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TrendFollower

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Everything posted by TrendFollower

  1. @PandaFace, I think what I have found on the IG Community so far is that people are uncomfortable applying the same technical analysis they conduct for other assets on Bitcoin. I think this is partly because in their mind they think Bitcoin is rubbish and will fail and go to zero. Their emotions are not allowing them to trade the price action or the opportunity in front of them both 'Long' and 'Short'. With stop losses being applied through risk management it should not matter what the future holds for Bitcoin. A trader should cut out the 'noise' and trade the price action. The media are the biggest 'noise' providers. This influences traders emotions as the media when it releases negative stories on Bitcoin and this whole area stops the trader from trading what is the best performing asset in 2019, full stop.
  2. Bitcoin is above $8.1k but it seems it is not going to go up without some sort of catalyst or driver. It also does not want to drop down too low either. Consolidation is healthy for Bitcoin but just how volatile this phase will be I don't know. The impatient traders may get into a pickle. Those with tight stop losses will be stopped out due to the volatility. Of course they will all blame Bitcoin and the Cryptocurrencies rather than themselves. It is never the traders fault! It is always the asset they are trading. Once traders can blame themselves instead of the asset, the broker, the platform then it will open their mind as to what needs to be done.
  3. Litecoin is hovering around the $135 area at the moment. It is the only Crypto that IG offers on its platform which has a distinctly different 'daily' chart pattern. My view is that this is to do with the imminent halving. How much upside is left in the tank I do not know as it has already risen substantially. One must be ready for a large correction shortly before, during or after the halving event. There will be plenty of profit taking which will amplify any move downwards. However, for now one must enjoy the ride upwards and walk hand in hand with the trend.
  4. It is amazing what a mere 24 hours can do. Bitcoin Cash has broken out of the range of $375 - $395 and is currently trading at around $399 though did hit $405.30 overnight. There is the potential for a quick and short burst upwards before continuation of the downward trend which started from its recent new high of above $450.
  5. @dmedin, I mainly use 'daily' charts for trading and will refer to 'weekly' and 'monthly' charts and also '4 Hour' and lower but my main focus is 'daily' charts. As you know I trade based on the direction of the trend based on a 'daily' chart. My positions can be days, weeks or months. I do not set targets in terms of how long to keep a position open or any profit targets. There is this notion that one must day trade or trade regularly using Spread Betting and that is simply not true. There is no reason why you cannot make more profits per month or per annum by simply holding your position and letting your winners run than entering and exiting trades as the more you trade the more the chances increase for you experiences losing trades. Don't get me wrong, I make losses all the time. My aim is to ensure I keep my losses to a minimum and I let my winners run and not to exit them too early. By taking profits too early you will miss the big move, the big trend, the big trade. I keep on repeating this but it is all about 'odds and probability'. If you trade in the direction of the trend and not against and try and identify the strongest trending assets and trade those then it tilts the odds in your favour and increases your probability of successful and profitable trades. Now whether you use a share broker account, CFD's, Spread Betting, Futures Account or whatever does not really matter. You must trade in a manner which puts the odds and probability in your favour. That is key. Once that is understood you will realise that having a trading system which can deliver a trading strategy based around this will help you on this journey. Also you must embrace and accept losses and try not to overtrade. Just trade the best opportunities. Just trade the strongest trending opportunities and trade in the direction of the trend. You will see it will make a massive difference to your profits at the end of the year. If you get a trade wrong as it goes against you then use a stop loss and exit quickly. Forget about it and move on.
  6. So it seems the $30k level is holding. We have seen what in my opinion is pretty common in Lumber is a large 1300 + points move upwards. So roughly a £3.5k margin would have netted you around £1.3k in just one trading day. If you now add leverage into the mix and then one can see why Lumber is a very interesting proposition. Now if you are trading either daily or by holding in the direction of the trend over several months / year and you can see the level of profits which can be achieved. It is all about risk/reward and I accept the risk ratio to capital will not work for many or they simply will not be comfortable with it. This is fine as trading Lumber is not for everyone but it has been one of my favourite Commodity trades over the past few years. The trends are strong, last a long time and when adopting a trend following strategy the asset suits my style of trading and personality. I attached today's 'daily' chart for Lumber below: Now if the US were to lower the interest rates and it is a 'BIG IF' as we do not know for sure that they will then it could present a lit match under Lumber! 🧨 I know this is dynamite but I could find an emoji of a lit match but it will do. Lumber is a more illiquid market than other Commodities so one must understand this. In fact I would go as far to say that it is very illiquid. But in my experience some of the illiquid markets create the best trends to trade. If the US lower interest rates then Lumber price action could get very interesting.
