Weekly Trading Forecasts on Major Pairs (September 8 - 12, 2014)

Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish  

The sudden weakness in the EUR has caused this pair to tumble. The pair was already bearish when this happened (it has been bearish since June 2014). On Thursday, September 4, 2014, the pair fell further by over 200 pips. In fact, all other EUR pairs tumbled. Therefore, it is plausible to expect further downward plunge in the market, and should this hold true, the price could reach the support levels at 1.2850 and 1.2800. On the other hand, it could have happened that the pair has hit a rock-solid bottom that may be a barrier to further southward journey for the next several weeks. Any rallies in the context of the downtrend could take the price back towards the resistance levels at 1.3100 and 1.3150.

USDCHF

Dominant bias: Bullish   

Since the USD/CHF is negatively correlated to the EUR/USD, it is no wonder that the former has gone upwards determinedly. Really, our target for this week has been exceeded and price is now poised to go upwards towards the resistance levels at 0.9400 and 0.9450. However, the USD attainment of parity with the CHF is not likely in the long run – that is a far cry. As long as the EUR is weak and the USD is strong, the bullish trend would continue; but should the opposite occur, a strong bearish retracement may force the price to test the support levels at 0.9200 and 0.9150 respectively.    

GBPUSD

Dominant bias: Bearish  

The consolidated bullish attempt that occurred on the Cable last week turned out to be an opportunity to go short. This week, the market has dropped by over 300 pips, going below the distribution territory at 1.3650. The distribution territories at 1.6400 and 1.6450 could be barriers to any bullish attempts in the context of the currently strong downtrend. The next target in the market is the accumulation territory at 1.6200.

USDJPY

Dominant bias: Bullish

Since the Greenback has lots of stamina in it, it is more likely that this currency trading instrument would continue to go further upwards, going towards the supply level at 106.00. The demand level at 104.50 is an immediate hindrance to any pullback that may occur along the way.

EURJPY

Dominant bias: Bearish  

The sudden loss of stamina in this cross (brought about by further weakness in the Euro) has led to a new lease of Bearish Confirmation Pattern in the market.  The demand zone at 136.00 has been tested, and with further weakness of the cross, the price can go on towards another demand zone at 135.00.

This forecast is concluded with the quote below:

“Swing trading is actually one of the best trading styles for the beginning trader to get his or her feet wet, but it still offers significant profit potential for intermediate and advanced traders. Swing traders receive sufficient feedback on their trades after a couple of days to keep them motivated, but their long and short positions of several days are of the duration that does not lead to distraction.” – Jason Van Bergen (Source: Trade2win.com)

Source: www.tallinex.com

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

The Most Important FACTOR Behind Traders’ Failure – Part 2

“Our mind is our enemy.” – Tom Hougaard

Our mind is really our foe, especially when we find it extremely difficult to do what are in our best interest. Doing the right things tends to make us uncomfortable initially, unless we train our mind to adapt to doing the right things until they become our second nature.  In the part one of this series, I mentioned how drivers and motorcyclists need to be forced to do what are in their best interest and the best interest of their loved ones (including members of the public).

 It’s well known that smokers are liable to die young. A few years ago, I visited an elderly man who’s a dad to one of my friends. He was glad to see me. After some time, he reached for his drawer and took out a cigarette. He lit it and started smoking. The elderly man noticed that, by my countenance, I wasn’t happy that he was smoking. I was concerned about his health, for he looked a bit emaciated. Before I could speak, he said:

“Young man, I know you aren’t happy that I’m smoking, but that’s not your business. I’d been smoking before you and your friend – who’s my son – were born. I know cigar is dangerous to my health, but mind you, if my health deteriorates and I die, it’s nobody’s business. Nicotine is thought to be poisonous; yet I buy it with my money and take it into my body. It’s my body and my life, not your body or you dad’s body. If I do what can affect my life, it’s nobody’s business. It’s my life and it’s not your concern if I lose it. I’ll smoke till I die. Whether I smoke or not, it’s something that’ll cause my death. Your friend, who’s my son, has accepted this fact and has stopped remonstrating with me. I’ve told my children that if I die today, I should be buried quickly so that I don’t cause a stench in the neighborhood.”

What does this have to do with trading? Many traders who know what can’t pay them in the markets still find those things irresistible. This is the most important reason why most traders won’t make it. Below, you can read 4 things that will guarantee your failure in the markets. If you avoid those things, you success is then guaranteed.

4 Things that will guarantee your failure in the markets

1.      Thinking that risk control isn’t very crucial: Risk control is one of the major factors that contribute to your everlasting success in the market. If you don’t know what it is, you’d better learn it and start applying it. If you know it already, you’d better start applying it with strict religiosity.

2.      Thinking that you know everything: It’s unfortunate that many traders feel that they know what the price would do next. We tend to feel we’re hot, but the markets sometimes remind us that we’re cold. The expert traders’ saving grace is that they never forget they’re students of the markets. It’s thus helpful to trade what you see and properly manage your trades. It’s by far more helpful to use speculation methods that have stood the test of the time historically: plus methods that make money regardless the direction of the markets.

