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TrendFollower

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Everything posted by TrendFollower

  1. India is acting hastily in my personal opinion here. There are signs that the UK and US are starting to embrace Cryptocurrencies. France are too as well as Asia in general but India is totally missing the point. I fear it may get left behind should it goes ahead with any ban on Cryptocurrencies. It would totally send out the wrong message. India mulls ban on cryptocurrencies https://www.publicfinanceinternational.org/news/2019/04/india-mulls-ban-cryptocurrencies I am actually surprised that this news is not causing the price of Bitcoin in particular as well as other Cryptocurrencies to fall dramatically. In the past it certainly would have.
  2. I am getting a few readers who have read this thread and would like me to explain in simple terms what tokenisation is. So here goes... Tokenomics is basically about understanding the utility role of a token. Now once you have a use case and purpose, users will start demanding that token. So for example one of the use cases being discussed right now is for the 'Toll'. Based on reports I have read it seems Jaguar Land Rover have teams up with IOTA (Crypto Token) to deliver this service of drivers being able to pay Tolls using tokens. This in its simplicity is tokenomics. When enough tokens are being used to pay for goods and services seamlessly without having to find loose change or go to an ATM which can be inconvenient at times then it will become the 'Token Economy'. So when any goods or services can be provided in exchange for tokens (seamlessly) then this is in essence 'Tokenisation'.
  3. This article will be interesting to some of you 'Visionaries' who can envisage the future. Cosmos: A World Wide Web for Blockchains https://www.forbes.com/sites/laurashin/2019/04/30/cosmos-a-world-wide-web-for-blockchains/
  4. Well it is up over 9% now! It could still be a big short covering rally based on the recent amplified move downwards. I do not know this intense volatility creates unique trading opportunities.
  5. Well it is up over 8% now. This is the Crypto volatility and beast that one must deal with when trading Crypto’s.
  6. Bitcoin Cash is up 3.84% at the time of this post and hit $249.10. It will be interesting to see if it has another go at £300 or whether it just continues on its downward trajectory.
  7. Litecoin is up 6.23% at the time of posting and is again leading the way today in what is a positive day so far for Cryptocurrencies available on IG's platform. It seems it has held above $60.00 and has $71.00 today already. The price action today could merely be a short covering rally so Crypto traders must be aware of this.
  8. Gold and Silver both having blue days today. They are still in a recent downtrend correction mode when you look at the 'daily' chart. There could potentially still be further downside and it is not conclusive at this stage on whether further price declines will not occur. This type of activity will support 'Swing Traders' or those wishing to profit form volatility and price swings. I personally do not think Gold will see a large sharp drop. It may be gradual but there will be no panic major sell off. That is just my personal opinion as there is far too much 'RISK' lurking in the background for this to even occur. I do think there is further upside to Gold and Silver if bearish news is released in relation to major world economies such as the US in particular. The US Dollar price will be crucial to Gold's fortunes.
  9. If you look at my previous chart then you will also notice that Bitcoin (just about) is making 'Higher Lows' and 'Higher Highs'. However the price action is weak and there is no real strength in these (struggling) 'Higher Lows' and 'Higher Highs' being formed.
  10. The Dow still has not made new highs where as the S&P and Nasdaq have. It seems that market strategists from the likes of CNBC (whom I do not pay too much attention to) are suggesting that the markets will make new highs including the Dow but will then fall. I am not being funny but I could make suggestions, assumptions or predictions like that. They have a 33.3% chance of being right as the US markets are going to either go UP, go DOWN or go SIDEWAYS. There is no other movement they can make. By predicting they will go up and then go down is rather amusing as they are saying up when it is currently in an uptrend. What goes up must come down as that is they way markets work with profit taking, etc. So then they are stating the markets will go down. They all must be geniuses! LOL 😁
  11. Gold hit $1283. For me personally there are two important price points for Gold for any potential long trade to be considered from this position. One is the crossing of the psychological $1300 price point and staying above it. The second is crossing the previous 'Lower High' which was around $1308.12. These two price points are crucial and until they occur I would not suggest anyone entering a potential 'Long' Gold trade. Right now around the price of $1285 from the 'daily' would represent a crossing of its 20 DMA. Short term that is also an important price point. By crossing $1300 from the 'daily' it would mean Gold crossing its 50 DMA and 100 DMA which is why I think it is an important price point because of the significance. It may also indicate the potential of a trend reversal as well.
