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Monday, June 30, 2014

Monthly Technical Reviews on Gold and Silver (July 2014)

GOLD (XAUUSD)
Dominant Bias: Bullish
There is an established bullish bias on this market, with the greater probability that the price would continue going higher.  However, there could be some temporary pullbacks along the way, which should not take the price below the demand levels at 1299.00 and 1288.00, so that the bullish bias could continue to be valid. Meanwhile, the price could reach the supply levels at 1333.00 and 1344.00. In fact, the price has resumed a renewed northward journey, following a period of consolidation in the context of the extant uptrend. 


SILVER (XAGUSD)
Dominant Bias: Bullish 
This is also a bull market – with its Bullish Confirmation Pattern being valid.  It is normal that Silver is moving in a positive correlation mode with its Gold counterpart. The price has tried to resume its northward movement after being recently caught in an equilibrium phase. The equilibrium phase just happens to be a pause in the northward journey. That is the normal price action, because sustained trending moves are invariably punctuated with pauses, after which the trend would continue. The price could end up reaching the supply zones at 22.0000 and 22.1000 in the month of July 2014. 



Learn from the Generals of the Markets: Market Generals

Sunday, June 29, 2014

Daily analysis of major pairs for June 30, 2014

Since the EUR is strong and the USD is weak, it is no wonder that the EUR/USD pair is making some commendable bullish efforts. Currently, the resistance line at 1.3650 is under siege. The price would break that resistance line to the upside.   


EUR/USD:  This is a bull market, which should continue to be bullish. Since the EUR is strong and the USD is weak, it is no wonder that the EUR/USD pair is making some commendable bullish efforts. Currently, the resistance line at 1.3650 is under siege. The price would break that resistance line to the upside.   

USD/CHF: This is a bear market, which should continue to be bearish. Since the USD is weak and the CHF is strong, it is no wonder that the USD/CHF pair is making some commendable bearish efforts. Currently, the price is going towards the support level at 0.8900. The price could break the support level to the downside.   

GBP/USD:  This currency instrument closed at 1.7035, on a bullish note. The market has constantly showcased the determination to go bullish, and therefore, the distribution territory at 1.7050 would easily be breached to the upside. When this happens, the market may be trying to go towards another distribution territory at 1.7100.

USD/JPY:  The USD/JPY is now trading below the supply level at 101.50, and it may go towards the demand level at 101.00. Since the market has proven to be prone to short-term swings, one may want to put a take profit level at the demand level of 101.00. Should the bearish outlook continue to be strong, the demand level could even be breached to the downside.

EUR/JPY:  This cross is also weak, but the bulls are trying to push the price further higher. The demand zone at 138.00 has been tested and the price has bounced from there, but it should not go above the supply level at 138.50, for the bullish bias to continue to be valid.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group



Friday, June 27, 2014

Weekly Trading Forecasts on Major Pairs (June 30 – July 4, 2014)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish  
This pair is now in an uptrend, though the movement is tardy and shaky. The price has been very volatile as the bulls and the bears fight for control. As a result of the Bullish Confirmation Pattern in the market, it is more likely that the pair would go further upwards. The resistance line at 1.3650 was tested and it could be tested again. It could even be breached to the upside.

USDCHF
Dominant bias: Bearish  
The USD/CHF has also been slow and tardy, but bearish in outlook. So far, the market has been able to maintain its bearish bias, going lower in a slow and steady manner. This downward move is also riddled with high volatility. Since the sellers have supremacy here, there is a possibility that the price may reach the support level at 0.8900.   

GBPUSD
Dominant bias: Bullish   
Here, the barrier to further northward movement remains the distribution territory at 1.7050. The distribution territory was tested last week vigorously. It was tested this week as well; and up till now the price is yet to close above it. After suffering a transient setback, the price is now trying to go upwards to challenge the distribution territory again, which must be broken eventually, for the bullish outlook to hold onto its validity.

USDJPY
Dominant bias: Bearish
On the USD/JPY, it is advised that short-term orders should be considered rather than long-term ones. This is because the recent signals have been short-lived. Right now, there is a bearish indication in the market: it makes sense to seek short trades.

EURJPY
Dominant bias: Bearish   
The recent ‘buy’ signal on this cross was weak and unsustainable. The bias has turned bearish because of the perceived strength in the Yen. The EUR’s position is too delicate, and this is quickly reflected in its weakness against the Yen. The price tested the demand zone at 138.00; and with renewed bearish effort, it could go lower to test the demand zone at 137.00.

This forecast is concluded with the quote below:

“It is the sum of all trades that is relevant for the trading result, not the single trade.” – Jens Klatt




Thursday, June 26, 2014

The Most Important Goal in Trading

“Being profitable in the long run with trading, and all investing for that matter, is about cutting losses and letting profits run. Although it’s a hearsay thing of ages, statistical expectancy actually proofs the saying mathematical. It’s not about being right or wrong but handling both profits and losses well.” – Dirk Vandycke

Whether you’re a beginner trader or an experienced trader, you need to know that the most important goal in trading is the permanent safety of your capital. When the fund in your account is gone, what can you use to make additional transactions? You’ll need to replenish the account or open another one. But when the fund in your account is intact – no matter the vagaries of the markets – there’ll come some periods when you’ll make profits. Profits come on existing accounts, not defunct accounts.

