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Tuesday, October 29, 2013

China New Gets a New Lease of Energy


China New shares (LSE:CNEL) have gotten a new lease of energy after a long period of hopelessness on the side of irrational equilibrium. On a lower timeframe shown below, the price broke upwards, following the recent trendless phase in the market and this is a beginning of a new uptrend. Whenever a trading instrument is caught in a strong bias it is more likely that the bias would continue to hold on.

On the chart, the EMAs, 10, 20, 50, and 200 are used. The color that stands for each EMA is shown on the top left side of the chart. The price broke upwards: the uptrend has begun. All the EMAs are thus acting as a great barrier to the bearish threats and also as a support to the bullish effort. The price could go upwards toward the resistance level of 10.500 within the next several months.  

Conclusion: China New is set for a long upwards journey, but there would be some pullbacks along the way. Rookies like to feel that they need to have a home run to make it big. You don’t have control over the markets, and you’re bound to sustain negativity sometimes. You can, however, develop a practical method so that negativity doesn’t have effects on you.

This article is closed with the quote below:

“Trading is a classic sport for individuals. You are a lone fighter and you are forced to deal with all the prominent aspects that lead to successful trading. Every trader will eventually realise that he needs a solid money management plan in addition to good analysis.” – Jens Klatt

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Monthly Forecast on Gulf Keystone (November 2013)


Gulf Keystone stock (LSE:GKP), which was recently trending downwards, is now consolidating. This is a pause in the midst of an extant momentum prior to the next move – either in favor of buyers or sellers. What is now the next direction in the month of November?


On the chart, the price is currently between the Upper Trendline and the Lower Trendline. Should the price break the Upper Trendline to the upside while the RSI period 14 goes above the level 50, the market would journey upwards. Reverse the logic for the downside, which is more likely. Yes, it is more likely that the price would resume its southward journey after this consolidation. The RSI period 14 is already below the level 50. Should the price test the Lower Trendline, break it downwards and close below it, the price would continue to nosedive.

Conclusion: Since Gulf Keystone has succeeded in making some astute forecasters appear like fools in recent times, it makes sense to handle this market with a measure of rationality and risk control methods. A good trader knows how to handle the unpredictability in the market adroitly…though it is disheartening that most traders have the mentality that cannot help their career. Should you have valid trading rules, but unable to be faithful to them, you would then need to work on your mindset.

This forecast is ended with the quote below:

“If you ask yourself why trading is so difficult, there is only one answer: Because nothing in life is more difficult than to change your personality.” – Norman Welz

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders



Sunday, October 27, 2013

Daily Trading Forecasts for October 28, 2013


The EURJPY closed at 134.43 On Friday (October 25, 2013), still breathing the bullish trend. It is likely that the price would continue to trend upwards this week, going towards the supply zone of 135.50 in order to test it again. 


EURUSD: This currency instrument was able to maintain its bullish stance last week, in spite of the threats for the bears. The price moved upwards by over 140 pips before encountering a challenge at the resistance line of 1.3800.  For this week, the support line at 1.3700 should serve as a check to the bearish threats.

USDCHF: This pair is bearish, and the bearish pressures come now and then. Last week, the price bottomed at the support level of 0.8900, which is a significant pivot point in the market. Since then, the price has been trying to rally in the context of a downtrend. That rally could be halted at the resistance level of 0.9000.

GBPUSD: In reality, the Cable is inclined to yield to bullish pressure more than bearish pulls; and the market is highly volatile and turbulent. In this kind of scenario, it would be OK not to use tight stops, because one would be easily stopped out. There market could go upwards, but it is best to wait for the RSI period 14 to go above the level 50 before one does that.

USDJPY: This market was unable to hold its ground against the bears and as a result of that, it is now in a bearish outlook. The price tested the demand level of 97.00, and then bounced upwards from thence. The upwards bounce is something transitory, giving us some short selling opportunities.

EURJPY: The EURJPY closed at 134.43 On Friday (October 25, 2013), still breathing the bullish trend. It is likely that the price would continue to trend upwards this week, going towards the supply zone of 135.50 in order to test it again.


Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


Eye-opening trading lessons: http://www.harriman-house.com/experttraders

Saturday, October 26, 2013

Richard Donchian: The Father of Trend Following


LEARN FROM GENERALS OF THE MARKETS - PART 39

“In the end, by becoming astutely aware of what can go wrong, and taking control, we can maintain our winning edge.” – Joe Ross

Richard Donchian, who was an American trader and pioneer of managed futures, lived from 1905 until 1993. His parents were Armenians who came to settle in the US. Richard graduated from Yale, earning a BA in Economics. He started showing interest in stock markets after he read a book about Jesse Livermore (Reminiscences of a Stock Operator). Though he lost some money in the significant bear markets that occurred in the year 1929, he simply used the experience to focus more on chart analysis, paying attention to price actions. 

In 1930, he began to deal with Wall Street. He produced a renowned service called Security Pilot and sold it to brokers. He then worked in various capacities at Hemphill, Noyes and Co and Samuel Rug Company. During World War II, he joined the American army, even getting promoted in USAF. When the War was over, he returned to trading, working again in various capacities until he founded Futures, Inc. which was one of the earliest publicly traded commodity portfolios.

Richard started a rule-based trading methodology which was later called Trend following. He believed that markets trended according to their biases for a considerable period of the time. He used moving averages and published various articles on his trading approaches. Thus he came to be known as the father of trend following. In 1960, he was chosen as director of Commodity Research with Hayden Stone, and he started writing a trading newsletter that focused on commodity trend timing. In his lifetime, he was a member of various exchanges.

Richard was a successful trader: he died as a soldier on the battlefield of the financial markets. He was able to turn $0.2 million to $18 million over many years (though this wasn’t easy at all, for he faced drawdowns along the way). Many modern trend-following strategies, including the Turtle trading system, are based on his original ideas. The Richard Davoud Donchian Foundation – a charity organization – was founded in his honor.

Lessons
While alive, Richard published a set of principles that could help today’s traders:

1.      Effective trading strategies have to come with rational approaches to money management. Richard dedicated himself to conservative trade management rules, and today’s traders can also achieve success by being conservative as well.

2.      Widespread public opinions tend to be wrong. Even when they’re right, it pays to dither before one takes decisions on the markets.

3.      Following equilibrium phases in the markets, you would do well to follow the direction of protracted movements when breakouts occur.

4.      No matter what your trading rules are, you need to curtail your negative trades and allow your positive trades to make more gains.

5.      Richard had trading guidelines that acted as filters (which can’t be mentioned here). There ought to be rational filter in your speculation guidelines.  For example, one needs to know when to risk more and when to risk less while trading.

6.      Go long in bullish markets and go short in bearish markets; though this rule is dependent on other factors.

Conclusion: In the midst of our daily concerns about risk, negative trades, and how to make profits, we may lose sight of the most important aspect of trading.  When successful in the markets, we too may also forget of our limitations and allow our hearts to be filled with dangerous overconfidence. On a different note, we may find ourselves lamenting moments in trading that don’t go your way, rather than focusing on the moments that go in your way.

This article is concluded with a quote from Richard:

“Nobody has ever been able to demonstrate that a complex mathematical equation can answer the question: Is the market moving in an uptrend, downtrend or simply just sideways?”


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

Friday, October 25, 2013

Angle Resumes Northward Journey


The price on Angle (LSE:AGL), which has already been in a bullish mode, was corrected southward in September and October 2013. When this was happening, some wonder how long it would take for the bull to be murdered along the way. It is too much for the fox to kill the chicken and the chicken’s owner. Right now, the price has resumed a bullish journey which is expected to last for several weeks or months. The market would keep on battering every bear along the way.


On the chart, the ADX period 14 is almost above the level 60, signifying serious buying pressure. The DM+ is also above the DM-, showing that the bias is northward. The MACD (default parameters) has both its signal lines and histogram above the zero line. There is a Bullish Confirmation Pattern on the chart, and the trend would continue going upwards towards the resistance line of 148.00.

