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Monday, November 30, 2015

Monthly Technical Reviews on Gold and Silver (December 2015)

GOLD (XAUUSD)
Dominant Bias: Bearish
The Thanksgiving effect did not take place last week, as Gold generally moved sideways, without any significant drop. This effect has not taken place for 3 years in a row, though that does not mean it would not take place in November 2016. The dominant bias on the market is bearish, and price might journey further south, reaching the demand levels at 1040.00, 1030.00 and 1020.00. The bearish bias would continue to be valid as long as the supply levels at 1095.00 and 1110.00 are not breached to the upside. One thing must be noted, a significant rally is not ruled out in the month of December 2015.  

SILVER (XAGUSD)
Dominant Bias: Bearish   
Normally, when the Thanksgiving rally did not take place on Gold, it would not take place on Silver either. Silver has been trading in a range since the last two weeks – all in the context of a strong downtrend. Further downwards movement is possible, enabling price to test the support levels at 13.5000, 13.2000 and 12.9000. Possibilities of rallies should not be downplayed, because bulls would also make determined effort to push the price upwards this month, but they would not succeed in bringing about a bullish trend on Silver unless the resistance levels at 14.9000 and 150.0000 are overcome. 


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

Sunday, November 29, 2015

Daily analysis of major pairs for November 30, 2015

The EUR/JPY has shown determination to keep on moving downwards. The bias is bearish and this would continue as long as the EUR is weak. The price looks ready to break the demand zone at 130.00 to the downside. Only a very strong weakness in the JPY could reverse the trend.

EUR/USD: The EUR/USD merely consolidated to the downside – in the context of a downtrend. The support line at 1.0550 would soon be tested and it could even be breached to the downside. The support line at 1.0500 is thus the potential target for the week.


USD/CHF: Since going above the big support level at 1.0000, this pair has moved upwards by 300 pips, testing the resistance level at 1.0300. The Bullish Confirmation Pattern in the market is very strong, and further bullish movement is anticipated, especially in the face of the bright outlook on the US Dollar (as well as the CAD).

GBP/USD:  The Cable moved downwards by 140 pips last week, closing below the distribution territory at 1.5050. Yes, it is highly possible that the current bearish bias would be sustained, because the outlook on GBPUSD (including GB pairs) is gloomy for the month of December 2015. It is likely that the price would drop further by 150 pips minimum.

USD/JPY: The bias on this currency trading instrument has become neutral in the near-term, owing to the fact that the price merely traded sideways last week. A breakout to the upside or to the downside is definitely expected this week, which would either take the price below the demand level at 122.00 or above the supply level at 123.50. A break above the supply level at 123.50 is more likely because the outlook on the USD is bright.

EUR/JPY:  The EUR/JPY has shown determination to keep on moving downwards. The bias is bearish and this would continue as long as the EUR is weak. The price looks ready to break the demand zone at 130.00 to the downside. Only a very strong weakness in the JPY could reverse the trend.

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, November 28, 2015

Weekly Trading Forecasts on Major Pairs (November 30 – December 4, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish  
EURUSD only consolidated to the downside last week, in the context of a downtrend. There are resistance lines at 1.0750 and 1.0800, which could check rally attempts. There are also support lines at 1.0500 and 1.0450, which are the targets for bears, since further bearish movement is possible. Any rally attempts that happen in the market should be taken as false breakouts. It is expected that the Euro would be weak in December, and so EUR pairs would be bearish in most cases.  

USDCHF
Dominant bias: Bullish
This pair managed to go upwards by an addition of 100 pips last week – in solidarity with the extant bullish bias. Since the great psychological level at 1.0000 has been breached to the upside, price has moved northward by 300 pips, testing the resistance level at 1.0300. This bullish journey has a high probability of continuing this week, for the outlook on USD is bright for the month of December (and so is the outlook on CAD).        

GBPUSD
Dominant bias: Bearish   
GBPUSD moved further south last week, closing below the distribution territory at 1.5050. Yes, continuous southwards movement is expected for most past the month of December, even beyond the month. On GBPUSD, any rallies that are seen this month should be taken as short-selling opportunities, because the accumulation territories at 1.4900, 1.4800 and 1.4700 would be slashed in December. In fact, GBP would be seen falling sharply against other major currencies, and so, positions that favor GBP are not recommended.

USDJPY
Dominant bias: Neutral    
Since this currency trading instrument only moved sideways throughout last week, the outlook has become neutral in the near-term. A breakout is expected this week, which would either take price below the demand levels at 122.00 and 121.50; or take it above the supply levels at 123.50 and 124.00. For this movement to qualify as a serious breakout, price must close below the demand level at 121.50 or above the supply level at 124.00. Nonetheless, a breakout to the upside is much more likely, owing to the bright outlook on the US dollar.      
                                                                                                                               
EURJPY
Dominant bias: Bearish
It has already been said that this cross would find it difficult to rally significantly as long as EUR is weak, unless JPY itself experiences an extraordinary loss in stamina. The EURJPY cross has demonstrated its willingness to continue moving south: There is still a Bearish Confirmation Pattern in the market. On JPY pairs, we would witness pleasant volatility and predictable movements in the month of December.   


