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Tuesday, September 29, 2015

Mosman Oil and Gas to Go Up Again

Mosman Oil and Gas shares (LSE:MSMN) are an excellent “buy” as a result of the present conditions in the market. The price moved south slowly and gradually in early part of this year and consolidated within the months of July and August 2015.


The price broke upwards in September, moving seriously upwards. The price went above the resistance level at 8.00 briefly and then got corrected below it. The price is generally above the 2 Trendlines, and the RSI period 14 is at the level 50, which indicates some strength in the market.

Right now, Mosman Oil and Gas is making bullish attempts, which have a great chance of succeeding. The price could reach the resistance level at 10.00 before the end of this year. This is a noisy (trending) market, which is an ideal one in which to trade.

I prefer a noisy market to a quiet one. If a market has moved very well recently, it might continue doing so in future. And for me to harness gains, I need movement, which is mandatory. Though I am talking about future developments, since there is no certainty that a market that has moved very well in the past would continue doing so within the next several days or weeks, but the possibility of doing this is higher in a noisy market than a quiet one.  

This forecast is ended by the quote below:

“A trade is just a trade and a single trade will neither make nor break me…. But in general, day to day, I never give losses or profi ts too much thought.” – Nick Radge

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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



Stay Away from Xtra Resources!

Xtra Resources stock (LSE:XTR) is currently a good example of a market that can bring losses to buyer and sellers because of the current equilibrium conditions on it. This is essentially a quiet market which may fool some players. Some may feel that a quiet market is less risky than a noisy one – this is false.

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. In a bull market, all the EMAs would be sloping upwards while the price is above the EMA 200. In a bear market, the EMAs would be sloping downwards while the price is below the EMA 200.

However, the EMAs on Xtra Resources Daily chart are all intertwined, giving no direction. Both buyer and sellers would be stopped out here: so it is better to stay away from the market until there is a directional movement, which would take the price upward or downwards by at least, 500 points.

This is expected to happen, as following a consolidation movement is a breakout that would start a brand-new bias.

This forecast is ended by the quote below:

“I think any extended drawdown or a significant drawdown is where you need to dig deep regardless of how experienced you are. Most amateurs zig and zag at the first hurdle mainly, because they expect trading to be a linear curve. But when significant hurdles get put before us, which means drawdowns exceeding 20 per cent or being in drawdown without recovery for over twelve months. That is a time for introspection. That is the time to reaffirm that what you are doing is right and that this is just one of those challenges that comes along every so often. The same happens with our health, with our business, with the economy and with most things in life. It is how one deals with these issues that differentiates the pros from the amateurs.” – Nick Radge (Source: Tradersonline-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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




Sunday, September 27, 2015

Daily analysis of major pairs for September 28, 2015

The Cable fell 400 pips last week, testing the accumulation territory at 1.5150. There is a clean Bearish Confirmation Pattern in the market and the price could still continue its downwards journey by at least, 200 pips this week. The accumulation territories at 1.5100 and 1.5000 are potential targets for the bears.  

EUR/USD:  This is a bear market, in which the bulls are making relentless effort to push the price upwards. The bulls would not be deemed as being successful until the resistance line at 1.1300 is overcome. Until then, this is a bear market.


USD/CHF: The USD/CHF trended upwards in a directional mode last week, going above the resistance level at 0.9800 briefly before closing below it on Friday. There is a possibility that the resistance level might be tried and breached to the upside again. Only a serious stamina in the EUR/USD could send the USD/CHF plunging southwards.

GBP/USD:  The Cable fell 400 pips last week, testing the accumulation territory at 1.5150. There is a clean Bearish Confirmation Pattern in the market and the price could still continue its downwards journey by at least, 200 pips this week. The accumulation territories at 1.5100 and 1.5000 are potential targets for the bears. 

USD/JPY:  This is a strong equilibrium market in which there is no clear uptrend or downtrend. It is better for swing and position traders to stay away from the market until there is a reliable breakout from the strong equilibrium phase; and this would require at least, a movement of 200 pips upwards or downwards. Right now, the market is OK for scalpers and intraday traders.

EUR/JPY: The outlook on the EUR/JPY is bearish – though the bulls are making a serious attempt to push it upwards. The EUR/JPY first trended downwards last week, and then it bounced upwards. As long as the price is under the supply zone at 136.00, the outlook is bearish. So one might not go long until the supply zone is breached to the upside.

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 


Saturday, September 26, 2015

Weekly Trading Forecasts on Major Pairs (September 28 – October 2, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish  
This pair fell 200 pips last week, almost touching the support line at 1.1100. Afterwards, price bounced upwards by 180 pips and then got corrected lower. The price action in the market reveals that bulls are still making noticeable effort to push the price upwards, all in the context of a downtrend. This week, serious volatility would be witnessed as bulls continue to make more bullish effort, which would not jeopardize the extant bearish bias until the resistance line at 1.1300 is overcome.