  7. @TheGuru12, First of all, no returns are sustainable on any asset. That includes a share or commodity. If you trade based on price action then it really does not matter what the asset is and whether the returns are sustainable or not. You are trading based on the direction of the trend and the price action. The trends for Bitcoin, Litecoin and Bitcoin Cash have been running for six months now. Therefore they have been sustainable for six months. What time period would you consider sustainable? The downturn in 2018 lasted around a year so there was a shorting opportunity for Bitcoin et al. For me that demonstrated sustainable returns on the 'Short' trade. If it lures you into a false sense of security then do not trade them. Full stop. No one is forcing anyone to trade an asset such as a high risk Cryptocurrency if they do not wish to. This asset class is very high risk and those not comfortable with the risk should absolutely stay away. There is something called risk management. Every trader should be applying this to their trading strategy. This will help to manage your risk and minimise your losses on any asset you trade whether that be a share, commodity or bond. Cryptocurrency should be no different.
  8. @TheGuru12, This is not token spam. You can choose to ignore this thread and not waste your time or energy posting in it. @JamesIG, Please can you have a look at this thread and if you think I have posted anything inappropriate or anything I have posted would be deemed as spam then please feel free to close this thread. @TheGuru12 has an issue with Cryptocurrencies, Tokens, etc and my threads. He can choose to ignore but feels very strongly that people should stay away from them, etc. I actually think IG have done the correct thing in offering them to their clients to trade through their platform and I welcome IG's position on this.
  9. Part 3: It is being reported that the 4th revolution will be the 'Digital Revolution'. So the 1st revolution used steam power whilst the 2nd revolution used electricity. The 3rd revolution used automated production with electronics and IT. I believe we are now witnessing the 4th revolution and this is where the technological themes of AI, Blockchain and IOT come into play. Cloud Computing has been increasing rapidly. We are reading about self driving cars, home appliances that talk to each other and even digital wearable devices. I mean I can control my home lighting (LightwaveRF) and heating (Nest) via my mobile phone. You can order milk from a smart fridge and control your washing machine via an app on your smartphone. I think we will begin to see an increase in 'Biometric' technology. As I have mentioned before, IBM, are doing a lot of work in this area and seem to me to be leading the way. They have adapted their business model over the years and I recall many years ago when in University that business case studies involved IBM. They currently employ some of the brightest minds and their recruitment of the best talent still stands even today. Investing Idea - IBM: Speaking of IBM, it becomes an interesting long term investment proposition. It is a large cap US share. If you look at the 'Monthly', 'Weekly' and 'Daily' charts then you will see that it is currently in a downtrend. Once this is complete then it may offer a long term investment opportunity to get indirect exposure to these technology themes without taking the risk of directly investing in the start ups, nano and micro caps involved in this space. Others may wish to apply a 'Pound Cost Averaging' strategy and start drip feeding money into acquiring IBM shares say on a monthly basis and the more the price drops the more shares one accumulates in IBM. One would only invest any lump sum payments should the price crash or offer a very deep and sharp correction. This will assist to amplify returns on any bull run for IBM going forwards. Of course there is no guarantee that IBM shares will go up or recover from current levels so one may prefer just monitoring the price action of IBM shares and then take it from there. To be continued...(Part 4 - Coming Soon)
  10. This is without the use of 'Leverage'! Litecoin Price Spikes 357% in 2019 and Momentum Isn’t Dead Yet https://www.ccn.com/litecoin-spikes-357-year-to-date-momentum
  11. @TheGuru12, First of all I agree with some of the points in the article. I would go as far as suggesting that 90% of ICO's and IEO's are garbage and to stay well clear of them. That does not mean every single one is. It is no different to the AIM Market which houses nano, micro and small caps. 90% of companies listed on AIM is trash. But that does not mean they all are. A good investor / trader will try and identify the quality and stay away from the rubbish. Full stop. To support IG, they do not offer the tokens generated from ICO's which are trash (the 90%) on its platform to trade. They are only offering a small selection which are supported by the largest market caps and liquidity. Now that still does not mean they will succeed or are quality. I accept that. Let