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Thursday, December 31, 2015

James Tisch: Moving Ahead of Warren Buffet

 INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 20

“Books are great mentors, but where else can you learn? By standing on the shoulders of giants. When it comes to making money, here is the million dollar secret...follow someone smarter than you...” – James Altucher

Name: James Tisch
Date of birth: January 2, 1953
Nationality: American
Occupation: Investor and businessman

Career
James, who’s of Jewish ethnicity, was born in Southampton, New York, USA.
His dad was co-chair of Loews Corporation, plus his brother Preston Tisch. He went to Cornell University and later got his MBA from the Wharton School of the University of Pennsylvania.

James has held prestigious positions, including having a seat in the directorate of the Federal Reserve Bank of New York.  He’s been the CEO of Loews Corporation since 1999.

One thing special about him is that, in terms of percentage, his investments have outperformed Warren Buffet’s.

He’s married to Merryl and blessed with 3 children. James has a mansion which is about 8,000 square feet in Southampton, New York. James is an avid philanthropist, and a supporter of certain politicians. He and his wife donated $40 million to found a cancer research institute, named after them.

Insights:
  1. Transparency matters in business success. If you claim you’re good at trading/investing, then you must make your audited track records known.

  1. Transparency leads to credibility. Credibility leads to more and more success. Simply look for ways to make your career credible. Success would then be very easy.

  1. James has been investing for many years. He’s really a veteran of the markets. Successful trading needs a commitment of a lifetime – just like a successful marriage. Commitment is what you need to realize your dreams, not mere interest.

  1. If you’re good enough, you can outperform the bigwigs. This means you can gain better than they can, in terms of percentage, though their portfolios may be bigger than yours. You can make 40% per annum on a $100,000 portfolio: whereas someone who’s managing $10 million could only make 6% per annum. Can you see the difference? As mentioned earlier, one thing special about James is that, in terms of percentage, his investments have outperformed Warren Buffet’s. He may not be as rich as Warren, but he outperforms him in terms of  percentage gains.  Since the year 2000, James has grown by almost 400% while Warren has grown by only 100%.

Conclusion: Do you think you’re a god who can predict the markets, Can you predict football matches with utmost certainty, even before the matches start. If you could do that, would you do that for other types of sports? Can you predict exactly when you will die or when a healthy person will die? Why do you still think future can be predicted? Why do you still think you can predict the markets? People get frustrated only because they think they can predict the markets (but they can’t, in reality). When you agree that it’s unrealistic to think that you can predict the market with whatever tools you may have, then you’ll find a solution to your trading problems. You’ll develop a system that enables you to make money without predicting the markets. James Tisch was able to attain good performances because he’s formulas that make him victorious while not being able to know the future.

This article is ended by the quote below:

“Event-driven trading can be very lucrative.” – Dr. Adrian Manz




What Super Traders Don’t Want You To Know: Super Traders

Wednesday, December 30, 2015

Trading Signals for GBP Pairs (December 31 – February 29, 2016)

GBPAUD = Sell

GBPUSD = Sell

EURGBP = Buy

GBPJPY = Sell

GBPCHF = Sell

GBPCAD = Sell

GBPNZD = Sell


NB: Every trade could be entered with a stop loss of 100 pips and a take profit of 200 pips. Only 0.5% is risked per trade. With an account balance of $20,000, a position size of 0.1 lots would be used. The breakeven stop is set after about 70-pip profit is made. A trailing stop of 100 pips is set after over 170 pips have been gained. You need to use your technical analysis to know when to enter, since you may want to trade a pair only after your entry criteria have been met.


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



What Super Traders Don’t Want You To Know: Super Traders






ZincOx Resources Collapses!

ZincOx shares (LSE:ZOX) collapsed in November 2015 and consolidate in December. The price is still flat but when momentum returns to the market, it would most probably be in favor of the bearish trend.


In the chart, the ADX period 14 is at the level 40, showing that there is a strong bias on the market. The DM+ is below the DM-, meaning that the bears have upper hands. Although the MACD (default parameters), has its signal lines below the zero line, its histogram is above the zero line. This shows mixed signals, but the histogram is expected to drop below the zero line again, resulting in a Bearish Confirmation Pattern in the chart.

Any rallies on ZincOx should be taken as short-selling opportunities because the price is expected to collapse further.

One needs courage to endure while trading, because not all position will end up being profitable. An initial order might end up in a negative zone, plus the second one; though the third one might end up in a positive zone. It favors you to go in the line of the least resistance, which may hold out longer than anyone might imagine.

This forecast is ended by the quote below:

“I should enjoy my losses because I have to take them to make money” – Michael White

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders



Start your journey to permanent success: http://www.tallinex.com/open-account?i=128521  

Trading Recommendation on Walt Disney (January – May 2016)

Walt Disney stock (NYSE:DSI) is expected to perform a perpetual rally, starting from the beginning of January 2016 and ending somewhere around the end of May of the same year.