USDCHF
Dominant bias: Bullish
USDCHF moved upwards in a directionally mode last week, breaking above the resistance level at 0.9800, but closing below it at the end of the week. The short-selling that occurred on September 24, 2015 simply provided an opportunity to go long at better prices. Unless EURUSD experiences a significant bullish movement, USDCHF cannot plunge significantly. So whatever would happen to USDCHF this week would be determined by the movement of EURUSD.  

GBPUSD
Dominant bias: Bearish    
Last week, this pair dropped almost 400 pips, testing the accumulation territory at 1.5150. Last week, it was mentioned that the pair would have difficulty going upwards: That statement is also valid for this week. Any rallies that happen on this pair would be good opportunities to sell short at better prices. Another southwards movement of at least, 200 pips, is expected this week. So that accumulation territories at 1.5100 and 1.5000 are potential targets.

USDJPY
Dominant bias: Neutral    
There is not yet any directional movement on this currency trading instrument and it would be nice for swing and position traders to stay away from it until there is a strong breakout. However, this instrument is currently great for scalpers and intraday traders. Before a breakout can be termed as being strong here, there must be a bearish or a bullish movement of at least, 300 pips.  Most of the month of September 2015 has been trendless.
                                                                                                                               
EURJPY
Dominant bias: Bearish
EURJPY cross first moved downwards 200 pips, and then started going upwards gradually on September 23. There is still a Bearish Confirmation Pattern in the market, which cannot be violated as long as the cross is unable to go above the supply zone at 136.00. Once that supply zone is overcome, then things would be bullish; but until that is done, this is a bear market. Any rally that is seen could thus be deceptive.    

This forecast is concluded with the quote below:


“I do not trade for sport or hobby. I trade for a living. So it is important for me to quantify trading opportunities and determine that I do in fact have an edge before I enter a position.” – Rob Hanna

                                                                                                  


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

Thursday, September 24, 2015

W Resources – a Super Performing Stock

W Resources stock (LSE:WRES) has been performing wonderfully, bringing smiles to buyers’ faces. Before the current strong bullish movement, the stock was in a base for several months. The stock broke strongly upwards in August 2015, sprinting northwards until now.

The ADX period 14 is above the level 60, denoting a very strong momentum in the market. The DM+ is far above the DM-, emphasizing the bulls’ victory. The MACD (default parameters) has both its signal lines and histogram vividly above the zero line. This is a strong Bullish Confirmation Pattern in the chart, which means that the stock is expected to continue moving upwards.

When in a position, we want the price to continue developing in the direction of the major bias. We all like quick, speedy gains. The quicker the momentum, the faster the gains. When the momentum continues to increase faster and faster, we would like to see how it might last. 

W Resources stock could still move further north by 3000 points before the end of the year 2015.

This forecast is ended by the quote below:

“Predictions are difficult, especially about the future.” – Yogi

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


Penna Consulting: Strong Gains to Continue

Penna Consulting shares (LSE:PNA) are making strong gains. There is serious buying pressure in the market, which is supposed to continue fueling the bullish momentum that is being seen right now. A brand-new movement like this proffers a clean way to make money with lower risk, with a higher hit rate.

The price has been moving upwards gradually since March 2015; but it really gapped up in July, making higher lows and higher highs till now. At the present, the price is above the EMA 21 and the Williams’ % Range period 20 is in the overbought region. This shows that the buying pressure is on, and while there could be occasional pauses in the momentum (just like what is seen in last two weeks), the bullish journey would continue till the end of the year.

There is no way to determine whether a market is oversold or overbought. But we can know what to do whatever happens, which is adding to our winners when things continue moving in our favor and scaling out gradually when things turn negative.

Nevertheless, Penna Consulting shares would continue holding out on their bullishness, enabling the price to reach the supply levels at 300.00 and 350.00.  

This forecast is ended by the quote below:

“Everything has got to be simple, no matter what. The more complicated the tools, the worse the trades usually are.” – Dennis Gartman

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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





Sunday, September 20, 2015

Daily analysis of major pairs for September 21, 2015

The USD/JPY moved sideways throughout the last week, without any significant movement to the upside or to the downside. There would be a serious breakout any day this week, which would most probably favor the bears. There is a demand level at 119.00 and there is a support level at 121.50.

EUR/USD:  This pair is still bullish on outlook, though threatened. The price managed to test the resistance line at 1.1450, before being corrected to the downside. The downside movement has not been strong enough to render the current bullish outlook invalid, unless the support line at 1.1200 is breached to the downside.



USD/CHF: The USD/CHF remains a bear market, though there is a challenge to the bearishness in the market. As long as the resistance level at 0.9800 is not broken to the upside, the bearishness would be a rational thing. The market is expected to continue moving downwards this week; coupled with the fact that the resistance level at 0.9800 is a formidable challenge to the bulls.  

GBP/USD:  This pair went upwards by 300 pips last week, rising from the accumulation territory at 1.5350, and reaching the distribution territory at 1.5650. From that distribution territory, the price has eased by 110 pips. There would be strong volatility in the market this week, for the price would perform a series of upswings and downswings.

USD/JPY:  This pair moved slightly south on Thursday, but it cannot be said that the current equilibrium phase is over, for this might be a false breakout. Only a movement below the demand level at 119.00 would show that the trend has really become bearish. There is a supply level at 122.00.

EUR/JPY: This cross is highly volatile with serious struggles between the bulls and the bears. The determinant of this week’s movement on the cross is the situation on the EUR and the JPY – a stronger JPY would cause the cross to tumble and a stronger EUR could cause it to skyrocket. The outlook on JPY pairs remains bearish, and therefore, the cross has a high probability of trending downwards. 

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 




Saturday, September 19, 2015

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

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish  
Though this pair was trendless in the first few days of last week, it was characterized by high volatility on Thursday and Friday. Price moved upwards On Thursday and got corrected downwards on Friday. However, the outlook on the pair is bullish: we may witness further bullish journey this week (which may also happen on most other EUR pairs). Price could reach the resistance lines at 1.1450 and 1.1550 this week.

USDCHF
Dominant bias: Bearish
USDCHF also consolidated in the first few days of last week, broke down on Thursday and bounced upwards on Friday. The overall bias remains bearish, nonetheless. As long as EURUSD is strong and CHF refuses to yield to gravity in a significant mode, it would be difficult for USDCHF to experience any meaningful rally. The resistance level at 0.9800 is a strong barrier to the bulls.

GBPUSD
Dominant bias: Bullish    
From the accumulation territory at 1.5350, this currency trading instrument moved upwards by 300 pips, testing the distribution at 1.5650. From that distribution territory, the trading instrument has been corrected lower by 110 pips. Price could find it difficult going further upwards this week, but the uptrend would be valid as long as the accumulation territory at 1.5350 is not broken to the downside.

USDJPY
Dominant bias: Neutral    
There is no yet a clear direction on USDJPY, for price did not make any large directional movement last week. There can be a serious breakout this week; which would most probably favor the bears, owing to a measure of weakness in USD and a bearish expectation on certain JPY pairs. There are demand levels at 119.00 and 118.50. There are also supply levels at 121.50 and 122.00.
                                                                                                                               
EURJPY
Dominant bias: Bullish
In spite of the bearish correction that occurred on Friday, there is still a Bullish Confirmation Pattern in the market, which would not be violated until price crosses the demand zone at 134.50 to the downside. For the EURJPY to trend upward this week there must be an exceptional stamina in EUR as well as a measure of weakness in JPY – otherwise a serious bearish movement could start before the end of the week.  

This forecast is concluded with the quote below:

“Yes, my profits and losses are ultimately nothing more than a “productivity report.”  – Dan Gamza
                                                                                                  

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




Thursday, September 17, 2015

Online Trading Is No Sin

“I’ve not failed. I’ve just found 10,000 ways that won’t work.” – Thomas Edison 

“…If trading is only about money, you have very little chance of success.” – Dr. Van. K. Tharp

In recent times, some people have questioned the morality of online trading. Obviously, the question comes from lack of real understanding of trading.

Trading had long been done before the advent of the Internet: the Internet technology simply made it easier and easily accessible. In other areas of life and business, most things that were done before the advent of the Internet have now gone online. Think about hotel reservations and university applications for examples.

There are different types of markets, and Forex is just one of them. For examples, one can speculate on the prices of agricultural products online, and the risky nature of doing that doesn’t make it immoral.

It’s clear that trading online isn’t a sin – just as reading religious literature online and joining a service online isn’t a sin. We can now listen to sermons online, which wasn’t possible 50 year ago. Does that make it a sin?

With fast advances in science and technology, the ways we do business will forever keep on changing and evolving. A few or several decades ago, trading was done mainly in the pit, but things have changed now. Thanks to the Internet. 

James Altucher says that when he was 13 years old, the job he’s doing now didn’t exist. His daughter might end up doing a job that didn’t exist when she also was 13 years old. Those who don’t adapt to the changing technological ways of life will pay a heavy price for their myopic views.

At the beginning of his book, “Tough Times Never Last but Tough People Do,” Robert H. Schuller (RIP) mentions what happened to his dad as a farmer. All his labor, crops, property and so on, were all destroyed by a violent storm. All his hard labor was in vain. Does that make it immoral to be a farmer?

Apart from the fact that there are certain factors beyond the control of the farmer (like weather conditions, poor harvest and economic forces); the farmer can sell at loss or at profit. That doesn’t make it a sin to be a farmer. In fact, farming is a noble profession. Trading is a noble profession too.

Robert’s dad continued working as a farmer. Though he seemed totally hopeless and helpless, but there was inner hope in him. What later happened to him? He was already a successful trader when he died.

One popular celebrity said she doesn’t believe in marriage. She was married about 32 years ago, and the marriage crashed in less than 2 years. Since then, she’s been preaching against marriage. Certain male and female celebrities also don’t believe in marriage. Does that make it wrong to get married? I know many people whose marriages are super successful. Marriage isn’t compulsory; neither is it evil.

