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Saturday, August 31, 2013

Or Else Pure Water



There was a bully who liked to intimidate the weak and cheat them. He would go to an eatery and shout at any customer who regularly visited the eatery:

“Give me your food or else…”

The man would give him the food in fear. Another time the bully would go there:

“Give me your drink or else…”

The man would give him the drink. This thing continued for a long time till the victim decided to report to one notorious thug in the area. This thug was renowned for dangerous fights and lethal weapons. His dad was a prisoners’ president in one of the most dreaded maximum prisons in the country, and he had been imprisoned for 42 year (even before the Civil War). The professional thug offered to help this victim free of charge. He followed him to the eatery and sat beside him. No sooner had he sat down than the bully appeared. He shouted:

“Give me your food or else…!”

The hired thug stood up to the man, chest-to-chest, face-to-face, with a great scowl and roared at the bully with a raucous voice:

“May God punish you and your generation. Or else what…?”

Shuddering with fear, the bully didn’t answer.

“I say, or else what…?”

The man cowered and answered:

“Or else pure water. Or else pure water.”

And he ran away.


Watch for the next….


Tuesday, August 27, 2013

Why I Risk My Shirt on Premier Gold Resources


Premier Gold Resources stock (LSE:PGR) is a significantly bull market, resulting from the recent long term consolidation. The events that led to this kind of price action have succeeded in triggering a long term bullish signal. In this profession of speculation, prices tend to react to events and fundamentals in speedy manners.



This month, the price broke upwards from its range, resulting in a serious uptrend. The ADX is above the level 60 (very strong pressure), while the DM+ is above the DM-, signifying the bulls’ victory. The MACD (default parameters) has both its histogram and signal lines above the zero line. This is a Bullish Confirmation Pattern on the chart: the assurance of a bull market.  

Conclusion: Premier Gold is in an uptrend. The uptrend would result in profits in its trail. The huge profits would be coveted by an increasing number of investors who show interest in buying the stock. However, the uptrend would not be forever. A method of being victorious is to anticipate a scenario that most so-called professional forecasters and their forecasting programs tend to ignore.


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: Lessons from Expert Traders


Ural Energy Shoots Towards The Skies


Urals Energy shares (LSE:UEN) have been making attempts to go skywards, and they could even shoot upward eventually. The market was in a downtrend for the past several months, before it consolidated a bit, and then began to trend upwards. What happens when the market leaves the consolidation phase? The subtle agreement between the bear and the bull would eventually lead to amazement, later to aloofness, and later to desperation. Desperation would lead to herd mentality, pushing the market further north. The resultant momentum in the market also contributes to bullish trend.



The possibility of a northward bias occurred when the price broke the EMA 21 to the upside and eventually closed above it. The Williams’ % Range period 20 is also in support of the northward bias. That is how possibility becomes an accomplishment. I know that there are astute market players who are already making money from the kind of price action mentioned here. Garnering gains from speculation is not the same as knowing why the gains are garnered. Thus, there are victorious market players whose trading methodologies cannot be comprehended.

Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Ground-breaking lessons from expert traders: Lessons from Expert Traders


Sunday, August 25, 2013

Daily Trading Forecasts for August 26, 2013


The JPY pairs ended with bullish bias last week, and this is expected to continue.



EURUSD:  On Friday, this pair closed at 1.3381, in a bullish mode. There is still much room for the price to continue going upwards; possibly touching the resistance line of 1.3450 – even breaching it to the upside. For this outlook to remain extant, the expected bearish pulls along the way ought not to make the price go lower than the support line at 1.3300.

USDCHF:  This currency instrument also has the capacity to continue trending downwards, following the recent rally in the context of a downtrend. The bearish pull may end up bringing the price to test the support level of 0.9150, and probably breaching it to the downside, provided the selling pressure continues to be strong.

GBPUSD:  There are mixed signals in this market and it could be sensible to stay away until there is a dependable signal. It is either the RSI period 14 goes above the level 50 to support a bullish signal, or the price breaks the EMA 56 to the downside to support a bearish signal. 
   