Sadly, too many people are obsessed with making money that they forget or neglect the principles that can keep their account safe. One great piece of advice is attributed to the Oracle of Omaha. He said that there are two trading rules: 1.) Don’t lose your money! 2). Never forget rule one! Honestly, there’s nothing more important in trading than the rules above. All other rules are secondary.

You mayn’t want to agree with me over this. Many people may be making noises in forums and other social community places for traders, saying that there are other things that are more important than the fact above. But bear it in mind that anybody can say anything about the market, and you don’t need to be a guru, or have a fancy university degree, or show your muscle or be a rational person before you can voice your opinions about the markets. All you need is to have a big mouth, and you’ll get more and more followers. In reality, most of the ‘big mouths’ are being forced shut when the market shows them its true color.

The vagaries of the markets aren’t a curse, but they’re rather a blessing that enables us to make gains in the markets. The only thing the market can do is to move sideways, up or down. This truth will ever remain timeless, and therefore, those who know how to anticipate the moves would be victorious.

No matter what your aims and ambitions are as a trader, the most important thing you can bear in mind is the safety of your portfolio. This goal is not difficult to achieve, provided you know how to go about it. Some of our future articles will explain how the goal can be realized.

“Most people find Forex trading very attractive because it gives a person complete control, breaking free of all the rules from their day to day life. Unfortunately the Forex market requires rules, structure and consistency at an even more intense level than your daily life does. So if you’re looking to operate ‘rule free’, then trading is probably not for you.” - Graham Blackmore (Source: Trade2win.com)



Learn from the Generals of the Markets: Market Generals

Wednesday, June 25, 2014

Empyrean Energy – An Established Bull Market

Empyrean Energy stock (LSE:EME) is in a long-term bullish trend. The bullish trend is not expected to end soon, since there could only be consolidation and bearish correction phases in the markets, after which the trend would resume.

It is clear that the bullish outlook started before this year: the trend in this year has gone upwards. Right now, the price is above the EMA 21 and the Williams’ % Range period 20 is already in the overbought region. This shows that the trend is strong, and one can join the trend, especially after a new shallow pullback has panned out.

It would not be a surprise when the price eventually reaches the distribution territory at 20.000. You may want to hold onto your position whether the price goes up following a negative report or goes down following a positive report.

This forecast is ended with the quote below:

The most important thing is to first make a precise calculation of the risk involved. Always look first at the risk rather than any potential profit.” – Martin Pring

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals




Monthly Forecast on Gulf Keystone (July 2014)

Gulf Keystone shares (LSE:GKP) are in a major downtrend; though the price has been consolidating to the downside since April 2014. The downside consolidation is very slow and tardy because the bears themselves have not made substantial gains since April 2014.

The ADX period 14 is almost below the level 20 (showing that the market is currently not very strong). Besides, the DM+ is above the DM-, revealing the bears’ supremacy in spite of the present consolidation. The MACD (default parameters) have both its histogram and signal lines below the zero line. The price may still go further downwards towards the support level at 70.000; which is a short-term target for the sellers.

It is, however, not very likely that the price would break below the aforementioned support level, since a bullish divergence pattern has been formed in the chart.

This forecast is ended with the quote below. It got to do with the beauty of trading:

“It’s a losing trade, but only one trade in thousands you will do in your career. It’s a bad trade but your account is up for the day, week, month, year. It’s a bad trade but you are sitting in the comfort of your home/office, not on top of a roof in summer laying down tar or digging up frozen pipes in the dead of winter while your A-hole boss yells at you. It’s a bad trade but you have your health, friends, and family.” – Brian Lund (source: www.tradersonline-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


Monday, June 23, 2014

Gold and Silver May Go Further Upwards After the Present Consolidations

GOLD (XAUUSD)
Dominant Bias: Bullish
Gold has bottomed at 1240.50 because it has moved from there upwards, testing the supply zone at 1321.50. This is an upward move of over 7600 points in a few weeks. The price may go further upwards; but as it is normally expected, it may first pull back (either in a shallow manner or a significant manner) before going further upwards. The price is currently in an equilibrium phase – a pause in the uptrend. When the uptrend resumes, Gold might surge further upwards, reaching the supply zones at 1330.00 and 1340.00 respectively. Meanwhile, the possible pullbacks along the way ought not to take the price below the demand zones at 1300.00 and 1290.00. This is necessary for the bullish bias to continue to be valid.

SILVER (XAGUSD)
Dominant Bias: Bullish  
There is also a significant northward push on Silver, starting from the area where the recent bearish bias was rejected. The area is the demand level at 18.6000. The price topped at the supply level at 20.9400; a movement of more than 2300 points. Since then, the price has entered a sideways phase, though it is clear that the bulls have upper hands. When the price breaks further upwards from the sideways phase, it could test the supply levels at 30.0000 and 31.0000. The journey may not be smooth, for the bears would put in some resistance along the way.



 Learn from the Generals of the Markets: Market Generals

Sunday, June 22, 2014

Daily analysis of major pairs for June 23, 2014

On Friday, June 20, 2014, the EUR/JPY cross closed at 138.81on a bullish note. The bullish signal is valid and the movement above the demand level at 138.50 supports the possibility of the price going higher.    

EUR/USD:  This pair was able to generate a ‘buy’ signal last week. But there is now a dip in the price. The dip gives another opportunity to open a long trade because the price may bounce upwards from that point. In fact, the price has been making some bullish attempt and it is not too late to join.


USD/CHF: The USD/CHF was able to generate a ‘sell’ signal last week. But there is now a rally in the price. The rally gives another opportunity to open a short trade because the price may plunge from that point. In fact, the price has been making some bearish attempt and it is not too late to join.

GBP/USD:  The Cable has been bullish within the past several trading days. From the accumulation territory at 1.6700, the price shot upwards by 350 pips, breaking the formidable distribution territory at 1.7000 to the upside and testing another distribution territory at 1.7050. There is now a shallow southward retracement – which is normal – for the price may go up again.

USD/JPY:  This currency trading instrument has generated another bullish signal, but the target is not a long-term one. One may go long and exit as soon as the price hits the supply level at 102.50.

EUR/JPY:  On Friday, June 20, 2014, the EUR/JPY cross closed at 138.81on a bullish note. The bullish signal is valid and the movement above the demand level at 138.50 supports the possibility of the price going higher.  The first target is the supply zone at 139.00, after which the price may go upwards towards another supply zone at 139.50.   

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group





Friday, June 20, 2014

Weekly Trading Forecasts on Major Pairs (June 23 - 27, 2014)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish  
Within the last few weeks, the EUR/USD broke below the support line at 1.3550, but it was unable to stay below it. Eventually, the price rose seriously, closing above the support line at 1.3600. This price action has resulted in a Bullish Confirmation Pattern, and the price is expected to go more northward. The aforementioned support line would serve as a challenge to any possible bearish plunge along the way.

USDCHF
Dominant bias: Bearish  
After a long desperate siege at the resistance level of 0.9000 (which is a great psychological level) and desperate battle between the bulls and the bears, the bulls gave way and the price plunged smoothly. The plunge has resulted in a Bearish Confirmation Pattern in the market. This means that it is no longer logical to place long trades in this market. It is possible that the price would continue to go southward, eventually reaching the support level at 0.8850. One important thing must be noted: the possibility of the price going further southward is stronger than the possibility of the price going northwards. Therefore, any rallies – no matter how strong - would meet a recalcitrant challenge at the resistance level of 0.9000. At that level, the bullish soldiers fought cut-throat battle but suffered heavy losses, so it would continue to act as an impediment to the bulls’ wish.

GBPUSD
Dominant bias: Bullish   
Unlike the USD/CHF which failed to break the resistance level at 0.9000 to the upside after a long siege, the Cable was successful in breaking the accumulation territory at 1.7000 to the upside. It closed above that territory and moved further upwards, testing the distribution territory at 1.7050. The distribution territory is an easy target that would be breached to the upside, paving way for more northward movement.  

USDJPY
Dominant bias: Bullish
This market is bullish, but the bulls’ strength is constantly challenged. In fact, the market needs to stay above the demand level at 101.50 for the bullish bias to continue to be valid. Otherwise, the already weak bullish bias would be rendered totally invalid. In order for the bias to be relevant, the market needs to go further upwards, breaking the supply level at 102.50 to the upside, and closing above it.

EURJPY
Dominant bias: Bullish  
Since last Monday, this cross has been rejecting bearish pulls on it. The successful rejection has resulted in a bullish signal in the market.  As long as the price stays above the demand zone at 138.50, the bullish signal would make sense.

This forecast is concluded with the quote below:

“Performance is more about me than my system.” – Adam Jowett



  

Thursday, June 19, 2014

Support System: Traders’ Lifeline

“I knew that it was a golden opportunity and that I had screwed it up. I swore to learn everything I could to achieve complete mastery in this field [trading].”

There are crucial factors that contribute to the trader’s permanent success in the markets. You probably know some of them; but the one which is mentioned in this article may come as a surprise to you. Without it, you can’t last long in the markets.

A support system is defined as the sources of encouragement, inspiration, and knowledge that enable you to continue your career as a trader in spite of the challenges you come across along the way.  Support system also comes in forms of social trading, signals strategies, funds management, trading rooms, courses/education, forums, books, role models/mentors, etc.

Personally, I need to confess that some of the examples mentioned in the paragraph above were responsible for moving me ahead when I reached a roadblock in my journey as a trader. I was contemplating giving up when I came across some people who’re now my direct and indirect mentors. I came across some books and articles. I came across some generals of the markets and I saw their long-term performances. I came across the secrets of success and the reasons why a large percentage of people find trading difficult. I thought to myself, “Man, if these guys can make it, why can’t I?” I was determined never to give up, and I’ve not regretted that decision.

People who’ve given up trading mayn’t realize the benefits and opportunities they’ve thrown away in ignorance. We can’t get inspired by fatalists.

Indeed, some who’ve given up mightn’t have done so if they’d access to support system or made use of it. While there are some whose mission is to discourage people from trading (since they themselves don’t know, or are unwilling, to know what it takes to be a profitable trader), there are some people whose mission is to encourage people and help them become the best traders they can.

Support system is copious: all around you. Why can’t you make use of it? When you start facing the reality of the markets, there are those who’re ready to make you employ trading principles that ensure your victory. You won’t miss you way.

Psychology is important in trading, and so is support system. They sometimes go hand in hand. Certain traders have been lucky enough to have triumphant pros as their masters who take their hands and lead them to safety on the battlefield. When you’ve someone who’s successful and who’s ready to show you the way, your learning curve would be sped up, providing that you’re willing to be obedient.   

For you to succeed in trading you need support and encouragement – not discouragement – from your folks, mate and buddies. Whether you learned the art of trading by trial and error or you were shown the way from the beginning, this thing matters more than you think. With support system, attainment of success may be less difficult than we imagine.

Actually, our goal is to make average gains that are bigger than average losses over the time; not only to appear like a smart professional or impress people with our knowledge. To achieve this, we make use of rational methodologies that make us survive the vagaries of the markets, since we don’t gamble.

The quote at the beginning of this article is from Bruce Bower. Another quote from him ends the article:

“If you don’t have a consistent methodology, then you will end frustrated with trading. As glib as it sounds, the solution is to trade better. Focus on defining a methodology that works for you and to keep your risk limited… In the process, you will learn to trust your system and your emotions will naturally calm down.”



Learn from the Generals of the Markets: Market Generals



Wednesday, June 18, 2014

A Long-term Upward Journey Begins on Mosman Oil and Gas

Mosman Oil and Gas (LSE:MSMN) has started a long-term upward journey that has a potential to last for years. Nevertheless, this would not happen without occasional pullbacks that might pan out in the medium-term.

The price was in a tight equilibrium phase for some months before it broke upwards, cutting the upper Trendline to the upside and closing above it. The current shallow southward retracement is normal, for the RSI period 14 has gone to the overbought territory (above level 80). The pullback would be fleeting because the price would pick and go further upwards.

The great support level at 20.00 should act as a formidable barrier to any serious pullbacks along the way. Meanwhile, the price may eventually reach the resistance levels at 80.00, 90.00 and 100.00 in months and years to come.

For those who’re interested in this market, a long-term bullish journey has begun.

This forecast is ended with the quote below:

“Just because you hate trading, doesn’t mean you can’t trade for a living.” Adam Jowett

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


Union Jack on Golden Cross – A Perfect Buying Opportunity

The situation on the Union Jack stock (LSE:UJO) is very interesting; and it offers a unique buying opportunity for the bulls who missed the recent upward surge in the price.

In the chart, 4 EMAs are used and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the left hand side of the chart. Historical data shows that the market was in a downtrend until the end of April 2014. Starting from May 2014, the price has resumed a serious bullish journey, spiking above the supply zone at 0.400. The EMAs 10, 20 and 50 adjusted themselves accordingly, sloping upwards below the price, while the EMA 200 acts as a barrier to the bears.

A Golden Cross happened on May 2014, as the price surged northwards. Right now, the price has experienced a deep bearish correction, which has been checked at the EMA 200 (which now serves as a barrier to the bears). A Death Cross was prevented as a new bullish engulfing pattern candle was formed: the bulls have become dominant again. This is a great opportunity to buy long before it is too late.

This price is supposed to rise up gradually until it reaches the supply zone at 1.000.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

Monday, June 16, 2014

Gold and Silver Pull Back after Making Significant Gains

GOLD (XAUUSD)
Dominant Bias: Bullish
Gold has been given a new lease of energy which has taken it upwards in a significant mode.  From the support level at 1240.50 (a formidable bottom), the price skyrocketed and tested the resistance level at 1284.60. Although the price is currently experiencing a pullback, it is expected that it would move further upwards, possibly reaching another resistance level at 1292.00. This pullback is normal – it is an opportunity for the bulls to buy cheaper as things go on sale in the context of an uptrend. However, the pullback must not go below the support level at 1266.00; so as not to pose a threat to the current bullish bias. 


SILVER (XAGUSD)
Dominant Bias: Bullish 
Silver also has turned from being a bear market to being a bullish one. An upward move of nearly 1200 points from the demand level at 18.6000 is formidable enough to force the bears to reconsider their positions.  The price topped at the supply level of 19.8400 before it began to retrace. This southward retracement would, nevertheless, be limited. It ought not to go below the demand level at 19.4400; otherwise the bullish bias would be jeopardized. At this juncture, the price may turn back upwards and retest the supply level at 19.8400. Should the bulls hold out long enough in their attempt to push the price upwards, the price may close above the supply level.



Learn from the Generals of the Markets: Market Generals

Sunday, June 15, 2014

Daily analysis of major pairs for June 16, 2014

 As it was normally expected, there has been a shallow pullback on the Cable. But the price may go further higher to breach the distribution territory at 1.7000 to the upside.

EUR/USD:  In spite of some vivid attempts by the bulls to push the price upwards, the price remains bearish. On Friday, June 13, 2014, the price closed at 1.3539 (below the resistance line at 1.3550). The support line at 1.3500 is thus an easy target this week, though the price can close below it while moving further downwards. 


USD/CHF: It is interesting that the price on this pair has refused to lift its siege at the resistance level of 0.9000. The battle is very hot around this resistance level – having been carried on for more than two weeks. The bulls refuse to yield and the bears are too stubborn to surrender; though the latter have been battered furiously. It is now clear that the bulls are determined to keep the price bullish. Therefore, a break above the resistance level at 0.9000 would mean a landmark victory for the bulls, provided the price is able to stay above it.