It has been seen that no trading instrument would keep on going upwards forever; so it looks sensible to plan an exit target at an optimal distribution territory – which is the aforementioned resistance line, while applying trailing stop.

This forecast is ended with the quote below:

“One of the most frustrating experiences in trading is knowing what to do, how to do it, and when to do it, and not being able to execute.” – Joe Ross



Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Top Level Price Shall Top at 15.70 in Less Than 6 Months

Top Level shares (LSE:TLDH), having broken northward significantly, would eventually top at the supply level of 15.70 within the next several months. Experience can never be bought: our experience has made us understand that when the price breaks out of the kind of protracted equilibrium zone as seen on the chart, the price is ready to gallivant towards further resistance lines.  



One just needs to know the reality in the markets before going bullish or bearish. Although optimal trading instruments may not only be determined by chart analysis, the price broke conspicuously upwards in an act of defiance at the recent bearish pressure. Last week, the price broke the EMA 21 to the upside and closed above it; while the Williams’ % Range period 20 moved into the overbought territory, affirming the bulls’ hegemony. This is a clean bullish signal and it is thus expected that the price would eventually reach the supply level at 15.70, although there could be some transient bearish pullbacks along the way.  

“I have strong conviction in my ideas but when the market proves me wrong, I let go of my ego, cut my loss, and move on.” – Joseph Fahmy


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Sunday, October 20, 2013

Daily Trading Forecasts for October 21, 2013


Last week, the GBPUSD shot towards the north. Some transitory pullback is normally expected, but the northward bias is valid for this week. 



EURUSD: The pair moved upwards by more than 140 pips last week, but not after disheartening pullbacks and volatility. This week, it is expected that the upward move would continue, though there could also be some bearish corrections along the way. There is a support line at 1.3600.

USDCHF: The USDCHF has been trending downwards with limited thrust. This is because the price has not been able to break the support level of 0.9000 to the downside, although that feat would be achieved this week (especially in the face of the continued Bearish Conformation Pattern in the market). 

GBPUSD: Last week, the GBPUSD shot towards the north. Some transitory pullback is expected, but the northward bias is valid for this week. On Friday, the price closed at 1.6169. The accumulation territory of 1.6100 ought to serve as a barrier to the bears’ machination, while the market attempts to journey upwards.

USDJPY: This is a bear market, and it is slightly strange so (for most other JPY pairs hold their ground in the face of the bears’ attack). The price is below the EMA 56, and the RSI period 14 is below the level 50. However, should the bearish move continue, it might be limited in nature – perhaps not going below the demand level at 97.00.

EURJPY: This cross is a great indication of the stamina in the Euro. The overall bias is bullish, and it is understood that, should the EURUSD continue to go upwards, this cross would also be doing something similar, although some consolidation phases and price retracements cannot be ruled out along the way. 

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Eye-opening trading lessons: http://www.harriman-house.com/experttraders



Mellody Hobson: A Leader in the World of Investing


LEARN FROM GENERALS OF THE MARKETS - PART 38

“If you are truly passionate about trading and hope to be in the game for a long time, I recommend focusing on a slow and steady approach.” – Joseph Fahmy

Mellody Hobson was born in April 3, 1969 (Chicago, Illinois). She’s an American investor, trader and businesswoman. She got her BA from Princeton's Woodrow Wilson School of Public and International Affairs. In addition, she’s bagged honorary PhDs from St. Mary’s College and Howard University.

After receiving her BA, she started working at Ariel Investments, LLC. She began to climb the ladder of success within that company: from being an intern to being a senior V.P. & director of marketing. Finally, she became the firm’s president. This firm, based in Chicago, is one of the largest Afro-American-owned mutual funds and funds management firms in the USA, with over $3,000,000,000 in assets. Mellody is the Chair of the Board of Trustees of Ariel Mutual Funds and Dreamworks Animation SKG, Inc. She’s spread her tentacles into businesses, programs and foundations. She’s been featured in many popular magazines, along with extraordinary achievers like herself. Her corporate website is: Arielinvestments.com.

In the year 2006, she started dating billionaire George Walton Lucas, Jr., American businessman, movies producer and screenwriter. They got married on June 22, 2013.