USDJPY: This pair remains a bull market, which could go on towards the supply level at 100.00 in this week. The bearish threats that could happen along the way may not take the price below the demand levels of 98.00 and 97.50 respectively. A perpetual movement of the price above the EMA 56 will continue to signify the presence of more bulls.

EURJPY:  The EURJPY moved upwards by roughly 230 pips last week. The price almost tested the supply zone at 132.50; and that would be the happening that is expected soon. The supply level at 133.00 would also be reached as long as the momentum continues to increase in favor of the bulls.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Here are winning trading principles: Lessons from Expert Traders


Saturday, August 24, 2013

Not Available At The Moment



One time ago an almost illiterate housewife told her son:

“Please take my mobile phone and call your father for me.”

The son dialed a few times and replied:

“Mummy, whenever I tried to dial it was a woman’s voice I heard.”

“A woman’s voice?” yelled his mother.

“Yes.”

The woman was mad with anger but tried to remain calm till the husband came home. As soon as the husband came home, his wife pounced on him without saying anything, wrestling him and calling him all sorts of bad names.

“What was a strange woman doing with your phone? You Casanova, weird son of a mongrel bitch, bloody idiot, goddammed fool, asshole, skunk, motherfucker, womanizer, hopeless flirt! Am I not satisfying your sexual madness enough?”

The man was too bewildered to speak. It was just like a dream to him. People began to gather to settle the matter. The husband was queried, but he said his wife should be asked first. The wife was queried and she said all she could say. Then a wise man commented:

“May we call your son and ask him what the strange woman told him on phone and whether it is true?”

The son was queried. But he said:


“Whenever I called my father’s number, the woman’s voice I heard said, ’The number you have called is not available at the moment, please try again later.’” 

Watch out for next…


Source: www.literactworld.com

Authors submissions

Wednesday, August 21, 2013

Triad Group: A Bull Market


 Triad Group stock (LSE:TRD) has become a bullish market following some historical weakness and then an equilibrium phase which was dragged out too long. The historical bearish trend could have been caused by nothing other than the herd mentality. 

On the chart, the EMAs 10, 20, 50 and 200 are used: the color that represents each EMA is shown at the top left part of the chart. Since June 2013, there has been what could be rightly called a tumultuous bullish breakout. The bullish journey has continued, though the price has been tumultuous since then. All the EMAs are giving a valid bullish signal in an orderly manner.

Conclusion: Triad Group is a bull market and you should handle it adroitly. You would do yourself a favor when your trading approach is concise and ready to handle the vagary of the market: how to handle positive trades and how to handle negative ones. You would know how to handle unexpected fundamentals and exponential plunges in the price. The uncertainty of the market is an ever present reality, and being able to face that victoriously is a must. If you fail to do this, any unexpected thing in the market would throw you off balance, and you may do what you would later regret. The cause of the regret is, nonetheless, an advantage for those who know how to handle the vagary of the market.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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




CPP Group: Long Positions Would Be Favorable


CPP Group shares (LSE:CPP) are now favorable to buyer. The price has broken upwards after a protracted sideways movement which lasted several months following a bearish bias. 

It can be seen that the price eventually broke out of a protracted sideways bias – to the upside. Since then, the price has closed above the upper Trendline, trading further north. The present massive pullback in the price is merely an opportunity to enter long again. It should not be forgotten that the RSI period 14 is above the level 50, which still confirms the bull’s hegemony. The price could ultimately reach the supply level of 50. The prospective bear can hurt herself/himself here. Could the cobra bite an iron rod without hurting itself?

Conclusion: Long positions on CPP Group would be favorable. Is this a blind assumption? No. Instead, it is a chart analysis that reveals what only trained eyes can see and the reasons for market actions. When you see the market moving seriously north as a result of some positive fundamentals, long positions would be favorable on it. On the other hand, should the market movement be determined by herd mentality or institutional panic speculation, mean reversion techniques could be favorable.  


