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TrendFollower

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Everything posted by TrendFollower

  1. It will be interesting to see if Litecoin can hold the psychologically important $60.00 level.
  2. @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
  3. 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
  4. 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?
  5. @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.
  6. 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.
  7. 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.
  8. 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.
  9. 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'.
  10. 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.
  11. 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.
  12. @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.
  13. It is Saturday 27th April 2017 and Bitcoin Gold is no longer available on IG's UK Spread Betting platform and is no longer available to trade. I am therefore as the creator of this thread making a decision to close this thread. THREAD CLOSED ------------------------------------------------------------------------------------------------------------
  14. First of all, Bitcoin is still holding above the $5,000 level which is extremely encouraging from a technical perspective. However, encouraging is all it is. From a long term perspective unless Bitcoin crosses around the $6,500 level and stays above it then it will still be in a long term downtrend. This $6,500 level will be crucial in the coming weeks and months. I personally think Bitcoin will tease us all and certainly cross the $6,000 level as that is what Bitcoin and Cryptocurrencies do and have done. Tease us. From a trading perspective, the volatility in Cryptocurrencies helps create some really good trading opportunities for short term traders, swing traders, trend followers, etc. Volatility is necessary and is what helps Bitcoin and Cryptocurrencies achieve such fantastic returns. Bitcoin even now outperforms other asset classes (even with such high volatility). Now no one knows what will happen to the Bitcoin price going forwards. Will it make new all time highs or will it continue in its long term downtrend? Has Bitcoin bottomed? No one knows for sure yet and we all will make assumptions including myself. That is fine and there is nothing wrong with that. It is the price action alone which will prove the assumption right or wrong and nothing else. Historical price action does not guarantee future price movements will behave in a certain way. Future is undecided and a new future can be created. There is no rule in trading that confirms that price must behave in a certain way based on historical movements. If it were that easy to predict future price movements based on historical price action and charts then trading would be so much easy and traders would make profits the majority of the time. Trading is extremely difficult and trading Cryptocurrencies and Bitcoin even more so due to the extreme volatility compared to other asset classes. What I would suggest to those who think Bitcoin is garbage, is going to zero, is going to make new lows, is going down, etc. (and they may be right as well - I simply do not know) is to short Bitcoin and profit from this price behaviour. If some are that convinced that Bitcoin's next major move is downwards then they must profit from this as a trader. Better still share the 'Short' Bitcoin trade with the IG Community so we can all see the profits being made from any potential downward price action in the future.
  15. Bitcoin can made a low of $4968.80 and it seems to be for now staying above this level. Whether it will remain above this level it yet to be confirmed. There are reports that there could be a more deeper retracement before any resumption of the rally upwards. Now this will be confirmed by the price action which I believe is far more accurate than any reports. Yes, I read articles and reports as part of broadening my knowledge of current activities within this area but for me 'Price Action is King'. The price behaviour of Bitcoin will tell us the narrative of this current storyline.
  16. It is looking like Litecoin is trying to defend the Fibonacci Retracement level of 76.4%.
  17. It will be interesting to see if Bitcoin Cash goes below the Fibonacci Retracement of 38.2%.
  18. All the Cryptocurrencies are down on IG's platform but it is ironic that Bitcoin Gold is showing the most defensive resilience. It is 11:30 am in the UK and Bitcoin Gold is down only 0.87%.
  19. The High Street is changing. The UK seems to be following more US like - Out of Town retail parks and shopping villages. Online shopping is booming. The likes of Amazon, EBay and Co are all seriously denting the traditional and reputable stores like House of Fraser and Debenhams. We saw what happened to Woolworths, Toys R Us, etc. Online retail is the way the UK is going and it is the 'New Younger Generation' (NYG) that will decide the fate of any remaining department stores in the future.
  20. Litecoin seems to be faring better (though still down around 2%) than the other Cryptocurrencies offered by IG's platform after the intense selling overnight due to the Tether / Bitfinex news.
  21. No doubt this latest flash crash will have meant lots of stop losses being triggered and traders exiting with a loss.
  22. Recently there has been a disconnect between Bitcoin and the other Cryptocurrencies that are on offer on IG's platform. Bitcoin's chart is more bullish than other 'Alt Coins'. The question is whether Bitcoin is primed for a breakout? Apparently there was a flash crash on Kraken where Bitcoin fell $1000! Bitcoin from February 2019 to date has been impressive. It really has been very good since middle of December 2018. Will it continue for the remainder of 2019?
  23. I thought this was a very interesting article which is exciting for the future as well. MeaWallet launches multi-scheme merchant tokenization https://www.finextra.com/pressarticle/78158/meawallet-launches-multi-scheme-merchant-tokenization This next article supplements the article above nicely: What Is Network Tokenization? https://www.paymentsjournal.com/what-is-network-tokenization/ Now this next article is explaining the potential of tokenisation - A look into the future! Here's Why Interest In Tokenizing Assets Is Starting To Surge https://www.forbes.com/sites/laurencoleman/2019/04/25/heres-why-interest-in-tokenizing-assets-is-starting-to-surge/#4799455140a5 Those who understand 'tokenisation' and how significant it is going to be will be able to try and identify those assets which they could invest in which could offer potentially lucrative returns in the long term. There are some really interesting early stage companies and start ups operating in this arena which are gaining traction and momentum.
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