3.      Thinking that overtrading can bring more profits: Overtrading doesn’t improve any statistics, especially when the extant market situation isn’t favorable to your trading methodology. Rather than doing that, you may think of temporarily suspending a certain trading approach until the market conditions become favorable to it. The time of favorable conditions is recognized based on expertise and experience. Another key is to make sure that there’s no reason not to trade a particular setup. This ensures that we enter a position based on our logical entry rules only, not based on irrational emotions.

4.      Thinking that your education and knowledge in other field can help you in trading: I know speculators who were very good at other things but who’re now grappling desperately with the markets. Bill Gates, who’s very successful in the computer world, was recently beaten at a chess game by a chess champion. John McAfee was successful as a software engineer and programmer, but failed as an investor. Your expertise in one field doesn’t automatically translate into success in another field. Someone who’s successful as a TV superstar may fail as a politician. No matter your level of education or degree of expertise in another field, you’ll need to learn the art of successful trading.

Weigh the consequences

There are consequences for suicidal and safe trading principles, and therefore, you’d do well to weigh the consequences before you allow your mind to mislead or lead you. Testing a method in real market conditions is more preferable and more agreeable. When a good method doesn’t work, we patiently control our risk and wait for the time when the conditions in the market would be favorable to it again. The easiest trading methodologies are also the most profitable.

This article is ended with the quote below:

“When I gave up trading due to frustration and losses. I realized the markets didn’t beat me, I beat myself. The classic Jesse Livermore line. I firmly believe that most, if not all of trading over a longer time frame is psychological.” – Larry Tentarelli

Source: www.tallinex.com

Learn from the Generals of the Markets: Market Generals

Premium Signals on the AUD Pairs (September 3 - October 29, 2014)

Instrument: AUDJPY

Order: Buy

Entry date: September 3, 2014

Entry price: 97.682

Stop loss: 96.669

Take profit: 97.869

Instrument: AUDUSD

Order: Buy

Entry date: September 3, 2014

Entry price: 0.93063

Stop loss: 0.92036

Take profit: 0.93238

Instrument: EURAUD

Order: Sell

Entry date: September 3, 2014

Entry price: 1.41126

Stop loss: 1.42176

Take profit: 1.40974

Instrument: AUDCAD

Order: Buy

Entry date: September 3, 2014

Entry price: 1.01632

Stop loss: 1.00606

Take profit: 1.01802

Instrument: AUDCHF

Order: Buy

Entry date: September 3, 2014

Entry price: 0.85546

Stop loss: 0.84511

Take profit: 0.85711

Instrument: GBPAUD

Order: Sell

Entry date: September 3, 2014

Entry price: 1.77108

Stop loss: 1.78144

Take profit: 1.76944

Instrument: AUDNZD

Order: Buy

Entry date: September 3, 2014

Entry price: 1.11895

Stop loss: 1.10875

Take profit: 1.12076

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

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

Source: www.tallinex.com

Learn from the Generals of the Markets: Market Generals

Proteome Sciences Stock Becomes Bullish Amid Volatility

Proteome Sciences shares (LSE:PRM) have become determinedly bullish again. The bulls may regain the territory that has been lost and the price may breach further resistance levels as it goes northwards.

Although the current bias is not very strong - as shown by the ADX period 20 line which is below the level 20 – it is logically bullish. The ADX DM+ is above the DM-, meaning that it pays to side with the bulls. At the same time, the MACD (default parameters) has its histogram above the zero line. The signal lines are also almost going above the zero line. Should the price go further upwards, the MACD would join the ADX to form a Bullish Confirmation Pattern in the market. That means the northward journey can continue, and the price may reach the resistance level at 60.00.

We want to trade only what we see, not what we think the markets will do.  Successful trading is about managing your trades very well; not only about picking the right stocks.

This forecast is ended by the quote below:

“It's important for your psychological and financial security that you limit the risk on any single trade. Again, think in terms of the big picture. You don't need to make money on a single trade; the overall results across a series of trades are all that really matter.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Armstrong Ventures Builds a Long-term Solid Base: A Stronger Market Expected

Armstrong Ventures stock (LSE:AVP), which is very cheap, has been building a long-term solid base for several months. This is a kind of the market environment that some veteran speculators would like to watch; they would like to act on it as soon as the price signals there is an opportunity.

This is a flat market, as shown by the EMA 21. It appears that the price has nowhere to go but upwards. The Williams’% Range period 20 has shown serious, but fleeting upswings from the base, given the fact in the market and the readings of the indicator. Eventually, the market would be strong, and the stock can gain hundreds of percentage within the next several months.

We are interested in knowing the next development affecting this market, plus what other traders are saying about it. When we interact with other traders, we might know when a particular market is good enough for action. As Chris Ebert says, individual retail trading can be a very isolating lifestyle; and it wasn’t until fairly recent years that online interactions became a viable means of connecting with other traders, in effect reducing that feeling of isolation.

This forecast is ended by the quote below:

“A well-developed system might have a win rate of only 55%. If you had five losing trades in a row with such a system, you might be tempted to question your own performance and decide you are in a losing streak.  In fact, all you have seen is a string of five losing trades that should be statistically expected as part of a large number of opportunities.” - Dr. Ken Long (Source: Vantharp.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha