in the field of psychology and its importance in trading. This brilliant expert has written 2 wonderful books about trading: Enhancing Trader Performance and Psychology of Trading.  He worked with professional traders at Kingstree Trading, and also coordinated their training programs for new traders. Lately, he’s served as a presenter in some training programs sponsored by the Chicago Mercantile Exchange and other futures exchanges.

 

Living in Naperville, IL, Dr. Steenbarger is a happy husband and a proud father. One source says that he’s now working as a hedge fund manager. He’s also written numerous articles about trading and trading psychology. According to him, a trader is one who actively speculates on market movement, drawing on research and/or discretionary judgment to anticipate changes in prices. I can tell you that you’ll gain a lot of helpful insight into successful trading if you can read some of those articles on his website. You can access them at Brettsteenbarger.com. In September 2008, TRADERS’ magazine (www.traders-mag.com)* was able to interview this bright mind. Some of what he said was mentioned below.

 

Lesson

Dr. Brett definitely has much helpful information to pass across to traders – beginners and experienced. Here are some of what he’s to say:

 

  1. Like any performance field, it takes years (not weeks or months) to become successful at trading. People like to neglect this reality and learn their lesson the hard way. Would you like to develop the necessary knowledge and skill before you put your capital at risk? Successful trading requires hard work (contrary to what others might say). Dr. Brett believes that highly successful traders are no deferent than very successful physicians and athletes. They’re highly dedicated, work long hours and constantly upgrade their knowledge and skills.

 

  1. Don’t forget that you’ll always be a student of the markets. Don’t ever think you know what you’re doing. Overconfidence is what ruins most traders (like using too big position sizes because we feel the market ‘must’ move in our favor or we feel a negative order would eventually turn positive even if we don’t use stop orders).

 

  1. Dr. Brett risks a fixed small size of his portfolio on each trade. He stops trading temporarily if he loses more than a target amount (something that’s usually small). He raises his size if he trades well, but reduces it if he goes out of sync with the market. He makes sure that he never goes down more than 5%. He goes for small but consistent profits, not jackpots. He doesn’t believe that everyone should trade like that (but the discipline has worked for him so well).

 

 

  1. You can’t win the game if you don’t stay in the game. You can only start making money if you stop losing it. The only way to stay in the trading game is to focus on risk management, which, according to Dr. Brett, is perhaps the most important ingredient in all successful trading, especially as far as permanent success is concerned.

 

Conclusion: As a trader, would you like to always approach the markets with positive thoughts? This is exactly what trading psychologists like Dr. Brett N. Steenbarger promise you (there are many famous trading psychologists out there). Are you interested in knowing how you could always trade with calm – no matter what the markets do? Continue to follow the articles in this series.

 

This piece is concluded with a quote from Dr. Brett N. Steenbarger:

 

“Greatness is more than being good at something: it’s when a career becomes a calling and skills become expertise… Competence is doing things conventionally well; expertise is doing things uncommonly well.”

 

 

*For current TRADERS’ issues, please visit www.tradersonline-mag.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

Thursday, November 15, 2012

Monthly Trading Signals (November 2012)


“…What got you in and got you out for a small loss may actually get you back in for a bigger win a little later.” – Sam Evans

 

Currency markets have times of significant bearish plunges and bullish shoots. But no matter what happens, I’d keep on trading for annual profits. To win a trading game is good. To play the markets is better. But to love trading is the best of all. 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 just 10 of my open trades. 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: USDCHF

Order: Buy

Entry date: November 2, 2012

Entry price: 0.9406

Stop loss: 0.9206

Take profit: 1.0006

Status: Open

Profit/loss: 78 pips

 

2. Instrument: GBPUSD

Order: Sell

Entry date: November 5, 2012

Entry price: 1.5968

Stop loss: 1.6168

Take profit: 1.5368

Status: Open

Profit/loss: 69 pips

 

3. Instrument: EURUSD

Order: Sell

Entry date: November 5, 2012

Entry price: 1.2788

Stop loss: 1.2988

Take profit: 1.2288

Status: Open

Profit/loss: 73 pips

 

4. Instrument: USDCAD

Order: Buy

Entry date: November 5, 2012

Entry price: 0.9970

Stop loss: 0.9770

Take profit: 1.0570

Status: Open

Profit/loss: 45 pips

 