This forecast is concluded with the quote below:

“Volatility and lucrative market movement should continue for many years to come, providing nearly endless opportunities for the well-prepared trader.” – Scott Andrews


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




Thursday, November 26, 2015

An Old Veteran Trader Tells His Intriguing Story

Joe Ross is a trading legend, having made a living from the markets for – hold onto your hats – 58 years. He has been trading and investing since his first trade at the age of 14. Currently, he is a well-known and respected master trader and investor. He has survived all the ups and downs of the markets because of his adaptable trading style, using a low-risk approach that produces consistent profits. Joe is the creator of the famous Ross Hook setup, and has set new standards for low-risk trading. He has written twelve major books and countless articles and essays about trading. All his books have become classics, and have been translated into many different languages. In addition, he runs the website www.tradingeducators.com, teaching his trading methods and providing resources for traders. Today, we have the great opportunity of speaking with Joe Ross about his approach to the markets, insights he has gained from trading, and his vast experience from trading for more years than almost anybody else on the planet.

TRADERS´: Joe, we can only guess at the wealth of experience you gained throughout the years. But first of all, let us begin with how it all started. When did you first hear about the markets and trading, and how did you get – in a positive sense – “addicted” to it?

Ross: When I was 14 years old, it was common for mothers to stay at home and fathers to go off to work at a job or business. However, my best friend’s father was usually at home during the working day. I assumed he had some sort of medical problem – that he was a person unable to work. My friend and his family lived quite well in an upper class neighbourhood, and they owned a new car.

I remember asking, “Is your father disabled? Why is he always home?”

The answer was, “No. He is fine. He does his work in that room, the one with the glass doors.”

“Well, what does he do in there?”

“I do not know. Why do you not ask him?”

 So I tapped on the glass door, and asked “What is it that you do in here?”

The answer was, “Well, if you really want to know, come in and I will show you.”

My friend’s father walked over to a closet to pull out a roll of paper, which he then unrolled onto a drafting table.

He said, “I work with this chart, and others just like it.”

All I could see were a lot of things that looked like sticks, and so I asked, “Your job is drawing sticks?”

“No, those represent stocks, not sticks.”

“What is a stock? Does a stock look like a stick?”

He began to describe what stocks were, and to tell me that the sticks represented the prices of a company’s shares of stock. I was fascinated that he could make money from what turned out to be a simple bar chart.

At that time, both of my parents worked. My parents had to suffer through the daily rush-hour traffic, which was quite heavy. However, my friend’s father was leading a much more leisurely life, and I decided right then that I would learn how to trade stocks…

To read the complete interview, please visit:


Courtesy: TRADERS’ magazine, October/November 2015, pages 104 – 105 


PS: www.tallinex.com wants you to make money from the markets.

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


Tuesday, November 24, 2015

Victoria Oil and Gas Crashes!

Victoria Oil and Gas stock (LSE:VOG) has dropped steeply as a result of a strong selling pressure in the market. This is a development that is supposed to continue for the rest of this year. The southward movement started around the end of October 2015; becoming significant recently.

4 EMAs are used for the market 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. All EMAs are now sloping downwards, following a clean “Death Cross” in the market. The momentum is now big as the price goes further south – just below the EMA 10.

Sometimes open positions tend to go into negativity… It is one of those things that cannot be avoided.  Even any tests of the EMAs 10 or 20 along the way would proffer a good opportunity to sell short further. It is thus highly probably that the price of Victoria Oil and Gas would easily breach the demand levels at 40.00, 39.00 and 38.00.

This forecast is ended by the quote below:

“I invested in my first stock, which I held until I was 20 years old. Within a few days it turned into a loser, but I held that loser until the company went out of business. I am
thankful for that lesson: Do not hang onto losers!” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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




Trading Recommendation on NASDAQ 100 (November 25 – December 15, 2015)

The outlook on NASDAQ 100 market (NASDAQI:NDX) is currently bright since it is assumed that the price would be able to sustain its current bullishness – as shown by the price action in the chart.

NASDAQ 100 started moving north in October 2015, and it has been able to sustain that movement so far. The price went briefly into the Trendlines, later moving above the upper Trendline. There is currently a perceived bullishness in the market – which exists in conjunction with the recent price development.

Additionally, the RSI period 14 is at the level 50, denoting a strong momentum in the market. The price is thus expected to continue rallying from today till the middle of September 2015.

This forecast is ended by the quote below:

“I always find inspiration in those who, despite all odds persevere and accomplish great feats. This attribute of dogged determination is something I’ve always admired in people and have tried to emulate throughout my life. It’s not always easy since sometimes we can get too comfortable in our current situation. When that happens, I believe it’s necessary to get out of our comfort zone. Being uncomfortable can be good, as it will allow us to grow and regain that thirst for challenge. That’s partly why I love trading.” -  Gabe Velazquez (Source: Tradingacademy.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


Thanksgiving Rally on Gold and Silver: Will It Happen in the Year 2015?

Historical data reveals that Gold tends to rally during Thanksgiving celebration in the U.S. – which is held on the 4th Thursday of November of each year. Gold rally often takes place in the week in which the celebration is observed, but in order to check the validity of this trading idea, we would like to remind you of what happened in the past 12 years.