GBP/USD:  As it was normally expected, there has been a shallow pullback on the Cable. But the price may go further higher to breach the distribution territory at 1.7000 to the upside. In fact, it may go to another distribution territory at 1.7050. The distribution territory at 1.7000 is a psychological level, and therefore, a break above it would be noteworthy. 

USD/JPY:  The USD/JPY remains bearish; though there is a formidable challenge to that. Should the price fail to stay below the demand level at 102.00, the bearish outlook may be rendered invalid.

EUR/JPY:  This is also a bear market, with an immediate supply zone at 138.50. The price closed at 138.14 on Friday and it is supposed to dive further.


Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Learn from the Generals of the Markets:


Friday, June 13, 2014

Weekly Trading Forecasts on Major Pairs (June 16 - 20, 2014)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
In a slow and tardy manner, this pair has been trending downwards. The movement is tardy because consolidation phases can be perceived in the market; yet it can also be clearly seen that the bears dominate the market. There is a shallow rally at the moment, which ought to be contained at the resistance lines of 1.3600 and 1.3650 respectively. This is necessary for the bearish trend to continue, because any movement above the resistance line would mean the end of the bearish bias.

USDCHF
Dominant bias: Bullish  
It is expected that this currency trading instrument close above the strong psychological resistance level at 0.9000. This is a must – for the bullish outlook to continue to be valid. The market breached the resistance level several times this week and last week, but it is was unable to stay above it. This inability to close above the resistance line or go southward has led to a recent sideways movement. This is what would happen eventually: should the price fail to close above the resistance level at 0.9000 and go further towards the resistance level at 0.9050, another strong bearish bias would start. The USD may not reach parity with the CHF as soon as we think.  


GBPUSD
Dominant bias: Bullish   
There has been a significant upwards surge on this market. The price was bullish last week, and it experienced serious volatility earlier this week. From the accumulation territory at 1.6750, the Cable rallied by more than 240 pips. The distribution territory at 1.7000 is thus an easy target. This is a great psychological zone, and should the price succeeded in closing above it, the next target would be the accumulation territory at 1.7100. However the possibilities of pullbacks along the way cannot be ruled out.

USDJPY
Dominant bias: Bearish
The USD/JPY has become bearish, going downwards from the supply level 102.50. The current rally in the price may be another opportunity to sell short; provided the rally does not take the price above the supply level at 102.50. Should the price go further southward, it might reach the demand levels at 101.50 and 101.00.

EURJPY
Dominant bias: Bearish
This is also a bear market. The price has bounced up from the demand zone at 138.00, but this is supposed to be limited. The price may soon fall downwards again, testing that support zone, even breaking it to the downside.  

This forecast is concluded with the quote below:


“Sometimes we needed a little bit of luck, but if we followed the strategy, we were more likely to come out on top.” – Lee Sandford




Wednesday, June 11, 2014

Peter Lynch: What’s So Special About This Market Maven?

LEARN FROM THE GENERALS OF THE MARKETS - PART 49

“Over the years I have benefitted from many traders (alive and dead), investors and professionals.” – Alan Saunders 

Born in January 19, 1944, in Newton, Massachusetts, USA. Peter Lynch is considered to be one of the greatest investors around.  He studied at Boston College (1965) and bagged his MBA from the Wharton School of the University of Pennsylvania (1968). 

In 1966, he started working at Fidelity Investments. He began to keep tabs on key industries and eventually became the firm’s director. He later became head of Magellan Fund which was worth $18,000,000 (1977). That portfolio had been increased to over $14,000,000,000 by the time he stopped managing the fund in 1990.  From 1977 to 1990, he was making about 29.2% per annum. He beat the S&P 500 Index benchmark many times. In mutual funds, he emerged as the best earners of return in 2003. Indeed, his stakes on popular stocks have paid off and he’s considered a legendary trader.

He’s co-authored best sellers: “One Up on Wall Street”, “Beating the Street,” and “Learn to Earn.” The books are indeed a great help to anyone who wishes to attain success in the markets. He wrote many premium articles for Worth magazine.

Peter Lynch is a philanthropist who’s donated huge amounts of money to causes he believes in.

Lessons
These are the lessons that can be learned from Peter:

  1. An individual trader is capable of making more money than professional traders, like Richard Dennis’ Turtles and Lex van Dam’s BBC Million Dollar traders were able to demonstrate. Your simple trading idea can make you rich in future. 

  1. Sometimes, it pays to employ a flexible investment style that adapts to changing market conditions. That’s what Peter did. 

  1. Predicting future market conditions is like flogging a dead horse. It just won’t work. Just try to capitalize on your gains and truncate your losses. If you wanted to predict the future, you might want to flip a coin to do that. In addition, if you can make extensive research, you’re bound to sight great trading opportunities.

  1. Enter good trades and manage your positions well. It’s sensible to have valid reasons for opening trades. Peter was a position trader who was not affected by transient market noises.

  1. Peter said there’ll always be something to worry about, and that’s enough. Good traders have conquered their ego before they conquer the markets. We need to be humble enough to learn from our mistakes.

  1. Open only trades that you can handle. Too many trades with big position sizes can make you lose control.

  1. Looking for 90% accuracy in the market is far-fetched, but skilled traders can achieve about 60% accuracy. There’s no perfect outcome in trading and if you don’t want to see any minus in your trades, you’re already a flop. Profitable trading is realized when losses are dealt with triumphantly.

