William Ekchardt: The Oracle of Chicago

LEARN FROM GENERALS OF THE MARKETS - PART 31

"If you want to get rich, just find someone making lots of money and copy what he's doing." - J. Paul Getty

William Eckhardt started his career in 1974, which was 4 years after his doctoral studies experience at the University of Chicago (he failed to finish his studies for a doctoral degree in math). He’s published many articles in academic journals. He took part in the Turtle Trading Experiment with Richard Dennis in which he betted against Richard. Richard said the principles used by a guru could be inculcated into trainees, but William didn’t think this is possible. At last, some trading principles were inculcated into some novice traders and they later went on to make spectacular results. Thus William was proven wrong. 

He founded ETC (Eckhardt Trading Company) in 1991 – a firm which has over $1,000,000,000 in trading funds and speculates on great varieties of market instruments. As a result of his strong academic experience, he advocates the use of mathematics and statistics in trading. In a period of 20 years, the ETC made an average of 17.3 per cent per annum (making a record 21.09 per cent in the year 2010).  William Eckhart remains a successful trader and funds manager. More information about ETC can be found at Eckhardttrading.com

Lessons

I prefer to call William Eckhardt the Oracle of Chicago. Here is the trading Insight that comes from the Oracle of Chicago.

1. Incessant transaction activities in the markets ultimately leave some as winners and some as losers. When there’s an effective trading principle, that principle would enable only the privileged few to be home and dry. This is a fact that’s common in the trading world. Money usually goes from the majority to the minority. The lesson here is that: in order for you to win, you need to adopt the trading principles used by the privileged few. When a trader thinks like an average individual and showcases common emotions, she/he would end up like most people who lose their equity.

2. Successful trading can be taught, and it can be learned. This is a truth that William failed to grasp many years ago, but experience showed him otherwise. Now he believes that gifted trading coaches can train people and mentor them until they become experts.

3. In most cases, colossal positivity tend to be more tempting but harmful than colossal negativity, especially when it comes to irrational thinking. It’s helpful not to be too happy when there is colossal positivity. People tend to open illogical trades after the markets have smiled on them for a long time. Speaking more on this, William says: “When you’re on a big winning streak, there’s a temptation to think that you’re doing something special, which will allow you to continue to propel yourself upward. You start to think that you can afford to make shoddy decisions. You can imagine what happens next. As a general rule, losses make you strong and profits make you weak.”

4. Speculation is like a mirror since people know what they oughtn’t to do; but that’s what they do. They know what they ought to do; but that’s what they don’t do. Winning trading principles go against what most people prefer.

5. Many people believe in cutting their profits before the markets take them. They think they need to quickly take their profits so that the portfolios balances can increase, but this is how many traders end up shooting themselves in the back. When suicide traders sustain large losses because they run their losses, those who call themselves expert make gains that are too insignificant. The trader is her or his own enemy, because of the normal human tendency to anticipate and to dread. When you’ve a losing trade, you anticipate that it’ll soon turn positive; whereas the loss simply becomes bigger (it could’ve been smaller than that if you’d not anticipated anything). When you’ve a winning trade, you dread the possibility that it’ll soon turn negative, and you take your profit prematurely. The dread has prevented you from riding the market that is about to go in your favor by several hundreds of pips. For you to be a triumphant trader, you need to bring these two counterproductive emotions to subjection.  You need to do the exact opposite of what most others will do: when you are supposed to dread the possibility of a trade going against you, that’s the best time to anticipate further profit from that trade.  When you are supposed to anticipate that a negative trade could turn positive, that’s the best time to dread the possibility of it not turning positive, and therefore resulting in much more unbearable negativity.  

Conclusion: The factor behind the markets is this: There are always bulls and bears in the markets, and some of them capitalize on new trading opportunities just before you recognize them. Did you ever wonder whether there are still bulls in an overextended northward bias? Many ignore this probability, including you, for the market continues to move upwards as the buying pressure exists. Yet, how can this be ascertained? You might then want to shift gears and bear it in mind that some experts tend to see new trading opportunities earlier than you. What’s the kind of trading mentality possessed by those experts who tend to see trading opportunities before you do and thus capitalize on them; thereby making decent gains?

This article is concluded by a quote from William:

“Don’t think about what the market’s going to do; you have absolutely no control over that. Think about what you’re going to do if it gets there. In particular, you should spend no time at all thinking about those rosy scenarios in which the market goes your way, since in those situations, there’s nothing more for you to do. Focus instead on those things you want least to happen and on what your response will be.”

Source: www.paxforex.com

For further articles, go to: http://www.paxforex.com/forex-blog

Preventing Malaria in Africa

It is no longer a secret that if there were no mosquitoes, there would be no malaria. Therefore, the best and the most effective way to prevent malaria (or drastically reduce malaria cases to the barest minimum) is to control mosquitoes. Since the mosquito itself offers little or no ecological or environmental benefits, the suggestions below would make the mosquito an endangered species, as well as prevent human contacts with them. This would in effect, make malaria a rare case.

