ACTA Doesn’t Look Sexy

ACTA shares (LSE:ACTA) do not look attractive right now, and the best option is to stay away from the market until a clear bias is formed. The market is currently in an equilibrium phase and there no significant victory between the bulls and the bears.

The ADX line is below the level 20, showing a trendless market, while the DM+ is not conspicuously above the DM- (being an unstable position). The MACD (default parameters) has its signal lines below the zero line and its histogram above the zero line. This shows mixed signals on the chart, and therefore, it is better to step aside until there is a bearish or bullish confirmation pattern in the market.

Sadly, no-one can forecast what would transpire except it transpires. What you see on the chart is only historical data. Overconfidence to assume a bias before it actually happens may force you out of the markets quickly. So you need to set only realistic goals and accumulate profits in a slow and steady way.

This piece is ended with the quote below:

“Trying to have control, having all the answers, and always being right are the worst character traits possible for a trader.” - Brian Lund

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

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

Sefton Resources, Indicators Are Screaming: “BUY!”

The indicators on Sefton Resources (LSE:SER) are screaming out in what is another buying opportunity of a lifetime. In the recent bear market, the price has largely moved sideways from March 2013 until the latter part of the month of July 2013.

It is known that the stock is very cheap right now. From the prolonged sideways move, the price broke upwards and closed above the EMA 21, trending further northwards. Meanwhile, the Williams’ % Range has gone into the overbought region – showing a strong bullish bias. The price could go on towards the supply level at 6.00 within the next few years. A buy-and-hold strategy is recommended.  

Despite this wonderful opportunity, some would be hesitating. In a market like this, emotionally, fright tends to override avarice.  What do you think is the insider’s cause of the rally? The frog says that when it comes to the issue of tail, then the issue should be ignored.

Note: When a trader speculates and adopts a trading approach, he must acknowledge the fact that he cannot be always right. No-one may guarantee that the market would trend in a certain direction. Speculation remains a game of possibilities.

This piece is ended with the quote below:

“You don’t have to work hard to sell something that sells itself. A good

track record and happy clients can be all the marketing you need.” – Jesse Felder (source: www.tradersonline-mag.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

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

 

Weekly Trading Forecasts (July 29 – August 2, 2013)

In the last several trading days, we can see that the GBP, the CHF, and the EUR have continued showing strength, while the USD has continued to be weakened against them.  The JPY pairs are also showing signs of noteworthy pullbacks, following their testing of major supply levels.  The more overextended and protracted the current biases, the more dependable there would be probable pullbacks and bullish retracements when they do occur (whether protractedly or transitorily).

EURUSD

Primary trend: Bullish

In spite of some disturbing fundamentals that have come out in recent times, this pair has been able to maintain its bullish bias. This is an example of “bad news but the instrument continues trending upwards.’ One resistance line after the other has been breached successfully, and the price may go on towards the resistance lines of 1.3400 and 1.3450, should the present bullish bias continue.

USDCHF

Primary trend: Bearish

In the last weekly trading forecast, it was hinted that the USDCHF could end up testing the support level of 0.9300. At the time of preparing this very market prognosis, the price was already trading below the aforementioned level. However, this did not happen without protracted equilibrium phases. In the face of the current Bearish Confirmation Pattern, the price may be able to go on lower and lower towards the support level of 0.9200.

GBPUSD

Primary trend: Bullish

There is a Bullish Confirmation on the Cable… and a northward determination… and vivid optimism surrounding it. The price territory is already a forgone conclusion as long as the buyers’ interest is concerned. Within the next several trading days, the Cable is expected to reach the distribution territories of 1.5500 and 1.5550 respectively. In the meantime, any bearish threats on in the market ought not to go below the accumulation territory of 1.5300. 

USDJPY

Primary trend: Bearish

Consistent weakness in the USD has resulted in the weakening of this pair. In fact, this pair would be able to go in the way of other JPY pairs. Right now, the indicators on the chart confirm a bearish signal on the chart. However, this did not happen without significant rallies which gave spurious signals in some cases. It simply happened that the rallies were nice opportunities to sell short in view of the current bearish trend.  The price could go on towards the demand level of 97.00.

EURJPY

Primary trend: Bullish

This currency instrument is also in the habit of going in the way of most JPY pairs. The price recently topped at 132.70 and later nosedived. From that supply zone of 132.70, the price has gone lower by more than 100 pips. Nevertheless, one would need to wait for further confirmation among oscillators and momentum indicators (for their signals are conflicting right now). After a confirmed bias, one would then take a position.