A trading legend makes money trading stock and loses money trading futures, options and Forex, and he concludes that one can’t make money from Forex. Another legend that makes money from stocks, options and Forex says they’re excellent markets. What can you conclude from that? It means that the fact that one person is losing in a market doesn’t mean that others can’t make money from the same market. 

The world-famous Dr. Van K. Tharp has been using what he calls “oneness formula” to transform lives of traders. He mentions something like an inner guide who leads and guides traders to become successful not only in trading, but in other areas of life.  According to him, if you are not organized or tend to procrastinate or run away and hide each time you encounter some major psychological issue that impacts your life, then you don’t have a chance at becoming a successful trader.

This is what one of the beneficiaries of Van Tharp’s works has to say:
“There was a time I identified a negative association about God and trading, and sometimes I felt uncomfortable with the idea of trading. But then, I learned how it was just a belief. Just that. And I can always change any belief I want, and when I see things in a different way, there is no conflict between God and trading.” - J. Ernesto D. M. (Source: Vantharp.com).

Anne-Marie Baiynd is a successful trader as well as religious. This is what she’s to say:
“I strive for God to be in charge of my life. I live as a speck of dust, flawed, sinful and self-serving by nature. My existence is defined by emptiness without the existence of the All Mighty God. I am accepted and loved, nonetheless, and that creates within me, a great joy and contentment knowing that all my triumphs and successes come from God.”

Sir John Templeton, a market wizard, also said: “We are trying to persuade people that no human has yet grasped 1% of what can be known about spiritual realities. So we are encouraging people to start using the same methods of science that have been so productive in other areas, in order to discover spiritual realities.” (Interview with Financial Intelligence Report).

Bruce Bower, a hedge funds manager, is a Christian who goes to Church regularly. Joes Ross, one of the most experienced and the most eclectic traders in the word, is a good Christian. There are good Muslims who’re also traders. There are good Hindus, Buddhists, etc. who’re good traders as well. There are proficient traders all over the world who belong to major or minor religions. This is a level playing field.

Failure Is a Good Thing
Please see the quotes from Thomas Edison and from Dr. Van K. Tharp above. Failure is embedded in success. It’s part of success. It gives you opportunity to do your trading intelligently. Failure helps you to see how not to trade. When you do trading and fail, you learn how not to trade, and you use another method. Even if the new method fails, you try another method… Until you come across a trading approach that works for you. 

Those hugely successful people that you now envy took risks. They could’ve failed just like many others, but they were fortunate. If they failed, they’d try again and again. Mark Zuckerberg, who thinks of himself as an atheist, says the biggest risk is not taking any risk... In a world that’s changing really quickly, the only strategy that is guaranteed to fail is not taking risks.  

The fact that you fail or the majority fail in something doesn’t make it sinful. Good trading is a serious business, not gamble. However, it’s not without risk, just like any other things in life.  

Trading is definitely no sin. Good trading principles aren’t against any other religions.

This piece is ended with the quotes below:

“I pray to Jesus Christ every day, but that is not a means to handle trading. I ask Him to guide my decisions, and that I would do my investing to glorify Him. Because I use my rules, there is little, if any, stress over trading. My processes are designed to take my emotion out of my infrequent buying and selling.”  – David J. Merkel

“I love the markets: They are alive, they move, they have spiritual energy. They are an expression of the universe and of course they are my mirror, just as they are your mirror. They are the medium through which I choose to express myself and grow.  I am grateful for this and the technology that allows me to participate and trust that the markets will always be there, no matter what change is upon us in the coming years.” - Mercedes Oestermann van Essen (Source: Thebuddhisttrader.com)



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

Wednesday, September 16, 2015

Imagination Technologies Group: Stock Keeps Trudging Upwards

Imagination Technologies Group stock (LSE:IMG) should keep on trudging upwards, despite all odds. This is a choppy market, in which the bulls have been making somewhat successful attempts to push the price upwards.

The price broke upwards in the early part of September 2015 – above the upper Trendline. The price went back into the Trendlines and has now gone above it. The price is yet to close above it and when it does, that would mean that the bullish effort would simply be renewed. By then, the RSI period 14, which currently reflects the price action in the chart, would have gone above the level 50, in a vivid manner.

Imaginations Technologies stock is thus expected to continue its bullish movement The distribution territories at 270.00 and 280.00 can be attained in the months to come.

This forecast is ended by the quote below:

“You have no control whatsoever over price movement, but you have complete control over how you respond to it. How you respond to it, however, must be based on the decisions you've made, not on how you "feel". These decisions begin with preparation…” – DbPhoenix (Source: Trade2win.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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





Massive Plunge on Glencore International to Continue

Glencore International shares (LSE:GLEN) have been plunging and they would continue to plunge. This is a strong bear market and it is expected to continue. The only sensible thing to do here is to go short, for expert traders follow the line of the least resistance, cutting small losses along the way (which they tend to forget easily). They just keep doing what they need to do and let profits come naturally.

