Adsense

Monday, November 25, 2013

Monthly Forecast on Gulf Keystone (December 2013)


It is expected that Gulf Keystone (LSE:GKP) would experience further consolidation and subsequent downtrend in the month of December 2013. Any rally here – as it is currently happening – would be short-term in nature as well as giving the bears a wonderful opportunity to sell short at better prices. 


You can see that the price, which has been trending vividly lower since September 2013, has just broken out of the Trendlines (the lower Trendline, to be precise). The price closed below the lower Trendline. Therefore, any rally would be a false signal. The RSI period 14 is below the level 50. In the month of December, the price could reach the accumulation territory of 140.00; whereas the distribution territories of 180.00 and 200.00 would serve as hurdles to any bullish attempts.  

Conclusion: Gulf Keystone is a bear market and it would continue to be such.
At this time, the bull may be threatening, but it really is a toothless dog… it merely resembles a tiger; it cannot hunt down even a rodent. Anyhow, our gains come from other traders’ blunders. “Lessons learned from a loss are the price of knowledge gained,” declares Joe Ross. Please, we need to learn from the past negativity.

This forecast is ended with the quote below:

“The point is this: one trade won’t make your career, but one trade could break your career. (Or at least blow up this trading account…)”  - Rick Wright

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders






Further Crash is Coming on Publishing Technology



Publishing Technology shares (LSE:PTO) have been trending lower significantly in recent times, and it is expected to crash further. The price hit a strong supply zone in October 2013, following a gap-down in the market. Since then, it has been trending downwards.


Here, 4 EMAs are used. They are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown on the top left corner of the chart. You can see that the price has breached the EMAs 10, 20 and 50 to the downside, as it targets the EMA 200 which is the last hope for the adamant buyers. The EMA 200 may succeed in halting the progress of the bear, but the probability of it being challenged and breached to the downside is very high. Should the expected Death Cross materialize, it would be a new lease of ‘crashing era.’ The long term target for the sellers is at the demand zone of 200.00. The signal here is ‘sell,’ not ‘buy and sell.’ There is no room for hedging – otherwise one will lose both. He who runs after two mice will end up catching none.

Conclusion: As regards the Publishing Technology, the dominant trend is bearish, although there may be noisy rallies on smaller timeframes, which would often be inaccurate. Rookies may prefer to use smaller timeframes, but professionals prefer using bigger timeframes. That is why most of them tend to do swing or position trading, because day trading can really be full of stress.

“You will not really have failed until you finally give up – a decision that you do not need to make.” – Marko Graenitz


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Sunday, November 24, 2013

Daily Trading Forecasts for November 25, 2013


The conditions on the market are favorable to trend-followers, especially in the face of new signals and directional movements that are currently happening. For instance, the USDCHF has assumed a strong southward bias and the price could reach the support level of 0.9000 this week. 

EURUSD: The EURUSD has assumed a strong northward bias and the price could reach the resistance line of 1.3700 this week. This is possible because the EMA 11 has crossed the EMA 56 to the upside while the Williams’ % Range gallivants in the overbought territory, showing the strength of the bulls.


USDCHF: The conditions on the market are favorable to trend-followers, especially in the face of new signals and directional movements that are currently happening. For instance, the USDCHF has assumed a strong southward bias and the price could reach the support level of 0.9000 this week

GBPUSD: On this pair, we have a Bullish Confirmation Pattern. The market moved upward by over 110 pips last week, closing at 1.6224. There is still much room for the price to go north, only that there could be some pullbacks along the way, which ought not to take the price below the accumulation territory of 1.6100 in worst cases.

USDJPY: Here too, the market is bullish. Yes, this is a bull market and the price would eventually test the supply level of 102.00, even possibly overcoming it. The great psychological demand level of 100.00 would act as a long-term barrier to the bears’ effort, for the price may not break that area to the downside in spite of the corrections that may happen in the course of this bullish journey.