From years 2002 to 2012, Thanksgiving rally happened in each of the year, sometimes moderately and sometimes significantly, which resulted in 100% accuracy within those 10 years. Nevertheless, the Thanksgiving effect did not take place in years 2013 and 2014. With this fact at our disposal, it is interesting to know that within the last 12 years, Thanksgiving rally took place 10 times.

Now the question is: Would we witness another Thanksgiving effect in the year 2015? Since the effect did not take place in the last 2 years, some might think that it could be due to happen this year. If the effect would happen, then it is supposed to take place any time from now; but it must be before the end of this week.

The dominant bias on Gold (XAUUSD) is bearish, for price has moved south perpetually. At this juncture, there is a shallow bullish divergence, following a recent oversold condition in the market. Normally, the bullish attempt ought to be another short-selling opportunity, but a Thanksgiving effect could aid the bulls’ effort, providing that it takes place again this year.

Since Silver (XAGUSD) tends to move in a positive correlation with Gold, the Thanksgiving effect also takes place on it. If the effect did not take place on Gold, it will not also take place on Silver. The dominant bias on Silver is currently bearish – and the price formation on it is quite similar to that of Gold.  


Source: www.tallinex.com 

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

Sunday, November 22, 2015

Daily analysis of major pairs for November 23, 2015

The USD/JPY did not make any significant directional movement last week. It just went up and down in a shallow manner, though the bullish bias remains valid. This week, there is a probability that the pair could continue moving upwards, owing to the expected loss of stamina in the Yen.

EUR/USD: There was no directional movement on the EUR/USD last week, as the market simply went up and down in an unreliable manner, closing at 1.0645 on Friday. It is possible that the price would continue south; and it is also possible that the price would rise sharply. This week would witness the possibilities.


USD/CHF: This pair trudged upwards slowly and gradually last week, testing the resistance level at 1.0200 without being able to go above it. For the bullish bias to continue to hold out, the resistance level ought to be broken to the upside this week (while the price stays above it).

GBP/USD:  This currency trading instrument went upwards by about 150 pips last week, going briefly above the distribution territory at 1.5300 before going below it. This created a bogus bullish signal as the bears came in and pushed the price back to the level it was before the end of the week. A movement below the accumulation territory at 1.5150 would reinforce the existing bearish outlook, while a movement above the distribution territory at 1.5400 would mean a complete end to the existing bearish outlook.

USD/JPY: The USD/JPY did not make any significant directional movement last week. It just went up and down in a shallow manner, though the bullish bias remains valid. This week, there is a probability that the pair could continue moving upwards, owing to the expected loss of stamina in the Yen.

EUR/JPY:  The EUR/JPY cross closed below the supply level at 131.00, in solidarity with the ongoing bearish outlook in the market. Although this cross would find it difficult to go upwards as long as the Euro is very weak, unless the Yen shows more serious weakness versus the Euro. This is also a possibility this week, because JPY pairs could still rally in November.  

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, November 21, 2015

Weekly Trading Forecasts on Major Pairs (November 23 - 27, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish  
EURUSD did not make any serious directional movement last week, for what was seen was slow short-term movements to the upside and downside (and they were nothing significant). On Friday, price closed at 1.0645, highlighting the ongoing weakness in the pair. There is a possibility that the support lines at 1.0600 and 1.0550 might be tested; otherwise a strong bullish breakout could take price towards the resistance levels at 0.0700 and 0.0750.

USDCHF
Dominant bias: Bullish
This pair moved upwards 150 pips last week, reaching the resistance level at 1.0200, which is our suggested target for the last week. Nonetheless, price was unable to go above that resistance level, and this week would see whether that feat would be achieved. In case the resistance level is overcome successfully, the pair could move further upwards by another 150 pips. Failure to achieve this could result in a bearish correction, though it seems unlikely that the great support level at 1.0000 would be breached to the downside now.        

GBPUSD
Dominant bias: Bearish   
In the context of a downtrend, Cable made a noteworthy bullish attempt – even going temporarily above the distribution territory at 1.5300. This upwards bullish attempt later proved to be a bogus “buy” signal because bears came in and pushed price back to the level it was at beginning of last week. Further downward movement is a probability, plus the bearish bias would hold out as long as price is unable to go above the distribution territory at 1.5300, (and staying above it).      

USDJPY
Dominant bias: Bullish    
This market consolidated throughout last week, though there was no price action that suggested the end of the extent bullish bias. Should the consolidation continue this week without a directional bullish movement or bearish movement, then the bias on the market would turn neutral. One thing has been noted: Some pairs and exotic crosses have begun trending strongly and this could extend across the FX markets, including USDJPY.    
                                                                                                                               
EURJPY
Dominant bias: Bearish
This currency trading instrument went further south last week, closing below the supply zone at 131.00, just in conjunction with the ongoing weakness in the market. The southward movement last week was not a serious thing, but price could still go further south. On the other hand, the hope of bullish JPY pairs has not been lost for this month. In case the Yen loses stamina versus other currencies, EURJPY could be enabled to trend upwards.   


