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TrendFollower

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Everything posted by TrendFollower

  1. @nit2wynit, This is the mistake being made. Say if we all have $1,000 then some traders will feel obliged to place a trade on the day they receive it (gambling instincts kick in). Myself and other trend followers would wait until a strong trend has been identified which has the potential to be a large trend and that trade based on signals being confirmed by certain indicators. This may entail patiently waiting for a few days, weeks or months. Others may split the £1000 and trade say five different stocks or even five different assets so they could trade two commodities, one or two indices and a Cryptocurrencies (either long or short) depending on the opportunity. Others will merely value invest it on a stock they 'hope' will perform as per their expectations. There is no right or wrong but your trading plan will articulate what your trading methodology is. So which assets you are going to trade and why? Are you going to buy shares from a broker or trade them using CFD's or Spread Betting and why? Are you going to go 'Long' only, 'Short' only or both? Are you going to be a 'Momentum' trader, 'Swing' trader, 'Day' trader or even a 'Trend' trader? Your trading strategy will go into the details and mechanics of how you aim to achieve your trading goals which are detailed in your trading plan. Your trading system will be the 'execution' part. If one fails to plan then they are planning to fail. There are no shortcuts to making profitable trades. There are no easy trading systems that can execute successful trades consistently without putting in the hard work. It really does require first and foremost: Passion/Enthusiasm for trading Hard work and discipline Effort in researching and acquiring knowledge Application of learnt knowledge and ability to understand new theories and techniques Learning new trading skills A good amount of capital to trade Once you have the above then you can start finalising your Trading Plan, Trading Strategy and Trading System. Until your Trading System is finalised one should not really be trading real capital and instead should be testing it using demo accounts in my personal opinion. One must accept losses, learn from them and move on. Losses are part of trading and if one cannot accept losses then one should not trade.
  2. Lumber has been one of the strongest trending downwards trade available on Commodities using the IG platform in the past 12 months.
  3. One of the best shorting opportunities over the past 12 months has been Orange Juice yet no one within the IG Community seems to be discussing it. I am going to include the 'daily' chart below for you all to see. For Trend Followers it does not matter whether the price is trending upwards or downwards. It is about trying to profit from the price movement.
  4. @dmedin, One of the things people are blaming for say 80% losing money is Spread Betting. It is the traders fault not the Spread Betting platforms fault when a trader loses on a trade. The Spread Betting platform is merely a mechanism which can be used to trade. That is all. Everyone can see the spreads available, the margin requirements and understand how Spread Betting works. People can then make a decision on whether they want to use Spread Betting, CFD's, Futures, normal brokerage account, etc. It is the lack of a trading plan, trading strategy and a trading system that is the real problem rather than using Spread Betting. One must look and understand the Spread Betting environment and then devise a plan which allows it the best possible chance of success using that mechanism. One must devise and trading strategy and trading system that give it a higher probability of success whilst operating using a Spread Betting account.
  5. @dmedin, Yes I agree with you. It would be good. IG are there to make as much money as they can. They will have a reason or two as to why they are not offering Options on stocks. They will never admit the specific reasons to us but for example trading Options in the US is pretty much available on major broker platforms.
  6. I wanted to take this opportunity to address some of the advantages Bitcoin has over Gold in terms of 'Store of Value'. First of all, Bitcoin has far more lower storage costs than Gold. Bitcoin is also easier to transfer from one person to another or even one country to another than Gold. You have to ship Gold for it to get from one country to another but not Bitcoin. Digital Gold is the future in my opinion. It could take many years I accept but I think it is coming. Bitcoin has divisibility which means one can execute micro transactions. With Gold you cannot. It is easier to counterfiet Gold than it is Bitcoin. Gold is heavy. Gold bullion / bars are heavy to move and transport. Bitcoin is weightless. You can transfer the value of Bitcoin far quicker than Gold. There is no government manipulation or interference with Bitcoin but there is with Gold. There are no government controls for Bitcoin but there is with Gold. You can buy a cup of coffee with Bitcoin but you cannot with Gold. From memory (so please do not quote me on this) but you can divide Bitcoin to around the eighth decimal place which is a Satoshi. It is more likely in the future for people to carry a Crypto Wallet and carry therefore carry Bitcoin than it is to carry Gold to pay for goods and services.
  7. @dmedin, I am not sure what trading style you adopt or what your trading strategy is. I follow 'Trend Following' principles for trading only and not investing. My investment philosophy is very different but anyway that is for a different time. The best way to trade is to establish which indicators you wish to use and why? What signals are you looking for and which indicators will best serve those signals for you? If you can do this then there is absolutely no reason that I can think of why anyone needs to follow the likes of PIA. PIA are for those as you call them 'punters' that want to make quick money but do not want to learn to trade to put the effort and time in which is required. They are lazy and want to try and trade and earn profits the easy way. Well guess what? Trading is extremely difficult and there is no easy way. So these 'punters' follow the likes of PIA and others. They dare not question their technical analysis or challenge their trading ideas. The amount of traders that I have come across who do not have the following is shocking: Trading Plan Trading Strategy Trading System Without the three above it is very difficult for any trader to make any profits consistently throughout the year and then year after year.
  8. @dmedin, Nobody forces anyone in the UK to spread bet. Spread betting is merely betting on price movement and the direction of the price for a particular asset. It is not for everyone and it certainly is not for anyone who does not have a trading plan which articulates why they will be spread betting the price movement for a specific asset. Of course it is merely one option and it has its advantages and disadvantages just like futures and options.
  9. @dmedin, I am not a fan of PIA at all. In fact IG's Analysts tend to post reports/blogs well after the price action has created a trading opportunity which many have profited from and looking to exit with their profits.
  10. To me it seems like Sugar London No.5 is trading range bound, at least for now. It also seems like we about to see if 'Triple Bottom'. In case anyone has not come across a 'Triple Bottom' then it can be at times a bullish chart pattern (not always) which is shown by three roughly equal lows followed by a breakout which is above the resistance level. As someone who follows 'Trend Following' principles I would not look to initiate a 'Long' trade based on this though I fully appreciate others on the IG Community who have different trading styles may wish to consider it. If the breakout happens and the price action forms a confirmed trend then I would certainly consider entering a 'Long' trade but not until then. For me there are still better trading opportunities elsewhere. For short term day traders and swing traders which range bound activity may suit their trading style.
  11. Around a quarter later and Carbon Emissions is still holding pretty firm for now. Interesting to compare the chart above with the chart I am including below. Yes there has been volatility but that is to be expected in most Commodities. The key point is that the price is higher today than it was when I posted 3-4 months ago in this thread. I accept only just but it means there is an 'underlying strength' in the Carbon Emissions market.
  12. It seems Gold could be heading towards the late $1260's and Silver potentially down to the $14.60's. Both have been playing out a downtrend since around middle of February 2019.
  13. 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.
  14. 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'.
  15. 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/
  16. 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.
  17. Well it is up over 8% now. This is the Crypto volatility and beast that one must deal with when trading Crypto’s.
  18. 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.
  19. 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.
  20. 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.
  21. 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.
  22. 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 😁
  23. 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.
  24. 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.
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