EURJPY:  This cross trended significantly upwards last week, moving upwards by more than 200 pips before closing at 137.29 on Friday. Since the bullish signal was generated a few weeks ago, the market has moved upwards by more than 610 pips. A great ride indeed!

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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

Friday, November 22, 2013

Steven Cohen: An Enigmatic Market Speculator


LEARN FROM GENERALS OF THE MARKETS - PART 41

“What you do not believe, you can never become.”

Born in June 11, 1956, Steven A. Cohen is an American funds manager. He grew up in New York, where his parents worked. He began to play poker while still in high school – something that could’ve groomed him to develop a liking for the vagaries of the markets. When in school, he opened a brokerage account with some of his tuition fee. He got a degree in economics in 1978. After that, he was hired at Gruntal & Co. in 1978 (a Wall Street firm). On his first day as a trader, he made a profit of eight thousand dollars.  Later, he was making at least one hundred thousand dollars per day. In 1984, he was managing his own trading group at Gruntal. He founded his own firm, SAC Capital Advisors, in 1992 (with about twenty million dollars of his own money).

Steven has been so successful in his career. In the year 2005, he was paid one billion dollars as salary. In 2011, he was paid a salary of six hundred million dollars. As of March 2013, he was termed as the one hundred and sixth richest individual on earth (number thirty five in the States), being worth far above nine billion dollars. A Wall Street Journal article called him a hedge fund king. Time Magazine and Bloomberg Markets Magazine once ranked him among one of the most influential people. He’s been married twice with 7 children. Unlike some billionaire funds managers who donated huge amounts of money to charities, Steven (an avid lover of arts) has spent huge amounts of money on arts. Since the year 2000, he’s been collecting art works and has spent hundreds of millions of dollars on that. He’s constantly ranked among the top ten biggest-spending art collectors. That’s how he preferred to spend his money.

Lessons
There are helpful things to learn from Steven:

  1. There are some who can talk lots about trading and also trade successfully, while some can talk a lot about trading, but can’t trade successfully. Steven rarely grants interview, for he’s a timorous soul. There are many timorous souls out there who don’t talk, write or grant interview about trading; yet they constantly make killings in the markets.

  1. It’s been observed that at the beginning of one’s trading career, one tends to favor short-term trades. However, as one gains more experience, one tends to hold one’s trades longer than when one first started. This is exactly what happened to Steven, who didn’t hold open trades for long periods of time. Later, he began to trade for the longer term.

  1. Teach your kids the art of trading (as one of my past articles explains). When kids start having market-like experience while still a teenager, they usually grow up to become highly profitable traders. As far as the markets are concerned, there may be a seed of greatness in you and your kids. Those who start trading when they’re still young would have the chances of becoming market wizards more easily than those who start when they’re older. Steven began to experience the unpredictability of the markets while in high school. You can see what he later became.

  1. It’s very important to stick to the industrial standards, rules and regulations in the course of one’s career. No-one says you mustn’t make money, as long as you’re doing that legitimately.  No doubt, Steven is a great trader, but sadly, he’s been indicted in a large criminal insider trading scandal. It’s believed that insider trading gives those who do it an unfair advantage over others. He was charged with failure to prevent insider trading in his company. Five of SAC Capital Advisors former employees were implicated and they admitted their guilt. More employees have also been charged. This is a serious allegation. Now U.S. securities regulators are trying to bar Steven from managing other people’s money. In fact, there have been many former funds managers who’ve been jailed, fined and disgraced because of insider trading. Steven’s glorious and enviable career is mired in scandal. That should be a lesson to us.

Conclusion: Funds managers like Steven are worth our admiration because it’s daunting to manage other peoples’ money. It’s far easier to manage one’s own money. So it pays to get a trading methodology that fits your mindset and beliefs, for what fits you may not fit another person. When you use a methodology that agrees with your mindset, trading becomes much easier and enjoyable. Just make sure you’ve tested the methodology to make sure you like it. Tweak it and apply the rules as they fit you. Then make sure that the rules give you an edge. There’s no end to acquisition of knowledge and maturity in the trading world.