It is beyond the scope of this short article to explain what malaria is and how it is transmitted; our purpose is to proffer succinct ways of getting rid of mosquitoes, and thus preventing malaria.

Yes, we can get rid of mosquitoes, only if we do not think this is only the responsibility of the government and/or some organizations alone. We must know that this is our collective responsibility. If only we could tackle misquotes/malaria with a sense of responsibility, malaria would be as rare as small pox, which once was a very dreaded and rampant scourge in Africa. Otherwise, the fight against malaria would never be won - no matter how much money is earmarked for the fight. If an AIDS-free generation begins with you, a malaria-free generation also begins with you. 

These are simple but decisive steps that can deal a fatal blow to the existence of mosquitoes and effectively prevent malaria:

1.      Everybody in the community must get rid of stagnant water in or around her/his home.

2.      Everybody in the community should make use of modern toilet facilities and stop indiscriminate pollution of the environment with urine and feces.

3.      Everybody in the community should obey the rules of simple hygiene. Wash your hands with antiseptic/medicated soap after using a toilet, keep your home and its surrounding very clean, get rid of flies and burn/bury organic waste matter.

4.      Everybody in the community should stop contaminating water sources.

5.      Everybody in the community should sleep under an insecticide-treated net.

6.      Everybody in the community should report any case of malaria infection immediately to the nearest hospital for proper diagnosis and effective treatment.

It can be guaranteed that if the rules above are followed faithfully by every member of the community, malaria would become extremely insignificant among the causes of deaths in Africa. By preventing mosquitoes, we can surely prevent malaria.

Source: www.Literactworld.com

I Couldn’t Stake My Neck On Bowleven

Bowleven shares (LSE:BLVN) are what I couldn’t risk my neck on. This is because the shares are not favorable to buyers, except sellers. The shares hit the yearly high in March 2013, testing the distribution territory at 100.00. From that territory, the price dropped seriously and consolidated around the latter part of May 2013.

In the latter part of May, there were deadly struggles between buyers and sellers, but sellers won as the price broke the lower Trendline to the downside, thus resuming its downtrend. Since the price closed below the lower Trendline, the RSI period 14 has gone towards the oversold territory. Should the price rally at this point, it would merely be an opportunity to sell short during this bearish outlook. We do not know when a reliable bullish signal would come in the market, for the extent of the seller’s determination is very strong and cannot be gauged. The nose is unreliable; otherwise it would smell the intent of adversaries.

This article is ended with the quote below:

Not only is it hard to pick stocks, you are also up against the most  talented investors in          the       world. – Mebane Faber

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Sell Proteome Sciences and/or Stay Away

Based on the reality in the market, it is advised that one do only one or two things with Proteome Sciences stock (LSE:PRM): Sell the stock and/or stay away from it. This is the rational thing to do until this bearish phase is over; unless one is a short-seller.

About 4 EMAs are used for this analysis (EMAs 10, 20, 50 and 200). The color that stands for each EMA is shown at the top left side of the chart. In this month, the EMAs 10, 20 and 50 have supported a bearish signal. And finally, this week, the stock experienced a ‘Death Cross’ on the chart when it crossed the EMA 200 to the downside and closed below it. This is a clean southward bias and the market would continue as such. Opening long positions in this kind of market is counter-intuitive.

Since all of us a plagued with the tendency to do things that are not in our best interests while trading – often with disastrous consequences – is there any hope that we can eliminate this tendency from our mindset? Yes. As the bulls go through pains, the bears harvest gains. One who eats eggs does not know the kind of pain the chicken goes through when laying the eggs.

 “Trading takes patience, a trait that many traders (and other human beings) don't have. The most disciplined people tend to avoid risk, and are unlikely to get into the trading business.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Weekly Trading Forecasts (June 24 - 28, 2013)

There have been sharp reversals in the markets, as the EUR, GBP and other currencies got weakened. All JPY pairs have rallied: there are confirmed new biases in the markets. As some instruments plummet further, more bearish pressure would be experienced and positions are smoothed as people show the white feather when they are risk-averse. As you probably know, exits are also a good part of any trading strategy, not only entries.

EURUSD

Primary trend: Bearish

The EURUSD has been weakened recently, giving up most of the gains it accumulated in the last few weeks. There is now a Bearish Confirmation Pattern on the chart, and short trades could thus be sought. The price might trend further downwards towards the support line of 1.3100 and 1.3000 respectively. Any rallies are supposed to be short-term, not going upwards more than the resistance line at 1.3350.

USDCHF

Primary trend: Bearish

Right now, the indicators on the chart do not agree on a particular bias. The oscillators support a bullish outlook, whereas the momentum indicators support bearish outlook. There are mixed signals in this market, and so one would need to wait for a further confirmation before one takes a position. Should the EURUSD get weakened further, this pair would be forced to trend upwards in a significant manner.