  12. What we could potentially see is a delayed Bitcoin fall where it may fall after that 'Alt Coins' finish their falling! Though Bitcoin is just about managing to stay above $5000 I fear that it could fall below this level and then the next crucial price point is around the $4860 level as I have highlighted in the chart below.
  13. It will be interesting to see if Litecoin can hold the psychologically important $60.00 level.
  14. @SPMILLER81, One other thing. If you conduct some basic research on the internet then you will find that the best performing AIM shares in 2018 were all triple digit returns. Now if you add leverage to this and remember £ per point then the number of points for grabs is staggering. I think this was taken around August 2018 time so it may well be different when looking from January 2018 to December 2018. Biggest risers on AIM in 2018 Company Share price (p) Increase in 2018 (%) 1 Tern 16.5 633 2 Bushveld Minerals 46.5 447 3 SalvaRx Group 82.7 319 4 Pebble Beach Systems 5.3 213 5 Sopheon 1,067.50 197 6 Creo Medical 194 179 7 Anglo Asian Mining 87 172 8 Beeks Financial Cloud Group 111 156 9 Elektron Technology 44.5 151 10 Ormonde Mining 5 135 Source: interactive investor
  15. I personally started using 'Trend Following' principles trading Commodities. One may ask why Commodities? Commodities show nice clear trends. They are volatile which offer large price movements and the potential for higher returns based on risk/reward. One can apply: Demand / Supply principles to Commodities to better understand the extent of any price movement Leverage as it is available to help maximise any returns News and see how it is affecting the price behaviour Technical indicators like Volume, Moving Averages, RSI, Momentum, etc
  16. Bitcoin is currently trading at $5146 to sell and $5187 to buy. It is still staying above the $5000 level which is impressive. The question if it can continue to do so?
  17. @SPMILLER81 / Simon, First of all, around 90% of AIM is junk. Therefore why would one want to purchase shares and hold shares in such companies (very high risk). So you are on the right lines when thinking about spread betting UK AIM shares. If the price action is supporting a strong trend then you may wish to hold for a few days or even weeks but that is up to you and your trading plan. Day trading is fine too. A lot of companies listed on AIM suffer major liquidity risk issues. So again you are right to highlight this. A potential risk you may face when using IG's Spread Betting platform to place small orders on AIM listed companies is how wide the spread is and the margin requirements for such small positions. The one thing to bear in mind with the article that @Caseynotes has shared is that it refers to top 100 AIM shares and these are by market cap and not the best performing 100 AIM shares. There is a major difference. It is not necessary that the top 100 companies listed on AIM by market cap are going to be the best performing shares in terms of returns and points. In my personal experience of trading AIM listed shares they are usually not. Once they have achieved such large market caps the share price movements are far less than the really small nano caps. When trading via Spread Betting it is all about the £ per point based on price movement that is important. Not the market cap or turnover, etc. One of my strategies is to check InvestEgate every morning around 7:00 am and any RNS's released which show new contract wins, or significant revenue increases, etc. one could day trade those shares as in my experience they tend to shoot up by high double digits in a day and then fall back down to earth the next day or couple of days. So one could day trade on the way up and down. https://www.investegate.co.uk/Index.aspx?sector=AIM&date=20190429 Also from my personal experience in trading AIM shares is that it does not matter about the following: Company balance sheet Company turnover / revenues What the company even does! Do not get emotionally attached to any AIM listed share. The AIM market is rife with speculative capital and the usual 'PUMP & DUMP'. Use this to your advantage. There is absolutely no problem in trading a share knowing full well the price is being driven by the herd and speculative capital. Once a positive RNS with the usual SPIN is released where it mentions significant revenue generating CONTRACT WIN go long as early as you can and then make sure you sell before the market closes that day. Of course there will also be those AIM listed shares that do not move on such RNS's. These one's you must avoid or exit straight away. If the price does not move up then you must get out and use your capital elsewhere more efficiently and effectively.
  18. Bitcoin is still trading above $5000 which for now is good but it seems the upward trend is weakening which could result in profit taking, stop losses being triggered and a more deeper pullback meaning Bitcoin could go down into the late $4000's. I do not know this will happen for sure but by looking at the chart and a shorter time period for example the (1 Hour) chart it is showing us this: So one could not rule out a drop to the $4800 levels or even possibly $4600 levels. Japan is a big participant in Crypto trading. With the Golden Week which is a 10 day holiday, I am not sure how much impact this will have on the market overall. This will be the longest market shutdown in Japan since World War II.