This piece is ended with a quote from Jesse Felder, who’s also a money manager. He mentions the challenge of managing other people’s money.

“When trading your own account you can only harm yourself. When trading other people’s money you have their financial future in your hands. My clients typically have most of their net worth invested with me and that’s a major responsibility. I take very seriously.” (Source: www.tradersonline-mag.com)

Eye-opening trading lessons: Lessons from Expert Traders




Wednesday, November 20, 2013

Purchase Mariana Resources at 7.00 and sell it at 10.00


Mariana Resources (LSE:MARL) which broke northward in a significant mode at the beginning of November 2013, is currently being pulled back. This is a good opportunity for the bulls to go long at cheaper prices. 


Here, the ADX period 14 is sloping above the level 50 (signifying a very strong bias), while the DM+ is above the DM-, which means the bulls’ supremacy. The MACD (default parameters) histogram and signal lines are above the zero line. The signal lines are even far above it. This means that while we can count on a possible reversal, it would be temporary in nature, as a result of the Bullish Confirmation Pattern on the chart. The bear may not want to risk selling short in this kind of market. Can the carpenter eat nails?

Conclusion: The price on Marianna Resources is projected to go to the supply zone of 10.00 this year or next year. It is your action that would show if you can make money in this market. You may want to capitalize on the bears’ frailty by going along the bulls’ stamina. It is now crucial for you to join the bulls in getting rid of the bearish threats, since this plays a factor in your probability of making gains.

This forecast is ended with the quote below:

 “Mistakes basically are the best thing that can happen to you – especially at the beginning of a trader’s career where you trade a small account.” – Marko Graenitz

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders




Sell Beacon Hill Resources at 0.80 and Exit at 0.20


Beacon Hill Resources (LSE:BHR) can be sold at 0.80 and later exited at 0.20 in what could potentially be a profitable short trade. The long-term bias is downwards and the bulls are too weak to effect any meaningful changes, until further notice. 


The price has been trending downwards for several months, breaking new lows, even when some chart readers think that the price would turn upwards. The price is currently staying below the EMA 21, and the Williams’ % Range has been staying perpetually in the oversold region. It is more sensible to call short trades. Any rally here would be temporary an insignificant.

Conclusion: The best thing to do on Beacon Hill Resources now is to sell short and let it run. In the long run, you may begin to smile at your bank. Irrespective of what you are doing right now, if you do not take any action in the market, you would not have any results to show for it. Mere wishful thoughts do not bring profits.  

This forecast is ended with the quote below:

“If you have a good strategy that has worked well for a long time, then stick to it
even during a drawdown. Reduce the position size if necessary. However, if you change or give up your strategy at short notice, you will have even less chance of surviving the drawdown. It may be hard to continue trading right through a drawdown, but you will be very glad at the next high of your equity curve that you have stayed the course.” – Marko Graenitz (Source: www.tradersonline-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders




Sunday, November 17, 2013

Daily Trading Forecasts for November 18, 2013


The Cable is now trading above the accumulation territory of 1.6100, in what is called a bullish mode. This week, the price may reach the distribution territory of 1.6200, even possibly breaching it to the upside.

EURUSD: There is not yet a clear signal on the EURUSD, but it is much more likely that the price is poised for a renewed upward journey. When the condition for a bullish signal is met, you would see the price trading above the EMA 56 and the EMA 11 has also crossed the EMA 56 to the upside.


USDCHF: There is not yet a clear signal on the USDCHF, but it is much more likely that the price is poised for a renewed downward journey. When the condition for a bearish signal is met, you would see the price trading below the EMA 56 and the EMA 11 has also crossed the EMA 56 to the downside. But right now, it is not safe to go short until the above condition is met. Should there be any failure in meeting the above condition, then the price may bounce upwards.