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


Sunday, August 18, 2013

Daily Trading Forecasts for August 19, 2013


The JPY pairs ended in equilibrium zones, but there would be significant breakouts in the prices this week.

EURUSD: This pair is currently bullish (though not without turbulence). The price closed at 1.3327 on Friday and may go on to test the resistance line at 0.9400 this week. There would be bearish threats along the way; which are not supposed to take the price below the support lines of 1.3300 and 1.3250 respectively.

USDCHF:  The USDCHF is in a southward mode, and it would be a new signal, should the current mode be something to be relied on. The price closed at 0.9264 on Friday, in what could be termed as a bearish propensity. This week, the price could go onwards to reach the support level at 0.9200.
  
GBPUSD:  The Cable was able to reach our last week target at 1.5500, even going beyond it. The Bullish Confirmation Pattern on the chart shows the possibility of the price going upwards to reach the distribution territory of 1.5700 very soon, without noteworthy bearish retracements along the way. 
   
USDJPY: This tumultuous market has gone bearish and would likely continue as such this week; except there is something extraordinarily fundamental which makes the pair skyrocket. For as long as the price is below the EMA 56 and the RSI period 14 is below the level 50, the market is bearish.

EURJPY: This currency instrument went upward from the demand zone of 128.00 to around the price zone of 130.00 last week. After this it has begun to consolidate by moving protractedly sideways. It is, however, probable that the price would go upwards when a breakout happens, for the current market conditions favor the bulls more than the bears.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Saturday, August 17, 2013

James Simons: How Did He Become a Global Legendary Trader?


LEARN FROM GENERALS OF THE MARKETS - PART 35

James Harry Simons (sometimes known as Jim Simons) is a great American funds manager, philanthropist and mathematician. He was born in 1938 and raised in Massachusetts. He got his BSc in math at the age of 20 and his PhD in math at the age of 23. He was a member of research staff at IDA (Institute for Defense Analyses) from 1964 to 1968. He also taught math at Harvard. He chaired the math department at Stony Brook University in 1968. He was the recipient of American Mathematical Society's Oswald Veblen Prize in Geometry, in 1976.

In 1978, James left the academic world to manage a fund – using a discretionary approach. Since then, he’s been successful. He ultimately founded Renaissance Technologies, a private investment portfolio, in 1982. The portfolio was worth over $15 billion. His fund became one of the most profitable funds in the world. In the year 2004, he earned $670 million He made an income of $1.7 billion in the year 2006, plus $1.5 billion in the year 2005. In the year 2007, he made additional $2.5 billion as an income. He’s therefore one of the highest paid funds managers in the world. Being worth $10.6 billion, he’s declared as the seventy-fourth wealthiest individual on earth (twenty-seventh position in the USA).  James retired in 2009 as CEO of Renaissance Technologies. He lives in New York with his darling wife. He sired five kids: one drowned at the age 24 of in Indonesia, and another was killed in an automobile accident. This is really sad. The remaining three kids are alive. He’s several grandkids.

Lessons
Here are some of the lessons that can be learned from this world trading legend:

  1. James’ fund uses algorithm/math models to make trading decisions and open positions. These computer-based models analyze data and prognosticate future prices in the markets, with high degree of success. Contrary to what some experts think, automated trading works, and it can work with permanent success, just like manual trading. What makes robots fail is the fact that their makers program worse expectancy rules into them. If programmers put positive expectancy rules into trading robots, they’ll be victorious in the long-term, just like their human counterparts. Unfortunately, this is contrary to what most trading robot makers prefer (since majority of them aren’t expert traders).

  1. Renaissance Technologies hires many experts who’re not traders. These include experts in math, statistics and physics. Their strong academic know-how is capitalized on in the trading world. While success in trading requires some things different than what most other professions require, great professionals in other fields can make a huge difference in the trading world if they are groomed to approach the markets in the right way. It’s not uncommon to see great traders who’re extant or former psychologists, engineers, politicians, businessmen, programmers, doctors, lecturers, sportsmen, astronauts, etc. Have you mastered an area of human endeavor which can be used to your advantage if blended with the correct trading principles? As of James, one professor of physics says it’s stupefying too see a math expert achieving enviable goals in trading. Some people also wonder how that can be feasible. Yes, this is feasible. When you become a constantly successful trader, some would wonder how you manage to do that.