This forecast is concluded with the quote below:

“Brilliant traders are being made today, and if you shelter without taking action, your next few years could be wasted. Leaps in skill development occur when tests are presented. Smooth sailing doesn’t prepare the sailor. It is challenges that focus the mind like no other.” – Louise Bedford


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





Thursday, November 19, 2015

Sir John Templeton: The Greatest Global Stock Picker of 20th Century

INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 17

“A main focus for us is showing traders how to reduce risk with three important tools. The first is the proper use of protective stop orders, the second is proper position size and the last, but maybe most important tool is to keep losses small.” – Sam Seiden

Name: Sir John Templeton
Date of birth: November 29, 1912
Nationality: British, Bahamian (and formerly American)
Occupation: Investor, businessman, researcher, philanthropist
Website: Templeton.org

Life and Career
Sir John Templeton was born in Winchester, Tennessee, USA. He went to Yale University (where he was an assistant business manager for campus humor magazine). He financed his own education by playing poker – with fine results. He graduated with outstanding performances. As a Rhodes Scholar, he was able to attend Oxford University, bagging an M.A. in law.

He became a billionaire by being the first person to take advantage of globally diversified mutual funds.  H established Templeton Growth Fund, Ltd and was among the first persons to invest in Japan in the 1960s (some of the world's largest and most successful international investment funds).

His website reveals that he took the strategy of "buy low, sell high" to an extreme, picking nations, industries, and companies hitting rock-bottom, what he called "points of maximum pessimism." When war began in Europe in 1939, he borrowed money to buy 100 shares each in 104 companies selling at one dollar per share or less, including 34 companies that were in bankruptcy. Only four turned out to be worthless, and he turned large profits on the others.

Again, he’s noted for, during the Depression of the 1930s, buying 100 shares of each NYSE listed company which was then selling for less than $1 a share ($17 today) (104 companies, in 1939), later making many times the money back when USA industry picked up as a result of World War II (as mentioned in Wikipedia).

He’s been identified as one of the most generous philanthropists in the history of the world, donating more than $1,000,000,000 USD to charities. He relinquished his US citizenship in 1964, which enabled him to save $100 million in US income taxes when he sold his international investment fund. That money was used for philanthropy. He’d dual naturalized Bahamian and British citizenship and lived in the Bahamas.

He wrote many books, including:
  1. Riches for the Mind and Spirit: John Marks Templeton's Treasury of Words to Help, Inspire, and Live By (2006)
  2. Golden Nuggets (1997)
  3. Buying at the Point of Maximum Pessimism: Six Value Investing Trends from China to Oil to Agriculture (2010)
  4. Investing the Templeton Way: The Market Beating Strategies of Value Investing Legendary Bargain Hunter (2007)
  5. Worldwide Laws of Life: 200 Eternal Spiritual Principles (1998)
And some other books

As a philanthropist, Sir John established the John Templeton Foundation, a library, a prize, and a college under the University of Oxford. He donated a sizable amount of his assets to the John Templeton Foundation, which he established in 1987. That same year, he was created a Knight Bachelor by Queen Elizabeth II for his many philanthropic accomplishments.

A Chartered Financial Analyst (CFA) charter-holder, Sir John received AIMR's first award for professional excellence in 1991. Money magazine called him "arguably the greatest global stock picker of the century." in 1999. In 1996, he was inducted into Junior Achievement US Business Hall of Fame, and in 2003, he was awarded the William E. Simon Prize for Philanthropic Leadership. He was named one of Time magazine's 100 Most Influential People in 2007.

Being a lifelong member of the Presbyterian Church, he served in various positions of high responsibilities in the church. 

Sir John was married twice, blessed with children. He first got married to Judith Folk, who died of a motorbike accident in 1951. He then got married to Irene Reynolds Butler, who died in 1993.

Sir John Templeton passed on to rest on July 8, 2008, in Nassau, Bahamas, aged 95.

Insights
  1. Humility is important to us as traders; and so are good mood, absence of anxiety and discipline.

  1. Bull markets arise from pessimistic moods, they thrive on uncertainties and become mature on optimism and confidence, and then they die on euphoria. When the public go mad about a stock, it’s time to sell.

  1. Avoid the herd mentality. What most people think, believe can’t help you. This will remain forever true in the world of trading and investing. Invest at the point of maximum pessimism. Stocks are excellent ‘buy’ candidates when people don’t want to buy them because they’re terrible. Please read Sir John’s career above again. Think about how he made his money. He invested in Japan when most people thought that idea was crazy. He sold his stocks when the public showed excessive confidence in them, when values and expectations were high. There are investment opportunities all over the world, not in the US alone. Sir John himself said: “The other boys at Yale came from wealthy families, and none of them were investing outside the United States, and I thought, 'That is very egotistical. Why be so shortsighted or near-sighted as to focus only on America? Shouldn't you be more open-minded?”’

  1. If you want to have a better performance than the crowd, you must do things differently from the crowd. Since most traders lose, you need to do what most traders don’t do to be successful.

  1. It’s possible to make money solely from fundamental analysis (just as it’s possible to make money solely form technical analysis). Sir John didn’t do technical systems; he based his investment decisions solely on fundamentals. Those using technical analyses only shouldn’t criticize those using fundamentals only: and vice versa. Any trading approach is good, no matter how weird, as long as it makes money.