GBPUSD: The Cable is now trading above the accumulation territory of 1.6100, in what is called a bullish mode. This week, the price may reach the distribution territory of 1.6200, even possibly breaching it to the upside.

USDJPY: This currency trading instrument closed at 100.21 on Friday (also in a bullish mode). The supply level at 100.50 is an easy target for the bulls, plus the demand level at 101.00 is also a possible target for this week.

EURJPY:  This market trended very strongly last week, closing at 135.17. At that price zone, some may think that the price has long been overbought. But the price is not overbought if the bulls are still interested to purchase the EURJPY at that price zone, for the market might still go further upwards this week.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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



Friday, November 15, 2013

Charlie Munger: A Replica of Warren Buffett


LEARN FROM GENERALS OF THE MARKETS - PART 40

“True success is the only thing that you cannot have unless and until you have offered it to others.”

Charles Thomas Munger was delivered as a baby boy on January 1, 1924, in Omaha, Nebraska, USA (Warren Buffet is also a native of Omaha). He’s a lawyer, business mogul, Philanthropist and investor. He studied math at the University of Michigan and served in the U.S. Army Air Corps. Then he was admitted to study law at Harvard.  In 1948, he settled in California and started practicing law. In 1962, he worked as a real estate lawyer. Later, he stopped practicing law and focused on investment management. As a result of this, he collaborated with Otis Booth and later, Jack Wheeler, to found Wheeler, Munger, & Co. It was an investment company which had a seat on the Pacific Coast Stock Exchange. From 1962 to 1975, the partnership made compound annual profits of roughly 20%.  After about 31 per cent of losses in 1976, the company was folded up.

Charles is best known for his work with Buffett (the latter calls him his partner).  He formerly chaired Wesco Financial Corporation, which is now part of Berkshire Hathaway. At the time of writing this article, Charles is Vice-chairman of Berkshire Hathaway Corporation. He’s also the chairman of the Daily Journal Corporation. His net worth is $1.1 billion. As a philanthropist, he’s donated hundreds of millions of dollars to schools (including universities). He’s been married twice, having 6 children altogether.

Lessons
These are some of what you can learn from Charles:

  1. His investment partnership made some compounded annual profits of roughly 20% between 1962 and 1975. When there were losses of up to 31% in the year 1976, the partnership was ended. Nevertheless, he didn’t quit the investment world (contrary to what most people do today whenever there’s a significant negativity in their investment, without thinking of the days when things were going their way). He simply moved ahead in another format and has been astoundingly successful since then.

  1. Do you work with someone who differs from you in certain ways? Your differences shouldn’t cause a rift. Instead, you should focus on your partner’s admirable qualities. In spite of political, operational and interest differences, Charles has been working wonderfully together with Warren Buffett.

  1. Charles donated millions of dollars to education. He still donates more and more money. Some might be concerned about his net worth being drastically reduced, but he said he’ll not need the money where he’s going. He’s now close to 90 years of age: Do you think he’ll need the money in his grave? Even if he was the richest man in the world, would that matter to him in his grave?

  1. According to Charles, a number of selected stocks that have been studied and mastered can generate excellent profits in the long run. A good trading strategy can give you average profits that are much bigger than average losses over time.

  1. People perform well when they’re encouraged and motivated. In a workplace, high ethical standards are needed. Charles once said that good businesses are those with ethics. No business can thrive long on trickery and shenanigans.

  1. The more you stay in trading, the more expertise you gain. More years means more wisdom. Besides, for you to master a broad subject matter area, you need to read all time. For you to master the art of trading, you need to read more and more about it.

  1. A simple idea can be all you need to get your long-awaited breakthrough. Simple strategy ideas can be all you need to become a permanently successful trader. Take simple ideas seriously. Charles said that it never ceases to amaze him how much territory can be grasped if one merely masters and consistently uses all the obvious and easily learned principles.

  1. For you to succeed in trading you don’t have to be brilliant: you just need to be a little wiser than other traders, on average, for a long period of time.