To be candid, the current outlook on the market is bearish, for the price is below the EMA 21 while the Williams’ % Range period 20 is in the oversold territory. This means a bearish signal, but since the market is oversold, there could be a significant reversal in favor of buyers any moment from the end of this year.

Walt Disney would most probably rally within the stipulated period, though there might be intermittent pauses and corrections along the way. A decent bullish gain is likely in the offing.

When you discover that you win 6 out of 10 trades, then you know that you have a reliability of 60%, but you do not know whether negative trades would precede positive trades; or vice versa. No matter the order in which negative and positive trades come, your end profitability would be unchanged but the roll-downs your experience can vary in length and duration. Instead of losing 15%, you might lose 25% based on whether negative trades precede positive trades. Please bear this truth in mind – facing the vagaries of the market with courage.


This forecast is ended by the quote below:

“If you make a profitable trade and did not follow your rules, it is only a “lucky punch.” - Markus Strauch

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders



Sunday, December 27, 2015

Daily analysis of major pairs for December 28, 2015

The USD/JPY has trended nicely downwards last week. The price has moved down by 110 pips, now below the supply level at 120.50, and going towards the demand level at 120.00. There is a very strong Bearish Confirmation Pattern in the chart; plus it is likely that the price would go further south when momentum returns to the market.      

EUR/USD: Last week, this pair closed at 1.0952, on a slight bullish note. There may not be a serious moment in the market this week, owing to “thin” trading activity, but we could see surprise movements on some EUR pairs (like EURNZD, EURAUD and EURCAD). On the EUR/USD, there is likelihood that the resistance lines at 1.0950 and 1.0000 would be reached within the next several trading days.


USD/CHF: This market merely moved sideways last week, with no significant journey to the upside or to the downside. There could be some movement in the market this week, but nothing extraordinary is expected. However, it is very much likely that momentum would return to the market in the first week of January 2016.

GBP/USD: What has happened so far on the Cable is what can be rightly called a rally in the context of an uptrend. The price has been going upward gradually since last week, while the outlook on the market remains bearish. Only a movement above the distribution territory at 1.5050 would render the bearish outlook invalid; otherwise, the current rally would be logically taken for another short-selling opportunity.      

USD/JPY: The USD/JPY has trended nicely downwards last week. The price has moved down by 110 pips, now below the supply level at 120.50, and going towards the demand level at 120.00. There is a very strong Bearish Confirmation Pattern in the chart; plus it is likely that the price would go further south when momentum returns to the market.

EUR/JPY:  The upwards bounce we witnessed last week proved to be an opportunity to sell short. The price has come down after that, trying the demand zone at 131.50 – which might be breached to the downside soon.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


What Super Traders Don’t Want You To Know: Super Traders

Saturday, December 26, 2015

Weekly Trading Forecasts on Major Pairs (December 28 - 31, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish  
EURUSD moved upwards 100 pips last week, still showing determination to go further upwards. The market would experience some equilibrium movement this week, owing to thin activities in the markets, but possibilities of surprise movements cannot be ruled out (especially on some other EUR pairs like EURAUD, EURNZD, etc.). Bulls might target the resistance lines at 1.1000 and 1.1050 this week.   

USDCHF
Dominant bias: Bearish
This pair did not make any significant movement last week, and it is more likely that the sideways movement would continue this week; which could make the bias on the market turn neutral. There are support levels at 0.9850 and 0.9800. On the other hand, there are resistance levels at 0.9950 and 1.0000. It is expected that the price would oscillate between these support and resistance levels for the rest of this year – breaking them to the upside or to the downside within the first week of January 2016.  

GBPUSD
Dominant bias: Bearish   
From Monday to Tuesday, Cable dropped by 100 pips, to rise by 110 pips from Wednesday and Thursday. The current price action in the market could be rightly called a rally in the context of a downtrend, because the bearish outlook cannot be invalidated as long as price is under the distribution territory 1.5050. A very strong bearish movement would likely resume on GBP pairs on the first week of January 2016.  

USDJPY
Dominant bias: Bearish    
This currency trading instrument performed a steady southwards movement last week.  From just under the supply level at 121.50, price was able to move below the supply level at 120.50, to close at 120.27. There is a strong Bearish Confirmation Pattern in the market, which would enable this currency instrument to dive further by 100 pips this week or next week. At the present, long trades do not make much sense in this market.        
                                                                                                                               
EURJPY
Dominant bias: Bearish
This cross moved upwards 100 pips in the first few days of last week, before it went down by 100 pips, reaching the demand zone at 131.50. This action supported the extant bearish bias on the market.  At this juncture, the movement of this cross would be dictated by the events surrounding the Euro, which means that we might see a rally in case the Euro is strengthened further. 