  1. Sir John - though a generous giver – never spent too much money on himself. Uninterested in consumerism, he drove his own car, never flew first class and lived year-round in the Bahamas. Being rich doesn’t necessarily mean we should live an extremely flamboyant, ostentatious, and expensive life. Warren Buffet is another good example.

  1. Sir John, who was also interested in spiritual matters, 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.”

Conclusion: James Altucher quotes Marilyn Monroe as saying "Imperfection is beauty, madness is genius and it's better to be absolutely ridiculous than absolutely boring." He also says you should be embarrassed by what you do. Give yourself permission to be imperfect. Out of that messy soup of shame and imperfection will come art.’ No matter how many periods of discouragement you face, know that a good state of the mind, a sensible strategy and lack of expectations are what you’ll ultimately need to succeed. That’s the only method for survival in the world of uncertainties.

This article is concluded with a quote from Sir John:

“In my 45-year career as an investment counselor, humility did show me the need for worldwide diversification to reduce risk. That career did help me to become more and more humble because statistics showed that when I advised a client to buy one stock to replace another, about one-third of the time the client would have done better to ignore my advice. In other endeavors, humility about how little I know has encouraged me to listen more carefully and more wisely.”


Further reading: Advfnbooks.com

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









Wednesday, November 18, 2015

SKIL Ports & Logistics Makes Bullish Attempts

SKIL Ports and Logistics shares (LSE:SPL) has a strange-looking price action in its chart. The price is jumpy, chaotic and choppy - this is a type of the market that needs an optimal risk management plan.

In the chart, the ADX period 14 is not too far from the level 30 while the DM+ is slightly above the DM-. This shows some form of bullishness in the market. The MACD (default parameters) have both its signal lines and histogram above the zero line, which is an indication of a bullish confirmation in the market, while the shares make more bullish attempt.

With SKIL Ports and Logistics shares making further bullish attempt, a stronger bullish signal could be generated and the supply levels at 60, 70 and 80 could be attained within the next several months; albeit the price may continue being chaotic and erratic.  

This forecast is ended by the quote below:

“The main objective is always the preservation of capital, whereas maximizing returns is of secondary importance.” - Dr. Allan Elman

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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



Paragon Diamond to Continue Its Weakness

Paragon Diamond stock (LSE:PRG) is expected to continue its current weakness, just in solidarity with the extant bias in the market, which is bearish. You would need to accept realities before you can survive the markets.

The price has gone far below the EMA period 21 and the Williams’ Percentage Range period 20 is rigidly in the oversold area. The movement of the market has been choppy, jumpy, erratic and crazy while the price consolidates to the downside. This is a bear market.

On approach to this market is to know when to exit as soon as the price movement is against one’s position. When you determine to exit above distribution territories (or below them), it could result in minor negativity. However, a position that behaves according to the expectation would make your trading approach look rational. This is one inevitable experience of traders.

While this analysis was being prepared, Paragon Diamond stock was trading at 3.9: it is possible that it would later breach the accumulation territories at 2.5 and 1.5.

This forecast is ended by the quote below:

“I only want to trade when the historical evaluations suggest an edge in the market.” – Scott Andrews

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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



Sunday, November 15, 2015

Daily analysis of major pairs for November 16, 2015

Last week, the EUR/JPY cross merely moved in a choppy, sideways manner. The price zigzagged between the demand zone at 131.50 and the supply zone at 133.00. This week, the EUR/JPY might find it difficult to rally significantly, especially as long as the EUR is weak.             

EUR/USD:  There was no serious upwards or downwards movements on the EUR/USD pair in the entire last week. For the year 2015, last week saw the tightest sideways movements on most majors, each of which did not move upwards or downwards by 50 pips in certain cases. Although the equilibrium movement could continue, there would soon be a rise in the market momentum. 



USD/CHF: This pair simply moved sideways throughout last week, shrugging of all the fundamental data that could impact it. Last week, most major pairs shrugged off most of the fundamental figures that were supposed to affect them (except the employment figures coming out of Australia, which affected AUD pairs). The current consolidation movement could continue until there is a breakout, which would most probably be in favor of the current bullish bias.

GBP/USD: After testing the accumulation territory at 1.5050, the price gradually bounced upwards by 200 pips, reaching the distribution territory at 1.5250. As long as the distribution territory at 1.5350 is not broken to the upside, the recent bearish bias would not be violated. It is probable that the bearish journey would be resumed in earnest.

USD/JPY: In the context of an uptrend, this pair simply consolidated to the downside. The price tested the supply level at 123.50 and got corrected lower, testing the demand level at 122.50. It is possible that the pair would still go further upwards; possibly breaking the supply level at 123.50 to the upside (for it is possible for JPY pairs to assume a bullish journey before the end of this month).

EUR/JPY: Last week, the EUR/JPY cross merely moved in a choppy, sideways manner. The price zigzagged between the demand zone at 131.50 and the supply zone at 133.00. This week, the EUR/JPY might find it difficult to rally significantly, especially 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: http://www.advfnbooks.com/books/supertraders/index.html 



Saturday, November 14, 2015

Weekly Trading Forecasts on Major Pairs (November 16 - 20, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish  
EURUSD did not move upwards or downwards significantly last week, though the outlook remains bearish. Last week was the week in which the FX markets consolidated the most this year, with certain pairs and crosses not going up or down by 50 pips throughout the week. EURUSD simply vacillated between the support line at 1.0700 and the resistance line at 1.0800, but there might be a breakout this week, which would favor the current bearish outlook (although the consolidation could continue for some time).       