  1. Teaching people to master what they don’t know initially is a great thing. Being an effective trading coach is a great calling.

  1. Charles says he tries to get rid of people who always confidently answer questions about which they don’t have any real knowledge.

Conclusion: Actually, judge the current level of your expertise in trading. Would you hire someone to manage your money if he’d acquired only the level of your expertise? Would you recommend such one to trade for an investment bank? I know you’d not do that, for it would end up ruining a big amount of portfolio. Doesn’t that then show a need for you to obtain more knowledge?  You think you’re a smart trader, but you still exhibit some rookie’s reactions when it comes to the outcome of your trades. You’d need to know the type of trader you’re so that you can learn a lot from what happens to you. Oftentimes, you simply need to go thru some trying, harrowing and disturbing experiences before you can attain your goal of trading mastery. This is what has happened to many who have mastered the markets.

This article is concluded with a quote from Charles:

“All intelligent investing is value investing — acquiring more than you are paying for… You’re looking for a mispriced gamble. That’s what investing is. And you have to know enough to know whether the gamble is mispriced. That’s value investing.”

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders



Tuesday, November 12, 2013

African Potash – A False Breakout?


There has been a significant northward breakout on African Potash (LSE:AFPO), following an exponential rise in the market, as seen on the chart. The bulls have been goosed into action, and the price may be trading above the distribution territory of 3.00 soon thereafter. 


The price broke out of the upper Trendline, and closed above it. Is this a false breakout? Not likely, because the RSI period 14 itself has nosed above the level 50. This is therefore, a beginning of a long-term bullish journey.

Conclusion: On African Potash, as long as the price is above the demand zone of 2.00, the bullish breakout remains valid. Analyzing this kind of stock would bring out outcomes: Your prognosis may be correct and you must be disciplined enough to follow your rules. Should you fail to have confidence in your approach to the markets, you have already flopped before making any attempt. This is obvious when things are going contrarily to one’s expectations.

This forecast is ended with the quote below:

“The key is to find one expert who you can really trust. Make sure they have earned your trust. Make sure they’ve helped others achieve great results. You don’t want them ‘learning’ with you as a guinea pig.” – Louise Bedford

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Tower Resources: Buying Pressure Keeps Pushing the Price Northward


 There is a Bullish Confirmation Pattern on Tower Resources (LSE:TRP), though the current southward correction could make some think that the price would plummet once again (since day trading bears could make quick bucks here). However, as Clem Chamber once said: No one ever criticizes madness when it is working in their favor. 


Why this statement? It is abnormal to go short when the price is clearly bullish. Instead, it may be better to buy long as things go on sale in a bull market. There are 4 EMAs on the chart; EMAs10, 20, 50 and 200. The formation of the EMAs 10, 20, and 50 testifies to the bullish strength in the market, whereas there has already been a Golden Cross when the price crossed the EMA 200 to the upside and closed above it. There is now a support line 2.00 while the price itself may go upwards towards the resistance line of 4.00 in the nearest future.

Conclusion: On Tower Resources: The sly bull is looking for opportunities to keep on pushing the price. The slow walking of a tiger is not due to fear; he is looking for his food. There would be times when one grapples with flat performance and roll-downs. When one’s gains are increasing quickly, one should remember that some drawdown is nigh.  Trading is risk management.

This forecast is ended with the quote below:

“Trading [is] the journey into self-mastery.” – Rande Howell

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Sunday, November 10, 2013

Daily Trading Forecasts for November 11, 2013


Last week, the USDCHF almost tested the resistance level of 0.9250 twice. The price, which is bullish, would still likely test the resistance level again this week and possibly overcome it.

EURUSD: This pair closed at 1.3368 on Friday, having tested the support line of 1.3300 once in the last week. That support line would be tested and even be overcome this week, especially in the face of the current bearish bias. The long-term target is at the support line of 1.3200. 