This forecast is concluded with the quote below:

“Money is perpetual in the markets and the objective is to keep as much as you can when it passes through your hands.”   – Alpha7 (Trading Academy)


  
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html


Thursday, December 24, 2015

What Super Traders Don’t Want you to Know - Now Available Free?

CANDID BOOKREVIEW

Succeeding as a Trader after Learning the Necessary Facts and Skills
This book profiles 22 renowned super traders from around the world. Great traders who know what it takes to be successful in the markets. In this follow up to his previous book: “Learn From the Generals of the Markets,” the author gives an overview of their careers and explains what lessons can be drawn from their success.

The book emphasizes on the kind of friends you keep will have impact on your life, and of course, on your trading career. When you hang out with those who hate trading, those who have been floored by the markets and have sworn not to have anything to do with the markets
again, those who are afraid of the challenges the markets offer, those whose job is to discourage you from attaining your goals in life, you cannot become successful in the markets.

Trading is a wonderful experience that can transform lives. We need to surround ourselves with successful traders or at least, read about them, plus the principles that can be learned from them. The super traders featured in this book will inspire you and reveal the principles behind
their success. For you to eventually reach a position of a super trader (one who makes profits consistently and effortlessly), you definitely need more than strategies. There are certain timeless truths, principles, mindsets and beliefs that super traders cannot do without. Since using
the best strategy without the essential requirements would not improve any statistics; the catholicity of those seamless requirements cannot be overemphasized.

Super Traders with Enviable Achievements
Kenneth Fisher – a billionaire trader who is featured in the book – is an exceptional trader who was introduced to the trading world by a market legend, Philip Fisher, who was his dad. This shows that when we teach young people the art of trading, we prepare them for financial freedom
as early as possible. James Chanos, another highly profitable trader featured in the book, testifies to this fact by saying: “Life intrudes – as when you get older you end up with more responsibilities and your ability to take risk diminishes. If you are 25 and have a great idea and you fail, no one is going to hold it against you, and future you will be able to take more financial and career risk. If it does not work, you still have your whole life ahead of you.” You will also come across some celebrity traders like Dan Loeb (the Kanye West of Wall Street) and Ray Dalio (the Steve Jobs of investing).

More interestingly, the book features some female super traders like a high earning hedge fund manager, Leda Braga; an influential female trader, Maria Boyazny; a world trading champion, Victoria Grimsley; and a happy market player, Toni Turner. The author advises that women should never underestimate their right to become a trader, including their limitless potential to become financially free. It is very sad that some people still underestimate women when it comes to online trading. It is unfair to underestimate women in the trading world because there is no level of achievement that cannot be attained by them. In fact, female traders have been a blessing to the trading world. In addition, they are a source of inspiration and encouragement to us.

The Inevitable Trading Experiences
According to the author, the gallivanting neophyte will pass through two phases of experiences. The first phase is when she/he loses money no matter what she/he does. This is a phase where the majority quit trading, and not many people go beyond that phase. The second phase is when one begins to make money easily. These are the people that the public call “market wizards,” “super traders,” “pros,” “expert speculators,” “gurus,” “witches,” “mad geniuses,” et cetera. The public think something is special about them, but these people know that there is nothing special about them. What makes the difference is that they decided to continue fighting for success at the stage that most others quit. This book will definitely be of interest to those who are determined to become super traders.

Adapted from TRADERS’ Book Review, June/July 2015 (pages 60 - 61)


“What Super Traders Don’t Want You to Know” is available right now for the Kindle at the flash sale price of just 99p. This essential guide could start you on the path to becoming a super trader.

NB: To get the almost free book, please visit:

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Wednesday, December 23, 2015

Long Trades Would Be Logical On Fastforward Innovations

Fastfoward Innovations shares (LSE:FFWD) offer opportunities for long trades, which would be logical based on what the price is doing at the present. The price is currently going upwards after it bottomed at 6.0 (following a correction that was seen last month).

The bottoming of the price was carried out at the lower Trendline, just around the support level at 6.0. The price has shot upwards after this, going above the upper Trendline and now close to the resistance level at 10.0. It is also interesting to see that the RSI period 14 is almost in the overbought region, meaning that the outlook on the market is strongly bullish.

Fastfoward Innovations price might test the resistance levels at 11.0, 12.0 and 13.0 within the next several months.  