  1. James was a victim of Bernard Madoff’s Ponzi scheme. Innocently, he even recommended that the Stony Brook University Foundation invest with Madoff, when he was chairman of that Foundation. The Foundation lost $5.4 million as a result of this. There’s no one that can’t be scammed. Scammers are too smart; even for learned people.

  1. James is a great philanthropist: he’s a benefactor of many charity and educational programs in the US and overseas. He co-founded Paul Simons Foundation so that education and health projects can be supported. He donates larger amounts of money to support Nepalese healthcare. This is done thru Nick Simons Institute (to commemorate his son, Nick, who drowned in Indonesia). He founded Math for America, a non-profit organization which seeks to improve math education in public schools. He helped raise $13 million to prevent the shutdown of Relativistic Heavy Ion Collider because of pecuniary shortage. He gave $25 million to Stony Brook University to benefit its math and physics departments. He later gave another $150 million to Stony Brook University. Thru the Simons Foundation, he gave $60 million to start the Simons Center for Geometry and Physics at Stony Brook. He gave $60 million to start the Simons Institute for the Theory of Computing at UC Berkeley. When you become highly successful financially, please think of those you can help. There are more blessings in giving than in receiving.

Conclusion: James’ career and financial success is really enviable, but it didn’t come without effort. For you to enjoy success in trading, you need to put more effort. Success is inspiration plus perspiration. Don’t rest on your oars; if you want to enjoy the rewards, you will have to endure the efforts.

This piece is ended with a quote from Emilio Tomasini, a onetime TRADERS’ columnist (concerning James):

“Maybe you know the name of Jim Simons, that biggest algorithm trader who manages a fund whose name is Magellan, and that he made a cumulative composite yearly return of 40% over the last 15 years. And he became a world legend.” (Source: www.traders-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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





Friday, August 16, 2013

One Request At A Time


There was a local heathen that was just converted to Christianity. In fact, he was a novice Christian. One day, he wanted to pray, but heard that another person was praying next room, so he decided to wait for the person to finish praying before he started his own prayer. 

After 30 minutes, the other person was still praying, and he therefore waited another 30 minutes. After that the other person was still praying, he lost patience and went to the person’s apartment, knocking hard. That person opened the door and this novice Christian started ranting his complaint:

“Why are you so selfish? You’ve been praying for over 1 hour and you haven’t stopped. I also want to pray to God but I just want to let you finish praying so that I can also have the opportunity to talk to Him in prayer. You’ve failed to stop praying and you are delaying me! Why are you so selfish?”

The other person tried to control his laughter, and said:

“I’m sorry. But I’m not delaying you. Our God is omnipresent and can hear and discern what everybody is saying, even if the whole world were praying at the same time.  So you can start praying without waiting for anybody to finish. He isn’t a human being with severe limitations.”  


Thursday, August 15, 2013

@UK Shares Goes North, and That’s Just the Beginning


@UK shares (LSE:ATUK) has been going north in what is likely the beginning of a long-term bullish trend. Here, the bear got no chance, for the bull is in control. Would the dog ever waylay the tiger?

On the chart, the ADX period 14 is hovering around the level 60 (meaning that the buying pressure is currently strong), while the DM+ is far above the DM-; which means that the bulls have subjugated the bears. The MACD (default parameters) has also had both its histogram and signal line gone far above the zero line. There is therefore a Bullish Confirmation Pattern on the chart: anyone who goes short here would eventually suffer. The price may reach the supply zone at 60.00 within the next several months. This might thus be a reward for those who have been laboring to pinpoint a good entry point on the chart.