GBPUSD

Primary trend: Bearish

The optimism surrounding the Cable has already disappeared, following some Bearish Confirmation Pattern on the chart. One should seek short trades only (even any expected rallies should not take the price above the distribution territory of 1.5650). The short-term rallies are thus seen as opportunities to go short at higher prices in a context of a downtrend. Meanwhile, the price may reach the accumulation territory of 1.5300.

USDJPY

Primary trend: Bullish

There is a conspicuous ‘buy’ signal on the USDJPY. There is a Bullish Confirmation Pattern on the chart, which is a clean bias, as supported by the indicators.  The price thus could be going further upwards. Any pullbacks in the price may not take the price lower than the demand level of 96.00, though it is probable that the price could go upwards towards the supply level of 100.00 within the next several trading days.

EURJPY

Primary trend: Bullish

There has already been an indication to go long on this market. Should this bullish indication continue, the price would be trading above the important market zone of 130.00, going towards the supply zone of 131.00. There could be some tests of the nearest demand zones, say 128.00 and 127.00, but the price ought not to go below the aforementioned demand zones, for the current bias not to be in jeopardy.

This article is concluded with the quote below:

“The mark of a sound strategy is that it can work in entirely different eras such as the 1920s and 1930s.” – Dr. Chris Kacher

Source: www.paxforex.com

For more articles, go to: http://www.paxforex.com/forex-blog

Conflicting Opinions in Trading

Which Opinions Are Correct?

The trading world is full of too many different ideas that are hyped excessively. Many a professional often asserts that her/his own trading idea is the best. 

Many traders breathe intraday trading, and many endorse investing. Some worship tape reading, while some idolize Fibonacci ratios. Some use supply and demand levels in trading, and some simply scalp.  Some espouse chart patterns with Elliot waves, while some use indicators. Certain traders do trend-following only, while certain traders have adopted contrarian trading methods. Trading performances of dedicated chart analysts and dedicated news analysts have been showcased, but each group attempt to disparage the kind of analysis adopted by the opposite group, which has been triumphant. Some say the use of stops is mandatory; some say they’re successful without stops.

The list can be endless…

As Dr. Van Tharp has always put it, people trade their beliefs, not the markets. Dr. Tharp trades according to his beliefs. I trade according to my beliefs, and you trade according to what you believe. What’s useful for you mayn’t be useful for others. If you use something successfully and you’re happy with it, others mayn’t use it successfully. The reason why is because that thing doesn’t fit them. If you disagree with others, you may want to assert that your opinions are superior. What you disagree on mayn’t be useful to you. If you argue that your opinion is the best: remember that many others would always use logical reasoning to underline what they believe and make what others believe appear useless.

The Best Trading Ideas

Experiencing a losing trade or a positive trade turned negative often results in painful feeling, anger, and frustration. Are you in the midst of a discouraging situation? Remember that the markets have immense riches in them. Keep this fact in the forefront of your mind; remind yourself of them repeatedly in your career. Why we mayn’t understand why some market circumstances seem unfair to us at times, we understand that we can still be permanently triumphant in the market.

I know that from personal experience. After I’ve accepted the truth about trading, my experience in the markets has become smoother and better. That’s not to say that I never have losses in trading after this, but every loss is faced with the knowledge that I’m using a positive expectancy system. I never feel sorry I started trading, and I still love the profession today. My only desire is to keep my portfolios safe in face of permanent uncertainties in the markets. I never feel any desire to back down regarding trading.

In the trading world today, the quest for great profits can lead in many directions, but only those who focus on how to control risk and DD will be truly triumphant in the markets. Some contrarian techniques would even allow positivity consistently.

Then what is the best trading idea? Jack D. Schwager’s latest book is titled: ‘Market Sense and Nonsense.’ Ok, this means that there are senseless and sensible ideas in the markets. Good trading ideas would allow you to risk far less than you aim to gain. These ideas would let you know when to enter the market and when to stay out of the market.  They’d give you some effective risk control rules. Good trading ideas won’t let you sustain big losses during unfavorable market conditions. Sensible trading ideas would make you victorious in the long run. With these kinds of ideas, you can’t avoid losses, but you’re sure to make more money than you lose ultimately.

Note: Any trading ideas that can’t achieve the objectives in the paragraph above are useless ideas, no matter how popular they’re. Any trading idea is useful only if its balance increases over a long period of time, or there are gains to make at the end of a specified trading period.

Conclusion: Trading isn’t always easy, but the results of commitment to trading success will be evident in your career. You shouldn’t expect to get an emotional uplift or feeling of quiet peace every time you trade, but as you continue your commitment, your attitude, outlook, and conduct will be like those of matured traders who are called market wizards. Speculation is full of challenges, but we can overcome them all.

