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TrendFollower

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Everything posted by TrendFollower

  1. @AbDXB1345, I think Bitcoin is due to rise and catch up with some of the alt coins recent rise at some point. It is defending the $10k area remarkably well. Every time it has briefly gone below into the $9k area, it has bounced back above $10k quickly and strongly.
  2. @BigDeal, Thanks for your input. Very much appreciated. I would disagree because I personally think that Spread Betting is only too expensive to hold overnight positions for very long if your is trade is wrong and the trade is going against you. For this reason your stop loss would have executed and you would not be in the position so you would not be paying overnight charges. The only inference I can make to your sentence is that you are assuming that someone who is using Spread Betting is not using stop losses? Now just think if you are trading one of the strongest trending assets whether it be the German Bund, Gold, Bitcoin, US indices, etc. You are using leverage and you are trading in the direction of the strong trend. Even with overnight costs as long as your trade is right, the profits using leverage far outweigh the costs. I can only assume you are think it is expensive because you are looking at losing positions. But even if you are looking at losing positions if you have a trading style which requires cutting your losses short then the overnight charges should be minimal because of your stop losses being executed. So if you have a position where you are holding for weeks and months and paying overnight costs daily it means that your trade is making you profits and your trade is successful and right. Every day that goes by and you pay overnight charges it means the trade is moving with the strong trending action. Of course there may be days in between where it goes against you but overall the trade is moving in your favour. I accept there will be days here and there where you pay overnight costs but in general the trade is going well. For this reason I disagree with your sentence based on my personal experience. Yes using Spread Betting as a tool is extremely challenging. There is no doubt about that. Also this tool is not effective for all trading styles. I accept that. What if the assets you do not trade like FX, Commodities, Cryptocurrencies, Bonds, Stocks are all trending stronger than the indices you are trading? In terms of 'odds and probability' trading the strongest trending assets at a given time you are increasing your chances of success and being profitable. By trading the strongest trending assets you are tilting the odds and probability in your favour. Effective setting of stop losses is a very important part of 'Risk Management'. Knowing your exit price even before you enter the trade is crucial to 'Trend Following Principles' which I follow but I accept that you do not. Just like you need money to invest in a property or money to invest in art, expensive jewellery or classic cars, you need capital when looking to trade. Capital is an important requirement and protecting that capital at all costs is crucial as without it you cannot trade regardless of whether you have a small or large amount of capital. This is where effective risk management comes in. If you have that then you will have a 'robust exit plan'.
  3. @nit2wynit, I cannot show you how to day trade as I do not day trade myself. I thought I made that clear in my previous post. If you hold positions for months then you are not day trading. I hope that is clear. 😀 In terms of how much you need? Well I could give you any figure, how would you confirm it is right or wrong? The reality is that you need enough capital to cover your margin requirements and some more. This all depends on what assets you are trading as the margin requirements on Bonds is far greater than margin requirements for say Gold. The margin requirements range for Cryptocurrencies and are quite reasonable for indices. I do not trade FX. It does not matter if you are trading small amounts or large amounts but I would suggest trading initially the minimum margin requirements until you can demonstrate a profitable trading system. Try selecting something which is trending strongly and has lower margin requirements and don’t day trade and just hold the position until the trend changes. In terms of overnight costs they will be the bare minimum if you are trading based on the lowest margin requirements and this will vary depending on what you are trading. Just make sure you keep enough capital to cover your daily overnight charges. Make sure you set stop losses so that if you are wrong and the price trends in the opposite direction then you are out. I am intrigued if the ‘know it alls’ and ‘experts’ with lots of knowledge and who are hardly ever wrong share their live trades with you and show you how it is done. 🤔
  4. @RezaFHP, I am taking it that you are referring to Goods and Services Tax (GST) in India? You must remember that there will be people here on the IG Community from all different countries. I would strongly suggest that you contact a financial adviser in India or research yourself any taxation matters. If someone here on the IG Community were to give you wrong advice on taxation then it could have serious implications for you. You could contact IG Customer Services in India (if there is any operation in India) and ask the question but I suspect they would give you the answer similar to mine in terms of contacting a financial adviser or accountant for any taxation advice. Your first port of call should be researching on the Internet. If you can find credible sources / websites then that would be a good place to start.
  5. @Caseynotes, Yes. Finally someone has hit the nail on the head here on the IG Community. There is a tendency for a lot of traders to want to trade frequently without even assessing whether the conditions are appropriate or not. They have decided that they want to make say £200 per day trading so they are going to trade 'something' regardless just to try and make their monetary target. The 'trading conditions' need to be right. The appropriate signals and indicators needs to have been triggered. For those who look at fundamentals as well they need to be in tune with the price action and support it so that it is clear why the price is moving the way it is and the possible reasons behind it.