Conclusion: @UK market is another lesson that diligent and assiduous speculators get rewarded for their effort. Those months and years of hard work may seem unrewarding now, but soon you’ll soon enjoy the fruits of your labor. Like some other serious traders, we need to endure in a course of determination. When others around us ignore trading and when some even quit, we need to stay on course as successful traders do.

This piece is ended with the quote below:

“The trading business has a singular great advantage over brick and mortar businesses -- a trading business does not have to worry about a fixed location, or for customers to come to that location.  A trader can go where the money is being made. A trader can look at a variety of markets, in a variety of time frames, to find trades that fit his/her trading style.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


The Rise and Rise of Rare Earth Minerals


Rare Earth Minerals stock (LSE:REM) is on the rise. Soon, it would become the rise and rise, based on the chart analysis explained here.  The stock was recently caught in some kind of bearish run which dragged on for several months. It was a kind of consolidation to the downside.

Since August 2013, the price broke above the EMA 21, closing above it and shooting skywards. The Williams’ % Range period 20 has also gone into the overbought situation. This means that the stock is under strong buying pressure. The price may reach the resistance level of 0.60 eventually.

Conclusion: Why is this the stock behaving like this? Irrational decisions do no pay when trading is on. Alternatively, when people smooth their positions en masse out of irrational dread, it portends the best long signal. Irrational fear is an action that drives prices. It is likened to some wine that becomes tastier after it is left to ferment. When people smooth their orders en masse, you would usually see bearish moves. This bearish outlook can continue until it becomes significant – something that makes immature speculators more fearful and thus make further trading mistakes. This kind of herd mentality is what gives a huge edge to the experienced bull.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


Monday, August 12, 2013

Daily Trading Forecasts for August 12, 2013


The EURJPY was largely bearish last week, and it would possibly breach the demand zone at 128.00 to the downside this week. 

EURUSD: This pair went upwards last week, testing the resistance line at 1.3400 before bouncing downwards. The downward bounce is deemed a correction in an uptrend, especially as long as the price is above the support line at 1.3300. The price may go upwards again to test the aforementioned resistance line.

USDCHF:  This currency instrument is in a bearish scenario (being also bearish for the most part of the last week). The price has bounced upwards from the support level of 0.9200 – a barrier that could not be breached significantly last week. However, the price ought to be able to breach that barrier to the downside this week, for the southward outlook to continue to be valid.
 
GBPUSD:  The Cable trended upwards by roughly 300 pips last week – before it retraced southward a bit. The price closed at 1.5501 on Friday (August 9, 2013), resting exactly on the price market territory at 1.5550. That price territory may be breached to the downside, but not the next one, which is 1.5500.
   
USDJPY: This currency instrument moved largely downwards last week, testing the demand zone at 96.00. The price is now trying to move downwards towards that demand zone again, which would be retested and probably breached to the downside, should the current selling pressure continue.

EURJPY:  The EURJPY was largely bearish last week, and it would possibly breach the demand zone at 128.00 to the downside this week. The demand zone at 128.00 is not a lofty target, being expected to be breached to the downside as the price closes below it.


Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Saturday, August 10, 2013

The Real Elixir


I am not a Lao Tzu or a Taoist, but when I went to the land of the spirits I was shown a secret to everlasting life on earth. In fact all our social, academic, marital, career and material pursuits are worthless simply because life is short – only 80 or 90 years. I am just planning to try this prescription, but I am sure it works; only for those who have the courage and determination to gather the ingredients and use it as prescribed. Now take a pen and a piece of paper and jot down this secret.

  1. Cut a small piece of cloth from a dress belonging to your great granny.
  2. Shave the Saudi Monarch’s mustache.
  3. Pilfer a live light bulb in an army general’s office at night – in an army barracks.
  4. Cut the head of a tortoise which is 250 years old.
  5. The shoelace of an American politician who has lost elections 10 times.
  6. Pull out a claw from a conscious lion.
  7. Let all the above be burnt to ashes by a pregnant woman who is still a virgin.
  8. Then take it from her, preserve it in an air-tight pot, add a teaspoonful to some pap once in a year.

Once it is finished, live forever. This is SURE!