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 part of the chart. It can be seen that all the EMAs are sloping downwards, showing a strong downtrend. New sellers may want to sell a retest of the EMA 20 or 50, especially when a new bearish candle forms following that.

Glencore Internation would continue plunging and the price might reach the demand zones at 120.00 and 110.00 eventually. It is never recommended to go long in this market unless the price crosses the EMA 200 to the upside and closes above it.

Some people who go long in this market right now may think they are doing the correct thing. When trading, incorrect approaches might make you appear like a super trader sometimes, and you would feel you are right. This is true: you can toss a coin many times, and have heads up, in case that is what you predict. However, you cannot win always by going against the trend and you may end up losing your portfolio.

This forecast is ended by the quote below:

“Do not over trade by being tempted to take trades that cannot be considered perfect setups.” – Paul Nojin

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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






Sunday, September 13, 2015

Daily analysis of major pairs for September 14, 2015

The EUR/JPY cross, which is now one of the strongest trending among the majors, moved upwards by 400 pips last week. The price is now close to the supply zone at 137.00, and it is possible that the supply zone would be breached easily when the market opens. The next targets for this week are located at the supply zones of 138.00 and 138.50.  

EUR/USD:  As it was anticipated, this pair broke upwards after a few days of consolidation. The price is now close to the resistance line at 1.1350 – which would be easily overcome in the face of the current buying pressure in the market. Other EUR pairs could also gain some strength this week.


USD/CHF: This currency trading instrument, though choppy, consolidated largely last week. The price tested the resistance level at 0.9800 several times but it could not break it to the upside. The price is currently threatening to break downwards, but this would not really happen until the price goes below the support level at 0.9600. A strong EUR/USD, coupled with a strong CHF, could scuttle all the effort of the bulls on the USD/CHF. 

GBP/USD:  The Cable made some commendable effort to go upwards last week. The price moved upwards 250 pips, closing at 1.5427. With further bullish attempts, the distribution territories at 1.5500 and 1.5550 would be attained this week. After all, there is a Bullish Confirmation Pattern in the market.

USD/JPY:  This pair moved largely sideways last week, though there was a slight movement to the upside before things went flat. There is supposed to be a breakout in any day this week, which would make the price go above the supply level at 122.00 or below the demand level at 120.00. By then, there would have been a directional movement in the market.

EUR/JPY: The EUR/JPY cross, which is now one of the strongest trending among the majors, moved upwards by 400 pips last week. The price is now close to the supply zone at 137.00, and it is possible that the supply zone would be breached easily when the market opens. The next targets for this week are located at the supply zones of 138.00 and 138.50. 

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 


Saturday, September 12, 2015

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

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish  
As it was mentioned in the last forecast, bulls made effort to push EURUSD upwards, and they were successful in doing that. Before this, the market consolidated for the first few days of the last week and then broke upwards, giving the resistance line at 1.1350 a close marking. In case the resistance line is broken to the upside, the next targets for bulls are located at the resistance lines at 1.1450 and 1.1500.

USDCHF
Dominant bias: Bullish
This currency trading instrument moved largely sideways last week, not going above the resistance level at 0.9800 or going below the support level at 0.9650. Bulls made futile attempts to go above the resistance level at 0.9800, and also, bears were unable to dominate the market. Looking more closely at the current price action, it can be seen that the market has started threatening to break down. Nonetheless, the impending breakdown would not be taken serious unless the support level at 0.9600 is breached to the downside. Two factors will determine the direction on this currency trading instrument this week: What happens to EURUSD (which will most probably move further north) and/or the situation around CHF (which could make it strong this month).

GBPUSD
Dominant bias: Bullish    
GBPUSD made sincere effort to go upwards last week – with a measure of success. It is possible that the pair would continue moving upwards this week, owing to the presence of a Bullish Confirmation Pattern in the market. The distribution territory at 1.5450 has already been tested and it could be broken to the upside. GBPUSD could move further north by at least, 200 pips this week.

USDJPY
Dominant bias: Neutral    
Apart from a slight upward movement, there was no clear direction on USDJPY last week. Price closed at 120.57 on Friday, in a consolidating mode; and there can be a breakout in any day of this week. Price would either break above the supply level at 121.50 or break below the demand level at 119.50. That is when there will be a directional movement.  
                                                                                                                               
EURJPY
Dominant bias: Bullish
This EURJPY cross is now one of the most predictable instruments among the majors which moved in a directional mode last week. The EURJPY cross moved north by 400 pips, now close to the supply zone at 137.00. Given the ongoing weakness in Yen and strength in EUR, there is a high possibility that the uptrend would continue, enabling the supply zone at 139.00 to be attained before the end of this week.     