  6. @nit2wynit, I have shared live trades and potential trade ideas on the IG Community. If @dmedin keeps on losing money then he must stop doing what he is doing. Now I agree with you that those that preach should prove they 1) actually trade and 2) make profits consistently year after year. I totally agree with you and have had this battle with two particular individuals on the IG Community. They have given me the line that I am looking for someone to show me because I don't know what I am doing, etc. I do not have a clue, etc. Now I have actually shared live trades on IG Community. I got a lot of stick and abuse for doing so from certain people. So @dmedin, In my personal opinion the best trading strategy for Spread Betting some form of 'Trend Following'. Now this could feature trading 'Breakouts' and identifying the 'Strongest Trending Assets'. This would be based on price action, volume and the sharpness of any move upwards or downwards. It would involve going long or short depending on the strongest trending asset's direction. Best spread betting strategies and tips https://www.ig.com/uk/trading-strategies/best-spread-betting-strategies-and-tips-190524 Now what IG has produced and provided (above) is actually quite good. Also do not overtrade. This is something I am seeing a lot. A need to trade when there is no need. I am not the following: Day Trader Frequent Trader Even Weekly Trader My positions are held for months unless I am wrong in which case my stop loss will have executed my exit. I do not trade on a regular basis. I think this is one of the mistakes that traders make. Some people who day trade feel they have to place a trade on a particular day because they have decided to day trade. If the set up is not right, the conditions are not right then you risk losing on that trade. This is exactly what we are seeing on the IG Community. If you are making loss after loss then why day trade or even trade frequently? Take a step back and choose and pick your trades wisely. This will help your confidence and also increase your percentage in terms of winning trades which should lead to an increase in profitable trades.
  7. @dmedin, What if the inflation rate was say 3% then do you think the savings account would still make you money in real terms? Spread betting only loses you thousands if you trade thousands without a 'Trading Plan', 'Trading Strategy' and a 'Trading System'. If you use an inefficient trading system to trade using Spread Betting then I am afraid it is not the platform which offers the Spread Betting facilities fault but the traders fault. Just like it is the gamblers fault for betting on a horse when they know very little about horse racing or betting on a football match when they don't really follow or know much about football. Spread Betting is merely a tool which one can use in their trading armoury amongst many other tools like CFD's, like Futures, like Trading Accounts, etc. What you would not want to do is give a Doctor a spanner to use in an operation and give a Mechanic a scalpel. If a Doctor decides to use a spanner in an operation and the patient dies or the operation is not successful then is it the spanners fault or the Doctors fault for clearly using the spanner? Also there may be certain operations where a spanner could be used just like there may be certain times when a Mechanic could use a scalpel but it is making the correct decision on when to use them which is key. If you are using the wrong trading strategy on spread betting then you will lose more times than you win. I feel like a parrot but unless you are trading the strongest trending assets at any given period in the direction (not against) the trend then you are really going to struggle with using spread betting. Traders must accept they are to blame when making incorrect, inefficient and inaccurate trading decisions rather than blame other factors. It is the trader which decides to use spread betting and makes that decision. When I make a loss on a trade, it is not IG's fault or the Spread Betting's fault. It is my fault for a wrong trade execution. I decide the parameters for my trading. I decide the entry and exit points not the spread betting platform.
  8. Wow. Just look at the volatility. The price action is erratic to say the least. This has happened before on quite a few occasions in the past. In one hour from my initial post to this post the price action has reversed. It is all about waiting for a clear signal for which direction these indices are going to go in.
  9. I think we now have the potential and it is potential shorting opportunity on Dow Jones (Wall Street), S&P 500 (US 500) and Nasdaq (US Tech 100) as well as other indices. The FTSE 100 is not looking too good in advance of Brexit. The 'daily' chart is looking rather bearish. The price action is looking bearish. However the price has not breached any of the key moving average indicators as of yet for the US 500. Hence why I am using the word potential in terms of trading opportunity. Some of the ultra aggressive traders will already be short the S&P 500 and other similar indices but if they are wrong the price does not continue downwards then they will be out quickly.
  10. Stellar is up a staggering 28.46% at the time of writing this post. Which asset can give you such a return in just one day? From a day trading perspective these sort of returns are great. Even if you catch the middle of it, it is far greater than what some assets trending strongly produce in a whole week if not longer! It has crossed its 20 and 50 DMA's on the 'daily'. It is looking more likely than not that it will cross its 100 DMA shortly on the 'daily' and then go for the 200 DMA. If it can then it could attract a lot of traders to the Cryptocurrency arena and Ripple is showing a similar trend and other alt coins are also looking like they want to break out of the current trading range on the long side. All eyes will be on Bitcoin to see if it is willing to not only join in but eventually lead the party to new highs.
  11. Ripple is up over 7% at the time of writing this post. It has crossed its 20 and 50 DMA's on the 'daily'. The question is whether Ripple is more likely to continue with this price action and trending action thus crossing its 100 and 200 DMA's? Or is this going to reverse sharply and give away all its recent gains?