Lessons
Here are some of the lessons that can be learned from this illustrious black American:

1.      As it’s been said somewhere else, successful trading and investing has nothing to do with one’s color, race, education background, religion, class, gender, country of origin and other discriminatory factors. Consistent survival in financial markets has no borders and can be attained by you.

2.      On the official website of Ariel Investment, there’s something there that piques my interest. There’s a saying there that goes thus: “Slow and steady wins the race.” How important and timeless this trading truth is! Contrary to those who think they can double their account many times in a month or in a quarter or in a year, investing and speculation strategies that work entail very slow, but steady equity increase. In trading, those who sprint too fast like the hare or the horse are bound to crash at last. Trading is an activity that makes us get rich slowly, not quickly. I’ll be happy with 15% profit per annum if my capital is safe. Or what’s the sense in targeting hundreds of percentage of returns per annum while your capital vanishes after a margin call? The tortoise and the snail move slowly, but if you go to sleep, they’ll have moved far when you wake up. What initially looks like a very slow movement translates into a great distance over a long period of the time. 

3.      Mellody advises people that they should forget fear. Many people hate or are afraid to invest their money in the markets because they think they can lose it.  When the markets crash and become too undervalued, that’s when most people would be afraid to buy (and that’s the best time to buy). When the markets rise and rise significantly over a long period of the time, thus becoming very expensive, that’s when most people would want to buy (and that’s the best time to sell). When the market is overbought, people have no fear (and that’s when they should be fearful). When the market is oversold, people are fearful (and that’s when they should be confident). As you can see, people’s investment timing is invariably wrong. They buy when they should be selling and they sell when they should be buying. It’s a pity that people don’t want to sell for profits when the markets are overvalued and dear. Rather, they sell for loss when the markets are undervalued and very cheap. The foregoing is the opposite of what you should be doing in the markets.

Conclusion: In one of his past newsletters, Joe Ross (Tradingeducators.com) said that there’s an old adage which goes thus: "It is better to have loved and lost than to have never loved at all." Joe then continued that similarly, anyone who desires pecuniary freedom had better make attempts and lost money during the initial futile attempts, than to stay in a state of complacency and merely wish he’d made an attempt. Such a person could spend the rest of her/his life feeling bad because he’d failed to utilize the opportunities of a lifetime, for the person would perceive the fact that if she/he had taken steps the dreams could’ve been actualized.

This piece is ended with a quote from Mellody:

“I know many members of our community steer clear of Wall Street because of the perception that the stock market is risky, but I am convinced the biggest risk of all is not taking one.”


Eye-opening trading lessons: Lessons from Expert Traders 

Thursday, October 17, 2013

There can hardly be a better time to buy Globo


The kind of chart pattern that is seen on Globo (LSE:GBO) shows that now is one of the best times to buy long the shares. The bullish bias in the market is still intact – only that there is a good pullback which offers and excellent buying opportunity.

Further northward move was challenged in this month, and according to my price analysis, 4 EMAs are used. They are EMAs 10, 20, 50 and 200 (the color that stands for each EMA is shown at the top left side of the chart). The EMAs support a bull market, and the pullback towards the EMA 20 offers a long trade possibility. With a long trade in place, one could place a stop around 64.500. This is a great way to fry the bear which has already made itself vulnerable. We have already been planning to roast the game; it now rubs itself with vegetable oil and sits beside a fire. 

Conclusion: In an imperfect market, Globo shares may assume another lease of bullish trend and go determinedly upwards. Why do we prefer perfection in the imperfect world? We ought to know how to face uncertainty successfully, rather than seeking certainty (which is illusory). Looking for assurance in everything will not be beneficial in the long run. It cannot benefit you in trading, though it may help in some areas of human endeavors. In trading, uncertainty has become our permanent ally.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders




Is Royal Mail a Sell Candidate?


Royal Mail (LSE:RMG) has become a hot cake in that it offers investing possibilities to interested ones. However, a closer look at the current price action suggests that bearish attempts cannot be overruled. 