This forecast is concluded with the quote below:

“I have everything that I need to live well, that is true, but I enjoy the mental stimulation and the challenge [trading offers]. I can see myself still trading when I turn 100.” – Paul Nojin
                                                                                                  


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



Trading Signals for CAD Pairs (September 14 – October 20, 2015)

AUDCAD = Buy

USDCAD = Buy

EURCAD = Buy

CADJPY = Sell

CADCHF = Sell

GBPCAD = Buy

NZDCAD = Buy


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 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



Thursday, September 10, 2015

Ken Heebner: Worth Hearing

INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 13

"Losing money is the least of my troubles. A loss never bothers me after I take it. I forget it overnight." - Jesse Livermore

Name: Kenneth Heebner
Nationality: American
Education: MBA, Harvard University
Occupation: Funds manager

Career:
Ken runs Capital Growth Management (CGM), Boston, Massachusetts, which was started in 1990, and part of his funds were performing very well in the year 2005; until recent huge drawdowns, which should’ve be controlled more effectively.

Between the year 2000 and the year 2010, the fund enjoyed a cumulative growth of 290.2%, when compared to the S&P 500's 16.4%. He’s really a good speculator who respects his own hunches and stays away from what he doesn’t understand.

Insights:
  1. Ken was once ranked No. 1 stock picker in USA, but recently his predictions were less accurate and his funds also suffered. Nevertheless, he doesn’t lose his love for the markets. Good traders remain passionate about trading in good and bad times.

  1. There’s one thing that’s unsavory about Ken, especially when compared to Michael Platt. Ken isn’t that good at risk management because the losses he suffers when he’s wrong are always substantial. For example, CGM Focus lost 48 percent in 2008 as the global recession hurt commodity prices and a move into beaten-down financial stocks proved premature. You can agree that someone who losses less than 5% in bad trades is better than someone who loses 35% in bad trades. Why would Ken’s fund plunge from $10.3 billion to $1.9 billion? It’s because he wasn’t trading defensively. It’s better to trade not to lose money, instead of trading to make money. That’s a defensive form of trading. Ken himself acknowledged that he’d have done better if he’d been more defensive. However, he always bounces back with time, which is the most important aspect of all – the ability to survive losing streaks and recover losses.

  1. Based on his quote at the end of this piece, he doesn’t go with the crowd (for they tend to be wrong always). He’s like a countertrend trader.

  1. Trading, for serious traders, should be a passion of a lifetime. At a relatively old age (71), Ken’s still passionate about trading. Unlike John Arnold, who retired from active trading at the age of 38, Ken doesn’t show any intention to retire. That’s the kind of freedom trading offers: you choose when to retire. 

  1. When you’re really good, you’ll be a role model to some great traders. One great trader has other role models who’re great traders as well; and the other way round.

Conclusion: James Altucher says something which is true of trading. He says, with art, you have to deal with perfection. Nobody is perfect. For everyone who loves singing, there is always someone who sings better. For everyone who draws, there is always someone who draws better. You can't make art if you are trying to be perfect." This is also true of trading.

This piece is ended with a quote from Ken:

"I am completely outside the mainstream. I see the mainstream in the distance."



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

Tuesday, September 8, 2015

Amlin Is No Longer a Sexy Market

Amlin shares (LSE:AML) are not attractive right now, because they have been in a general equilibrium phase for a long period of time. The price simply oscillates between the resistance level at 550.00 and the support level at 450.00, without any protractedly directional movement.

The price moves briefly above and below the EMA 21, trapping both the bear and the bulls. Then the Williams % Range period 20 saunters to and fro within overbought and oversold areas, while there are no significant movement in the price, These are attributes peculiar to a ranging market.

Since the market is currently ranging, it is only sexy to day traders. Investors and position traders may stay away until things look sexy again (trending), for that is the kind of the market in which they can gain anything meaningful. One thing is sure: we would soon see a crazy move of about 5000 points upwards or 5000 points downwards just in a week. That will occur sometimes before the end of this year.

IMPORTANT NOTE: This article was written last week and due to my tight schedule, I was unable to post it till today. I can see that the price on Amlin has GAPPED crazily upwards. This is a movement that was predicated! A recent chart has been included with the analysis. The gap may be filled, causing a serious bearish correction; or it may not be filled, causing the current crazy bull market to evolve further.

The markets sometimes move predictably and sometimes, they move unpredictably. They are predictable enough to allow some traders make average profits that are bigger than average losses. They are also not predictable in certain cases, to the extent that this makes trading one of the most daunting tasks in the world. Coming to grips with the predictability as intertwined with the unpredictability is what can catapult us ahead of many others.

This forecast is ended by the quote below:

“People when influenced by crowds often do things for which they have no rational explanation. The same is true in trading. As the Japanese are fond of saying: To take no action is an action. Unfortunately, traders believe somewhat falsely they must always being doing something, even if it is the wrong thing.” – Chris Tate


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


Will There Be a Windfall on Empyrean Energy?

Empyrean Energy stock (LSE:EME) may experience a serious rally anytime, which could result in loads of windfalls for bulls. Although the price consolidated to the downside in recent months, there has been an upward bounce, which occurred towards the end of August 2015. The upwards bounce remains in place till now.

In the chart, the ADX period 14 is not too far from level 30, but the DM+ is clearly above the DM-. This shows that while the momentum in the market is not great, the bulls still have upper hands. The MACD, default parameters, has its histogram above the zero line; while its signal lines are also moving up (making attempt to cross the zero line to the upside).