This forecast is ended by the quote below:

“The amount made in the markets depends on the skill of the trader even more than the system he/she uses. It has actually been said that the weakest part of any trading system is the trader. That being said please let me give an answer from a qualitative standpoint. A successful trading system first should have a very humble and disciplined trader. With humility the need to "be right" won't cloud your decision process when your trade is losing money and discipline will allow you the fortitude to stay in a trade that apparently "stands still" until the market decides it's ready to concur.” – Spark (Source: Elitetrader.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders


Tuesday, December 22, 2015

Watchstone Group Should Be Approached with Caution

Watchstone Group stock (LSE:WTG) should be approached with caution because it is yet to be confirmed whether the current bullish breakout on it could be sustained or whether it is a bogus one.

4 EMAs are used for this analysis and they are EMAs 10, 20, 50, and 200. The color that stands for each EMA is shown at the top left part of the chart. It would be seen that the EMAs were all flat in the last several months, confirming a strong base, prior to the current breakout.

For the current breakout not to be a false one, the price needs to continue trending upwards for the next several months. Then, the 4 EMAs would be sloping upwards, while the price stays alternatively above the EMAs 10 and 20 (though the possibility of pullbacks along the way cannot be ruled out).

In case Watchstone Group stock fails to continue the bullish journey it started, then it would be interpreted as a false breakout. Therefore, the market should be approached with caution.  

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders



Sunday, December 20, 2015

Daily analysis of major pairs for December 21, 2015

 Last week, the USD/JPY tested the demand level at 120.50 and later rallied to test the supply level at 123.50. Afterwards, the price dropped by 230 pips to close below the supply level at 121.50. In face of these wild swings, the bias on the market is bearish, which means that the support level at 121.00 would be easily tested.  

EUR/USD: Last week, the EUR/USD reached the resistance line at 1.1050 (and almost the support line at 1.0800). This is a real threat to the current bullish outlook, and a further bearish movement of 150 pips would mean the bullish outlook is completely illogical. Until then, this remains a bear market.


USD/CHF: After testing the support level at 0.9800, the USD/CHF has been making some vivid bullish attempts, all in the context of a downtrend. At this juncture, it is not easy to predict the movement of the market, but the bearish bias would not be rendered invalid as long as the resistance level at 1.0050 is not overcome.

GBP/USD: Based on our expectation, the Cable fell by 300 pips last week, reaching the accumulation territory at 1.4900. There is a strong Bearish Confirmation Pattern in the market and there is a possibility that the Cable would continue dropping further and further. Therefore, any rallies seen in the market should be taken as short-selling opportunities.

USD/JPY: Last week, the USD/JPY tested the demand level at 120.50 and later rallied to test the supply level at 123.50. Afterwards, the price dropped by 230 pips to close below the supply level at 121.50. In face of these wild swings, the bias on the market is bearish, which means that the support level at 121.00 would be easily tested. 

EUR/JPY:  Last week, this market moved sideways from Monday to Thursday, and broke downwards on Friday. The southward break was significant enough to result in a bearish outlook, which means that the market would continue its weakness as long as the EUR is weak.

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

What Super Traders Don’t Want You To Know: Super Traders


Saturday, December 19, 2015

Weekly Trading Forecasts on Major Pairs (December 21 - 25, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish  
Although the dominant bias on this pair is bullish, the bias is seriously threatened. After testing the resistance line at 1.1050, the price went down by roughly 250 pips, almost reaching the support line at 1.0800.  Based on the bearish expectation on EUR (and EUR pairs) for the rest of this month, it is likely that EURUSD would go further south by 100 pips this week. In case this happens, the bias on the pair would turn bearish.

USDCHF
Dominant bias: Bearish
After bottoming at the support level of 0.9800, the USD/CHF has been making a noticeable bullish attempts in the context of a downtrend.  The price reached the resistance level at 0.9950 on Thursday, and then consolidated till the end of the week. At this junction the direction of the USD/CHF would be determined by what happens to EUR. There would be mixed signals on all USD pairs, for the US dollars would be weak against some currencies as well as strong against some currencies.

GBPUSD
Dominant bias: Bearish   
What happened on Cable last week has resulted in a “sell’’ signal, in solidarity with our bearish expectation on GBP pairs.  Cable went south by 300 pips to test the accumulation territory at 1.4900. This has resulted in a Bearish Confirmation Pattern in the market, and it is likely that the southward movement would continue for the rest of this month. Therefore, any rallies that are seen should be approached as short-selling opportunities.

USDJPY
Dominant bias: Bearish    
This volatile currency trading instrument swung wildly last week. Price tested the demand level at 120.50, and then rose sharply to reach the supply level at 123.50 (a movement of 300 pips). After the supply level was tested, price fell by 200 pips on Friday, due to the fundamental events affecting the Yen, which gave strength to the Yen. The current bias on USD/JPY is bearish, and this should be respected as it long as it lasts.         
                                                                                                                               
EURJPY
Dominant bias: Bearish
This market traded sideways from Monday till Thursday; and experienced a bearish breakout on Friday.  The weakness in the market, coupled with its inability to trend higher, has made the outlook on the market become bearish. As EUR is weakened further, EUR/JPY might trend further south. There is a need for a serious weakening in the Yen before this bearish movement can be reversed.