USDCHF: Last week, the USDCHF almost tested the resistance level of 0.9250 twice. The price, which is bullish, would still likely test the resistance level again this week and possibly overcome it. This is clearly possible because the market is in a Bullish Confirmation Pattern at the present.

GBPUSD: On this currency pair, the distribution territory of 1.6100 has become a formidable barrier to the bulls’ interests. There have also been serious market activities between the aforementioned distribution territory and the accumulation territory of 1.6000. This week, the price would break above or below either of the two territories in order to resume the next directional movement.

USDJPY: The USDJPY is a bull market with lots of turbulence and volatility on it. The price, which closed at 99.05 on Friday, is essentially a bull market. The price would thus test the supply level of 99.50, although the long-term target is at the supply level of 100.00.

EURJPY:  This cross is still bearish to some extent. The bias last week (and this week has been bearish). From the demand zone of 131.50, the price bounced upwards by over 100 pips. This is really an opportunity for the bears to go short, selling the rally in the context of a downtrend.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Eye-opening trading lessons: Lessons from Expert Traders

Friday, November 8, 2013

2 Red Pills for Traders


“For some traders, it takes many years of disappointment before they finally become successful. Only those few who never give up tend to achieve success.” – Joe Ross


The Blue Pill, the Red Pill
In order to be the best trader you can be, you need the red pill, not the blue pill. What are the meanings of these? The online encyclopedia, Wikipedia says: “The red pill and its opposite, the blue pill, are pop culture symbols representing the choice between the blissful ignorance of illusion (blue) and embracing the sometimes painful truth of reality (red).” The blue pill is good for lovers of fantasies, but sadly, fantasies and illusions can’t take you very far in your trading career. If 2 brothers smile after engaging in a serious discussion, they’ve probably lied to each other. On the other hand, if the 2 brothers’ faces look plain after a discussion, then they just told each other the truth. You’re trading Forex because you want to make profits. This goal is attainable, not with the blue pill – but the red pill. I don’t want to dampen your joy of discovering Forex, I simply want to tell you the reality of trading so that you can achieve your aims with the knowledge of the realities (as many generals of the markets have done). The red pill would enable you to approach the markets with the correct mindset. It would make you tough so that you’d be able to triumphantly scale through all the vicissitudes you’ll encounter as a trader.

The red pills explained here are the 2 most important reasons why majority of people quit trading before they can have the chance to conquer the markets. The World Wide Web is full of the articles and videos explaining why certain traders lose. The most common reasons are: trading without stops, too big lot sizes, riding losers and cutting winners, no discipline, unrealistic expectations, going against the trend, etc. The list could go on. However I want to tell you that, while these reasons are valid, they pale into insignificance if compared to the 2 red pills mentioned in this article. Without taking the red pills in this article, any knowledge of other reasons for failure can’t bring any difference to your trading career.

In order to equip you with the mindset that would enable you trade with realistic outlook (which is mandatory for long-term success), I’ll give you the 2 red pills below.

Red pill number one:
DEVELOP A DEEP LOVE FOR TRADING

Innumerable individuals have made great profits from funds managers who’re lovers of the markets. Yes, they think these funds managers are great, but the funds managers aren’t impeccable – not even the best one. These funds managers speculate according to their trading beliefs and they get rewarded eventually.

The more inexperienced traders find it challenging to make consistent profits in Forex, the more they abhor it. A speculator might stare at his screen and think the business of speculation is so challenging. They won’t stay in the career long enough to accumulate the necessary experience that can make them a master trader. Many loathe the intrinsic probability (positive expectancy) in trading. Being excessively happy during winning streaks and being excessively angry during losing streaks aren’t part of habits of wealthy traders. Those who spread lies about trading don’t help the matter either. Those who were deceived tend become livid when they discover the truth themselves. That’s why many people abhor trading and quit before they can master the art of trading. It’s your deep love for trading that can keep you going when things are not encouraging.

