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TrendFollower

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Everything posted by TrendFollower

  1. @JamesIG, The plus side of this is that it keeps traders in tune with market movements and their trades. The best trades are those which you live and breath. Editing a trailing stop manually with make sure traders are in tune with their trade. I know it is not idea but there are benefits if they want to be taken.
  2. @rimmy2000, yes I agree with your points. All I would add is that if @cobibudge continues to make profits and reinvest or trade these profits then his capital will grow and if they do this on a regular basis then they will not need any capital from friends or relatives.
  3. @rimmy2000, what type of trader would you define yourself as? Momentum trader? Swing trader? Punt on a technical level at that price cannot be a trend follower but I am interested in what principles you follow or adhere to on trading or investing? Do you trade Cryptocurrencies?
  4. @rimmy2000, no problem. Be careful in confirming any indicators for reversal and going long on Gold. The fundamentals for Gold and Silver going up are getting weaker in my personal opinion. Trump, North Korea, Russia, Brexit and Syria could not get Gold and Silver to shoot up. Are you aware of any strong fundamental drivers for Gold and Silver? You may be able to trade Gold from a technical perspective and profit. I accept that but it will be tricky.
  5. @michael20, no. @JamesIG, I understand the third bullet point as a criteria. What amuses me are the first two. What if someone traded 10 significantly sized transactions in leveraged derivatives per quarter over the past four quarters are made losses on every single one of those transactions? Surely that cannot be accepted as an eligibility requirement to become a professional trader? If someone is wealthy or has won the lottery / premium bonds and invests say €500,000 or more but has no knowledge or experience in trading or investing. Then surely this cannot be construed as someone who is a professional trader. They may just have large cash deposits due to large win. They may have asked a private banker / investment banker or wealth advisor to invest and manage their money. They cannot be a professional trader.
  6. @cobibudge, my personal opinion and it is only that is to consider whether your family relationships and friends are more important than trying to make money for them or even incurring losses for them. If you were to make losses with their capital then how would this affect your relationship with your family members and friend? My personal golden rule is never to take any relatives or friends capital and try and invest it for them. By all means give any advice should they seek it and help whenever possible but not to physically trade or invest their capital. From your post I cannot tell whether you are thinking of investing their capital or trading it and both are different. Also you post makes a strong assumption that you will make profits. If you are that confident then you must have an excellent trading / investment plan. May I ask what your trading or investment strategy is and what trading / investing principles you will be following? You can invest as a 'sole proprietor' so I do not understand why doing it through a company would be more attractive for you. For example if you trade using IG's spread betting then there is no income or capital gains tax to pay on the profits. The gains are tax free. On top of that is the use of leverage to maximise potential profits. One could argue that is the attractive part not necessarily whether it is to do it through a limited company or not. These are just my initial thoughts.
  7. @JamesIG, spot on. ? Very helpful for those who cannot be bothered to read my posts. LOL. ?
  8. @JamesIG, thank you for your quick response and clarification.
  9. @JamesIG, first of all can guests now post on IG Community? Guest Khingo Bhingo, yes he does sell trend following courses costing thousands of dollars. Whether this is expensive or not is based on personal opinion. If the courses makes someone thousands of dollars then one could argue that it was money well spent. I am not an advocate of such course and nor would I ever suggest anyone purchase them. There is enough free material out there to read which can give you a knowledge on trend following without the need for purchasing such courses. If someone cannot be bothered to make their own trend following trading plan then they really should not be trading. Why should he have a trading record? If there any law that suggests that one must have a trading record to sell trading courses? He is using information obtained from experienced and successful traders and trying to include them in the courses he offers. The owner of a pharmacist does not need to be a qualified pharmacist themselves. They can employ qualified pharmacists. The same applies for the owner of a chartered accountancy firm. They do not need to be a qualified chartered accountant themselves. They can employ them. It is not Michael Covel that is important so too much time should not be wasted on him. He is merely the individual presenting the trend following information to an audience. It is the people he has interviewed and what they have to say which is important.
  10. I think for IG to offer Bitcoin Gold on the long side must be inefficient hence why you cannot open a long position. I use the word 'think' as I do not know that for sure but I assume that may be the reason. By having a closing position only it allows IG to start winding down themselves and reducing their risk on Bitcoin Gold.
  11. It is pointless IG offering Bitcoin Gold when it is constantly showing: Closing only: Market unavailable to open My comments above back in April 2018 highlighting this very point. I think what has happened is that due to the 'hard forks' Bitcoin Gold was created and so IG has to offer Bitcoin Cash and Bitcoin Gold on its platform. Now what has happened is that the demand for going long on Bitcoin Gold is just not there on IG's platform so they are just allowing existing holders to close their positions and winding down. These 'hard forks' are going to continue being an issue until some sort of strategy is devised to deal with them as at the moment IG is not offering Stellar yet is offering Bitcoin Gold and looking at the results of the poll and posts on this forum that there appears to be a bigger demand for IG clients in Stellar than Bitcoin Gold.
  12. Deutsche Bank - Cryptocurrencies, Blockchain and Bitcoin - How technology is reshaping finance https://www.db.com/company/en/cryptocurrencies-and-blockchain.htm
  13. Making sense of bitcoin, cryptocurrency and blockchain https://www.pwc.com/us/en/industries/financial-services/fintech/bitcoin-blockchain-cryptocurrency.html
  14. This is a very interesting article which just shows how big Cryptocurrencies could become going forwards in the future. European Parliament: Cryptocurrency Could Replace Fiat Currency https://cryptoslate.com/european-parliament-cryptocurrency-could-replace-fiat-currency/
  15. Reasons given for the price behaviour of Bitcoin today. Bitcoin loses steam after SEC denies Winklevoss ETF https://www.cnbc.com/2018/07/27/bitcoin-loses-steam-after-sec-denies-winklevoss-etf.html
  16. @Ludwik Chodzko-Zajko IG, Can I absolutely 100% confirm that my existing positions for Cryptocurrencies in IG's Spread Betting account will remain at their current margin rates? I appreciate your answer for above for FX but for Cryptocurrency I just want to be 101% sure if that is at all possible.