  1. You don’t need a PhD in math before you can be a great trader. An elementary school math is Ok for you to deal with the markets.

  1. No-one is born with trading skills. The skills are only acquired thru hard work and self-control. Yes, trading is a skill you can learn and master.

  1. The best trading approach is the simplest trading approach. Many market wizards use simple strategies and Peter is one of them. An easy trading approach would cause you to make the least amount of mistakes, whereas hard trading systems would cause you to fall into many errors. Simple trading systems are easier to understand and use in making good choices.

Conclusion: Nowadays, speculation proffers chances of harnessing gains, but you need a working trading method to locate high-flying instruments. It may be difficult while trying to wait until you see your preferred setups, but as a speculator you need to accept that, for it’s been proven that patience is rewarding.

This article is concluded with a quote from Peter:

"Investing without research is like playing stud poker and never looking at the cards… If you stay half-alert, you can pick the spectacular performers right from your place of business or out of the neighborhood shopping mall, and long before Wall Street discovers them."




Learn from the Generals of the Markets: Market Generals

Camco Clean Pulls Back in the Context of an Uptrend: Go Long

Camco Clean Energy stock (LSE:CCE) has experienced a pullback in the context of an uptrend. This is a great buying opportunity in the chart.

The price is far above the EMA 21 and the Williams’ % Range period 20 is not that far from the overbought region. Clearly, the bulls are in control, and since the price does not go in a straight line, it is normal that a pullback would occur, which in turn gives a good buying opportunity.

The price may rise above the resistance level at 7.000; eventually reaching the resistance level at 10.000. Bullish investors may want to hold their orders as long as the fundamental are in their favor. Astute investors know how to keep tabs on the company they are interested in, assimilating every fundamental figure affecting the company. A high-ranking official hears all that happen both in the city and country, for people are his ears.

While we play this market we bear one thing in mind: survival of our portfolios. A good strategy is tailored for survival, for that is the only way to make gains ultimately.

This forecast is ended with the quote below:

“Probably one of the toughest things for a trader to learn is patience… Trading is really about creating good habits and the tough thing about good habits is that they are often hard to develop and painful at first even though they reward us in the long term.” – Sam Evans

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


Octagonal Rises and the Bulls Are Happy

Octagonal shares (LSE:OCT) have been in a repulsive equilibrium phase for many months before the price started to make some bullish attempt. Although the recent consolidation was to the downside, the market was generally ugly.

There has been a bullish breakout in the chart; plus it is thought that the breakout would be sustained. The ADX period 14 is at the level 30, indicating a strong pressure. The pressure would become stronger when the ADX level rises further from that level. The DM+ is above the DM-, testifying to the bulls’ hegemony. Meanwhile, the MACD (default parameters) has both its histogram and signal lines above the zero line. This is a Bullish Confirmation Pattern in the chart and long trades are now recommended.

The price may reach the supply zone at 1.00. It may even breach that supply zone to the upside. At a point where traders think a price may be corrected, it may go further higher. This is an area where Smart Money goes long, thus driving the price further higher.

This article is ended by the quote below:

“When you see statistics with a great monthly gain, or a win rate for a month or two, you have to be aware that the population that the statistics is drawn from is not great. The probability of results being down to chance is a lot higher the fewer results there are. Getting good statistics and plenty of results is important for finding out whether systems work. I would caution over being wowed by statistics with a short lifespan, they may seem impressive but do not come up well against a robust test.” – Golden Member (Source: www.babypips.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


Is it possible to trade binary options on….?

I’d appreciate an answer to this question: Is it possible to trade binary option on Meta Trader 4 or Meta Trader 5? I know those platforms can be used to trade commodities, Forex and stocks, but what about binary options?

Do brokers who offer binary options allow them to be traded on MT4 or MT5, or do they have other different platforms of their own?

I’m at a dilemma. An answer would be appreciated.


  


Monday, June 9, 2014

Gold and Silver Are Making Attempts to Rally

GOLD (XAUUSD)
Dominant Bias: Bearish
In the context of a downtrend, Gold is making attempts to rally. The attempts have not really ruled out the bearish bias, except the price goes above the resistance level at 1270.00. A close above that level would mean the beginning of a new bullish trend; but as long as the price is under the resistance level, it could be concluded that the rally attempt in the market is a futile effort. The support level at 1240.53 would serve as a long-term barrier to the bears’ machination. The market has found a bottom at that support level and it would be difficult for the price to break that level to the downside. It is possible for the market to go down again (especially if it fails to reach the aforementioned resistance level), but the down move may be halted at the support level of 1240.50.

SILVER (XAGUSD)
Dominant Bias: Bearish
Silver is also trying to rally in the context of a downtrend. The attempt is more significant than that of Gold, for the price only needs to close above the resistance level at 19.2000, for a Bullish Confirmation Pattern to be established. At the time of writing this piece, the price was at 19.0600. Therefore, it would be easier for the price to close above the aforementioned resistance level, especially when the bulls make more desperate attempt to push the price further upwards. Should this expectation fail, the price would continue to be bearish.


  
Learn from the Generals of the Markets: Market Generals



Sunday, June 8, 2014

Daily analysis of major pairs for June 9, 2014

On Friday (June 6, 2014), the USDCHF closed at 0.8934.  The price has already assumed a bearish stance, which may continue this week. The next target to be reached is at the support level of 0.8900.  