Do you think market wizards use intricate trading methodologies? Nope! There are factors that are crucial to long-term success in the markets, and these factors have very little to do with intricate speculative methods. The best trader in the world has an unbelievably simply trading method, but since there is no perfect strategy, there is a need for strict self-control, courage and determination (and most people don’t have this). Many people lose their heads in the heat of trading and they forget about discipline. Is it possible for you to breathe in without breathing out at all? Is it possible for you to continue eating without any subsequent defecation?  Then why would you think you can only make many profitable trades without any single losing trades? Good trading results of many years also include periods of roll-downs and breakeven.


So try to nurture positive thoughts and feelings about trading. It’s imperative that you love Forex before you can enjoy the benefits it offers. When I was at school, I simply discovered that I didn’t understand the subjects I hated. I understood only the subjects I loved, and my experience isn’t unique. How can you expect to make money from something you loathe? I love Forex because it has unlimited potential and opportunities for me. All market wizards and successful traders are lovers of trading.

Red pill number two:
YOU NEED PROTRACTED PRACTICE TO BECOME A GURU

Trading isn’t the only challenging (but rewarding) career in the world. There are many difficult careers that people engage in. For example: defusing nuclear bombs, bungee jumping, space expedition, military careers, boxing, biochemistry, microelectronics and so on. These careers require many years of learning, training and practice before you master them. There is no way around this. Many people acknowledge that it takes time to master competitive careers: you read books, attend classes, do exams, and engage in rigorous practice. Yes, there are professionals that have mastered these aforementioned careers. But when it comes to trading, people usually expect constant magic results, because there no industry standards that can guide people’s approach to trading (as the medical industry standards guide people’s approach to medicine as a career). Some even think trading doesn’t work because they’re yet to come across a truly successful trader and verify his track records.

D.R. Barton, Jr. includes this question in one of his past articles: “If your Friend Jumped Off the Empire State Building, Would You?” I now ask you, would you? Perseverance and persistence are very important to your trading success. Would you want to become a qualified pilot/doctor/lawyer/engineer/programmer in a few days? Then why should trading be different? Consistent success doesn’t come overnight. It takes time for you to become a competent trader and then go on to become an expert trader. No matter what others may tell you, consistent profits in the markets would take time: it requires experience and prolonged practice on the markets. It takes years, not months or weeks, before you can become a real trading guru (unless you’re trained by a talented coach who’s also a successful trader). Certain experts say it would take 4 or 5 years, while certain experts say it can even take more than that or less than that. Any novice can make profits by luck during a winning streak, but it takes years of experience to remain victorious in favorable and unfavorable market conditions. Luck only works for short-term success; long-term success requires experience and skills. The only short cuts are:  (1) investing with successful traders and (2) being mentored by a talented trading coach who also has track records of profitable traders. 

Conclusion: Don’t believe those negative things people say about Forex, it’s because they hate it and they don’t know how to become consistently profitable. Don’t be discouraged by them, for they aren’t trading experts. For you to succeed, you must love trading and you should know that it would take time to master the art of trading. The reasons why most won’t eventually become expert traders boil down to these 2 red pills. If you don’t take the pills, you’ll at last, realize that they’re indispensable. The pills may be bitter in your mouth, but they’ll be sweet inside you. You need to take them before you can join the ranks of successful traders. Financial freedom beckons!

This piece is ended with a quote from Dr. Van. K. Tharp:

“And in my experience, it is only the people who are really committed who will put in the work necessary to become successful.” – Dr. Van. K. Tharp

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders



Wednesday, November 6, 2013

This is the Next Price Target on Camco Clean


There is a directional movement on Camco Clean (LSE:CCE), which would be favorable to those who follow the line of the least resistance, i.e. those who flow with the market. This is a bull market and any attempt by the bear to violate the trend would either be momentary or it will backfire. The moth, in an attempt to put out a fire, destroys itself.