  17. @JamesIG, thanks James mine is resolved too. Its a shame as I ended up deleting messages for no reason.
  18. @JamesIG, as I can't send you a message I thought I would advise you that I have started a new thread called Trend Following by TrendFollower.
  19. @cate, Thanks for posting that as it supports my argument to IG and that I am not going crazy! ?
  20. @JamesIG, Apologies but I was struggling to send a screen shot so above is the best I could do. I click on the envelope sign and the the 'Compose New' blue sign. Then above is the message I keep on getting after deleting all my messages bar three short ones.
  21. Your inbox is full. You must delete some messages before you can send any more. OK
  22. @JamesIG, I have deleted most of my messages on the IG Community platform and I still constantly keep on getting the message below. Your inbox is full. You must delete some messages before you can send any more. There is something wrong here as I literally only have three short messages left in my inbox and I still cannot send a message and get the above message. This part needs improving. So at the moment for me it is a ?.
  23. If one looks at the price action and behaviour of Gold then it is a very profitable trade when shorting. As I have stated in may other posts in my experience during a downtrend so sharp as Gold's the timescale will be far shorter and action be far more violent when compared the to the upward trend historically for Gold. Here one needs to ensure it identifies any indicators which suggest a potential trend reversal. A trailing stop loss can help take any emotion out of the trade but at present there are no indicators for a trend reversal. In situations like this one must not exit too early and must ride the trend and maximise their profits. At the time of writing this post Gold has hit a low of $1218.45. The fear for the Gold Bulls are the $1128 level which could become a reality if $1200.00 is breached and there is a serious movement away from Gold and into the likes of Bitcoin.
  24. I am going to take this opportunity to start a new post on 'Trend Following'. I am going to try to keep it as simple as possible for any new investors / traders who may be interested in trend following principles and adopting them within their trading / investing strategy. Even existing or experienced traders / investors may find this useful. If the more experienced traders / investors would like to enrich this thread then I would encourage them to do so, thus enhancing the overall discussion on trend following. I will start off by stating, "Failing to plan is a plan to fail." So always make sure you have a trading / investment plan that you can both execute and using discipline stick to. Have strict rules that you can follow. This is crucial as without a clear plan with rules one simply cannot trade effectively using trend following principles. One must understand that trend following has its flaws and it simply cannot predict future market movements. You will make losses. The key is to ensure that your profits cover your losses even if that means that out of ten trades you profit on three and make losses on seven. That is fine as long as the profit on the three winning trades is greater than the losses on the seven losing trades. Accepting this may mean a total change in mindset which may prove to be difficult for some. This is where an individual's personality comes in. One must assess which markets it is going to trade and have a system in place to help identify trends both upwards and downwards. Trend following aims to capture the middle of the trend so you never get in at the bottom or sell at the top. Volatility must be embraced and seen as an opportunity. Reacting to market trends as they happen is key. For those who are familiar with my posts then you will see that demonstrated on commodities such as Orange Juice, Cotton ,Wheat, Lumber, etc. No one can predict the future but using trend following principles based on historical and current price behaviour one can make assumptions. These assumptions can only be tested and presented as evidence based on the price action. It is ok to be wrong and one must not be scared or worried about what others may think. I am sure I have made many incorrect assumptions based on historical and current price action in the past and I am sure I will continue to do so. Making assumptions and then testing those assumptions is a key part of learning and gaining valuable experience. One can learn a lot more from their losses than they can from their winners. This can assist in coming up with sound risk management principles within the trading / investing plan. Be ruthless and trade both long and short depending on price movements. For those that are familiar with my posts will appreciate that I am an advocate of Cryptocurrencies and Blockchain. I have a long term long position in Bitcoin and Ether using XBT Provider One products and opened a long position when Bitcoin was around $2000.00. That is a long term trade. Now using spread betting on IG's platform I recently shorted Bitcoin even though at the same time I had the long position. The price action for Bitcoin merited a short position which using basic technical analysis one could not argue against. The trend had reversed to short. Now some of you may be wondering why I did not close my XBT Bitcoin trade. I am human and though one must try and eliminate emotion from the trade my flaw is that I believe in the long term story of Cryptocurrencies and Blockchain. This is only a flaw if they all come crashing down but I cannot predict the future so I simply do not know. Due to my convictions and beliefs which could be wrong all I can do is ensure that if any shorting opportunities come on Cryptocurrencies then I take them as I have two long positions in Bitcoin and Ether. This is where IG's Spread Betting platform works really well for me. It allows me to short both Bitcoin and Ether with leverage. Trends can change very quickly and this is where risk management comes in. One must have entry and exit rules which they stick to. It is fine to adapt these rules over time as experience may dictate a change in entry and exit points. Something I always think about when placing a trade is, 'Knowing your exit price before you enter the trade'. Stop losses and proper use of leverage are fundamental. One must let their winners run and not take profits too early. Only when there are indicators of a trend reversal must one exit and this should be done by the stop loss let. TrendFollower Tip: Trailing Stop Losses are great on winning positions so if you are not using them then you may want to consider them. I have kept this opening post very basic and simple. The detail will follow depending on the engagement this thread receives. I am out of the country from 31.07.18 to 26.08.18 so I am not available but on my return normal service will resume!
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