EUR/USD:  This market was volatile last week. Now it looks as though the price is poised to go northwards, but this is cannot be confirmed until the price goes above the resistance line at 1.3700. Should this happen, it would result in a Bullish Confirmation Pattern in the chart.


USD/CHF: On Friday (June 6, 2014), the USDCHF closed at 0.8934.  The price has already assumed a bearish stance, which may continue this week. The next target to be reached is at the support level of 0.8900.  The bullish target at the resistance level of 0.9000 has already been hit, and now is the time for correction. The correction has now resulted in a confirmed bearish bias.

GBP/USD:  Here, it would be recommended that long trades be sought. Even, pullbacks could be bought; which gives higher probability of profits. Why? The price action is bullish in nature and as long as the price is able to stay above the accumulation territory at 1.6750, the bullish outlook is logical.

USD/JPY:  The bullish outlook is also logical on the USD/JPY, the price retraced southward last week, but it is now making another bullish attempt. Closing on Friday at an interesting market level of 102.49, the price may go further upwards from there.

EUR/JPY:  This market is bullish, but it needs to cross the supply zone at 140.00 to the upside, for the bullish bias to become more formidable. A failure to close above the supply level this week may make the price go down from its current position.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Learn from the Generals of the Markets:


Thursday, June 5, 2014

Weekly Trading Forecasts on Major Pairs (June 9 - 13, 2014)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair recently managed to test the support line at 1.3500 (or the price almost touched the support line). The movement of the price around the support line could not be sustained because the price bounced upwards seriously, reaching the resistance line at 1.6350. The price has succeeded in closing above the resistance line – something the poses a serious challenge to the bearish scenario. A close above the resistance line at 1.3700 would mean a successful challenge to the bearish scenario, which in turn would mean the start of a confirmed uptrend. On the other hand, should the price fail to close above the resistance line at 1.3700, it could be assumed that the bearish run would resume.

USDCHF
Dominant bias: Bullish  
The condition affecting this currency trading instrument is similar to that of the EURUSD, except in the opposite manner. The price tested the resistance level at 0.9000, but pulled back significantly. Yes, the pullback is significant enough to pose a threat to the recent bullish outlook; plus a close below the support level at 0.8900 would render the bullish outlook completely useless.

GBPUSD
Dominant bias: Bullish   
The bullish attempt in this market is noteworthy enough to make long trades sensible in the market. When this forecast was being prepared, the price was trading above the accumulation territory at 1.6800. The price could reach the distribution territories at 1.6850 and 1.6900 within the next several trading days. In fact, this could be faster than imagine when the Greenback suddenly gets weakened further.

USDJPY
Dominant bias: Bullish
Although the price is currently experiencing some bullish retracement, it is still safe to assume that the bullish bias in the market is valid. The bullish bias can only be rendered useless when the price drops below the demand level at 102.00 and the demand level at 101.50. A movement above the supply level at 103.00 (even a test of it) would result in a renewed confirmation of the bullish bias.

EURJPY
Dominant bias: Bullish
There is a clean Bullish Confirmation Pattern on the cross, which would even be more formidable when the price closes above the supply zone 140.00: an easy target. The medium-term target for the next week is at the supply zone of 141.00.  

This forecast is concluded with the quote below:


“I suggest long-term traders make it a daily, or even weekly, habit to check on their trades. That way, you can stay on top of things without worrying about the false idol of overnight results.” – Joe Ross



Wednesday, June 4, 2014

Rare Earth Minerals – Time for Windfall

Rare Earth Minerals stock (LSE:REM) has assumed a serious bullish bias, and this is something that results in windfall for the buyers. Recently the market, which was trending downwards, found some bottom at support level of 0.4. The bottom was found during a protracted consolidation phase that held out for a few months.

In May 2014, the price broke upwards in a significant mode. The breakout has been sustained and supported by the 4 EMAs in the chart (the color that stands for each EMA is shown at the top left side of the chart). The EMAs are EMAs 10, 20, 50 and 200. The market has to go upwards as long as it stays above the EMAs.

The price may pull back towards the EMA 10 or EMA 20; giving speculators another chance to open new long orders in future. A pullback towards the EMA 50 is another great chance for new long orders. Generally, the price would go upwards, eventually reaching the resistance level at 20.00

When it comes to market information, today’s speculators have lots of garbage and gems to choose from. The effect of a single trade is markedly different than the effect of a series of trades. Accepting negativity means we are investing in the expertise that would eventually result in our future gains that will arise from positivity. Yes, the markets will reward us.

This forecast is ended with the quote below:

“As long as your trading plan is solid and doesn’t have too many gaps in it, you have a chance of qualifying for the next round. A solid plan will keep you in the tournament. A weak plan will see you getting knocked out in the early stages of the tournament.” – Lee Sandford

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


African Potash Would Bring Losses to the Bears

African Potash shares (LSE:AFPO) were trending downwards in a slow and steady manner before further downwards trend was rejected in May 2014. Since then, the price has assumed a new bullish bias.  

The new bullish bas is sustainable because the price is now far above the Trendlines (an area from which it broke out). In addition, the RSI period 14 is above the level 60 – confirming a strong uptrend. While there could be some transient pullbacks in the market, it is expected to go further with the possibility of reaching the supply zone at 5.0 in the long run.