5. Instrument: GBPAUD

Order: Sell

Entry date: November 5, 2012

Entry price: 1.5406

Stop loss: 1.5606

Take profit: 1.4806

Status: Open

Profit/loss: 96 pips

 

6. Instrument: EURJPY

Order: Sell

Entry date: November 5, 2012

Entry price: 102.63

Stop loss: 104.63

Take profit: 98.93

Status: Open

Profit/loss: 155 pips

 

7. Instrument: AUDCAD

Order: Buy

Entry date: November 5, 2012

Entry price: 1.0339

Stop loss: 1.0139

Take profit: 1.0939

Status: Open

Profit/loss: 68 pips

 

8. Instrument: EURAUD

Order: Sell

Entry date: November 5, 2012

Entry price: 1.2337

Stop loss: 1.2537

Take profit: 1.1737

Status: Open

Profit/loss: 90 pips

 

9. Instrument: AUDCHF

Order: Buy

Entry date: November 5, 2012

Entry price: 0.9782

Stop loss: 0.9582

Take profit: 1.0382

Status: Open

Profit/loss: 67 pips

 

10. Instrument: USDJPY

Order: Buy

Entry date: November 5, 2012

Entry price: 80.28

Stop loss: 78.28

Take profit: 86.28

Status: Open

Profit/loss: -80 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.

 

Conclusion: Many advantages that are present in Forex but absent in other types of the financial markets have made Forex endearing to people as a field of activity. Follow your trading criteria – but only winning criteria. There are winning criteria and losing criteria in trading. The criteria are yours. If they’re useful, stick to them. If not, abandon them and find winning trading principles.

This article is concluded with quotes from Jim Wyckoff:

 

  1. “I have been in this business nearly 20 years. I have read stacks of trading books and have voraciously studied markets and market behavior. I have worked right on the trading floors of all the major futures exchanges. As a journalist, I have conducted countless interviews with the very best traders and analysts in the world. But I still cannot specifically predict what a given market will do in the future.”

 

  1. “It's very important to realize the fact that neither I nor anyone else--not even the most powerful computer trading systems--can predict what the markets will do in the future. Markets will never be tamed. I've said many times that my profession is not a business of market predictions, but one of exploring market probabilities, based upon fundamental and technical analysis--and human behavior. By exploring and understanding market probabilities, and human nature, one can achieve trading success.”

 

Your questions and opinions are highly welcome.

 

Thank you.

 

With best regards,

 

Azeez Mustapha

 

Forex Signals Strategist, Funds Manager &Coach

 

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!

Wednesday, November 14, 2012

Victoria Oil & Gas Shares Aren’t Worth Having Until…


Victoria Oil and Gas (LSE:VOG) shares are not worth having until the condition below is fulfilled. What is happening right now is an abortive rally in the context of a weak market. In spite of the bull’s despondency, the shares would continue to fall lower. This is only one of the numerous bear markets earth wide.

 

Technical Forecast

The price chart of Victoria Oil and Gas shows that the long-term bias on this market is bearish. This bias is intact, and no long position is recommended right now. Technically, 2 parallel Trendlines and the 14-period Relative Strength Index are used. In the most part of October 2012, the market was in some equilibrium phase, with no clear direction (as indicated by the Trendlines). Towards the end of October, the price broke the lower Trendline and closed below it. Since then, the price has trended lower. We can also see that the RSI 14 is also below the level 50. This is a confirmation of a weak market! The RSI 14 has gone into the oversold level this month, i.e. below the levels 30 and 20. No wonder, the current rally attempt is just a negligible pullback in the market. The shares are not worth having until this bearish trend is conspicuously over. There are many ways of knowing when the bearish phase is over. One of them is when the RSI 14 period crosses the level 50 to the upside, but another factor must be used to confirm this.

 

The market closed at 2.15. There are potent resistance lines at 2.50 and 3.00; whereas there are weak support lines at 1.50 and 1.00. Rapid, strong market pressure is invariably an omen of rally or pullback since somebody is not prone to be patient enough to add or deduct from significant orders. That person would definitely move the markets. One method of measuring the pressure on the price is to consider closing prices. If certain smart money is not satisfied with the shorting or buying of big positions in a trading period, you would perceive serious southward or northward biases at closing prices. It is safe to conclude that downward or upwards attempts would resume the following trading period, especially with high volume. This would make the instrument in question move seriously in the near-term.