me offer you a different view. Those who put their hard earned money into Litecoin, Bitcoin and Bitcoin Cash are sitting on phenomenal profits. They have beaten every other asset class across the globe. @TheGuru12, have any of the assets you have traded since December 2018 to date beaten Bitcoin, Litecoin or Bitcoin Cash? Don't forget there is something called a 'Stop Loss' to manage your risk and loss of any capital just like trading any other asset. You should try complaining to IG about offering Cryptocurrencies and request they remove them and see how far you get! Let me put it another way. Traders should be wary of putting their hard earned money into the wrong side of trades (directional) and end up losing on those trades, regardless of asset. Thank you for participating in this discussion and though you are on the opposite side it is fine to have a different view. I think what you need to do is provide evidence, data or information from credible sources that may support your view that all of Crypto is junk. I do not agree all of it is junk but if you genuinely think that then you need to articulate with some detail to demonstrate why. Remember I agree with you in the sense that the majority of the ICO's are useless and will disappear in the coming months and years. I trade to make as much profit as possible so I only want to try and identify and trade the strongest trending assets. Can you name me an asset class which is trending stronger that Cryptocurrencies and the coins that IG offers on its platform? If you have a good trading strategy and trading system then you should be able to trade most asset classes and Crypto's are no different. In fact I see a lot of similarities (volatility) with Commodities.
  12. The current chart 'daily' and my gut instincts are telling me that the next breakout for Bitcoin is coming. It may have another go at breaking $9k and if it does then $10k is a serious price point which is could aim for. If it does not then there will be further consolidation but what I am unsure of is whether there is anymore major downside. I have read reports suggesting there may be a 30% drop from here. When the online media start reporting this without any substantial information to support such statements, Bitcoin, historically just tends to do the opposite and shoot up when one least expects. Bitcoin is treading water right now.
  13. Bitcoin Cash seems to be range bound in a $375 - $395 price area. It is currently trading at the $392 area so any breakout above $395 could signal the next move upwards. It has normally followed Litecoin or move at similar times to Litecoin but on this occasion it has joined the rest of the Alt Coins available on IG's platform.
  14. Litecoin hit $141.30 overnight. It is around 5:00 am UK time. This is move is extremely strong and bullish. I think it may try and have a go for the psychological $150 level but then it could face a very sharp drop. I am not sure if it will make it there on this current move or the next but it seems to be coming. The other thing Litecoin traders need to be aware of is what happens at the time of halving or afterwards. Is there a mass sell off with lots of profit taking or is there merely a drop / correction and if the broader Cryptocurrency market is trending upwards then Litecoin continues its journey upwards?
  15. Litecoin hit $136.90 at 7:00 pm UK time and is currently making new highs as we speak. It is up over 9% and I literally just checked and it had hit $137.30 within seconds. I mentioned before that in my opinion right now Litecoin is a 'Wealth Creating Asset' but I think if you look at the likes of Bitcoin Cash and Bitcoin since December 2018 and many other Cryptocurrencies then one can begin to see the Risk/Reward of this asset class where the risks are great but the rewards are potentially greater. I think trading Cryptocurrencies depends a lot on your risk tolerance and what levels of risks you are willing to take. I accept it is not for the feint hearted and it certainly is not for many of you. From a 'Trend Following' perspective when an asset class is trending strongly upwards and one begins to trade selected Cryptocurrencies within that asset class with the trend rather than against it then it slightly tilts the odds in your favour. Some will initiate a trade based on signals and then just hold until the overall trend changes. It is nothing clever or fancy. If a trader understands that Cryptocurrencies are an extremely volatile asset class then it merely holds its position even if it drops and sets a more relaxed or wider stop loss so it never gets stopped out because of the volatility. The stop loss should only initiate and be executed on a trend reversal. Other trend traders may go in and out and adopt a more 'scalping' approach taking profits consistently on the way up and just keep on entering on the dips. There are several ways those who adopt trend following strategies can trade Cryptocurrencies but the one key thing they will all follow is the direction of the trade based on price action.
