FTSE 100 (FTSE:UKX) has been going upwards since the
middle of December 2013. This is a trend that is supposed to be sustained for
the most part of this year.
On the chart, the price is above the EMA 21, which is
sloping upwards; while the MACD (standard settings) has both its histogram and
signal line above the zero line. That is a Bullish Confirmation Pattern. The
price could reach the distribution territories of 6850.00 and 6950.00
respectively.
Conclusion: FTSE 100
is a bull market, and things would continue being bullish on it. It is
therefore, better to seek long trades only and bear risk in mind. You simply need
to control yourself enough and to stake as small as possible so that unforeseen
events in the markets do not affect your portfolio. Your risk control measures
would protect you from a huge drawdown – which means that your negativity can
be recovered more easily. Besides, your life would be much easier if you look
at the Big Picture (bull market) and adopt a part-time trading approach. It may
not be in your best interest to sit at your PC all day long and watch every
movement. Should you do this, you would not be able to control your emotions
and this can be costly.
This forecast is ended with the quote below:
“Making money in the stock market requires a maximum
degree of mental and strategic competence and discipline. Extra caution should
be exercised at the start of trading,
which resembles a mass start at sporting events. Once the
starting gun goes off, all the participants will storm ahead causing the risk
of accidents to be high.” –
Stephen Arnold (Source: Tradersonline-mag.com)
Eye-opening trading lessons: Lessons from Expert Traders
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