USDCHF
Dominant bias: Bullish
Just like EURUSD, USDCHF moved in a tight range last week. Price moved between the great psychology level at 1.0000 and the resistance level at 1.0100. The ranging movement could keep on happening for some time, but a breakout would eventually happen, which would probably favor bulls, as price goes further upwards, targeting the resistance level at 1.0200. It would require a serious bearish force for price to breach the great psychological level at 1.0000 to the downside.        

GBPUSD
Dominant bias: Bearish   
In the context of a downtrend, Cable made a determined bullish correctional movement throughout last week.  The market rose from the accumulation territory at 1.5050, topping at the distribution territory at 1.5250. This is a bullish movement of 200 pips, but it cannot render the downtrend invalid unless the distribution territory at 1.5350 is broken to the upside. Until that happens, long trades might be opened with caution.     

USDJPY
Dominant bias: Bullish    
After reaching the supply level at 123.50, this currency trading instrument got corrected downwards a little, reaching the demand level at 122.50. Apart from this, there was nothing significant last week, as it is true of other pairs and crosses. Even most fundamental figures that were supposed to impact major pairs were shrugged off last week, save the Australian employment figures, which impacted AUD pairs. USDJPY might also continue moving sideways, but a breakout is in the offing.   
                                                                                                                               
EURJPY
Dominant bias: Bearish
The EURJPY cross was simply choppy; and that might continue this week. The cross would find it difficult to trend seriously upwards as long as the Euro is weak, and so, the movement in the context of a downtrend could continue. Nonetheless, there is still a possibility that most JPY pairs could assume a measure of bullish effort this month; and that could be when EURJPY would trend upwards.  


This forecast is concluded with the quote below:

“One of the most common misconceptions is that a retail trader cannot successfully and profitably day trade – I can tell you now that’s a load of tosh and don’t believe those naysayers… This belief normally comes from people who have royally failed and so try and take others down with them.” – Chronictrader (Trade2win)  



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




Thursday, November 12, 2015

The Beauty of Trading

“You do not need a PhD in math or physics to be successful in the stock market, just the right knowledge, a good work ethic, and discipline.” – Mark Minervini

Imagine. There’s someone who borrowed a total of $13 million to make a movie. She’s a credit officer at a big financial institution who’s helped many candidates secure loans to finance their ambitions. She herself was unable to get a loan to finance the production of her movie. In fact, it took her more than 6 years to get money to produce her movie. After going to the States to learn how to direct movies, she’d to sell all her property and borrow money from some friends and banks, before they could get the needed $13 million to finance the movie. The movie could’ve been a crashing failure, but fortunately, it was a roaring success. This courageous woman took a great risk.

Can you see the length people can go in order to achieve their dreams? The risk I take as a trader is even far less than this, with the assurance that my possibility of success is high because I’m a veteran trader.

Have you been touched by sadness in trading? You might feel that’s a problem without solution. But there’s a solution – namely, the necessary mindset and principles that are necessary for your happiness. A losing period is a terrible problem, but there are wonderful solutions to that.

If people discourage you, you could begin to think that the sacrifices you make in your trading career aren’t worthwhile or that you can’t attain permanent success. Since we’re surrounded by people that don’t understand the truth about trading, we must strive to keep our focus on the ultimate goals.

If You Can Draw a Straight Line, You Can Become a Successful Trader
This subheading was taken from one of the titles written by DbPhoenix of Trade2win.com. Contrary to what most people tend to think, you can become a permanently successful trader if you’ve a positive expectancy methodology and a winning attitude.

The road to profitability is to think positively and take steps. This doesn’t mean that your steps would often lead to what you want. There are times when you’ll feel that you can’t become a winning speculator. You can even contemplate quitting. I know this. It’s happened to me. There were times when I was discouraged by poor trading results and I thought of abandoning my trading career.

Nonetheless, I was aware of the potency of perseverance, and so, I didn’t quit. After many years of grappling with the markets, I’m eventually able to make money in the markets, surviving trendless and choppy periods and moving smoothly ahead when the markets trend strongly. I’m now able to keep my funds safe despite the vagaries of the markets. Sometimes, I make more than I even anticipate in a month.

The Providence used Forex to remove me from poverty and launch me onto my way to financial freedom.

Conclusion: Like the veterans of the markets, we don’t feel that the years we spend trying to bring our best trading self are a waste of time. Rather, we’re sure that the challenges are transitory and the rewards are permanent. I think of someone like Adam Jowett, who’s an entrepreneur and a developer who trades anywhere possible, like in the toilet, in the bus and in his garage. I know another trader who travels worldwide and trades on the go, raking in lots of money in the process.

