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Showing content with the highest reputation on 02/01/19 in all areas

  1. 1 point
    I wanted to share some simple and basic 'Fundamental Analysis' with regards to my 'Long' Gold and Silver trades and 'Short' S&P 500 trade. The Gold price is continuing to rise as equities around the world are declining. Gold is priced in USD and US Equities are in 'bear market' territory. US Federal Reserve has raised interest rates by 25 base points. There are a lot of 'risks' at the moment in terms of equities declining, Trump's Trade War with specifically China and monetary policy. These conditions are favourable for Gold going forwards. For those who may not be familiar let me explain when a market is in 'bear market' territory. It is when a market has declining by 20% or more from its highs. The biggest worry is any 'recessionary impact' that may come going forwards. A lot of people have obtained cheap credit whilst interest rates have been at all time lows. If interest rates begin to increase then if these people have not managed their risk properly then they could be in trouble as their repayments begin to increase. Business are effected by interest rate increases too so as their loan repayments increase their costs increase which could lead to job cuts. On top of this major technology stocks have entered into a 'Death Cross' recently. Now for those not familiar with what the 'Death Cross' actually means then it is when a share's 50 day moving average goes below its 200 day moving average. This tends to signal a change in trend from upwards to downwards. I think it could take months or at least the first quarter of 2019 for this bear market to try and bottom if not longer. I have a 'feeling' that this is going to be a enormous downtrend and those who do not short such opportunities are going to miss some exceptional opportunities. These are just my personal thoughts based on my 'gut' and 'instincts'. So please do not take this as 100% likely or it is given. I could just as easily be wrong. Now in the past on IG Community traders have posted many threads and posts about 'Buy the Dips'. I would absolutely not buy the dips right now on such indices trending strongly downwards. What I would be looking to do is 'Sell The Rips'. This is the opposite of the buy the dips. During any prices rises during a downtrend one adds to their position and adds to their short position. It is being reported that indications are the more declines are likely to be seen in the weeks and months ahead. It seems the major indexes are producing new lows which gives me the impression that the worst is still to come. What makes it difficult for us traders is that volatility is increasing. This is great for day traders and shorter term traders but for anyone who holds long positions it becomes difficult with the risk of stop losses getting executed. The dynamics of the current scenario is fascinating. I never thought I would be 'Long' Gold and yet I am. Risk tolerance is declining and along with it the markets are declining. Now one could infer that the price action of Gold is making it look like a potential safe haven for investors. There is the potential of a weaker dollar which could lead to higher Gold prices. I have openly stated I am not a fan of Gold. However, I saw an opportunity to get in early on what seems to be a trending upwards movement based on price action. We have the US Government shutdown which seems to be becoming a regular occurrence. For me this creates uncertainty in the market which is going to bad for stock markets and positive for the likes of Gold. When one adds the US Monetary Policy into the mix then one can see why things are unravelling the way they are.
  2. 1 point
    DX is the USD vs a basket of currencies shown on IG as US Dollar Basket, AKA Dollar Index (DX).
  3. 1 point
    Well it's definitely going up @Nelsy-Boy... But seriously folks, looks like the Weekly Triangle line on the EURUSD held firm as resistance this time, sending price back down but will it turn back before making a lower low or carry on down? Time will tell. There are 3 overall scenarios: any retrace we are going to get on EURUSD we already have and price will hammer down from here, especially once it breaks through significant support levels. we will see a new lower low on EURUSD (higher high on DX) before another attempt to retrace. we will see a turn any time now that sends USD down with a thump to an initial wave completion (see chart below) Regarding scenario 3, if it is likely then we should see a turn on DX around about the retest of the large scale Triangle line. However this is not a very strong line and I am less convinced when I look at the equivalent picture on EURUSD. Keeping a close watch on price action will be key if you want to try to catch it early but the safer bet is to wait for a breakout from the Triangle on EURUSD (and similar set ups elsewhere on other pairs).
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  5. 1 point
    Please consider adding the VWAP indicator to the platform. I see it's used in Pro Realtime / Meta trader, but for some reason not on the main web platform.
  6. 1 point
    Or use an indicator like this But i think its only working when prorealtime is running ? try it on demo first
  7. 1 point
    In prorealtime you can draw a line and then attach alert like this
  8. 1 point
    @tomcagsey, No problem. Ok at least we are clear that you are looking at investing to create long term wealth. This forms the 'foundation' of my own personal investment portfolio. I will talk about what I do personally and then you can decide how you wish to proceed. That will be your decision. First of all one must have an investment plan with a clear strategy they intend to execute to fulfil their aims and objectives. I invest in 20 different investment funds every month via direct debit. I am using a 'Cost-Pound Averaging' strategy. However, when there are any major dips, corrections, reversals, etc. I invest lump sums into these funds to assist in producing better returns for me when the funds begin to recover. I will never invest lump sums unless there is a major drop otherwise I will merely continue investing every month. I have being using this strategy for many years now and it has worked a treat and nearly every year I am in double digit annualised returns. My investment fund portfolio has never overall been in a loss since inception. It has always been in profit by using this strategy. Now that is not to say that you must follow my strategy. I am merely presenting what I actually do. I always think one must learn to walk before they can run. If you are new to investing then investing in funds, OEICS and investment trusts is going to be better than starting to invest in individual shares. That will come later. Start to build an investment portfolio. If you are young then you can invest in 'capital growth' funds. If you are approaching retirement then you may want to consider 'income' funds. I intend to switch from capital growth funds to income funds when I am more nearer to retirement. I am no anywhere near that stage yet! In terms of research this is down to what 'themes' and 'countries' you think will be successful. So for example, I am investing in Artificial Intelligence, Automation and Robotics funds. That is a theme. I am also investing in Frontier Market, Emerging Market, Micro Cap, Small Cap and various other funds. I am a high risk capital growth investor so the choice of my funds reflect my risk profile and tolerance as an investor. If you wish to build an income fund portfolio or create your own income portfolio by investing in stocks directly based on yield and income generated then that would be different to what I do. Having an interest and awareness of 'Economics' I find helps. Conducting research, reading material that can give you the knowledge to make effective investment decisions is very important. I believe in the long term 'India' growth story. Therefore, I invest in a India fund. Now there will be many funds that invest in India and you have to pick the one that you think based on costs and performance to date will perform the best going forwards. What is their asset allocation? Which companies is the fund investing in? Why have other funds outperformed a particular one you are looking at? What are the economic conditions in the country you are looking at investing in? This is just an example. You will need to carry out plenty of reading and conduct lots of research on the different types of funds available. Which investment themes do you understand more? Do you have any expertise in a particular theme? What are you views on the US economy? How do you think the UK economy will do after Brexit? What is your understanding of the potential of Asia? Do you understand the difference between investing in large cap funds over mid cap and small cap funds? What about micro cap funds? It will be a long journey with plenty of hard work but it will be worth it if you begin to create long term wealth for yourself and your family of course.
  9. 1 point
    @JamesIG, thanks for that. Tom's first post indicates he is a member hence he must have signed in. Tom's second post indicates he has not signed in as it is showing him as a guest.
  10. 1 point
    (side note @tomcagsey - please note you need to make sure you login before you post - this way it links all the content together and notifies you of any replies. Thanks!)
  11. 1 point
    Hi @DSchenk, Yes, the DMA platform will only directly link though a CFD account. Though I don't use the DMA platform myself others have written that they use the depth of market information on the price ladder to help make decisions for trading on their PRT platform with a spread bet account.
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