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TrendFollower

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Everything posted by TrendFollower

  1. TrendFollower

    Potential 'Long' Gold Trade

    Gold and Silver have both seen sharp downward price moves. This has occurred before. Profit Taking + New Short Positions + Stop Losses Triggered = Sharp Downward Correction Gold and Silver should rally back up after a short sideways dance. Gold needs to stay above $1306 otherwise we could see a bearish trend emerge. Silver needs to stay above $15.59 area otherwise it could be bearish.
  2. TrendFollower

    Copper

    @Caseynotes, This is rather interesting. An increase in Copper prices could be viewed as signs of recovery or improvement in construction and manufacturing.
  3. TrendFollower

    Newbie - How to take profit

    @daveyman, You close the trade / deal. For UK Spread Betting if you had 'bought' then you would SELL and if you had 'sold' then you would BUY. This would lead to an execution whereby you close the trade. This will release your profit if it is still a profitable trade at the time of closing the trade.
  4. TrendFollower

    Potential 'Long' Gold Trade

    @OceansJess, I think the best way to follow Gold is first of all look at its price action. Support this by looking at whether the trading volume and open interest is increasing or declining. Have a look at trend strength and momentum. Try and establish if investment firms are increasing their allocation in Gold within their clients investment portfolios and Gold related investment funds. Look at supply and demand which will include what large Gold mining companies are doing. Read about the latest news in relation to Gold. I attach a link which you may find useful. https://www.ft.com/gold Here is another link which you may find useful. https://www.dailyfx.com/gold-price World Gold Council https://www.gold.org
  5. TrendFollower

    Trend Following by TrendFollower

    @Dantro & @Dantro, Price action is key when using trend following principles. In fact I would argue that price action is key regardless of the types of trading principles one follows. Yes more reading needed. Research trend following or go through this thread from the beginning as it may assist you in getting a better understanding of trend following and price action.
  6. TrendFollower

    Live Cattle & Feeder Cattle by TrendFollower

    Remember if the trend reverses then use indicators such moving averages (trying to keep this very simple for you) to ensure your stop loss is set to execute an exit should the trend reverse.
  7. TrendFollower

    Trailing Losses

    @Dantro & @Dantro, Do you trade via IG's shares platform, CFD platform or Spread Betting platform?
  8. TrendFollower

    Best place/company to purchase Copper

    @larrybreheny10, You can trade High Grade Copper or Copper via IG's Spread Betting platform. However you state 'buy' copper and 'purchase' it. Therefore are you looking to invest in Copper rather than trade it? I would conduct some 'fundamental analysis' on the supply / demand of Copper. Have a look at the countries which use and purchase / sell Copper the most. How are those economies fairing right now and what are they likely to do going forwards? Are any of them likely to face recessionary pressures? Copper is a good barometer of the health of the economy. You may want to research China and its use of Copper. I don't want to give you all the questions and answers but you really need to conduct some research and analysis. If you are looking at trading Copper then have a look at its moving averages, volume, momentum, trend strength and make an informed decision. Think about your exit price before entering in case Copper experiences a trend reversal and the trade goes against you.
  9. TrendFollower

    US 500 - Potential Shorting Opportunity

    For me the 'Litmus Test' is the three mountain test from a chartist perspective. All three of the major US indices must surpass the highest point of this three mountain test and stay above it otherwise I fear there could be a monumental shorting opportunity coming very soon. My gut instincts tell me that there is a large correction and downward price action imminent on all three US indices. However, one cannot trade on gut instincts and the price action is not supporting this at the moment. Therefore the 'short' trade is not on. The key for me is to identify trends as early as possible. Here I am applying my 'Assumption Testing' methodology. I have an assumption that there could be a humungous shorting opportunity on US indices. I am monitoring the price action of all three. If there is to be a trend reversal then I should spot it pretty quickly and be able to open a 'short' position should certain indicators meet my requirements. Identifying the best and strongest trends to trade is an art and requires one to be ahead of other traders and investors in spotting such trends. This requires assumptions which one allows the price action to test. Without this one can never spot strong trends earlier than others.
  10. TrendFollower

    Potential 'Long' Gold Trade

    Gold and Silver still pausing for breath as we all await its next direction. The upward trend is still intact so it should be upwards but the price action will soon put us out of our misery. It seems these corrections along the way could attract more investors and traders to both Gold and Silver.
  11. TrendFollower

    Bitcoin - Price Behaviour

    Unless Bitcoin can stay consistently above $4200 level then I fear that there may be another large drop coming and another new low looming. Bitcoin needs some seriously positive news to begin a major bullish trend upwards.
  12. TrendFollower

    Trailing Losses

    @Dantro & @Dantro, So you are from the UK too. Yes it is strange and yet another example of a 'quirk' from IG!
  13. TrendFollower