This piece is ended with the quote below:

“The best theory doesn’t do you any good unless it works in the real world.” – Larry Connors

Source: www.paxforex.com

For more articles, go to: http://www.paxforex.com/forex-blog

ITM Power Shares Are Very Attractive

There is a clean indication that ITM Power shares (LSE:ITM) would sustain the bullish bias it has already started. In the last few months, the price has refused to go below the support level of 35, and therefore, the present situation is favorable to buyers.

Looking at the chart, it would be seen that the price is currently in a northward mode. The price is trading above the EMA 21 and the Williams’ % Range is in the overbought situation. This is a bull market. Any pullbacks in the price (and of course in the Williams’ % Range) would just be transient, since it is safe to say that the outlook on ITM Power shares is positive. The dog’s mouth does not get torn as a result of a mere barking. Going with the flow of this market is expected to bring some gains.

You see trading sometimes comes with easy gains. Marketing promises rarely match reality. However, there are reliable guides to experiencing balanced, happy trading career.  

“Price is the ultimate indicator that matters to me though. If the market doesn’t agree with me, I won’t make a cent and price action is the only indicator that confirms that market agrees with my thesis.” – Ivan Hoff (Source: Tradersonline-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

 

Would Arian Silver Stock Rally?

Arian Silver stock (LSE:AGQ) now tries to find some bottom after an over-extended bear market. Could this be the beginning of a protracted rally or could it be just a pause in the context of a downtrend? The answer to the next possibility is given below, plus it pays to check the price data constantly to know what this stock is doing. Speculators are worse-off without price data.

The ADX and the MACD (default parameters) are used here. Both indicators currently give mixed signals. The ADX line is below 20, showing a trendless market. The DM- and the DM+ do not show the bull or the bear as a clear winner. The MACD signal lines are below the zero line and its histogram is above the zero line.

Within the next several trading days, there should be a clear signal. So…

If the ADX line is above the level 30 and the DM+ is above the DM-, while the MACD histogram and signal lines are above the zero line, then that is a Bullish Confirmation Pattern and long trades should be sought.

If the ADX line is above the level 30 and the DM- is above the DM+, while the MACD histogram and signal lines are below the zero line, then that is a Bearish Confirmation Pattern and short trades should be sought.

Speculators invariably ignore the fact that prices plummet when people do not expect them to do so. There is an unending desire for bull markets, out of avarice, and this means that speculators would prefer to overlook potential reversal patterns in the markets, thus failing to get ready for a new trade that is in the offing. This is true of bull and bear markets.  

This article is ended with the quote below:

“Realize that there’s a huge difference between knowing and doing… Unfortunately, the best way to learn is from your own mistakes. Having a good mentor could also accelerate your learning curve, but keep in mind that ‘you can’t teach a man anything; you can only help him to find it within himself.”’ – Ivan Hoff (Source: Tradersonline-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Weekly Trading Forecasts (June 17 - 21, 2013)

The currency market instruments have been moving in a determined and predictable manner. The JPY pairs have been very weak, while the GBP and the EUR are strong. The USD is weak. However, there could soon be some pullbacks in the bullish biases (no space shuttle can go upwards indefinitely). The pullbacks could be temporary or be the harbinger of new determined biases. The trader needs not repine as a result of this, as long as time-honored trading principles are employed.

EURUSD

Primary trend: Bullish

This is a strong bullish market. Since late May 2013, EURUSD has moved upwards by over 430 pips. The price is thus breaking more and more resistance lines, though there may be some bearish pullbacks along the way, it is possible that the markets would continue to trend upwards. The aforementioned pullbacks are not supposed to pull below the price below the support line of 1.3200 at worst. Otherwise, the extant bias could be in jeopardy.  

USDCHF

Primary trend: Bearish

In a direct opposite manner to the EURUSD, this pair is going downwards in a predictable manner. In the face of possible rallies (which could prove to be short-term in nature), the price could reach the support levels of 0.9100 and 0.9000 respectively. The pullback ought not to take the price above the resistance level of 0.9400. There is still much room for the selling pressure and short trades can be sought.

GBPUSD

Primary trend: Bullish

The optimism around the Cable is still extant, and so, it is normal to expect it to continue its northward quest. This means that it is probable that the price reach the distribution territories of 1.5800 and 1.5900. It is, however, unlikely that the price could touch or breach the distribution territory of 1.6000 very soon, let alone breaching it to the upside. Meanwhile, any probable bearish threat ought not to take the price below the accumulation territory of 1.5600.

USDJPY

Primary trend: Bearish

This is a weak market, and it would continue to be as such until further notice. There is a Bearish Confirmation Pattern on the chart; as supported by the indicators. One would then need to notice that, any rallies on this market have often given great short-selling opportunities. This is exactly the strategy being adopted here for now – sell-on-rallies. As long as the Bearish Confirmation Pattern on the chart continues to be valid, short trades ought to be sought.