This forecast is concluded with the quote below:

“Quality of trades matter, but a trading career does not depend on one trade, it is rather
the sum of all trades. Acknowledging that a few losing trades cannot hurt me released me from anxious trading.” - Christiaan van der Meer


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html




Thursday, December 17, 2015

Bill Miller: One of the Greatest Money Managers

INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 19

“Just as picking up a five iron does not make you Tiger Woods, opening a brokerage account and sitting in front of a computer screen does not make you Peter Lynch or Warren Buffett. That is something you must work for, and it takes time and practice. What is important is that you learn how to practice correctly.” – Mark Minervini

Name: Bill Miller
Year of birth: 1950
Nationality: American
Occupation: Portfolios manager

Career
Bill Miller went to Washington and Lee University, graduating in 1972 (BSc Economics). Following that, he worked as a military intelligence officer, also pursuing graduate studies in the Ph.D. program at the Johns Hopkins University.

He was a treasurer of the J.E. Baker Company, a major manufacturer of products for the steel and cement industries. In 1981, he started working at Legg Mason.  He was designated a CFA in 1986.

Bill’s fund increased from $750,000,000 in 1990 to more than $20,000,000,000 in 2006.
In 2002, Janet Lowe wrote a book about him, titled "The Man Who Beats The S&P: Investing With Bill Miller."

Bill performed so well that he and his team got numerous praises for their achievements and uniqueness of trading approaches. According to Wikipedia, he was ranked among the top 30 most influential people in investing when he was named a member of the "Power 30" by SmartMoney. He was also named by Money magazine as "the Greatest Money Manager of the 1990's" and named Morningstar's 1998 "Domestic Equity Manager of the Year." In 1999, he was selected as the "Fund Manager of the Decade" by Morningstar.com. Also in 1999, Barron's named him to its All-Century Investment Team and BusinessWeek called him one of the "Heroes of Value Investing."

Bill is currently the portfolio manager of the Legg Mason Opportunity Trust (Mutual fund: LMOPX) mutual funds, run by Miller through Legg Mason subsidiary LMM. Formerly he’s the chairman and chief investment officer at of Legg Mason Capital Management, now a part of ClearBridge.

Insights
  1. It’s quite possible to outperform the markets for a long period of time. Bill Miller beat the S&P 500 index for 15 consecutive years (1991 - 2005).  This is one of the longest winning streaks of a trading career. Constantly making market beating returns is considered to be very unlikely according to the efficient market hypothesis, but it’s possible. So in your career, you can defy the conventional theory and rise beyond obstacles.

  1. Information simply shows what’s happened while value shows what may happen. It’ll be in your best interest to think about the Big Picture. 

  1. Bill says certainty belongs to mathematics, not to markets, and anyone who awaits clarity, visibility, or the diminution of uncertainty pays a high price for a chimera… It’s the nature of financial markets to be subject to sharp price fluctuations, to be buffeted by events, and often to be emotionally trying. Successful investing involves the disciplined and patient execution of a long-term strategy, especially when it’s emotionally difficult. That’s usually the time the opportunities are the greatest.

  1. Most money managers take positions as they swing to their opposites. Those swings can have wide arcs, and unsustainable trends can sometimes persist beyond the ability of one to endure. This explains why speculators sell their positions in over-extended bear markets, for they can’t continue enduring the pain of losing. When bull markets become over-extended, speculators are glad to go in fully, thinking that the bullish trend would continue in spite of the fact that things look overbought.

  1. Flying in the face of conventional trading wisdom, Bill explains what value investing really means to him: “We are value investors because we are persuaded of the logic of buying shares of businesses when others want to sell them, and we understand that lower prices today mean higher future rates of return, and high prices today mean lower future rates of return.”

  1. The real secrets behind Bill’s super performance (which is very difficult to copy) is that he spent many years studying independent super achievers, and along the way he's become one of the super achievers.

Conclusion: Louise Bedford of Tradinggame.com.au once said that you’d better start seeking out people who are making a lot more money than you are. You will naturally rise to the occasion and start moving forward. Your thinking will change. Your habits will change. Traders who make a million plus per year think differently and act differently to those making 100K per year. The fact is, if your mates are telling you 100K per year is fantastic, but your goal is to get to 500K a year... then you’d better find another group. There are those who imagine the future; there are those who create the future. Permanent victory is easier when the mission is clear. Here, we’re dedicated to making our trading career a success story.