On the chart, the ADX period 14 is above the level 30, and the DM+ is sloping above the DM-; something that shows a clean ‘buy’ signal. The MACD default parameters, has both its signal line and histogram above the zero line. This is a Bullish Confirmation Pattern on the chart, and as a result of this, the price may go upwards towards the resistance line at 10.00 within the next several weeks or months. This second paragraph has thus answered the issue raised by the topic above.

Conclusion: This stock is expected to continue rising up as we are long and we manage our trades. It is sometimes nice to blend things to meet your own risk control parameters – that is necessary. But the way you do this may affect you for better or for worse. We know trading is not gambling, but suicide trading is. As the quote below shows, trading is wonderful.

This forecast is ended with the quote below:

“Now first let me say that I think everybody should try to learn to trade. I also believe that learning to trade takes a lot of work, and it is not always evident right away whether or not someone will ultimately end up as a successful trader.” – Brian Lund

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Metminco – A Bone of Contention


Metminco shares (LSE:MNC) are a bone of contention in that certain investors find it difficult to forecast the next price target. This is no wonder since the situation on the chart itself reveals the indecisiveness of the market. Thus whatever happens here would affect either the buyers or the sellers.  What affects the eyes is also what affects the nose; and that is why the nostrils pour mucus.


Looking at the chart, it would be seen that the intermediate trend on the chart is bearish (especially from the month of August 2013 till the present time). The price itself is under the EMA 21 while the Williams’ % Range is still below the level 50, showing that the market is not strong. This reality does not rule out the possibility of the price going upwards, but a bearish breakout is much more likely.

This market shouldn’t be a bone of contention. It is amazing that some so-called professionals have a strong opinion when it comes to the direction of this market. It could go up or it could go down. That is the fact. When it goes against us we smooth our orders, and when it goes in our favor we ride our gains. Ability to change your opinion when things are obviously against you is a factor in your survival as a market player. It is regretful to see some people holding on to their loss as a result of a rigid opinion, even when reality is against them.  

Conclusion: No matter where Metminco shares go, we would either survive or make gains. The way you use your lot sizes determines how you will meet your objectives and survive where most other crash. We are happy no matter what the markets do, knowing full well that our risk is under control.

“The thinking you brought into trading is not the thinking that will make you successful.” – Rande Howell


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


Sunday, November 3, 2013

Daily Trading Forecasts for November 4, 2013


The reality on the EURUSD chart brings two possibilities: either this is a temporary pullback or the beginning of a new downtrend.

EURUSD: The reality on the EURUSD chart brings two possibilities: either this is a temporary pullback or the beginning of a new downtrend. This is a bone of contention among traders, but the Bearish Confirmation Pattern on the chart shows that it is not sensible to buy long on this weak pair.


USDCHF: The Bullish bias on the chart shows that the price is most likely to continue trending upwards this week. There may, however, be some transitory pullbacks along the way, which may not take the price below the support levels of 0.9050 and 0.9000. The price may ultimately reach the resistance level of 0.9200 this week.

GBPUSD: The Cable will easily reach the accumulation territory of 1.5900, after which the territory may be overcome, as the price falls to the downside. It may be possible for the price to experience some upwards bounce at the aforementioned level, which would be temporary in the face of this weak market.

USDJPY: This trading instrument closed at 98.68 on Friday (November 1, 2013). The price may easily reach the supply level of 99.00. Should that level be overcome, the next price target would be the supply level of 99.50. But it is unlikely that the price would touch the great psychological level of 100.00 this week.

EURJPY: This cross closed at 133.58 on Friday, having trended seriously downwards last week. The present upwards bounce in the market proffers a wonderful offer to sell short when the price rallies and in the context of a downtrend. This would, nevertheless, be valid only if the price does not go above the supply zone of 134.00.


Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

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

The default minimum deposit amounts are: $100 for Micro accounts, $500 for Pro-Managed accounts, and $2,000 for Pro accounts However, an optional "suggested deposit amount" parameter may be used.