EURJPY

Primary trend: Bearish

Since our model gave a short signal on this currency instrument (which was about a few weeks ago), it has gone down by almost 500 pips. Nevertheless, this is not without occasional strength in the market; just as the situation is really now. The present rally could just be another selling opportunity in the context of the currently weak market. The price would continue falling irrespective of any bullish retracement, and should this prove to be so, the cross could give up all its recent gains.

This article is concluded with the quote below:

“Just surround yourself with successful people. Read about what's worked for them. They'll often be a great barometer for new opportunities, because success often breeds more success.” – Joe Ross.

Source: www.paxforex.com

For more articles, go to: http://www.paxforex.com/forex-blog

Mike Baghdady: Price Is King

LEARN FROM GENERALS OF THE MARKETS - PART 30

“Master price action and you will be well on your way to successful trading.” – Nick McDonald

Mike Baghdady is a highly experienced trader with far more than 3 decades of experience. He’s been called Mr. Price Behavior. He’s a world leader when it comes to the mastery of price actions. He graduated from the American University at Cairo in Egypt.  This expert, who was termed the World Live Trading Champion in 2009, was formerly an apprentice at a big investment bank in New York.  In 1987, the American Chamber of Commerce magazine ‘AmCham’ awarded him the ‘Trader of the Year.’ He was also a physical grains trader in a commodity house, and has developed price behavior rules that can be used to master many financial markets. As an instructor, he’s advised major hedge funds and multi-national companies, including floor and private traders. More information on what he does and how you can benefit from his knowledge can be found at Trainingtraders.com.   

Lessons

What does Mr. Price Behavior have to say?

1. Yes, price is king. The most important indicator in any financial market is the price. It’s the best tool to use in analyzing the current situation in the market and what traders are now doing. When you study price behavior and you master it, you’ll have a deep insight into how the markets behave and how you can take an advantage of that. No matter the strategy you use, you would do well to use it in conjunction with price behavior methodology and techniques. There are traders who’re highly experienced as a result of their price behavior mastery. Unfortunately, many coaches don’t teach this.

2. A trending market would continue to trend until there is a factor that forces it to change its course. It’s more likely for a market bias to continue than to reverse. The price doesn’t move in a straight line. Oscillators which pinpoint overbought and oversold conditions mayn’t be effective in strongly trending markets. That’s why one would do well to stop trading against the trend simply because there are temporary reversals in the markets. It’s better to take those reversals as the opportunities to enter the markets at better prices. 

3. When there is some decrease in the momentum of a bias, it doesn’t portend a change in that bias. It’s only a transitory equilibrium phase prior to the continuation of the bias. A bias wouldn’t just stop without showing some potential reversal patterns, which are called chart patterns. It may take a long period of time before a confirmed bias changes. 

4. It’s professional to evaluate your speculative activities based on whether or not you follow your trading rules, without attaching too much importance on the outcome of each trade. The outcome of each trade is beyond your control, so what you always have in your control is making sure you execute your trades flawlessly. If that’s the case, it would be easier for you to exit a trade at a predetermined market level, should the trade move against you. There would always be times when some trades are in the negative zone. This is what traders hate, and if you find yourself in this kind of undesirable situation, the best thing you can do is to close your trades quickly, otherwise, the more you run the loss trades, the huger the negativity.

5. According to Mike, the numbers of those who venture into the financial markets are increasing rapidly, while most of them don’t know what it takes to be successful (they make many errors when trading). It takes a long time to become consistently successful in the markets. For some, the learning curve might be sped up (though it can’t be bypassed). This means that some learn quickly and master the markets faster than others. While some adapt quickly and become pros in a few years, others would have to struggle with the markets for many years before they can become triumphant. One quicker way to trading mastery is to copy the techniques from successful traders. This can be your edge; even if you’d tweak the methodology to suit your personal needs.

6. You can read many books about trading, take many courses and go to many seminars, but it takes real practice and enduring patience to learn the art of trading. This can be done risk free on demo accounts (you see, online trading is arguably the only business where you can test your trading ideas on real market conditions without risking your capital). As you gain more confidence and expertise, then you may go live and start growing your portfolio as you begin to mature as an expert.

Conclusion: All chart readers want to call trades with a high degree of accuracy. Since this mayn’t be viable, the most logical thing to do is to look at what the price is saying and trade what one sees, coupled with good money management and effective risk control. So devising a trading methodology may be ineffectual without considering the unpredictable nature of the markets. Your analyses ought not to be based on certainties and blind courage, but on price realities.

One article from Mike appeared in TRADERS’ September 2008 edition (www.traders-mag.com), the quotes below were taken from that article:

1. “No-one knows where the next tick in price is going to be so the key to making money in trading is minimizing our risk and taking small losses. Try never to take big losses and always try to place the odds on your side. Profits will then take care of themselves.”