Indeed, when there is another breakout, it could be to the upside, which could lead to a clean Bullish Confirmation Pattern in the market.  A breakout might have even been in place already; and therefore, a serious northward movement may soon be experienced, which could be a boon to the buyers.

Empyrean Energy can go further upwards, and it would be logical to watch the market closely for any developments, rather than focusing on the fundamentals while ignoring the real movement of the price. We may make use of fundamental and technical signals. While news reports move the markets in most cases, we need to pay more attention to the price itself. That means we open positions only based on what the price is doing. Your loss or profit comes from what the price is doing, not what the news says. When bad news pushes the price higher, then we go long. When good news is pushing the price lower, we go short. This kind of approach takes advantage of the subtlety of the market movement.


This forecast is ended by the quote below:

"Just follow the rules" is not enough if one has not internalized the rules and cannot apply them without hesitation and without thought. Trading with "discipline" if one is trading a plan he doesn't trust is not productive. ” – DbPhoenix (Source: Trade2win.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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





Sunday, September 6, 2015

Daily analysis of major pairs for September 7, 2015

The Cable plunged by 260 pips last week, closing below the distribution territory at 1.5200. The accumulation territory at 1.5100 could be tested this week, unless the bulls push the price upwards above the distribution territories at 1.5300. This means that we would see some bullish effort this week.

EUR/USD:  For the most of the last week, this market consolidated to the downside. There could be a breakout this week (most probably in favor of the bulls). Thus, the resistance lines at 1.1300 and 1.1400 could be reached. On the other hand, there are support lines at 1.1050 and 1.1000.

USD/CHF: This currency trading instrument went upwards by 150 pips last week, going into the resistance level at 0.9750. This resistance level has become a big barrier that must be overcome for the bullish journey to continue, though slowly and steadily. There are some hindrances to the bullish expectation: a measure of stamina in the EUR/USD could cause the USD/CHF to get corrected lower, plus any measure of stamina in the CHF could half further rally on the USDCHF.


GBP/USD:  The Cable plunged by 260 pips last week, closing below the distribution territory at 1.5200. The accumulation territory at 1.5100 could be tested this week, unless the bulls push the price upwards above the distribution territories at 1.5300. This means that we would see some bullish effort this week.

USD/JPY:  This currency trading instrument traded south last week, giving way to a more vivid Bearish Confirmation Pattern in the market. There is a possibility that the demand levels at 118.00 and 117.50 could be tested this week; though a serious weakness in the Yen could cause the USD to be strengthened against the Yen. 

EUR/JPY:  The EUR/JPY cross dived by 350 pips, causing a directionally bearish bias on the market. There could be some attempts to test the demand zones at 132.00 and 131.50 – albeit there could also be a bullish breakout any day. This is the outlook for the week. 

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 




Saturday, September 5, 2015

Weekly Trading Forecasts on Major Pairs (September 7 - 11, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
Though EURUSD consolidated in the most part of last week, the bias on the market is bearish, for bullish pressure has seriously lost steam. The pair has consolidated to the downside and it might reach the support lines at 1.1100 and 1.1050. Nonetheless, bulls will make desperate effort to push the pair higher this week, and there is a high probability that their effort may yield some result. Any movement above the resistance line at 1.1350 would indicate that bulls have achieved their aim. Should EUR gain lots of stamina this week, the effect would be noticed on other EUR pairs.

USDCHF
Dominant bias: Bullish
USDCHF went up by 150 pips last week, running into a barrier at a resistance level of 0.9750. Bulls made several abortive attempts to break that barrier before the market closed on Friday. For the bullish bias to continue making sense, the barrier at 0.9750 must be overcome. That mean price would need to target the resistance levels at 0.9800 and 0.9850. On this pair, there could be two possible obstacles to bulls’ interests: (1) Any rally on EURUSD could send USDCHF south. (2) In case CHF gains enough strength (which is possible this month), USDCHF would experience some difficulties going forward.

GBPUSD
Dominant bias: Bearish    
Since August 25, this market has dropped by 630 pips, following a test of the distribution territory at 1.5800. Price is now close to the accumulation territory at 1.5150; plus it could even reach other accumulation territories at 1.5100 and 1.5050. However, the market looks overbought, and while the aforementioned accumulation territories could be reached, a serious rally would not be a surprise (if it happens) this week. It should be noted that movements on GBPUSD (and other GBP pairs) would be significant this month, whether they go up or down.

USDJPY
Dominant bias: Bearish   
USDJPY went down by over 230 pips last week, closing at 118.97 on Friday. There is a Bearish Confirmation Pattern in the market – the bearish trend ought to continue. This week, price could attain the demand levels at 118.50 and 118.00, providing that JPY is able to maintain its current strength versus USD; otherwise there could be a bullish breakout.  
                                                                                                                               
EURJPY
Dominant bias: Bearish  
There was a strong bearish movement on this cross last week. From the supply zone at 136.00, price went down to reach the demand zone at 132.50. This is a movement of 350 pips. The bearish movement looks overextended, though there could be more bearish movement this week. On the other hand, there is also a possibility of a strong breakout to the upside before the end of the week.    