Veteran traders know that trading in the past was much easier than it is today. While today’s market is turbulent and choppy alternatively, gains can still be harnessed.

This forecast is ended with the quote below:

“I am interviewing people who have never traded — both young and near retirement.  Their beliefs about the markets, money, and themselves show why they have never traded… I'm… interviewing several active traders who are not very successful. Again, their beliefs show why they have never been successful. Why? Because they have many non-useful beliefs about trading and the markets.” – Dr. Van K. Tharp (Source: Vantharp.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals



Monday, June 2, 2014

Premium Signals on the EUR Pairs (June 2 – July 22, 2014)

Instrument: EURJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 139.240
Stop loss: 140.267
Take profit: 137.267

Instrument: EURAUD
Order: Sell
Entry date: June 2, 2014
Entry price: 1.47109
Stop loss: 1.48533
Take profit: 1.45133

Instrument: EURCAD
Order: Sell
Entry date: June 2, 2014
Entry price: 1.48206
Stop loss: 1.49221
Take profit: 1.46221

Instrument: EURCHF
Order: Sell
Entry date: June 2, 2014
Entry price: 1.22159
Stop loss: 1.23185
Take profit: 1.20185

Instrument: EURGBP
Order: Sell
Entry date: June 2, 2014
Entry price: 0.81191
Stop loss: 0.82210
Take profit: 0.79210

Instrument: EURUSD
Order: Sell
Entry date: June 2, 2014
Entry price: 1.35974
Stop loss: 1.36984
Take profit: 1.33984

Instrument: EURNZD
Order: Sell
Entry date: June 2, 2014
Entry price: 1.61030
Stop loss: 1.62008
Take profit: 1.59008

Recent performances
December 2013 = 5.0%
January 2014 = 2.1%
February 2014 = 4.5%
March 2014 = -9.7%
April 2014 = 0.0%
May 2014 = 1.0%

NB: 1% per trade is risked. All open trades are closed after the duration of the signals has expired. A breakeven stop is used after a 70-pip gain and a trailing stop of 100 pips is used after a gain of 170 pips.

Disclaimer: Trading signals are provided for information purposes only and shouldn’t be construed as trading advice.


Learn from the Generals of the Markets: Market Generals



JPY Pairs Pullbacks Trading Signals (June 2 - 13, 2014)

Instrument: USDJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 102.395
Stop loss: 103.404
Take profit: 100.404

Instrument: AUDJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 94.634
Stop loss: 95.660
Take profit: 92.660

Instrument: CADJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 93.948
Stop loss: 94.964
Take profit: 91.964

Instrument: CHFJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 113.968
Stop loss: 114.984
Take profit: 111.984

Instrument: EURJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 139.236
Stop loss: 140.256
Take profit: 137.256

Instrument: GBPJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 171.460
Stop loss: 172.483
Take profit: 169.483

Instrument: NZDJPY
Order: Sell
Entry date: June 2, 2014
Entry price: 86.454
Stop loss: 87.473
Take profit: 84.473


Recent performances
December 2013 = 5.0%
January 2014 = 2.1%
February 2014 = 4.5%
March 2014 = -9.7%
April 2014 = 0.0%
May 2014 = 1.0%

Note: The period mentioned above reflects the duration of an open position taken from the signals. For you to know the principles and reasons behind the signals, please see the article titled “An Introduction to a JPY Pairs Pullbacks Trading Method.” The trade and risk management recommendations for open positions are also contained therein. The URL that directs to the article would soon be made available.

Disclaimer: Trading signals are provided for information purposes only and shouldn’t be construed as trading advice.

Source: www.tallinex.com

Learn from the Generals of the Markets: Market Generals


Sunday, June 1, 2014

Daily analysis of major pairs for June 2, 2014

There is a temporary pullback on the USD/CHF, which ought not to take the price below the support level at 0.8900, so that the bullish bias can remain valid. The price may go further upwards after the pullback has ended.  

EUR/USD:  The bearish bias on this pair is still present, although there is a shallow rally in the market. The rally in the context of a downtrend is not supposed to take the price above the resistance line at 1.3700 – a point at which it would be clear that the bearish bias is no longer valid and it would be logical to seek short trades.


USD/CHF: There is a temporary pullback on the USD/CHF, which ought not to take the price below the support level at 0.8900, so that the bullish bias can remain valid. The price may go further upwards after the pullback has ended.  On the other hand, a movement below the aforementioned support level would render the bullish outlook invalid.

GBP/USD:  On the Cable, there is now a serious rally in the context of a downtrend. From the accumulation territory at 1.6700, the price rallied and closed above the accumulation territory at 1.6750. Further rally should be contained at the distribution territories at 1.6800 and 1.6850. Otherwise, the long-term bearish bias would be in jeopardy.

USD/JPY: This market is a classical example in which false breakouts are no longer a curiosity. In addition, sustained trending moves are rather rare.  It would be OK to stay away from the market unless there is a protracted directional move.

EUR/JPY:  This market, which bounced upwards after testing the demand zone at 138.00, would have the upward bounce contained at the supply levels at 139.00 and 139.50. Further southward movement is expected from here.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

Learn from the Generals of the Markets:
http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314
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