2. “If you chose to use some technical indicators, they should be used as tools to confirm your trading decisions, rather than depending solely on them to initiate a trade. Simply taking trading signals off an indicator, or analyzing several indicators at the same time usually would have a negative effect on a trader’s bottom line. It is very important that you’re able to make a trading decision based on your observations of price action and what you see on the chart.”

Source: www.paxforex.com

For more articles, go to: http://www.paxforex.com/forex-blog

A Break from the Norm

Breaking free from the usually dreary and cryptic anthology… welcoming entertaining, simple, easily-understood and provocative poetry…

Copyright (C) LiteractWorld 2013

DISCLAIMER

This anthology is for entertainment purposes only. The poems are merely the mere thoughts of the poet and are not intended to offend anyone based on race, sex, color, politics, religion and nationality. The thoughts do not represent the opinions of the publisher - no responsibility whatsoever is accepted in this regards. The anthology remains an entertainment piece and is not intended to address any issues. In particular, the information does not constitute any form of advice or recommendation by the publisher or the poet, and is not intended to be relied upon by readers in making (or refraining from making) any decisions. No warranties are made that the content would please everybody. Anyone who is easily offended may not read this poetry. By deciding to read the poems, you have agreed to acknowledge this disclaimer.

Comments could be sent to: editor@literactworld.com

INTRODUCTION

Here comes the Break from the Norm, which contains 100 poems (including some from the Rejected Stone – a collection of 28 great poems). It is an open secret that most publishers reject poetry because they think it usually has poor sales potential. There are many reasons for this, including the fact that poetry is often very difficult to be understood by an average reader. Poems tend to have hidden meanings, and a result of this, readers feel disappointed rather than feeling satisfied and entertained. Unless one is a lover of poems, has a good understanding of English and/or reading for an exam, one would not feel inclined to read poetry.

However, the poems in this book are different in many ways and this is one reason the premium edition is titled: A Break from the Norm. Each poem is very easy to understand, has no hidden meaning (which means you would easily get what the poem is all about), and would entertain you.

Now you can have a feel the Break from the Norm…

1.         Behold The Maple Leaf! 2002

2.         Why The Vicissitudes? 2003

3.         Trent Is Great 2003

4.         On The Dance Floor 2004

5.         Encomium For Melinda Gates 2004

6.         Ill-gotten Certificates 2004

7.         Mother Teresa 2005

8.         Prejudice 2005

9.         My Old Friend 2005

10.       Why The Vicissitudes? 2005

11.       The Real Elixir 2005

12.       A Casanova Deceives A Mug 2005

13.       The Enweying Lyric 2005

14.       Do Not Divorce 2005

15.       The Cry Of A Lecher 2006

16.       Runsman 2006

17.       Meaningless Exams 2006

18.       Seen From A Window 2006

19.       Runs! Runs! Runs! 2006

20.       Whether Rich Or Poor 2006

21.       In The Name Of Love 2006

22.       Mosquitoes’ Anthem 2006

23.       Shams On The Web 2006

24.       Oluwatoyin 2006

25.       Yorubaland 2006

26.       My Confession 2006

27.       September 11 2006

28.       He Who laughs Last 2006

29.       The Cyberman  2006

30.       Agony of Love 2006

31.       I’m Tired Of… 2006

32.       Nude Animals 2007

33.       Risks 2007

34.       Racism 2007

35.       Anne Frank 2007

36.       English Language 2007

37.       Beauty Of True Love 2007

38.       My Peerless Sweetheart 2007

39.       Pleasant Pain 2007

40.       New Year Resolutions 2007

Including 60 more poems….

http://www.amazon.com/A-Break-Norm-ebook/dp/B00D3RHN1Q/

FastJet Stock Goes Kaput?

The FasJet shares (LSE:FJET) are so weak that it has the potential to continue going further downwards. It is possible that long positions on the market could go kaput. This is a bear market.

Two rams cannot drink from the same calabash. Since the bear is in control of the shares, the bull is in subjection. On the chart, the RSI period 14 and 2 Trendlines are used. In spite of the current weak rally in the market, the RSI period 14 is still below the level 50. The price recently broke below the lower Trendline, leading to a confirmed bearish continuation; but it soon went back into the previous consolidation phase. The price would possibly break below the lower Trendline again, going further downwards.

The only scenario that can invalidate this expectation is a condition in which the price breaks the upper Trendline to the upside and the RSI period 14 goes above the level 50. So the price data ought to be monitored in order to know the latest development in the price. You might benefit from paying for the data you get, for data that comes free could be unreliable.

This article is ended with the quote below:

“There is no longer any joy or pain in my trading… If you can accept that you will be wrong most of the time, then handling losses becomes a lot easier.” – Mark Williams (Source: Trade2win.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

There Is a Bullish Signal on IGas

There is a wonderful opportunity to go long on IGas (LSE:IGAS). The shares are expected to go northward slowly or steadily until further notice. This means it is high time permabears smoothed their positions; otherwise they would discover maggots in a heap of salt.