This article is ended by the quote below:

“Successful trading is about making money, that’s it. It ’s not about ego, or being cool, or having great stories to tell your friends at the bar. The more closely your trading style fits with your personality, the less conflict  it will create, meaning the less negative emotions it will generate, and the better chance you have to be successful.” – Brian Lund (Source: www.tradersonline-mag.com)

Source: www.paxforex.com

For further articles, go to: http://www.paxforex.com/forex-blog

GSM PALAVER 1

Calculator for Proposal

About 13 years ago when GSM technology was very new in my country, only the rich could afford to buy GSM mobile phones and recharge cards. Anyone in possession of it was viewed with a lot of respect. Girls particularly wouldn’t consider you for a relationship if you had no GSM phone. So boys tended to try to assume any forms of guises to impress girls.

There was a young man who loved to win girls by assuming to be a personage. He took something like an attractive handset out in the midst of 4 beautiful girls and started making fake calls.

“Hallo!” He shouted. “Is that Dublin? Please could I talk to Mr. Johnson Micawber? Good afternoon Mr. Micawber. Yes, have you effected the purchase of that duplex? Okay, I’ll send the remaining balance by check to you. Thanks.”

The beautiful girls had started to think of giving him a chance. He dialed another fake number.

“Hallo! I am Mr. Okoro, the son of High Chief Raymond Soofo. Is that the Canadian Ministry of International Trade? Just to assure you that I’ll soon send $1.5 million by wire transfer to you so that you could start that importation arrangement.  Thanks and bye.”

The girls were determined to have him – for financial comfort and international connection. The boy made another sham call.

“Hallo! Could I talk to Japanese Prime Minister, please. My name is…” But before he could continue, his younger brother just emerged, not knowing what was going on, and talked to him directly in the presence of the girls.

“Good afternoon, brother. Our mom instructed me to take the calculator that’s in your hands.”

Watch out for next…

Source: http://literactworld.com/gsm-palaver-1/

Lee Ainslie: A Hedge Fund Maverick

LEARN FROM GENERALS OF THE MARKETS - PART 33

“My mood is best when I execute according to my plan regardless of outcome.” – Derek Hernquist

Lee Ainslie III is a trader and a self-made American billionaire who lives in Dallas, Texas. He’s happily married with kids. He got his BA at the University of Virginia and his MBA at University of North Carolina. He worked for Julian Robertson at Tiger Management. 3 years later, he began to run Sam Wyly's Maverick Capital whose initial fund totaled $38 million. Being a managing partner at Maverick Capital Ltd (New York and Dallas), Lee is a hedge fund manager who manages assets that are worth $10 billion. He was making decent profits when, unfortunately, Tiger management was making considerable losses. He’s involved in some boards and charities.

Lessons

These are the lessons from Lee, a trading maverick at Maverick capital:

1. Lee’s main watchword is integrity. Integrity is crucial in your personal character and business. Talented and experienced partners also help a lot. At the end of everything, the real asset a business can have is people. People tend to perform better when they’re inspired and encouraged.

2. Lee has no magic trading systems, yet his strategies work over time. Where many greedy and impatient traders evaluate their results on daily, weekly, monthly or even quarterly basis, Lee’s company evaluate their trading results in a few years’ time or so. This has allowed great stability, consistency and comfort.

3. Your beliefs about other types of business can’t help you in trading. Ironically the rookie speculators tend to take high risk and think every trading method they’re using is foolproof. This emphasizes the real need for coaching and the fact that trying experiences would personally be had by the budding trader.  In contrary to what certain traders want, Lee doesn’t double his portfolios quickly over short periods of time. On his funds, he makes something like 24%, 11.1%, 33.3%, 45.4%, 17.4% etc. He doesn’t go for 100%, 150%, 250% 1500%, 2600% etc. You know, that’s possible, but too risky. So go for smaller returns, which mean you need to lower your expectations.

4. It isn’t safe to think high probability trades are what bring low risk. What really brings low risk is small position sizing and conservative risk control. Targeting 1500%, 100%, 3500% and so on, is high risk which comes with very huge drawdowns. When one has an open position, one may feel reluctant to smooth them – particularly when the stake is high and one refuses to change one’s opinion and is determine to hold the positions indefinitely. On the other hand, targeting small percentages is low risk.  One advantage of low risk is that it comes with minor drawdowns when there’s negativity. In the year 2011, Lee’s main fund had a roll-down of 14.8%. You know, that roll-down was small enough to be recovered. Despite occasional roll-downs, Lee has always made a comeback. Do you have a positive expectancy strategy? You’ll occasionally experience short-term or protracted losses. However, if you stick to that positive expectancy, you’ll always make a comeback.

Conclusion: Good trading mentors breed great traders. Lee Ainslie once worked for Julian Robertson (father of hedge funds). Now he’s a great trader. No doubt, Julian Robertson would be very proud of him. Do you have a good mentor at the moment? Perhaps you can become another great trader, even if you capital is very much smaller.

This article is concluded with a quote from Lee:

"There are no 'holds.' Everyday you're either willing to buy more at the current price, or, if you aren't, you should redeploy the capital to something you believe does deserve incremental capital."

Source: www.paxforex.com

For further articles, go to: http://www.paxforex.com/forex-blog