 

Conclusion: Always remember to stay calm in the markets – breathing easily. No matter what a market does, peace comes from the fact that your safety plan is in place. Markets will forever trend and consolidate alternatively. Sometimes, they trend upwards, sometimes downwards. Victoria Oil and Gas stock would rally protractedly one day (but not in the near-term). There will never be an everlasting trend. Trade only what you see: Buy wen the market is going up only, and sell when it is going down. The market does not care about you. Simply keep on doing what is logical and rational.

 

This article is ended with the quote below:

 

“…Some novice traders are afraid to acknowledge their limitations. They believe that admitting their limitations is like saying they have low self-confidence. They create a false sense of self-confidence to quell their inadequacy, believing that they can trade under market conditions that they can't possibly know how to trade.” – Joe Ross

 

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, November 13, 2012

Dump Empyrean Energy Shares!


In the past few weeks, you would notice that I have consistently forecasted that some stocks would go north. This time, the forecast is different (as it will sometimes be). Empyrean Energy (LSE:EME) is currently weak and it is expected to continue to do so. In this type of market, buyers would end up being worse-off, especially buy-and-hold bulls.  On the other hands, sellers would inevitably smile to their banks.

 

Technical Forecast

This market, which was recently bullish, is now bound to go south as explained here. The Exponential Moving Average period 21 and the Williams’ Percentage Range period 20 are used on the chart below. From July 24, 2012 to October 2012, the market was in a bullish mode. Now, the market has changed. The price is below the EMA 21 (having closed below it several days ago). The Williams’ % Range, which was formerly in a perpetual overbought condition, especially from August to September, is presently in an oversold situation. This is a vivid change in the market from a bullish mode to a bearish mode - a ‘sell’ signal. The bull would gain nothing here except negativity. The worm is killing itself; but it thinks it is killing the dog. When this piece was being written, the price was at 7.625. There are demand levels at 7.00 and 6.50 – weak levels, as they would turn out to be. There are supply levels at 8.00 and 8.50 – levels that would check any northward attempts.

 

Learn A Lesson From The Fig-tree

It is good that some would like to listen to falsehood, even when reality proves them wrong. The reality on the chart that represents Empyrean Energy PLC stock is this: the price is falling. What should you do in a weak market? Shouldn’t we learn a lesson from the fig-tree? Apple Inc. (NASDAQ:AAPL) reached a high of more than 705 on September 12, 2012, in what was essentially a long-term uptrend. On September 26, my technical model indicated a shorting opportunity. You can see what has happened to the price since then. See how much that has been lost in terms of points! It now trades far below the 600 price level. A bear markets is not ominous, provided that speculators respect it and trade accordingly. We thrive in the market only when we constantly follow its flow.

 

A cheap market may fall lower and lower, and vice versa for a dear market. For failure to respect the market trend, someone that was $100 million rich is now only $4 million rich. For failure to respect the price, someone who had $3 million now has only $0.5 Million. Trading careers have ended abruptly because traders held onto long positions in falling markets. Big institutions have collapsed because of the failure to acknowledge when to hold on and when to let go. I have seen some markets falling irrespective of good fundamentals. I have seen some markets rising in spite of bad fundamentals, and therefore I have learned to respect the price. You need to know when you should hold some stocks and when you should short them. We need to look at the reality on the chart and respect it, or else we are in trouble. Speculation has to do with plus expectation, respect for the price, correct mindset and risk control.

 

 

This article is ended with the quote below:

 

“If you are having issues with trading and ready to pull your hair out with frustration, perhaps you are complicating something that is actually quite simple. Maybe you are trying to turn the reality of how markets really work into a way that they don’t. Maybe you are really just looking at a duck, thinking it’s a baboon. It’s really just a duck…” - Sam Seiden

 

 

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, November 10, 2012

George Soros: How He Broke the Bank of England


LEARN FROM GENERALS OF THE MARKETS - PART 12

 

George Soros, born in August 12, 1930, is one of the wealthiest and one of the most successful traders in his generation. He’s the chairman of Soros Fund Management and a notable humanitarian. He’s given away about eight billion dollars for humanitarian purposes. Earlier this year, an apex magazine ranked him as the twenty-second wealthiest individual on earth – the seventh wealthiest American. He’s an estimated fortune of twenty billion dollars.

 

Why is George Soros called, “the man who broke the Bank of England?”  How did he do it? In September 16, 1992, he shorted ten billion pounds as the British government either dithered over an interest rate hike or failed to float the pound. The British government’s action resulted in a devaluation of the pound, thus enabling George to realize a gain of one billion pounds. This happened on Wednesday of that month (the notorious Black Wednesday).

 

Lesson

We can learn some lessons from George Soros. Here are some of them:

 

A.        George has successful trading strategies that have made him victorious for about two decades. He made around thirty per cent profits per annum (sometimes gaining more than that per annum). On the contrary, most newbies believe that the real issue is in making hundreds of percentage per month. Even the best traders in the world don’t double their accounts always. A skilled fund manager may make ten, fifteen, twenty, twenty-five, thirty, thirty-five per cent or whatever (or more or less) per year. If someone makes an annual profit of fifty per cent on his one thousand dollar account, no-one would take him serious. But if a giant hedge fund manager makes twenty-five per cent profits per annum on a twenty billion dollar account, he’ll be celebrated throughout the world. Most traders would put an exceedingly small amount of money in their trading accounts and expect to live a luxurious life out of that. No wonder many end up getting frustrated.

 

B.        George wasn’t always right. He was right less than half of the time, yet he enjoyed permanent success as a market speculator. He experienced a successful career (retiring in 2000). He himself said that it's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong. Despite the perpetual unpredictability in the markets, there are winning trading styles and strategies that can ensure that one continues to be victorious in the markets. Loss trades and uncertainty aren’t a threat to our trading career unless we allow them to be a threat.

 

C.        George is very rich and fulfilled because he managed other people’s money successfully. There are highly skilled and victorious funds managers who manage money for rich individuals. These victorious funds managers have good long-term track records. If you can manage your own account successfully for some years, you may be able to do so for others. So try to find winning trading strategies that also guarantee the safety of portfolios.

 

This article is concluded with a quote from George:

 

“Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected… Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't under-estimate the value of that, but they're not designed to take care of social needs.”

 
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
 
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Friday, November 9, 2012

Sirius Petroleum – Time To Sell?


Would Sirius Petroleum (LSE:SRSP) stock continue to plunge? The answer is “no,” because of the reasons given here. Common sense requires us not to challenge facts or follow known falsehood, since the more we accept reality, the better our situation would be. When the price reaches a bottom and further bearish attempts are rejected in a very cheap market, then one would do well to buy. This approach may not be peerless, but it pays to buy cheap stocks from overextended bear markets rather than buy expensive stocks in overextended bull markets.

 

Technical Forecast

It is true that the stock was once in a bearish phase: something that professionals know how to profit from. Negativity is clearly repugnant, especially on investments. It might make you feel uneasy. In other word, most traders do not know how to properly deal with negativity on their investments. In the face of the past bearish bias, the price reached a low of 3.375 on October 23, 2012, and began some bullish determination (which is still valid). On the chart, two technical indicators are used. They are MACD (default parameters) and the ADX period 14. The ADX DM+ is now clearly above its DM- counterpart, while the ADX line itself (black color) is gathering strength as it is trying to point above the level 20. As the buying pressure increases, the ADX line would go above the level 30 and continue moving upwards. The MACD histogram is already above the zero line as its signal lines are about to cross the zero line to the upside. This would be valid, should the bullish determination continue for the next several days. Once this is done, it would result in a Bullish Confirmation Pattern on the chart.

 

The market price closed at 4.000. The nearest support territories are 3.950 and 3.900, whereas the nearest resistance territories are 4.050 and 4.100. The current price condition is now denuded, as the bullish determination has superseded the recent bearish threat. Long orders are judicious right now – though the case is not so in all markets.

 

Conclusion: Speculation ought not to be complicated, especially when it comes to the markets. Since all we can effect here are long and short orders. Still, when it comes to this primary activity of speculators, something might not work as envisaged. No matter how uncomplicated investing itself might seem, making gains cannot be so fast as such. Long orders on Sirinus Petroleum would potentially produce profits in the long run. Gains are accumulated by tested and tried methods. Patience should be your ally; not your foe.

 

This article is ended with the quote below:

 

“Be it emotional or physical in nature, both pleasure and pain are felt and recognized in us all and if as traders we allow our experiences of pleasure and pain to influence our judgment and actions in trading, we will soon find the door of failure slamming firmly in our face.” – Sam Evans

 

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

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