The market was in a bullish mode until the end of the year 2012. Then, the market fell from January to June, 2013 (which was a clean downtrend). Nevertheless, the price reached a yearly bottom in May, after which further bearish pull was rejected. Even the bearish threat that occurred in June could not pull the price beyond the yearly low, and since then the price has begun to rally. The 4 EMAs (EMAs 10, 20, 50, and 200) that are used on the chart give us a clear ‘buy’ signal. The recent southward retracement is a good chance to go long. The price could go as far as the resistance level at 140. What should bears do then? They need to take their profits and run – for bulls are being favored right now. Bears should pay homage to pay homage to the hare, i.e. run as fast as they can.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Weekly Trading Forecasts (June 10 - 14, 2013)

The Greenback has been weak and the Yen has been strong.  Most JPY pairs are also weak. The fundamentals that were released lately even added fuel to the extant biases. This means vivid bullish biases for some currency instruments like EURUSD and GBPUSD: and conspicuous bearish biases for some instruments like the USDCHF and EURJPY.

EURUSD

Primary trend: Bullish

The pair has moved upwards by roughly 270 pips recently, in conjunction with the vivid Bullish Confirmation Pattern on the chart. This northward journey is expected to continue, though there would be some consolidation and southward retracements on the way. The price could be trading above the resistance line of 1.3350 within the next few trading days. Along the line, the purported pullbacks should not take the price below the support line of 1.3150.

USDCHF

Primary trend: Bearish

The USDCHF has gone downwards by 300 pips recently. The indicators on the chart are in full support of this strong downwards bias. It could be said that since reaching the high of 0.9837 two weeks ago, the price has gone down by more than 550 pips. Any rallies on the pair would be transient in nature, not pushing the price above the resistance level at 0.9400. Within the next several trading days, the price could touch the support level at 0.9200.

GBPUSD

Primary trend: Bullish

The Cable, the lucky Cable. Isn’t it? There is a lot of optimism surrounding the Cable, and as a result of that, it is getting stronger and stronger. This volatile and strongly trending instrument has lately moved upwards by around 400 pips. There is a probability that the price could reach the distribution territory at 1.5800 during its journey further north. It could even breach the aforementioned territory to the upside. 

USDJPY

Primary trend: Bearish

This instrument has become a boon to the bears. The price is going south and would possibly go on doing that. Recently, it went south by over 390 pips. There could be some transitory rallies now and then – something that is inevitable. Historically, any rally has proven to be short-term, leading to good shorting opportunities. Very soon, the price may be trading below the demand level of 96.00.

EURJPY

Primary trend: Bearish

The cross has given up all the gains it made in 4 week.  It has moved downwards by more than 290 pips in the recent time. In the face of the current Bearish Confirmation Pattern, the cross would be going further downwards. The Yen is strong and the Euro is strong. But if the strong Euro succumbs to the mighty Yen, then one would need to imagine the intensity of the stamina in the Yen. Long trades are not advised here, for the cross would be going further downwards.

This article is concluded with the quote below:

“A good trader will always be better than a system, mainly because a good trader will be ahead of the system.” – Mark Williams (Source: Trade2win.com)

Source: www.paxforex.com

For more articles, go to: http://www.paxforex.com/forex-blog

4 Essential Trading Principles (Golden Rules)

“Sometimes people are so attached to the way things are that they would rather keep things the same and continue to fail rather than make those changes.” -   Adrienne Toghraie

We tend to think of harvesting our gains and smoothing open trades; something that is easier said than done. Big institutions have very high stakes that would have impact on the markets if they were to be smoothed at once. This is often in the favor of those institutions. At the end, you’ll need to choose a trading system that fits you.

It’s sad that misinformed souls and even highly educated people feel that one can’t be triumphant in the market for the long-term. This is far from the truth. It’s true that only a small percentage of speculators would enjoy lasting success in the markets, for we’re competing against highly intelligent traders who have a great deal of knowledge of how the markets work. Then why should it be strange that the percentage of successful traders is usually small? This is also a fact in other areas of human endeavors – not only in trading. I’m confident that if you can adopt the essential trading principles discussed here in your trading, you’ll be a winning trader. 

I incorporate 4 essential trading principles into my trading rules:

1. There must be an exit target for each trade: For each trade I open, there is always a predetermined exit target, and a maximum trading duration. Any negativity shown by my open trade is never a surprise to me for it may be presumptuous to conclude that an order is hopeless while it’s still open.  Usually my trade is smoothed after it hits the stop, or the breakeven stop or the trailing stop or the target or the maximum trading duration (in terms of weeks) has expired. I don’t use discretionary exit.