Watch out for the next…


Friday, August 9, 2013

Emilio Tomasini: Trading with Unusual Sense of Humor


LEARN FROM GENERALS OF THE MARKETS - PART 34

“There’s no doubt that the RRR is tremendously important. To get big profits, you have to take minor risks.” – Larry Williams

Emilio Tomasini is an Italian Professor of Corporate Finance at University of Bologna, and he’s a full time market speculator, trading several financial markets.  He founded LombardReport.com, which is a renowned online newspaper for serious investors and traders. He also serves as a consultant to top traders. He’s a former columnist at TRADERS’. Now he manages and directs other trading publications. He’s still a regular columnist and an author of best-selling books. His articles are full of funny but factual trading ideas. His website is: Emiliotomasini.com

Lessons
Professor Emilio is best understood by visiting his website and reading his past articles. However here are few of the numerous lessons that can be learned from him:

1.      You can have fun while trading – real fun. Professor Emilio has an unusual sense of humor which is often evident in his articles. Trading, as a fantastic way of life, is worth enjoying.

2.      Traders of nowadays are lucky because they’ve sophisticated technologies and great trading facilities at their disposal. Many decades ago, these things were not available and the pieces of price data available then were few and far between. Trading conditions were not as favorable as they’re today. Nevertheless, successful traders existed in those days. If there were those who succeeded in those days in spite of harsh conditions, why can’t you succeed with all the trading facilities and technologies at your disposal? You now have access to real-time data that comes to you at the speed of light. For instance, there are great pieces of trading software out there. One of the most popular among Forex traders is the Meta Trader.

3.      Are you a systematic trader or a discretionary trader? Systematic traders hate discretionary trading methods while discretionary traders abhor systematic trading methods. Each camp has certain advantages and disadvantages: both camps can be successful if they control their risk.

4.      Talking about the biggest names in the trading world, like David Tepper, Paul Tudor Jones and others, we know it’s inspiring and encouraging reading about them and their mindset and trading approaches. However, it also pays if we pay attention on being the best traders we can be. If you concentrate of being the best trader, perhaps you can become a big name in future.

5.      Making money is easy, but retaining it is difficult. With the control of the uncertainty in your trading, you can give up as little as possible in your profit, and as such, you’ll later recover your profits and move on.

6.      One of the major problems in trading is that most traders don’t have enough money to invest. That’s why we’re always under pressure to use aggressive money management so that our small portfolios can double quickly. Do you want to make $100,000 per annum? For a trader who has a capital of $1,000,000, that’s pretty possible because he just have to make only 10% returns per annum. But someone whose capital is only $5000 would need to make about 2000% before he she/he can go home with $100,000 per annum. Can you see why some find trading difficult?

7.      The bigger the lot sizes you use, the bigger your profits when there is positivity, but the bigger the roll-downs when there is negativity. Since we’re not absolutely sure of what the next candle would be: Some charting technique that gives some readings in a bear market may have completely different readings in a bull market. The greatest risk control can’t force a negative position to turn to positivity when the market has not moved determinedly in your favor.  When your lot sizes aren’t too big and you’re conservative about your risk, you’ll eventually be paid by the markets.

Conclusion: One mentor once told me this: ‘If it’s not painful, it can’t be gainful.” How true is this statement in trading and in other spheres of human endeavors?

I’d like to conclude this article with a quote from Professor Emilio:

“A good money management can improve the results of your trading system. So you need not have a superb trading system to make money. In the long term, it’s enough to have a stable strategy with positive expectancy and a proper money management.” 



Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


Wednesday, August 7, 2013

Mentum Stock Skyrockets!


 Mentum stock (LSE:MEN) now skyrockets in what  could rightly be called the beginning of a  long-term bullish journey. There are reasons for the current price action, which has gained at least 400% since reaching its yearly low in July 2013. Does the dog bark for no reason?