    Trend Following by TrendFollower

    The risk you have is that you have joined the trend quite late in the part so you are prone to a potential sharp trend reversal. The key is to identify strong bullish trends as early as possible which means monitoring price action.
  14. TrendFollower

    Live Cattle & Feeder Cattle by TrendFollower

    The question here is whether Live Cattle will try and surpass its 2017 high and then 2016 high?
  15. TrendFollower

    Trading US Stocks within an ISA

    @kpnuts, Yes, please do let me know. It will be interesting to see if IG offer a better selection and proposition of US shares than your current broker.
  16. TrendFollower

    Trend Following by TrendFollower

    @Dantro & @Dantro, The main reason for having such a good trading day is because you are trading with the trend rather than against it. Also the trend strength is strong and momentum is in your favour. This can of course turn at any point but until it does stay in the trade.
  17. TrendFollower

    Trend Following by TrendFollower

    @Dantro & @Dantro, One of the key principles of trend following is letting your winners run. So not to take profits too early as otherwise you may miss the big profitable move of the trade and trend. Stop loss management is all about effective risk management. It is about cutting your losses early so that they do not get too big but at the same time if the asset you are trading is extremely volatile then to ensure you do not get stopped out too early either. It is a difficult one. Try and ignore the so called experts (market noise) and especially the TV News, Newspapers and Online Media. Let the price action determine your trade. I am not suggesting or tipping Palladium or Live Cattle though I trade both. I am highlighting the trend from a 'chartist perspective' in terms of strength and length compared to Oil which is what you are trading. I think an important factor for you is which trading strategy you wish to adopt? Do you want to be a swing trader? Do you want to be a momentum trader? Do you want to be a scalper? Do you want to be a trend follower? Do you want to be a contrarian trader? Do you want to be a day trader? You must have a trading plan, trading strategy and a trading system to have any chance of being profitable over a longer period of time. Failing to plan is simply a plan to fail.
  18. TrendFollower

    Trading US Stocks within an ISA

    @kpnuts, No problem. It will be interesting to see if it is mainly US large caps or whether you can invest in US small and mid caps too?
  19. TrendFollower

    Live Cattle & Feeder Cattle by TrendFollower

    Traders who adopt trend following principles will love to see strong trends as you can see in Live Cattle. Trading with the trend increases your probability of success in the trade. The odds tilt in your favour. It does not guarantee a profitable trade but merely increases your chances. Trading is difficult at the best of times. The markets are ruthless. Trend following may not be the most profitable strategy but it is a strategy that can certainly decrease some of the risk associated with trading by never trading against the trend.
  20. TrendFollower

    Trend Following by TrendFollower

    @Dantro & @Dantro, I would suggest you concentrate on just one specific asset first whether that be FX or Commodities. Within that concentrate on one FX pair or one commodity which has the strongest price action and trend. Use technical indicators to help you establish this. For example if you look at the chart of Gold and Oil then Gold is the stronger trending commodity. Look at the charts for Live Cattle and Oil and Live Cattle is the stronger trending commodity. Look at the chart for Palladium and Oil and Palladium is the stronger trending commodity. So I am not sure how you are selecting your commodity trades but I would suggest selecting one specific commodity and trading with the trend rather than against it.
  21. TrendFollower

    Live Cattle & Feeder Cattle by TrendFollower

    Live Cattle is still going!
  22. TrendFollower

    Bitcoin - Price Behaviour

    More of the normal service is resuming with Bitcoin et al. There is a lot of capital entering and flooding the Cryptocurrency market in anticipation of the next bull run. There will be plenty who will not want to miss out if this was to occur and hit several price points. If the price action supports the technicals then there is the possibility of lots of capital flooding this new asset class causing large daily price increases in not just Bitcoin but the other smaller Cryptos.
  23. TrendFollower

    Potential 'Long' Gold Trade

    Gold and Silver both consolidating and looking confused at the same time.
  24. TrendFollower

    Trend Following by TrendFollower

    US Indices are showing a remarkably resilient trend in the face of 'so called experts' predicting doom and gloom. This may still happen but from a purely trading perspective the 'Trend is your Friend' is of paramount importance when applying trend following principles. The price action has been very positive and since the low of Christmas 2018 any long trade would have been very profitable over the past two months. Using leverage effectively would have increased profits over this two month period. Even after all the daily charges going 'long' on US indices over this two month period would have been an excellent trade. Trend following needs to take personal views, personal bias, personal opinions and 'noise' out of the equation and trade based on current price action. There is no room for emotions! Looking too much into history and what happened historically can also be dangerous as it causes one to have an expectation that does not materialise. The market is not there to satisfy what some think should happen. New trends can emerge and a new future can replace historical trends and if one does not follow the price action then one can miss out in the participation of some of the greatest trends.
  25. TrendFollower

    US 500 - Potential Shorting Opportunity

    @elle, Yes I have seen this before. I think it may have even been you who posted it a few weeks back.
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