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TrendFollower

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Everything posted by TrendFollower

  1. Litecoin still struggling to break free of $140 and surpass $150.
  2. Monday morning 5:00 am UK time and Bitcoin is around $10.6k. I think it may consolidate around $10k and if it did then it would be extremely healthy. If reports are to be believed then 'Retail Investors' have not really entered Bitcoin like back in 2017 and also internet searches on Google is no where near the levels seen in 2017. It seems this rally is based on 'Institutional Investors'. Bitcoin's halving event occurs in May 2020 so we are still nearly 11 months away. If you look at historical patterns (no guarantee it will play out like that) then Bitcoin continues rising after the halving even before a large natural drop occurs. Therefore what we could witness is a year / year and a half of gains in Bitcoin which would take it easily above $20k based on current price action, strength of trend and momentum getting stronger as retail investors pile in and FOMO comes into play.
  3. I wanted to share the following report: Grayscale Digital Asset Investment Report https://grayscale.co/digital-asset-investment-report-q1-2019/
  4. Bitcoin Trend Following: I follow trend following principles when trading Bitcoin. So what exactly is this: Well for me trend following an asset like Bitcoin is basically trying to capture the potential gains available by analysing indicators / signals like price action, volume and momentum in a specific direction. This is the direction of the trend. So when a price is moving overall (I tend to look at the 'daily' chart) in a certain direction so up or down then that is basically a trend. It is about following and trading in the direction of that trend. This is in essence trend following. So I want to use this thread to merge both Trend Following and Cryptocurrencies such as Bitcoin and the opportunities that exist by applying trend following principles. When I am trying to trade Bitcoin or to be honest any other asset using trend following principles I am looking to ride a trend. I want to stay in the position either 'Long' or 'Short' for as long as possible until the trend reverses. All the 'noise', corrections or just basic volatility is ignored. I want to maximise my profit potential and maximise my returns. It is all about letting your winners run and actually participating in the big winning trades rather than have your stop loss executed and you end up struggling to get back in and end up watching the asset achieve superior returns and gains. Someone who follows trend following principles can be involved in assets where the price action is extremely strong. If you are someone who works for a living, lives a busy lifestyle and simply does not have time to be constantly trading then it can be a good match for your lifestyle and may even suit your personality. You do not need to complete complex technical analysis or be able to read difficult charts. Conducting complex technical analysis and being able to draw and read difficult charts does not guarantee you to be a successful trader or in fact a very profitable trader. Bitcoin as an asset is extremely volatile. Those who trade frequently will often get stopped out and normally their stop loss will mean they have made a loss. By applying trend following principles to trading Bitcoin it means that you can ignore these volatile price swings as long as you are trading in the direction of the overall trend. If you only have time to trade a few times a year or may be even a couple of times a month, applying trend following principles may be worth considering. I accept it is not for everyone. Bitcoin in my view is one of the 'Strongest Trending Assets' in the world so it is a must trade for those who follow trend following principles and apply them in their trading.
  5. It is 8:20 pm UK time on Sunday evening and Bitcoin has just $11k again. What is a strong possibility is that traders will start taking profits thinking Bitcoin is going to sell off but the upward move just continues and continues.
  6. Below is one of the ETF's in relation to Frontier Markets that @JamesIG stated back in April 2019. It is above the price when @JamesIG mentioned it.
  7. This may be of interest to some of you. There is a Robotics and Automation Exhibition on the 29th and 30th October 2019 at the Ricoh Arena in Coventry, UK. Below is the link. https://www.roboticsandautomation.co.uk
  8. Top Gold Forum (3.) is particularly relevant. https://monetize.info/how-to-start-a-forum-and-make-money/ Even though I am active and 'Esteemed Contributor' as defined by IG, I do feel at times being used by IG though they are not forcing me to write anything on the IG Community and nor am I obliged to do so. It is my choice which is what makes it even more frustrating that IG are not monetising any content. I am not saying that it should be my content. It can be any of your content if it meets the strict quality guidelines and definition which is devised by IG. This next link is of specific interest. How to make money online without investing https://blog.travelpayouts.com/en/how-to-make-money-online-without-investing/ Now I accept these links could be utter garbage so I am not endorsing the two links I have included here. But it does make one think of the potential opportunities out there. However, why would IG pay any of it's IG Community when they are happy to spend hours upon hours participating for FREE!
  9. India over the next five years is my tip from an investment perspective when it comes to 'Emerging Market' investing. China is busy in a trade war and dispute with the US. The US market has already shown significant growth since Trump's election and prior. I think India is going to benefit from further investment and interest from all around the world. This will drive up the Indian stock market so India equity investment for me remains very attractive. I want to share the following article with you below: India becomes investment darling for sovereign wealth and pension funds https://uk.reuters.com/article/uk-india-investment-swf/india-becomes-investment-darling-for-sovereign-wealth-and-pension-funds-idUKKCN1TM0JK
  10. I think any rhetoric from Trump and the US may dictate the way Gold is going shine or not in the coming week. I think the article below and others will play an important factor in relation to the price action of the shiny metal. Iran warns of risk of conflict, Trump sees scope for deal https://uk.reuters.com/article/uk-mideast-iran-usa/iran-warns-of-risk-of-conflict-trump-sees-scope-for-deal-idUKKCN1TO0DW
  11. Ether is playing catch up with Bitcoin but it has a lot more catching up to do. It has hit and seems to be staying above that $300 level. I think now it will try and go for $400 to $500 and it is not unrealistic to think that it will get there by the end of 2019 if not a lot sooner.