This forecast is concluded with the quote below:

“When you make an unshakable commitment to a way of life, you put yourself way ahead of most others in the race for success. Why? Because most people have a natural tendency to overestimate what they can achieve in the short run and underestimate what they can accomplish over the long haul. They think they have made a commitment, but when they run into difficulty, they lose steam or quit. Most people get interested in trading but few make a real commitment. The difference between interest and commitment is the will not to give up. When you truly commit to something, you have no alternative but success. Getting interested will get you started, but commitment gets you to the finish line.” - Mark Minervini, a trading legend (Source: Tradersonline-mag.com)

                                                                                                  

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


Thursday, September 3, 2015

HYIPs – Solutions for Traders?

“Illusions are something pleasant. The disadvantage is that they tend to burst like a burble.” – Wolfgang Kurz

“It is true that the market is brutal to most of the people who challenge it. But so is Mount Everest, and that should not – and does not – stop people from trying to reach the top. What is expected of a mountain or a market is only that it has no favorites – that it treats all challengers as equals.” - Mark Minervini

Investopedia describes a high-yield investment program (HYIP) as a fraudulent investment scheme that purports to deliver extraordinarily high returns on investment. High-yield investment schemes often advertise yields of more than 100% per year in order to lure in victims. In reality, these high-yield investment programs are Ponzi schemes, and the organizers aim to steal the money invested.

Wonder Banks
Another name for a HYIP is “a wonder bank.’ Isn’t it a wonder that one will double one’s money in a month or a quarter or a year without lifting one’s fingers, as compared to very low returns of legitimate banks? In my country, some wonder banks existed within the years 2006 – 2008. They promised high returns every month or quarter or 6 months. Some investors gave money to them, and while certain people got their money back, most people were unable to get their money back. The wonder banks failed and such entities were subsequently banned. It’s one of the reasons why most people hate online trading.

That’s why one sage says that extraordinary claims require extraordinary proof, because if something sounds too good to be true, it probably isn’t.

There are ‘wonder banks’ all over the world and most of them are scammers running Ponzi schemes. Recently, one wonder bank got access to the subscribers’ base of a legitimate financial organization. The wonder bank promised returns of 500% within 5 hours if an individual advert recipient deposited any amount between $1000 and $1,000,000 with them. Did you need to be advised before you knew the wonder bank was made of scammers? If their claims were genuine, then there wouldn’t be poor people on earth again. If their claims were genuine, they wouldn’t need to solicit the members of the public for such kind of investment program.  

Shady persons promised such returns because it fit the mindset of most people. 1% returns per month doesn’t fit the mindset of most people, and thus, they find it difficult to accept.  On the other hand, sane people will agree that 1% returns per month are good and one can be rich with that ultimately.

10% per cent per months without a single losing month is impossible. 1.27% profit per day is impossible. No company would promise that and still be in business for a long time. I’m not saying that 10% per month or 1.27% is impossible in the short-term (though that’s based on pure luck and successful trading needs far more than luck), but I’m saying that there’s no firm that can last long aiming for that.

How long will it take a unit of real estate to appreciate by 100%? What about fixed deposits and bonds? Could you force 5% appreciation on each of them on monthly basis? Yet, most traders can’t even accept 5% profits per month.

One respected friend once asked me how much I make per month. I mentioned that I target only 1% per month, no matter my account size, and in some cases I make more than that in several months per year. He was disappointed, for he was expecting me to mention that I make between 20% - 50 per month. Please see the quote above: Illusions are something really pleasant.

One wise funds manager recently told me that it’s difficult to manage money for greedy people. Some of his investors complained that he didn’t make enough profits: not that he didn’t make profits, but that he didn’t make enough profits. They weren’t even thankful for the existence of their capital. It’s clear that these investors would be risking too high if they were to trade themselves and they’d end up blowing the accounts. People don’t appreciate the existence of what they’ve until they lose it.

Someone nicknamed ‘Handle123’ on Elitetrader.com says that [the trader] is like the tortoise and the rabbit, no wonder the tortoise lives to be over hundred years old, he learned to go slow and don't take dumb chances of moving a foot before knowing if it can be life threatening risk. And rabbits have little defense other than speed, but many more rabbits in the stew pot than tortoises (square brackets mine).

Please think about the preceding paragraph. Do you want to be like a tortoise or like a rabbit?

Anyone who believes in excessively high returns over short periods of time isn’t psychologically prepared to make money. They can’t even settle for 2% growth per month. They’d rather go for at least, 100% per month (unrealistic expectations). In fact, such a person would end up being a loser in life.

I end this piece with the quote below:

“The best investment you can make is in your own education. Unless you are educated in how the markets work, how to invest in or trade shares, the psychology behind trading and investing, and which derivatives can give you the best returns, you have little hope of being profitable as a trader.” – Louise Bedford




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