This piece is ended with quotes from Bill:

"The market does reflect the available information, as the professors tell us. But just as the funhouse mirrors don't always accurately reflect your weight, the markets don't always accurately reflect that information. Usually they are too pessimistic when it's bad, and too optimistic when it's good."

"What we try to do is take advantage of errors others make, usually because they are too short-term oriented, or they react to dramatic events, or they overestimate the impact of events, and so on."



What Super Traders Don’t Want You To Know: Super Traders

Wednesday, December 16, 2015

MXO Oil Chart – Will Price Rise from the Base?

MXO Oil stock (LSE:MXO) is now trying to rise from the long-term base it has formed in the market. Would this be a sustained bullish movement or a false breakout?

From July to August 2015, the price nosedived, after which it formed a base. The base was in place from August till now… But there is an action in the market. The price gapped up shallowly, which enabled the price to go above the EMA 21. The Williams’ % Range period 20 is also in the overbought territory.

This is a bullish signal, indicating that MXO Stock might go further upwards. Though, a movement above the distribution territory at 3.5 is needed to prove that the current breakout is not a bogus one.

This forecast is ended by the quote below:

“Having more money won't help you much if you can't trade profitably at small size.” - Zr1Trader (Source: Elitetrader.com) 

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html



Tungsten Corp to Continue Its Bearish Trend

Tungsten Corp shares (LSE:TUNG) are currently weak, and the weakness is supposed to continue until there is a confirmed bullish trend in the market. Right now, the trend is bearish.

In the chart, the ADX period 14 is below the level 30, which means the momentum in the market is not that great. The DM+ and DM- are intertwined owing to the lack of momentum in the market. The MACD (default parameters) has its histogram above the zero line, while its signal lines are below the zero line.

There are mixed signals in the Tungsten Corp market – while the overall bias is bearish. Momentum will eventually return to the market, and it might likely be in favor of the bears.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders

Sunday, December 13, 2015

Daily analysis of major pairs for December 14, 2015

The EUR/JPY consolidated in the first few trading days of last week, and then traded lower. The lower movement was shallow because the extant bias remains bullish. It is possible that the price would continue trading lower, which may threaten the bullish bias. The only thing that can change this is when the Yen loses stamina.       

EUR/USD: The bullish breakout that happened on this pair on December 3, 2015 has been sustained so far. This means that the breakout was not a false one. The price moved upwards last week, closing just below the resistance line at 1.1000, which is an important price area. With the ongoing buying pressure in the market, the price could go above the resistance line this week. One thing should be noted, we may witness some weakness in the EUR/USD before the end of this month.  


USD/CHF: The USD/CHF traded further downward last week. Within the last two weeks, the price has come down by over 460 pips, suggesting further southward attempts. This is possible because the USD/CHF faces two challenges: the Euro is strong and the Swiss Franc could potentially rally before the Christmas Eve. Nonetheless, the USD might rally against other currencies.

GBP/USD:  From Monday to Tuesday last week, the Cable trended downwards. However, from Tuesday to Friday, it trended upwards, closing above the accumulation territory at 1.5200. An upwards of 250 pips since last Tuesday has enabled a Bullish Confirmation Pattern to form in the market. The distribution territories at 1.5250 and 1.5300 are potential targets for the bulls, though that does not rule out the chances of pullbacks in the market.

USD/JPY: After almost reaching the supply level at 123.50, this currency trading instrument pulled backed in a large manner (a movement of 250 pips). This has led to a “sell” signal in the market, though the outlook on JPY pairs remains bullish for the month of December 2015. Until that bullish outlook materializes, the current “sell” signal should be respected.

EUR/JPY:  The EUR/JPY consolidated in the first few trading days of last week, and then traded lower. The lower movement was shallow because the extant bias remains bullish. It is possible that the price would continue trading lower, which may threaten the bullish bias. The only thing that can change this is when the Yen loses stamina.     

Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group

What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  

Friday, December 11, 2015

Weekly Trading Forecasts on Major Pairs (December 14 - 18, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish  
EURUSD has been able to maintain the bullish breakout it performed on December 3, 2015. Last week, price moved further upwards by 170 pips, closing above the support line at 1.0950. There are resistance lines at 1.1000 and 1.1050, which could be tested as the bullish journey continues. However, there is a strong possibility that EURUSD would experience a vivid pullback this week or next week.

USDCHF
Dominant bias: Bearish
Since November 30, 2015, this pair has trended downwards by almost 500 pips. The bias is bearish, and it would be difficult for the pair to trend seriously upwards now (in spite of the fact that USD could be strengthened against some other currencies), due to the stamina in the Euro and the possibility of the Swiss Franc amassing strength. The support levels at 0.9800 and 0.9750 stand chances of being tested. The support level at 0.9800 was almost tested last week.  