This piece is ended by the quote below:

“Learning by trading may be the school of hard knocks, but in the end that is the best school you can attend. Just keep standing up over and over again, until you learn how to profit. Until that point, trade small and make sure to stay in the game. Make sure you will still be there once the profits arrive. And do not forget to enjoy the ride.” – Marko Graenitz



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






Wednesday, November 11, 2015

Pantheon Resources: Buyers Are Extremely Glad

Pantheon Resources stock (LSE:PANR)  has skyrocketed seriously, making substantial gains. The bullish race started gradually in September, becoming more and more serious in October. But this month, the bullish race was so momentous that the price almost went up in a straight line.

Would this bullish race be sustained? 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. All the EMAs are trending upwards, signifying a clean bullish trend.

The bullish momentum is so strong that the price is still far above the EMA 10 in spite of the recent shallow bearish correction. The upwards race will continue, though the speed may be reduced. Any bearish retracements could make the price go into the EMA 10 or 20, which would be an opportunity for more bulls to join the race.

On Pantheon Resources, buyers are, undoubtedly, happy, and this happiness would continue in the next several months.

This forecast is ended by the quote below:

“At the moment, I still work full time, but by the age of 30 I’d like to retire and take on trading full time. In my opinion, life is too short to be working for someone – particularly in this day and age where there are multiple ways to make money online.” – Chronictrader (Source: Trade2win)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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


Tullow Oil Lures Buyers into a Trap

Tullow Oil shares (LSE:TLW) are currently seen as a lure that can make buyers go into a trap – as the current price action shows. The market trended seriously downwards in the most part of this year. The market started making some bullish attempts from October 2015, which has been rejected repeatedly around the resistance level at 260.

The price went briefly below the lower Trendline in October and went back into the space between the upper and the lower Trendlines. This month, the price has gone below the lower Trendline again, as the RSI period 14 goes below the level 50. Clearly, the bullish attempts that were seen recently were a lure that could entrap buyers.

Sadly, some buyers have fallen into this trap and they might be sliced up along the way. The price action in the chart indicates that the southward movement could be resumed in earnest. The support level at 150 could be tested and breached to the downside. Should this happen, another support level at 100 would be tested.

This forecast is ended by the quote below:

“When I started trading, credit card interest rates were 20+% a year compounding, double digit unemployment was common, and if you read the newspapers it looked like we were one step away from running out of oil. Yet – somehow, great traders were made in that era. And they will be again.” – Louise Bedford

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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




Sunday, November 8, 2015

Daily analysis of major pairs for November 9, 2015

Among the majors, the Cable was the strongest moving last week. The movement was so strong that the price fell by 400 pips, testing the accumulation territory at 1.5050. The outlook on this market remains bearish and it is possible that the accumulation territories at 1.5000 and 1.4950 would be attained this week.      

EUR/USD: The EUR/USD went down by 300 pips last week, in conjunction with the bearish outlook on the market. There are resistance lines at 1.0850 and 1.0900, which should resist any serious bullish attempts as the price endeavors to go further south. There are also support lines at 1.0650 and 1.0600. These are the potential targets for the bears this week.   


USD/CHF: Last week, this pair achieved a predictable feat – the USD reaching parity with the CHF. The price went above the great psychological levels at 1.0000 and 1.0050, closing above the latter on Friday. In the face of the ongoing strength in the Greenback, the pair would continue its upwards journey this week, possibly reaching the resistance levels at 1.0100 and 1.0150. 

GBP/USD:  Among the majors, the Cable was the strongest moving last week. The movement was so strong that the price fell by 400 pips, testing the accumulation territory at 1.5050. The outlook on this market remains bearish and it is possible that the accumulation territories at 1.5000 and 1.4950 would be attained this week.     

USD/JPY: The price on this currency trading instrument moved upwards slowly and steadily last week, and then jumped further upwards on November 6, 2015. Price closed at 123.17 on that day, on a strong bullish note. The bullish journey would continue this week (and this month), owing to a positive outlook on most JPY pairs.  

EUR/JPY: The EUR/JPY remains in a bearish mode, though the journey southward was not significant last week. As long as the Euro is strong, the EUR/JPY would continue trending downwards. The only occurrence that can reverse this expectation is the occurrence that enables the Yen to be suddenly weaker than the Euro.   

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, November 7, 2015

Weekly Trading Forecasts on Major Pairs (November 9 - 13, 2015)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish  
This pair dropped 300 pips last week, testing the support line at 1.0700. The largest southwards movement last week occurred on Friday – a result of positive fundamental figures coming out of the US. The outlook on the pair remains bearish, which would be valid as long as USD is strong. The Euro could rally against certain other currencies this month, but it is not likely that it would rally seriously against the US dollar.       

USDCHF
Dominant bias: Bullish
The movement on this intriguing pair has been nicely predictable. Price moved further north by 200 pips as the US dollar reached parity with the Swiss Franc (as it was forecasted last week). There is a clean Bullish Confirmation Pattern in the market, owing to the stamina in USD. As price has closed above the great psychological support level at 1.0000, it would no longer be easy for bears to breach the level again. In fact, further upward journey is expected from here.        

GBPUSD
Dominant bias: Bearish   
Last week, Cable was the strongest moving pair among the majors. It fell by roughly 400 pips, testing the accumulation territory at 1.5050. The selling pressure in the market is quite strong and this might continue further this week. Any upwards bounces that are seen here should be taken as opportunities to sell short, because price could go further south by at least, 200 pips this week.        