  19. One of the key components of 'Trend Following' is to identify trends using price action. Historically this was used more for Commodities and the Futures market. However, there is no reason (that I am aware of) why this cannot be used for all different asset classes.
  20. It seems someone thinks my previous post is 'Sad'. Are they able to articulate a better trade than Bitcoin in terms of returns since the start of 2019 that they have traded and achieved higher returns in? Cryptocurrencies are an asset class that are here to stay in my personal opinion. Yes they will adapt and the participants within the asset class will change but this asset class is not going anywhere. In fact it is going to improve and get bigger. More capital is going to be allocated in it in the coming years and this is only just getting started. I have been trading Cryptocurrencies for a while now and I have never not been able to close a position, or a stop loss has not been executed, etc. Trading Cryptocurrencies is no different to trading a Commodity when you are trading based on trends and price action. It really does not matter what the asset is. This is the beauty of trend following. It is the trend and price action that is important. It does not matter whether you believe in the asset or not. It does not matter if you disagree with the progress of the asset. You are trading it on price action rather than any personal opinion or view. One must not get so emotionally attached to a view that when the price action is allowing a trade to make profits that stubbornness stops them from participating in a profitable trading opportunity. I personally do not care what the future of Bitcoin is as I am not trading Bitcoin or any other Cryptocurrency based on its future. I am trading them based on current price action and trends. If they disappear or go to zero in the future then I would like to think I am wise enough, quick enough and good enough to trade them 'short' all the way down as low as possible and profit. If one feels comfortable shorting indices, FX or Commodities then shorting Cryptocurrencies really should not be any different.
  21. I am going to share the current Gold chart (daily) below: Now as you can see from the chart above, Gold, is making new 'Lower Highs' and new 'Lower Lows'. This is bearish price action. Even when one looks at trend lines then it does present the potential for Gold to go down towards $1260 levels. For me any potential 'Long' Gold trade would need to see the price action surpass the recent 'Lower High'.
  22. As the price rises on all three of the major US indices does this increase the potential shorting opportunity when it does eventually manifest itself? This drop may take a while but it will come. It may be due to bad economic news, political mayhem, war, recessions, poor economic forecasts and results, etc. At the moment the only trade is 'Long' on all three of the Dow Jones, S&P and Nasdaq based on current price action. Do others on the IG Community think that the longer this trend upwards continues then the greater the fall will be downwards? I would be interested in hearing the thoughts of others on this.
  23. Trend Following has died many times in the past. It will continue dying according to media reports in the future. Some of the comments made by the media are based on statistical analysis. Now statistical analysis is brilliant at telling us about the past but it is less useful in telling us about the future. The reason why in my personal opinion trend following is not dead is because it relies on trending markets and they existed many hundred of years ago and exist now and will probably exist going forwards. Trend following also relies on volatility and this still exists and will exist going forwards. The beauty of trend following is that is can adapt and change with market conditions. I keep on stating this but no amount of charts, lines and arrows can help to predict the future. None of us can predict the future. If we could then trading would be so much easier. If we could merely look at past price action, historical charts and then make future price predictions then wouldn't trading and making money be easy? One important thing to remember is the prices can only move: Upwards Downwards Sideways Once a trader understands how the price action fits in with above then it can make a trading decision as to whether to go 'Long', 'Short' or simply do nothing (especially in sideways markets). A key concept of Trend Following is not trying to predict the future price (as we cannot) but to react to price action and trends that manifest by our trading decisions.
  24. @JamesIG, I have some questions for IG on its Cryptocurrency offerings. As per CoinMarketCap, Neo, is listed as 17th with a market cap of $620m. I provide the link to support this. https://coinmarketcap.com https://coinmarketcap.com/currencies/neo/ What is the trading volume like for Neo on IG's platform? Are people trading Neo over other Cryptocurrencies that IG offer? If so which are these? I am questioning whether there is a need for IG to continue offering Neo on its platform when there are potentially other Cryptocurrencies that have a far greater market cap and liquidity. They also have a market cap for $1bn which is I think must be the minimum to even stand a chance to remain on IG's platform. I accept that these market caps fluctuate on price movements so it is very difficult and challenging to implement. Is there enough demand from IG's clients to trade both: Ether/Bitcoin Bitcoin Cash/Bitcoin I am just wondering if IG's clients are trading the above and if so where do they stand compared to trading other Cryptocurrencies on IG's platform? I would assume that the above would be the least two that IG's clients are trading but this is only an assumption and I could be totally wrong. I am sure @JamesIG you will prove or disprove my assumption here.
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