GBPUSD
Dominant bias: Bullish   
This currency trading instrument first trended lower on Monday and Tuesday – only for further bearish movement to be rejected as price assumed a smooth rally. Since Tuesday, price has gone upwards by 250 pips, leading to a Bullish Confirmation Pattern in the market. The possibility of further bullish movement is not downplayed, but it should be remembered that the expectation on GBP pairs remains bearish for the month of December, thus long positions on GBPUSD should be handled with caution. There could be a large pullback before the end of this month.  

USDJPY
Dominant bias: Bearish    
The bears were able to push USDJPY lower last week, ending the recent neutral bias on the market. Price fell by 250 pips, closing just below the supply level at 121.00. This price action has brought about a “sell” signal in the market, but the odd against the signal is the bullish expectation on JPY pairs, which could still happen anytime this month. Until there is a rally owing to the bullish expectation on JPY pairs, the “sell” signal currently in the market ought to be respected.        
                                                                                                                               
EURJPY
Dominant bias: Bullish
EURJPY consolidated last week, and later went downwards. The downward movement was shallow; all in the context of an uptrend. The consolidation and shallow bearish movement were considerable enough to pose a threat to the extant bullish bias. A movement of 200 pips to the downside might be the end of the bullish bias, although there is a hope for further bullish journey, and that is when JPY loses strengths significantly.  

This forecast is concluded with the quote below:

“Although the price charts look the same today as they did long ago, the trade management needed constant adaptation. The markets are alive and forever changing.” – Joe Ross


  
What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html



Thursday, December 10, 2015

Planning Trades to Control Risk

The problem with many traders is that they have only half a plan, the easy half. They know how much profit they're willing to take, but they don't have the foggiest idea how much they're willing to lose. They're like a deer in the headlights, they just freeze and wait to get run over. Their plan for a position that goes south is, “Please God, let me out of this and I'll never do it again,” but that's wishful thinking, because if by chance the position turns around, they'll soon forget about their promises.  They'll go back to thinking that they're geniuses, and they'll always do it again, which means that they're sure to get caught, and get caught bad.

I have a true story I’d like to share: It’s about a broker I knew and a Coffee trade he made. It goes like this:

I received a phone call from this guy moaning about a Coffee trade he was in. He was managing money and had all of his clients in this particular trade.

Coffee, at least at that time, was, and still can be, an illiquid and extremely volatile market, and is often best traded by people who have a genuine need to trade there. But he was in and in up to his neck in trouble. He said, “Joe! I don’t know what to do! If the Coffee goes down any more, I’m going to wipe out all of those accounts.” He told me he had been so sure the market would move up that he never even planned the amount of risk he was willing to take, and by the time he had determined where to put a protective stop, Coffee had shot past that point.

I told him I had no idea of how he could get out of his predicament, and that was an honest answer. I really did not know what he could do.

Apparently, he decided to pray! He called me back that evening and told me he had gone into the restroom, closed the door on the booth, and knelt down and implored God to get him out of the mess he was in. He promised that he would never again trade Coffee if God would just save his skin from disaster.

The following day, Coffee opened gap up, and moved to a point where he could get out at breakeven. He took the opportunity and got out. Later that day, Coffee moved even higher. Two weeks later, he was back trading it once again.

The broker had no plan for what he would do if the market moved against him. Whatever planning he did was done after, not before, entry into the market. His irresponsibility took unlimited risk with client accounts, having no idea of his exit point.

But perhaps worst of all, he was dishonest with both himself and his clients. He vowed to never trade that market again. Where were the discipline and self-control he needed to keep his promise?

How many of us do the same thing when we trade. We make mistakes, vow to never make them again, and then do the same dumb things all over again. We take risk without planning, or realizing just how much risk we are truly taking. Then the market teaches us a painful lesson. I think you would agree, markets are very good at doing that.



Author: Joe Ross

This article was reproduced with kind permission of Trading Educators.

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What Super Traders Don’t Want You To Know: Super Traders







Wednesday, December 9, 2015

Trading Recommendation on Netflix (December 2015 – April 2016)

Netflix shares (NASDAQ:NFLX) are supposed to continue trending upwards. The uptrend has already started, and it would be sustained till around April 2016.

4 EMAs are used for the analysis, and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the top left side of the chart. The price currently resting atop the EMA 20, and it could continue to trend further upwards. Along the way, there could be retracements into the EMAs 20 and 50, but the price could rise further upwards after this.

The EMA 200 shows that Netflix has already performed a Golden Cross, so the general outlook on the market is upbeat. From now till April, the shares can gain more than 35 per cent.

Even serious traders make mistakes, perhaps repeatedly. But after each misstep, they get up, learn from experience, and move on.  When you focus on effort for trading mastery, however, you foster resilience. You help yourself to view setbacks as just that, not as a disaster. So rather than give up, you might try another approach or simple become creative.