The 4 EMAs that are used for this analysis (EMAs 10, 20, 50 and 200) can be seen on the chart. The color that stands for each EMA can be seen on the top left side of the chart. The EMAs 10, 20 and 50 have given a clean ‘buy’ signal. Towards the end of July 2013, there has been a Golden Cross on the stock, as the price broke the EMA 200 to the upside. It may happen that the price would try to get corrected, having the EMA 200 as a strong support level. However, The EMAs 10, 20 and 50 would usually signify the direction of the stock, since the northward determination would remain as long as the price fails to breach all the 3 EMAs to the downside. This situation is an indication that any southward retracements in the market would eventually lead to renewed buying pressures.

The quote below ends this piece:

“I ’d rather work with a few clients who understand and believe in the process than try to convince the masses when they’re wrong.” – Jesse Felder (source: www.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

CPP Group Shares: A Bull’s Paradise


 CPP Group shares (LSE:CPP) have become a bull’s paradise – a situation in which buyers simply buy and hold – making long-term profits effortlessly. 

In a world in which following the line of the least resistance has not been easy over times, using trading methodologies that work in equilibrium phases and contrarian methods would easily become popular. Since March 2013, the price had been an equilibrium mode which dragged on too long. During that equilibrium mode, it was thought that the price would break out towards the downside, as the bull’s got plummeted.

There was a serious northward breakout from the equilibrium mode around the latter part of July 2013, in which the price had a gain of over 300% before retracing. In fact, it was the bear that got plummeted while the bull has been rewarded. The trap that was set for a partridge has caught an iguana instead. As long as the RSIP period 14 is above the level 50 and as long as the price does not touch the upper Trendline, the northward determination is valid.


This piece is ended with the quote below:

“Today’s market price is based on what people know. Tomorrow’s price is based on what people don’t know today. For this reason, I spend very little time looking at what the majority of investors is already aware of. I spend nearly all of my time trying to determine what the majority is unaware of.” – Jesse Felder (Source: www.tradersonline-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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



Monday, August 5, 2013

Daily Trading Forecasts for August 5, 2013



EURUSD: The bearish threats that happened on the EURUSD last week did not succeed in pushing the price below the support line of 1.3200. From the point of ‘nearly resulting in a bearish confirmation,’ the price has been able to rally in the direction of the recent bias. The resistance line at 1.3400 is the target for this week. 

USDCHF:  This pair, which was trying to rally last week, did not succeed in resulting in a bullish confirmation. From the weekly high of 0.9388, the price plummeted and resulted in a renewed bearish confirmation.  The price is expected touch the support level at 0.9200 this week. 
 
GBPUSD:  The Cable has been caught in a serious northward determination. Last week, it could not go below the accumulation territory at 1.5100. The RSI period 14 has already given a bullish indication - yet to be confirmed by the EMAs. As soon as the EMA 11 crosses the EMA 56 to the upside, a long trade would be opened.
   
USDJPY:  There was a bullish signal in this market until the NFP data sent this pair spiraling downwards. This proves to be a threat to the current bulls’ interest, but the indicators and the price action still signify some northward determination, which shows that this could be a good long entry.

EURJPY:  This currency instrument gave a good long signal last week, topping at 131.90 before it was sent downwards. On the chart, it can be seen that the bullish scenario is still valid (as shown by the indicators). As long as the price stays above the demand zone of 131.00, the bullish signal remains valid.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Saturday, August 3, 2013

A JOB IN THE ZOO


There was a man who was looking for a job. He had tried all he could, but in vain. He later decided, after a long search, to go to a zoo and apply for any position available.

When he got to the zoo’s management at last, the manager said:

“OK there is no job now, but we are considering you for a possible post. There is a shortage of some wild animals here. And you, honestly, with your broad and hairy chest, huge build and terrible face, could be a gorilla.”

The man nodded. The manager continued: “Since you need a job badly. Your ugly but huge build make you look like a gorilla. So you may stay in the zoo during visiting hours, and eat, shout, act like a gorilla. We’ll pay you $400 per month for this. We shall try to see how you could look more like a real gorilla, so come back tomorrow.”

The man thanked and left. The next day, he was given the job.