Generally, the bias on the chart is bullish. The price is now in a sort of consolidation, while the RSI period 14 shows the buyers’ determination to push the price upwards. It is thus possible that the price break above the Upper Trendline, as the RSI trades higher. Should this happen, the price may go towards 1380 within the next several months. Should the price break the Lower Trendline to the downside, and the RSI crosses the level 50 to the downside, the price would drop towards the support level at 180.

Conclusion: This stock would possible go up. There are no guarantees. We triumph in the markets since we know how to handle unpredictability as possibilities instead of looking for guarantees. Trading principles that control risk are welcome; for where there is no risk, there is no possibility of gains.

This forecast is ended with the quote below:

“Who cares if you make a bad decision, just make one! If you are wrong, you’ll learn from it and make a better decision the next time.” – Joseph Fahmy


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Sunday, October 13, 2013

Daily Trading Forecasts for October 14, 2013


The JPY pairs are currently in a bullish mode, and that is what would likely be the bias for this week. 

EURUSD: The EURUSD has been moving in a highly volatile manner – giving room for palpable turbulence. There are mixed signals in the market and it is advisable to wait for a clearer direction before one takes a position. This direction may be in favor of the bulls or the bears.


USDCHF: This pair closed at 0.9114; the price itself in a bullish mode. There is a Bullish Confirmation Pattern in the market (and the indicators on the chart support this). For this week, it is normal to assume that the price would continue to trend in the favor of the bulls.

GBPUSD: On the GBPUSD, the bias is bearish. Although the recent historical data shows the deadly struggle between the bears and the bulls, it is evident that the bears are gaining more and more ground. Eventually the price would reach the accumulation territory at 1.5900.

USDJPY: This currency trading instrument has been trending upwards nicely. From the low of 96.57, the price has reached the high of 98.59, and closing at 98.58. The buying pressure in the market is very strong and the price would continue to trend towards the supply level of 99.00. 

EURJPY: The JPY pairs are currently in a bullish mode, and that is what would likely be the bias for this week. On this very cross, the EMA 11 has crossed the EMA 56 to the upside and the RSI period 14 has also crossed the level 50 to the upside. The price is gallivanting towards the north.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


Eye-opening trading lessons: http://www.harriman-house.com/experttraders

Friday, October 11, 2013

Before You Open That Trade


“I knew that, if I wanted to be successful, I needed to work smart, not hard.” – Marcello Arrambide

Do not place too much emphasis on the trade you just opened. It might win or lose –and that’s how it’ll always be. If it wins, the gain should be decent if you let your profit run. If it loses, the loss should be insignificant and easily recoverable (as you use a safe lot size and an optimal stop).  Win or lose, skilled traders enjoy permanent success. Trading psychologists the world over give much encouragement. Some write books and articles. This helps us to keep positive trading attitude. We remember that the markets cannot be predicted with certainty. If we dwell on one losing trade, we might become victims of another. If we’re not trading the right way, we might weaken in one way or another. Speculation is a journey of a lifetime, not a short cut to gratification. And it requires psychological stamina, persistence and sanity to hold the fort and win the battle.
When you change your mind during an open position, and apply some style that you did not plan initially, you’re involved in self-sabotage.

According to Dr. Janice Dorn (www.jtrader.us), we shouldn’t trade for excitement or entertainment.  We need to avoid the highs that come from quick profits or the lows that can appear after losses. If we have a sound system, it does not matter whether any particular trade makes a profit or a loss. What matters is that the probabilities over time are in our favor. We must remember that no system is perfect, and prepare for losses along the way. We should measure ourselves on whether we followed our rules and executed our system, for both winning and losing trades. The process of trading is much easier when we focus on execution of a system rather than on whether each individual trade was right or not, because we take our ego out of the process.

If you’re always afraid of what an open trade might do, then you might look for more help from a professional who can give you encouragement. Really, improving metamorphosis is common to triumphant market speculators. Professional traders and investors look for encouragement sometimes. Nevertheless, some traders still think that they don’t need help. There are people that would still fail to take an advantage of a wonderful situation if it were offered to them free. There are many traders who lose and lose in the markets – no matter what they do. Yet, they would prefer not to enlist for help. This thing isn’t a curiosity. It’s obvious that some traders who really need help aren’t interested in getting help.