  12. Bitcoin Cash was a whisker away from $500.00. Yes that is right $500.00! It hit $499.50. From April 2019 onwards so no more than three months really the returns on Bitcoin Cash have been nothing short of magnificent. Now if you add leverage into this then they have been nothing short of sensational. Words like magnificent and sensational are big descriptions but no other asset has delivered returns such as these in the same time period. I think once $500 is cleared then it is not unreasonable the Bitcoin Cash could attempt the $1000 level. Now add leverage and one can begin to see the potential gains available.
  13. Litecoin is currently trading around $140 area. It cannot seem to motor on from this price. I am expecting $150 but it is only an expectation and nothing more. Some would argue that the trend is weakening on Litecoin (no trend reversal confirmation signal / indicator yet) and others would argue that it is merely consolidating before the push up to $150 and beyond. What I have noticed is that whilst the likes of Bitcoin and others shot up over the weekend, Litecoin, did not. The question I am asking myself from an 'anticipation perspective' is whether the gains before the halving event have come and the smart money is going to begin selling as we approach the imminent halving event? This coming week signals the end of June 2019 and it will be very interesting how Litecoin fares.
  14. There is a lot of volatility not just in Bitcoin but in Cryptos in general as traders decide how to play the start of trading on Monday morning.
  15. Bitcoin is currently around $10,600 level. As long as it stays above $10k then $11k to $12k is a short term possibility. I was reading an article just this morning when the so called 'Crypto Experts' were suggesting that there is very little resistance between $12k to $20k. The profit potential is massive. However, the risk of a large correction is just as big. This is market is known for price dropping triggering lots of stop losses and then shooting back up again very quickly. This is high risk and not for the faint hearted but the rewards in my opinion are worth the risk if you have a sound risk management strategy and effective capital allocation strategy for this asset class. Do not trade more than you can afford to lose and certainly do not trade a high percentage of your trading capital unless you know exactly what you are doing and understand how the Crypto market operates.
  16. The last time I saw this frenzy in Bitcoin was when there were tensions between US and North Korea. I actually wrote at the time on IG Community in relation to that and the price behaviour of Bitcoin. I am now seeing similar activity and frenzy in Bitcoin when now there are US and Iran tensions.
  17. Bitcoin has just hit $11,022.30. We still have the rest of today and then all of tomorrow. In my personal experience Bitcoin can make some of its biggest moves during weekend periods and this weekend is just an example to support my view. It is up over 10.72% just today. From memory Bitcoin has had around 3-4 parabolic rallies like this. Can anyone name me another asset that has provide its investors and traders such phenomenal opportunities? Since the inception of Bitcoin the parabolic rallies have come every 2-3 years. What other asset has provided anything similar? What you will now start getting is that Bitcoin is heading to the moon, or Bitcoin is going to hit $50,000, $100,000 or $1m. It will not anytime this year or even anytime during 2020. I can see Bitcoin hitting $20k and maybe possibly even exceeding it to make new all time highs before the halving event. How high will they be I do not know but I would be absolutely gobsmacked if Bitcoin hit $50k before the halving event. But this is Bitcoin so anything is possible and I have absolutely no idea how high the price could go. However once must keep focused and their feet on the ground and not get carried away with these ridiculous predictions.
  18. What needs to be considered within a trading plan: One of the things that can be overlooked in a trading plan is what SKILLS you need to be able to execute your trading plan successfully. Do you need to brush up on some mathematics? Do you need to improve your discipline? Do you need to improve your mental strength? Do you need to embrace the reading, research and analysis required? There will be many other things of course and everyone will have something unique to them but you get the gist of it. Also what other requirements are necessary for consideration during the journey of devising a trading plan? Do you need to allocate specific time during the day for trading? Do you have the trading capital necessary? Is your family supportive of the commitment and time required? Where will you actually trade? At home? In office? In bedroom? Do you have to leave your job or can you do both? Could you consider trading in the mornings and evenings? How much income are you looking to achieve from trading? What sacrifices will you will be willing to make? You will have to make sacrifices, make no mistake. Will it be time with your family, relatives and friends? Will it be watching your favourite TV shows or films? Of course there will be many other things to consider but the above will give you serious points to think about. There are so many different ways to devise a trading plan that it becomes apparent that there is no right or wrong way. The plan will be personal and specific to you. It will be unique to you. You have to devise a plan which has some value and can help you otherwise it is pointless. There is no point in devising a plan and then not sticking to it, referring back to it or even amending it as things change. If you do not have the sense and commitment to devise a trading plan then you can forget about having the sense and commitment required to be successful in trading. You will have days when you make losses and it is grim. You have to have the strength, discipline and commitment to get through such periods. If you cannot even be bothered and cannot understand the importance of having a trading plan then you simply cannot be considered a serious trader in my personal opinion. To be continued...