  16. There is some positive momentum and strong traction in the Blockchain sector right now. Here is another positive bit of news which for me is endorsing Blockchain as a technology and its application within real life businesses and situations. Visa Goes Live With Blockchain-Powered Business Payments Service https://www.coindesk.com/visa-goes-live-with-blockchain-powered-business-payments-service
  17. @cryptotrader, It is nice that you are curious. The title of investing in technology themes kind of gives away the goal of the post. The message I want to share is what I have posted. Investors can make an informed decision on whether they think this is an area within the technology sector that they would consider investing in or not. I am an investor first and trader second. I use a small part of my profits from my investments for my trading capital. Investing is the path I believe in for long term wealth creation. Investing in such opportunities as these at the earliest opportunity allows the best chance of maximising returns and profits.
  18. Now sticking to the relevance of this thread, I forgot to mention that Cosmos' token (ATOM) has listed on Binance and the price has been going upwards since. If reports are correct it did not have to pay any fees and got listed for free. Apparently this is only reserved for high quality projects which this apparently falls into. Time will tell us if this is true or not.
  19. Part 2: So to recap the three main technology themes from an investment perspective I was discussing in my previous post in this thread were: Artificial Intelligence (AI) Blockchain Internet of Things (IOT) Now one of the reasons why these technology themes are really gaining traction and momentum at the moment is due to the massive increase in computing power. 5G is coming very soon which will really allow these three to collaborate and achieve great things. They all have standalone benefits but together their interactions with each other will open up new possibilities to deal with greater challenges in a digital world and a digital future as that is the direction of travel. IBM are doing some really exciting things in this area. AI needs vast amounts of data. What the Blockchain can do is store this data securely. Data security has been in the media a lot recently and we are living in the world of 'Big Data'. This data needs to be secured and there needs to be trust. Blockchain will play a vital role in this. Data stored on the Blockchain is 'Cryptographically Secured'. This means tampering with this is extremely difficult. I am not saying it is impossible but it is far more difficult. So for example if a company had sensitive data then securing it on the Blockchain begins to make a lot of sense. AI and Cyber Security are also combining to make Cyber Security more robust and fit for purpose. This should lead to cost reductions too. You only have to look at job vacancies nowadays to notice that real companies are looking to recruit real Blockchain experts. There is a real demand here for individuals with Blockchain skills. If you now add to the mix 'Robotics, Automation and Cognitive Computing' one can begin to see how this digital universe begins to take shape. I appreciate that a lot of what I am writing will not make much sense to some of you who either do not believe or accept my writings or simply do not understand it. I have not even mentioned 3D printing, Augmented Reality and Smart Sensors yet! I think with more powerful computing power and machine learning the world is going to be a very different place in the future to what it is now. Investors will talk about or use the word 'Disruptive'. I personally believe these technologies are and will continue to be disruptive going forwards as significant developments and improvements are made. What I see in the future is individuals having 'Data Vaults' powered by Blockchain where they can securely store their digital identity. I mentioned 5G earlier in this post. I think 5G will enable these things to happen. It will be the 'Enabler'. I think from a Cryptocurrency perspective the digital token, IOTA, becomes very interesting. To be continued...(Part III - Coming Soon)
  20. There is a parallel universe running here as the article below highlights! KR1 nets over US$300,000 from sale of ATOM tokens https://www.proactiveinvestors.co.uk/companies/news/221855/kr1-nets-over-us300000-from-sale-of-atom-tokens-221855.html
  21. Another positive RNS released by KR1 PLC. One must remember that this is smaller than a small cap. It is smaller than a micro cap. It is a nano cap hence the smaller revenue figures involved. One must put it in perspective. KR1 plc Portfolio Update: Cosmos & Staking Yields https://www.investegate.co.uk/kr1-plc--kr1-/prn/portfolio-update--cosmos--amp--staking-yields/20190611070000P1683/ The article below is also relevant to another thread I have started - Cosmos - Atom by TrendFollower if anyone is interested in this. KR1 nets over US$300,000 from sale of ATOM tokens https://www.proactiveinvestors.co.uk/companies/news/221855/kr1-nets-over-us300000-from-sale-of-atom-tokens-221855.html
  22. Bitcoin's current price behaviour seems to suggest a struggle to stay above $8000. Now this could be viewed as a weakness in the upward trend. The one thing I have learned about trading Bitcoin and Cryptocurrencies in general is that they can pop upwards in a bullish trend and drop downwards in a bearish trend when one least expects.
  23. Here is yet another example of a large corporation trying to embrace Blockchain. Report: Microsoft to Add Blockchain Tools to Its Power Platform https://cointelegraph.com/news/report-microsoft-to-add-blockchain-tools-to-its-power-platform
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