2. Positive expectancy must be part and parcel of your trading system: What makes sense is a situation in which you aim to gain more than what you’re risking. It makes sense to risk $1 in trying to gain $2, but it doesn’t make sense to risk $2 in order to gain $1. Some risk $100 to make $1, or even risk their whole account to realize 5% profit. Doesn’t it matter if you make $200 today and lose $2000 tomorrow? This attitude isn’t OK, since it’s negative expectancy which ensures that you end up losing in the long run. It’s far better to risk $10 to gain $30 (or $50). This means your reward must be greater than your risk. This is what we call positive expectancy and it ensures that you end up winning in the long run. 

3. Abort your losers and ride your winners: This is an excellent golden rule which makes peerless rational/logical sense. If you cut you winners and ride your losers, you’re like the gardener who uproots the flowers and waters the weeds. If you cut you losers, and let your winners run, you’re like the gardener who removes the weeds and waters the flowers. Isn’t that logical? I cut my losses with the aid of my hard, physical stops, and I ride my winners until they possibly reach their targets.

4. Use small lot sizes: I’m yet to see the guru who lasts very long in the markets by betting too big. In my trades, I use very small position, which may limit my profits, but also limits my losses. This ensures that I trade with peace of mind and remain indifferent to the outcome of an individual trades.  Some think this is cowardly. Yes, coward people tend to remain safe as they point to the ruins created to overconfident traders. My sizes gradually increase with my gains and decrease with my losses. With this, I’ve found it easier to accept losses that don’t affect my accumulated profits, let alone my initial capital. I’ve also found it easier to recover my negativity. I’ve found it’s usually better to be a happy chicken than a sick tiger.

No matter the kind of trend confirmation patterns you’re using, no matter the trading methodology or chart analysis us use, you need to know that strategies don’t fail; only traders do. Systems are only strategies. They’re not traders. They don’t open trades. They are only a means to help you make trading decisions. If anyone using a trading strategy sustains a drawdown, then the drawdown belongs to her/him. I’m not saying loss is completely avoidable. Top traders lose sometimes, but not always. The inability to abort your losers is the real risk, not the strategy you use. There is no business under heaven that is immune from occasional loss. All enterprises have negativity as part of them.

What I mentioned above are far more important than any trading strategies. If you incorporate them into your trading management rules, you’ll be a permanent victor in the market. These principles are ignored at your own peril. 

I’d like to end this article with the quote below:

“However, you are the most important part of your system.  So, if you are not working properly, it is just as though your computer, or software, or any one of the trading tools you use is not working.  In this case, the thing that is not working is you, not your system, which is doing just fine.” - Adrienne Toghraie (Source: http://www.tradingontarget.com)

Source: www.paxforex.com

For more articles, go to: http://www.paxforex.com/forex-blog

THE REJECTED STONE

The stone the builders rejected has become the capstone

DISCLAIMER

This anthology is for entertainment purposes only. The poems are merely the mere thoughts of the poet and are not intended to offend anyone based on race, sex, color, politics, religion and nationality. The thoughts do not represent the opinions of the publisher - no responsibility whatsoever is accepted in this regards. The anthology remains an entertainment piece and is not intended to address any issues. In particular, the information does not constitute any form of advice or recommendation by the publisher or the poet, and is not intended to be relied upon by readers in making (or refraining from making) any decisions. No warranties are made that the content would please everybody. Anyone who is easily offended may not read this poetry. By deciding to read the poems, you have agreed to acknowledge this disclaimer.

Comments could be sent to: editor@literactworld.com

INTRODUCTION

Here comes the Rejected Stone, which contains 28 great poems. It is an open secret that most publishers reject poetry because they think it usually has poor sales potential. There are many reasons for this, including the fact that poetry is often very difficult to be understood by an average reader. Poems tend to have hidden meanings, and a result of this, readers feel disappointed rather than feeling satisfied and entertained. Unless one is a lover of poems, has a good understanding of English and/or reading for an exam, one would not feel inclined to read poetry.

However, the poems in this book are different in many ways and this is one reason the premium edition is titled: A Break from the Norm. Each poem is very easy to understand, has no hidden meaning (which means you would easily get what the poem is all about), and would entertain you.

Now you can have a feel of the Rejected Stone free…

http://www.amazon.com/The-Rejected-Stone-ebook/dp/B00D0XGHYW/ref=sr_1_1?ie=UTF8&qid=1369686181&sr=8-1&keywords=b00d0xghyw

Contents

Solider Ants

The Thoughts of a Prostitute

A Buffalo Dies in a Town

Behold the Maple Leaf!

Encomium for Melinda Gates

Ill-gotten Certificates

Mother Teresa

The Enweying Lyric

The Cry of a Lecher

Runsman

Seen From a Window

Mosquitoes Anthem

Agony of Love

Anne Frank

The Beauty of True Love

Campus Life

Gloworld

At the Embassy

Why the Vicissitudes?

I Am Under Construction

Vacancies

The English Premier League

Shanghai

Yahoo! Boys

Halitosis

AIDS

A Wonder of the Trading World

The Plight of the Teacher

You can also get published here: http://literactworld.com/author-submissions