  12. @MJW, An ISA is an efficient 'tax wrapper'. So anything you invest or trade within an ISA is free from UK Income Tax and UK Capital Gains Tax. I appreciate this response is more for UK based investors and traders. Anything in a normal share dealing account will be liable for UK Income Tax and UK Capital Gains Tax should the thresholds for both be met. Please see HMRC's website for up to date details of these thresholds for the current tax year. The beauty of an ISA is that you do not even need to include your investments or trades within the ISA on your UK Self Assessment tax return. However you may have to within a normal share dealing account should you cross the relevant thresholds. Now without sounding mean or horrible (I don't mean to be) you could have obtained this information on the internet and the mere fact that you did not and are more prepared to rely on total strangers on the IG Community worries me slightly about your mindset and mentality when it comes to investing / trading. You need to put the effort and time in. You need to conduct the necessary research using online sources and books. This was a fairly simple question and the fact that you did not know the answer or were unable to find out by yourself both worries and troubles me about your ability to make effective investment and trading decisions at this moment in time. The best advice I can give you is to spend the time to learn as much as you can before even attempting to invest or trade a single penny. Acquire knowledge using 'effort', 'time' and your 'passion and enthusiasm'. Please accept my humble apologies for sounding mean but I think this will post if you take it constructively will really help you going forwards, fingers crossed. 🤞
  13. @jameswalker1 Those which allow you to trade an asset with less than $100 margin requirement. So for example Gold is one of them on UK’s Spread Betting account. You will not be able to trade many but there are a few. The problem you will have is that that amount of capital is not enough to place a leveraged trade on most assets available on IG.
  14. @backwardation, What trading strategy do you possibly use that means you get 15-30 of these messages every single day! If you ignore such messages then it most probably means you have insufficient trading capital to cover your margin requirements on those trades. It means IG can close those positions resulting in a loss of capital for you. Capital destruction is one of the biggest enemies for a trader. Now it may be that you have a trading style which I have not considered and it may be hugely effective. Are you able to articulate how the way you trade leads to you 15-30 of these messages daily?
  15. I came across this which is rather interesting. The purchasing power of the US Dollar has been in sharp decline since 2008 as you can clearly see from the chart above. Now this is rather interesting. Do the wealthy really want their wealth in US Dollars? It looks like the US and other more developed countries are debasing their currencies. It is well documented that they have gone through QE programmes and as a result increased the supply of their currencies. The question for me now is where do the wealthy in this world want their money situated? Which currency? Which assets? The answer will play an important driver in future upcoming trends. We have already seen Bonds and Gold move up in price significantly over the past year or more. We could see that trend continue. We have also seen Bitcoin outperform all other assets in 2019. That trend could also continue. Can it be deduced that the wealthy have allocated some of their capital to Bonds, Gold and Bitcoin to diversify and manage their risk should there be any financial, economic or political disaster looming?
  16. BitPay Now Lets Merchants Accept Ethereum’s Cryptocurrency https://www.coindesk.com/payment-service-bitpay-announces-ether-integration
  17. Ether is up over 5% at the time of writing this post but the chart for Ether looks more enticing to me than say Bitcoin Cash and Litecoin. If Ether can surpass $233.00 then I think it could begin to get very interesting. It is hard to value Ether at the moment. I mean it is hard to value Cryptocurrencies full stop. Ether looks exciting with the current price action. The price for Ether has surpassed its 20, 50, and 200 DMA's. It is looking like a stronger possibility than before that it will try and surpass its 100 DMA on the 'daily' that is. The 20 DMA is beginning to slop upwards which is very interesting. Keep a close eye on Ether short to medium term as it could present a fantastic trading opportunity.
  18. Litecoin is up 5% at the time of writing this post but it is no longer the best performing Cryptocurrency as Ripple and Stellar have taken that mantle for today. I fear that Litecoin is really going to struggle to break through $80 to $90 range. I just don't see it going through this unless there is some really positive news flow for Litecoin and Crypto's in general. I think the same for Bitcoin Cash as well.
  19. Bitcoin Cash is up 6% at the time of writing this post and currently trading around the $325 price area. I think it is going to find some rather tough resistance around the $345 price area as it tries to approach and surpass $350. I am not so sure it will be able to breakthrough unless there is some seriously positive news on not only Bitcoin Cash but the Cryptocurrency asset class in general.
  20. Both Ripple and Stellar have been extremely disappointing in 2019 when compared to other alt coins like Litecoin and Bitcoin Cash. Ripple is up over 11% at the time of writing this post and Stellar is up over 10%.
  21. Ok so Argo have released their interim results via RNS to the market this morning. Argo Blockchain PLC Interim Results https://www.investegate.co.uk/argo-blockchain-plc--arb-/rns/interim-results/201909170700054625M/ The share price is actually lower after the RNS than what it was on my previous post over a week ago. This is typical AIM for you. Profits are taken prior to the results being released. The figures are miniscule. If the price begins to rise in the next couple of months then it may be a combination of speculative money and anticipation of far better revenue and profit growth for the months ahead. The price action will tell us what the market expects six months into the future.
  22. As both Brent and US Crude Oil take a tumble and come back down to earth once the day traders and speculative capital take their profits, Natural Gas, is proving more stable though it too is correcting as I type this message. I now want to see if this is a mere pull back and then the uptrend resumes or whether downward pressure builds.
  23. Bitcoin Cash is up 0.52% at the time of writing this post. It seems to be playing catch up to Litecoin who is this morning's leader. The only significant piece of news was what I posted yesterday. Unless the narrative for some of these alt coins strengthens then I do fear for some of them.
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