There are victorious traders who focus only chart analysis with focus on easy rules; there are those who combine chart analysis with fundamentals. No matter what kind of analysis you use, you’ll need to combine it with risk control so that an open trade won’t mean the whole world to you.

You cannot be sure whether the trade you’re about to open will go positive or negative, but if you know that a trade can be positive, then you’d need to acknowledge that it can go otherwise. The fact that a trade can go either way should be known before you see any result. The result of the trade you’ve opened doesn’t matter. What matters is having average losses that are much smaller than average profits over a long period of time.

Strategies are not the ultimate, but how you use those strategies is the deciding factor.  The crucial thing is the chart and what you can do on your portfolio. I know that speculation is easily done, though those who choose not to persevere, concentrate or get serious enough to deal with the uncertainty of the future, may find it challenging. In spite of this, when you have certain winning techniques and are faithful to them, you can reap the necessary rewards in the long run; when those without winning techniques give up. As a speculator, if you obey your winning techniques, plus risk control measures, eventually you will realize your dreams, not by avoiding losses always, but by coming across losses that are your under control. It’s those who’re no longer interested in making progress as traders that would reach an impasse. Innumerable bears and bulls, sound speculation and the ability to adapt to any market circumstances any time – these are a necessity.

This article is concluded with a quote below. This is really a food for thought:

“If only we were omnipotent! Think of it. Imagine being able to control your destiny. You could make the markets do whatever you wanted, and you'd easily be a super trader. The truth, however, is that we are all mere mortals. We must accept what the markets offer us. We cannot control them. It's unfortunate, but true. The trick to living with this fact is to try to persistently change what we can change, but humbly accept what we cannot change. In the end, we have to persist as much as possible, but at the same time accept our limitations. It's easier said than done. It is so hard that some people never do accept their limitations. They overconfidently think they have more power than they have. They manifest what psychologists call an "illusion of control."’ - Joe Ross (Source: www.tradingeducators.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders





Tuesday, October 8, 2013

Monthly Forecast on Gulf Keystone (October 2013)


It is now suicidal to buy long on Gulf Keystone (LSE:GKP), for the price has been making lower lows and lower highs. It is thus better to trade with the flow of the market instead of trading contrarily to the trend. Speculators are aware of the dangers of mean reversion trading; yet they trade in mean reversion modes. Any bull who challenges the current outlook would be whacked: it is like the male rat that challenges the cat to a duel.

The bias on the stock is bearish and it would continue falling lower and lower, reaching the support levels of 160.00, and then 140.00. On the chart, the Williams’ % Range is in the oversold territory, meaning that the weakness in the market is noteworthy. The price closed below the EMA 21 in September 2013, and it has been trending further downwards. Victorious speculators are those who wait for confirmation before taking positions. The bearish confirmation has long been in place.

Even if a good risk controller is caught on the wrong side of this market, the negativity would be negligible. For astute risk controllers, a loss is usually insignificant, and it is not used to judge the validity of future trades.

This forecast is ended with the quote below:

“The main concept behind what I do is following the trend… If you follow the trend and high momentum there is a higher degree of probability and therefore success.” – Marcello Arrambide

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders





Phorm Corp - A Promising Stock


Phorm Corp (LSE:PHRM) is a highly promising market for profit seekers irrespective of its recent indecision which dragged on for several months. 


The price has been bottoming for months, reaching an all-time low at the accumulation zone of 2.00. One would see that the ADX period 14 is at the level 50 (meaning a strong trend), while the DM+ is far above the DM- (showing a serious buying pressure). The MACD (default parameters) has its signal lines and histogram above the zero line. This is a Bullish Confirmation Pattern. The price could reach the distribution zone at 20.00 within the next several months.

Conclusion: It is expected that Phorm Corp shares would continue to go upwards steadily, with minor pullbacks along the way. While taking advantage of this price action, the safety of our portfolios remains paramount in our mind. Conservative risk control helps maximize gains. Is there any other job that is as challenging as trading? Is there any job that is as rewarding as trading? Anything you do to attain trading success is worthwhile. Success is available for every speculator, but most fail because of the wrong mindset which they do not want to change.