USDJPY
Dominant bias: Bullish    
This currency trading instrument moved smoothly upwards last week. The movement was especially serious on Friday, November 6, 2015. Price is now staying above the demand level at 123.00, targeting the supply levels at 124.00 and 125.00. Since the outlook on most JPY pairs is bullish for the month of November, it is logical to conclude that this currency trading instrument would continue its uptrend. There are other demand levels at 122.00 and 121.50, which are supposed to check any large pullbacks along the way. 
                                                                                                                               
EURJPY
Dominant bias: Bearish
Although this cross did not move seriously last week, it remains in a bearish mode. Price tested the demand zone at 131.50, but it could not breach it to the downside. The cross would be weak as long as the Euro is weak. Nonetheless, it could only be pushed up by a surprise weakness in the Yen, which might eventually happen this week or next week, since it is expected that most JPY pairs would be bullish this month. On the EURJPY cross, predictable directional movements would be witnessed from now till the end of the year 2015.


This forecast is concluded with the quote below:

“I notice that today there are much larger movements occurring much more quickly than in the past. That’s a good thing for us traders since the large [movements] will also result in good opportunities for making a profit.” – Oliver Klemm


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



Friday, November 6, 2015

Louis Bacon: A Rare Trading Genius

 INSIGHTS INTO THE MINDSET OF SUPER TRADERS – Part 16

“…Remember to view setbacks, losses and failures as learning opportunities. All great achievers have made innumerable mistakes and have failed, that is what provided the “experience” and the “education.” – Dr. Woody Johnson

Name: Louis Bacon
Date of birth: July 25, 1953
Nationality: American
Occupation: Hedge Funds Manager

Career
Born in Raleigh, North Carolina, Louis attended Episcopal High School in Alexandria, Virginia. He went to Middlebury College in Vermont, earning a B.A in American literature. In 1981, he got an MBA degree in finance from Columbia Business School.

After getting his MBA, he worked in various capacities at various firms and companies like Bankers Trust, Walter N. Frank & Co, New York Cotton Exchange, and Shearson Lehman Brothers. He founded Remington Trading Partners in 1987 and began to forecast the market crashes and rallies. He traded according to his own forecasts (something that most analysts today don’t do) and made huge amount of money from that.

He founded Moore Capital Management LLC in 1989 with the $25,000 he inherited from his family. Needless to say, his ventures became hugely successful.  In 2006, Forbes referred to him as the 746th richest person on this planet. In the world’s rich list, he took the 736th position in the year 2011, and he was named the 238 richest American in 2010.

In the year 2010, Louis Bacon was worth $100,600,000,000.

He’d 4 children from his first marriage. He was remarried in 2007. In November 2007, he bought a $175,000,000-property in Costilla County, Colorado, from the Forbes family. He’s also supported political parties and causes.

Insights
  1. When did you start trading? Have you faced any challenges? Most trading masters faced losses in the past. Louis started trading with a low interest loan he collected while he was till at Columbia, he lost money during his first 3 semesters. He’d to take another loan from his dad in order to stay afloat. In the 4th semester, he recovered his losses and made profits. Too many people quit trading after the first or second series of losses without being aware that they might become very rich in future if they held out long enough. Someone we call a genius today refused to give up when things seemed hopeless. Louis didn’t quit and he’s a billionaire today. Do you know the value of a billion dollars in terms of USD?

  1. As a speculator you must embrace disorder and chaos. This is what Louis believes. The unpredictability and uncertainties of the trading environment must be embraced and mastered before we can become triumphant in spite of what the market throws at us. We can make money in spite of the fact that the market is uncertain and unpredictable.

  1. When you become rich, you will easily engage in other activities in which you’re interested. Just like Louis Bacon, you might want to engage in philanthropy. Louis founded the Moore Charitable Foundation (MCF) in 1992, to provide financial support to nonprofit organizations that work to preserve and protect wildlife habitat and improve water systems. He’s also contributed millions of dollars to other environmental and conservation organizations, and thus won well-deserved recognition for doing this. In order to emphasize his conservationist views, he says: “I am a conservationist. It is in my DNA… When a profit-seeking company proposes to take citizens' private land away for its own gain, people should stand up for their rights…We are too quickly losing important landscapes in this country to development - and I worry that if we do not act to protect them now, future generations will grow up in a profoundly different world.”

Conclusion: The best way to cut your learning curve and achieve a specific result is to find people who’ve already achieved what you want and then model their behavior. Louise Bedford says: Find a mentor, no matter what the cost. A mentor makes a huge difference in your development. Of course, if you have a spare 10 – 20 years up your sleeve to perfect your skills alone, then by all means do so. However, most people want more immediate results. I am where I am because I found good mentors and I followed their advice. Failure can take a great personal cost, and a mentor can help you avoid errors. I don’t know how people can begin a business without mentors to help them. (Source: Tradinggame.com.au). 

This piece is ended with a quote from Louis: 

“The ability to manage large assets well - it's like being Michael Jordan or winning the gold in the Olympics; it's what you aspire to.”




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