  19. @Markokucic, I have copied and pasted (below in blue) what is showing on IG's website which will hopefully answer your question which has been asked numerous times by others in the past. Enjoy secure, flexible trading on bitcoin, bitcoin cash, ether, litecoin and ripple from 4am on Saturday through to 10pm on Friday night (UK time). If you have a position open on one of these cryptocurrency markets it will be affected by weekend trading.
  20. 16 hours ago (look at my previous post above) I predicted that £10k would be hit by the end of Saturday and that is exactly what has happened. In fact it happened before the morning UK time! Bitcoin hit $10,944.50 overnight. Asia will have had a big part to play in this. Now we are going to see FOMO (Fear Of Missing Out). This could take Bitcoin further upward to $11k and possibly even $12k before we see a major correction back to around $10k. There will always be the fear of some serious profit taking, stop losses being triggered and new short positions being opened which could amplify the move downwards way below $10k. However, if the buying pressure is such and investors begin to HODL then the narrative could change and the large drop may not materialise until Bitcoin hits say $15k - $20k. I think it is perfectly feasible that Bitcoin makes a new all time high surpassing the $20k before its halving event in 2020 next year. Bitcoin is currently being supported by the following: Price Action Strong Upward Trend Strength Volume Momentum Moving Averages Curves Sloping Upwards Plus many more technical indicators I am going to share the chart below where you will see Bitcoin's price is above its 20, 50, 100 and 200 DMA. Now just look at the curves. They are all sloping upwards which is an extremely bullish indicator. It signals that both the short term and longer term trend is strongly trending upwards. Now look at the Parabolic SAR below: Now for those of you who are not familiar with the Parabolic SAR then during an uptrend the dots are below the price. Now as you can see from the chart above they are for Bitcoin. Now during a bearish trend these dots would be showing above the price. The Parabolic SAR indicator is signalling to use that Bitcoin (as if we did not know) is trending strongly upwards. Now just look at the 'Green' on the Momentum Chart in 2019 compared to the 'Red'. Just ensure if any large drop in Bitcoin comes then you have sound and effective risk management in place. Most traders will have large profits but many investors will have even larger profits. If these investors think that Bitcoin is going to go a lot higher and they do not sell and hold then Bitcoin has the potential to really go for $20k and a new all time high. Correct me if I am wrong but the Tulip Mania did not have a bubble which crashed, then went above the all time high bubble price, did it? LOL. 😁
  21. Introduction: Disclaimer: This thread was inspired by Caseynotes' thread on the same topic. He actually posted his thread before mine but there were a few things missing in my opinion. Many of you who follow me or read my posts will know that I have stated on many occasions in the past that one must have a 'Trading Plan', 'Trading Strategy' and a 'Trading System'. You will see this statement from me on many different threads and posts over the past couple of years. I am going use this thread to start a discussion on the 'Trading Plan'. Before one even starts to devise a trading plan they must have a passion, drive and enthusiasm for trading and prior to this for investing. My personal belief based on experience is that one must have a sound understanding of investing and ideally should have invested in the past. Ideally they are still investing now for the long term. This is the foundation that in my opinion is necessary. It must be like a religion for them. They must follow this religion daily and it has to be sort of like an obsession. Only then can one actually be motivated to spend the necessary time and effort that is required. One of the cheesy lines that is so true is, "Failing to Plan is a plan to fail". The trading plan must be a document and that is in writing and not just in one's thoughts. A lot of traders think they have a trading plan and then you realise they think just having a trading style in their mind which they follow is the trading plan. Let me be very clear here. It is not. It must be a written document. Now IG have already posted on their main website details of how to create a successful trading plan. I am going to share the link with you below. Many of you will have seen this and if not then you can see it below. There is little point in just repeating what IG have already stated or merely regurgitating what is on the internet for all to see completely free of charge. How to create a successful trading plan https://www.ig.com/uk/trading-strategies/how-to-create-a-successful-trading-plan-181210 What I want to try and do is add details and thoughts from my personal perspective to try and add some real value here. If people do not agree then that is fine and it is their choice. I will try and keep the audience in mind and those who read my threads and posts on the IG Community and keep it as simple as possible. First Key Question: The first key question is why you want to trade? The answer to this will lead you to start the trading plan by writing down the 'Aims and Objectives'. What are the aims and objectives behind the decision to trade? Now different websites and people will refer to this as 'Trading Goals'. Here you will clearly articulate what you are trying to or want to achieve. It is likely that it will refer to some form of financial goals as they generally do but on occasions it may not be about money if you are looking to fill your time during retirement. This beginning part is very important as it will shape your trading plan. To be continued...
  22. I am predicting Bitcoin to hit $10,000 by the end of Saturday based on current momentum and trend strength.
  23. The directional call on Lumber is now tricky looking at the 'daily'. It is not clear to me (anyway) whether the downtrend will continue or an upward trend will form. One must closely follow the price action of Lumber to get a feel of the asset and to ensure one is in tune with the price movements.
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