This forecast is ended with the quote below:

“The best start is to have a good coach, otherwise there is danger of learning the
wrong knowledge or false skills unknowingly. But your mind will signal: “I can do that on my own!” -  Norman Welz

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders



Sunday, October 6, 2013

Daily Trading Forecasts for October 7, 2013


The vivid southward reversal on the cable has resulted in a new bearish bias on the pair. Right now, the accumulation territory at 1.6000 is about to be breached. 


EURUSD: This pair trended upwards last week, but the current southward reversal in the market is a threat to the bulls’ interest. Should this go further downwards, it would lead to the total loss of all the gain that was realized last week. Any movement below the support line of 1.3500 will signal a complete end of the bullish outlook.

USDCHF: The tardy but sure pair has been trying to reject further bearish movement (however it moved southward last week). Although the price tested the support level at 0.9000 several times and even breached it downwards temporarily, it has been moving upwards. Any move above the resistance level at 0.9100 means the bearish outlook is over.

GBPUSD: The vivid southward reversal on the cable has resulted in a new bearish bias on the pair. Right now, the accumulation territory at 1.6000 is about to be breached. The price has closed below the EMA 56 (the EMA 11 has almost crossed the EMA 56 to the downside), and the RSI period 14 has crossed the level 50 to the downside. The bias is bearish.

USDJPY: The USDJPY closed at 97.46 on Friday – having tested the demand level of 97.00 a few times. The bearish outlook is still intact on the market, unless the price crosses the supply level at 98.00 to the upside.

EURJPY:  This currency instrument is still bearish in outlook. As it has happened recently, any rally in the market is a shorting opportunity. This time around, there is another opportunity to sell at 132.50

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


Eye-opening trading lessons: http://www.harriman-house.com/experttraders

Thursday, October 3, 2013

Mobile Streams: Hopeless Shares


 Mobile Streams shares (LSE:MOS) are hopeless at the present. Looking at the recent historical data, one would see that buy-and-hold investors are suffering in this market. The bulls are heavyhearted and would be advised to smooth their orders before the shares become brutally oversold; just as they were in June 2013.
 

Short trades would reap some gains because of the presence of the strong bears. Bears need to be present for short trades to reach positivity. You can never shave someone’s head when she/he isn’t around. Apart from the recent volatility that was prominent within the Trendlines, the price broke downwards and would possibly close below the Lower Trendline. The RSI period 14 is already below the level 50: the price could go protractedly southward, possibly reaching the accumulation territory at 60. Here, a good risk controller would not be bothered much this, even if they have open long orders.

Conclusion: When grappling with the uncertain markets, use minuscule lots sizes, use minuscule lot sizes. You simply need to use small lots. Should you do this, you would be able to stick to your trading rules. Any negativity you sustain after that would not be significant or threaten your general welfare. The negativity would be negligible and you would be able to find yourself being indifferent to it. It surprises me to see many people who risk too much when trading, and yet they are not expert traders. When you risk very small and follow your plan, the uncertainty in the market would be easier to bear.


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Physiomics is a Buy Candidate


Physiomics stock (LSE: PYC) broke upwards significantly from its long-term range which had been holding out for many months. Whether this is seen as an irrational spike or a phenomenon that would be sustained, the astute buyers intuit it as a great trading opportunity while some bears wade in their pabulum, as far as the price is concerned. 


The EMAs 10, 20, 50 and 200 are used here (the color that stands for each EMA is shown at the top left part of the chart). The EMAs are now in agreement with a bullish bias. Before it broke upwards significantly, the price has a huge support at 0.1. Having broken northward, the price would not go back towards the aforementioned support. The ultimate target is at 1.0.

Conclusion: Physiomics is a buy candidate, and those who go long on it can smile very soon. Yes, the astute speculator is rewarded by the price. When you consider other speculators and acknowledge the need to trade what you see, you would then be able to reap some gains from your effort and get praised for your acumen. Then you would have a satisfactory trading career.




Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


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