This forecast is ended by the quote below:

“Do you have realistic expectations about returns? The greatest traders in the world return 15 percent to 25 per cent a year. Trying to get rich quick is the fastest way to go broke.” – Steve Burns

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders



Monthly Forecast on Gulf Keystone (December 2015)

Gulf Keystone stock (LSE:GKP) has been under serious selling pressure in the past several months. Contrary to what some fundamental analysts might be saying, the bearish trend might continue.

The price has already broken downwards below the lower Trendline, going further south. The RSI period 14 is below the level 50, showing a strong bearish trend. It is currently very foolish to go long on Gulf Keystone. The demand levels at 14.00 and 13.00 might eventually be breached to the downside.

But… the downtrend would not last forever. Roll-downs, therefore, is a temporary problem, which is present in all strategies. The passing of time should not cause us to lose hope that abundant rewards will be realized. There are solid reasons to keep our expectations from our trading career alive.

Trading prowess can improve with practice.

This forecast is ended by the quote below:

“Find ways to not lose money; the wins will take care of themselves.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders


Trading Signals for CHF Pairs (December 9 - 23, 2015)

AUDCHF = Sell

USDCHF = Sell

EURCHF = Sell

CADCHF = Sell

CHFJPY = Buy

GBPCHF = Sell

NZDCHF = Sell


NB: Every trade could be entered with a stop loss of 100 pips and a take profit of 200 pips. Only 0.5% is risked per trade. With an account balance of $20,000, a position size of 0.1 lots would be used (0.01 lots for each $2,000). The breakeven stop is set after about 70-pip profit is made. A trailing stop of 100 pips is set after over 170 pips have been gained. You need to use your technical analysis to know when to enter, since you may want to trade a pair only after your entry criteria have been met.

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


What Super Traders Don’t Want You To Know: Super Trading





Tuesday, December 8, 2015

Trading Signals for AUD Pairs (December 9 - 24, 2015)

AUDJPY = Sell

AUDUSD = Sell

EURAUD = Buy

AUDCAD = Sell

AUDCHF = Sell

GBPAUD = Buy

AUDNZD = Sell


NB: Every trade could be entered with a stop loss of 100 pips and a take profit of 200 pips. Only 0.5% is risked per trade. With an account balance of $20,000, a position size of 0.1 lots would be used. The breakeven stop is set after about 70-pip profit is made. A trailing stop of 100 pips is set after over 170 pips have been gained. You need to use your technical analysis to know when to enter, since you may want to trade a pair only after your entry criteria have been met.


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



  
What Super Traders Don’t Want You To Know: Super Traders

Sunday, December 6, 2015

Daily analysis of major pairs for December 7, 2015

Last week, the EUR/JPY rose from the demand zone at 130.00, testing the supply zone at 134.50. This was a movement of 450 pips, which was an exponential movement brought about by the great stamina in the EUR. The price is currently consolidating, but we might witness further bullish breakout in the market, since the outlook on the JPY pairs is bright for the month of December.   

EUR/USD: There is a now a Bullish Confirmation Pattern in the market, which has overturned the recent bearish bias abruptly. This market should trend further upwards this week; otherwise what happened last week would turn out to be a false breakout. More fundamental figures are expected this week and they could have impact on the markets.


USD/CHF: This pair dropped by 400 pips last week, turning bearish abruptly. There is now a clean Bearish Confirmation Pattern in the chart, because the price has already gone below the great psychological resistance level at 1.0000. It might require some difficulty for the price of the USD/CHF to go above the great resistance level again, owing to its negative correlation to the EUR/USD and the fact that the CHF itself might rally in the middle of December.  

GBP/USD:  The GBP/USD rose from the accumulation territory at 1.4900, to test the distribution territory at 1.5150 (a movement of 250 pips). However, there is a need for the price to move further upwards by 150 pips before the extant bearish outlook can be rendered invalid. Really, the outlook on GBP pairs remains gloomy.

USD/JPY: Despite strong movements of major pairs last week, this currency trading instrument merely moved sideways. There were short-term upswings and downswings in the market, which made the market condition great for scalpers and intraday traders. The bias is neutral – and it may continue as such until there is a movement of at least 200 pips upwards or downwards. 

EUR/JPY:  Last week, the EUR/JPY rose from the demand zone at 130.00, testing the supply zone at 134.50. This was a movement of 450 pips, which was an exponential movement brought about by the great stamina in the EUR. The price is currently consolidating, but we might witness further bullish breakout in the market, since the outlook on the JPY pairs is bright for the month of December.
 
Performed by Azeez Mustapha,
Analytical expert
InstaForex Companies Group


What Super Traders Don’t Want You To Know: http://www.advfnbooks.com/books/supertraders/index.html  
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