Watch out for more…


Friday, August 2, 2013

You Need a Trading Track Record



A TASK THAT MUST BE DONE

A good trading track record is a noble achievement that’s being aspired to. It’s a proof of your trading prowess – an absolute requirement that must be provided before you’re viewed as a pro, whose trading strategy is worthy of emulation or who could possibly be considered as a money manager.

Maintaining a consistent track record isn’t something that’s easily achieved, particularly in the face of the vagary of the markets, but it’s absolutely possible. A typical account history would have losing trades and winning trades; with average losses that are much lesser than average profits. This account would surely have occasional roll-downs, which would now and then be recovered, provided the trader is using a positive expectancy system. Therefore a good account history is the one which survives all the odds of negative trades and drawdowns over a long period of time. The account history thus would have a current balance that’s higher than the initial deposit, no matter how small or big the percentage profit is.

It’s recommended by certain trading strategists that a trading system ought to be tested for at least, 4 months on live market conditions. If the strategy then enables the account to be in a plus zone after the 4-month period, then one could use it on one’s account, with the premise that it would survive the future uncertainties if its rules are faithfully adhered to. That kind of strategy must enable the user to open long and short trades. One expert of trading track records declares that an account history must be, at least, 2 years old before the strategy/strategies used on it could be judged as being time-honored and having any chance to survive the future uncertainties.

Mark Jurik, a celebrated trading maverick, once said that no strategy should be considered as being fit to be published unless a minimum of 500 trades have been placed with it. He also went ahead to state that such strategy shouldn’t be considered as being fit to be used in managing funds unless a minimum of 1000 trades have been placed with it. If an account history is still in plus zone after this, then the strategy used on it is really worth being considered. 

One thing must be put in mind though; you don’t need to double your account several times before you can be seen as a pro. During the bear markets of the year 2008, many funds managers ended the year with mild or severe roll-downs, and yet, there was someone who ended the year with only 1% profit. With some shallow thought, one may think that’s far from being impressive, but the real fact is that the person was able to avoid an annual roll-down. This means he was able to keep the portfolio he managed safe. The most import thing is the existence of your portfolio, not the profits made on it.

Build a track record, for it’s an absolute essential. A typical investment bank might consider you for a fund manager position if you’d been trading on your own account for 3 years with annual profits of around 30%. You trading track records would, undoubtedly, open new doors for you. Go to various trading forums, blogs and websites, you’ll see many participants who know lots of things about trading. These people live and breathe trading, yet the only people to be respected are those who’ve good track records. There are many people who do the talking, but they don’t do the doing. Therefore, we respect only those who do the doing, and do so successfully.

Having a good track record would make you wealthy, since many people would approach you with offers. There are renowned pros out there. Why do you think they’re renowned? They’ve good track records. Dan J. Zanger, Peter Milman, Dr, Brett N. Steenbarger, and so on, have track records. Billionaire and millionaires traders have, in most cases, made their money from their investors. They’re able to do this because they’ve track records. In the trading world, the most important qualification on the battlefield of the financial markets is your track record, not your PhD.

Conclusion: You shouldn’t find an alibi for not having a track record after many years of trading. And this is achieved by giving your winners some leeway, as you truncate your losers. Negative positions must be closed. You see, the journey towards financial freedom is no picnic. In reality, it’s ups and downs in all aspects, especially if you don’t know the secrets to permanent success in the markets. No wonder only 10% enjoy everlasting success in the markets. You’ll often go through periods of losing streaks and wrong trades, to the extent that, unless you’re highly determined, you’ll get fed up with trading and throw in towel. If you goal is to get rich quickly, and you don’t get rich as fast as you want, you’ll decamp and join those who’ve stopped trading. Rather, your goal should be to get rich slowly: a record of 15% to 25% per annum is even a commendable achievement.

I’d like to conclude the article with the quote below:

“Expectancy (and statistics, for that matter) proves that cutting losers and maxing winners will eventually work out to be consistently (but not always) profitable.” – Dirk Vandycke


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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

 

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