Stock Market Updates:
Our recent stock market newsletter, sent 23rd November, stated that the markets were very top heavy, meaning they were at resistance levels. We advised that investors should remain out of the stock market until further notice.
"If investors or traders are holding positions that they should either look to exit at these resistance levels (traders)or be prepared to hold through the correction (investors) and then add to their holdings."
The Shanghai was the early indicator of the stock market weakness at resistance levels. The DAX then followed by making a lower top or lower high. These signals need to be heeded.
Then we heard about the Dubai World debt crisis. It only takes a small bit of negative news to discount the current stock market perceptions and create a sell off that we have noticed using technical analysis on the charts.
The interesting thing about the Dubai crisis is that the news is old. Maybe not to the public and the man in the street but the investors and bankers all knew about the announcement to come at least a few days before it was announced. Conspiracy? Yes, somewhat. Read the charts. Ask some questions!
Why didn't the global markets make new highs this week? The S&P 500, the Dow Jones, the DAX, Shanghai, FTSE 100 and even the local All Share Index in South Africa could not bring themselves to make new highs and break the resistance. The stock markets couldn't break this level as bad news was coming. The smart money was preparing to move out of the markets temporarily. They gave you and I, the little guy, warning for about 5 days.
The next question is, "Did you heed the warning?" Many people trying to invest and trade the stock markets aren't able to handle the emotional journey. They suffer from the emotional pull of the stock markets with fear after a sell off or correction or even recession with the greed that the stock markets will always climb higher. TIP: The stock markets never go up or down in a straight line! They always experience cycles.
How do stock market cycles work?
You get small micro cycles which people trade intra-day or in very short term periods of 1-3 days. You get swing cycles otherwise known as swing trades which can last from 3 days to 3 or 4 weeks. You also get minor cycles which can last for 3 weeks to around 3 months, sometimes extended through to 6 or even 9 months. The major cycles are those we see in the stock market as we go from stock market boom to stock market bust! Which time frame do you want to play in?
I teach people to take advantage of any one of these time frames. Different people enable different choices and needs and ability. some people can handle the daily emotional ebb and flow of intra-day trading... it's only a select few that can actually make a success of short term trading in the intraday arena. Perhaps as few as 2% of people can actually handle this form of trading.
The next type of person is a short term trader that can take trades from 1-3 days and also require especially strong emotional and mental discipline. So, 90% of the reason you will make money or loss it will be down to your personal psychology. About another 3% of people can handle this type of stock market trading.
The easier time frame to be involved in would be the swing trade! This stock market cycle is much easier on the energy, mental and emotional discipline as well as time required to short term trade. Many more people are able to take advantage of this stock market cycle also called a swing trade. It does take some practice as well as much skill in chart analysis. This can be learnt.
The simplest time frame is that of the investor or a major stock market cycle. We've just entered into the next 5-year boom cycle on the stock market and you could simply buy good shares in good sectors and leave them for 4 and a half years. My only TIP would be that you ensure that the sector and shares remain above the 89-day moving average. Do that and you can get good returns on average.
However, if you want better than average returns, you would need to shorten your stock market cycle and focus more on the swing trades to make money as the different sectors grow and pull back. Each time, you are making money in the growth cycle and exit at resistance levels. Then invest again in sectors that are performing to compound your portfolio growth.
Take the time to learn stock market cycles. Then train your emotions to be patient for entries and resilience to exit at resistance. Repeat!
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Friday, November 27, 2009
Monday, November 23, 2009
Dollar Weakens & Commodities Rally!
Dollar Weakens & Commodities Rally!
It's not entirely what I was expecting but the global markets seriously rallied today after the dollar took a pounding (ahem, excuse the pun)!
With that being said about commodities rallying, GOLD hit a new high again and is well on its way to my medium target of $1350! So hold on to the rodeo horse cos it's going to be a fun ride!
My favourite share of the moment, Kumba also closed up very strongly today. I missed the entry at 25000 by R1.00 on Friday with my automatic order in the system. Sometimes you get the trade, sometimes you don't. It would've been a fantastic entry however as the share closed R9.00 up from low of Friday.
Also, Anglo American and PSG were good trades today and I like the look of Datatec too. There is some convergence of the moving averages on that chart.
Platinum also pulled back on Friday and although it didn't quite reach my support level it certainly did weaken considerably. It gave entries to my other favourites Lonmin and Northam platinum. Both up on the day with Lonmin moving over R10 to the good which puts it at about 5% for the day. Can't complain!
Short term trading can still be exciting on day's like this when the markets run in your favour and you know you going to bank some serious profits over the next day or two. Stock market trading is not supposed to be a full time job. Learn to take short term trades with high profitability over time with consistent success!
Do this and you write yourself cheque for life! And you can enjoy life with some stock market trading inbetween!
Trade well, not often.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
It's not entirely what I was expecting but the global markets seriously rallied today after the dollar took a pounding (ahem, excuse the pun)!
With that being said about commodities rallying, GOLD hit a new high again and is well on its way to my medium target of $1350! So hold on to the rodeo horse cos it's going to be a fun ride!
My favourite share of the moment, Kumba also closed up very strongly today. I missed the entry at 25000 by R1.00 on Friday with my automatic order in the system. Sometimes you get the trade, sometimes you don't. It would've been a fantastic entry however as the share closed R9.00 up from low of Friday.
Also, Anglo American and PSG were good trades today and I like the look of Datatec too. There is some convergence of the moving averages on that chart.
Platinum also pulled back on Friday and although it didn't quite reach my support level it certainly did weaken considerably. It gave entries to my other favourites Lonmin and Northam platinum. Both up on the day with Lonmin moving over R10 to the good which puts it at about 5% for the day. Can't complain!
Short term trading can still be exciting on day's like this when the markets run in your favour and you know you going to bank some serious profits over the next day or two. Stock market trading is not supposed to be a full time job. Learn to take short term trades with high profitability over time with consistent success!
Do this and you write yourself cheque for life! And you can enjoy life with some stock market trading inbetween!
Trade well, not often.
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Thursday, November 19, 2009
Global markets at resistance
"Global markets at resistance" was the main heading for my recent issue of Stock Market Outlook, a trading newsletter I write for a club membership database on a weekly basis.
This weekly investment newsletter and trader's update focuses on the global indices, global commodities and then local stocks in South Africa as well as the Resources index and FINDI index.
I spoke about trading KUMBA Iron Ore last week Monday when it opened at 23200 and ended up at 26600 yesterday. Only 8 days to achieve over 10% return! That's no playing around! It's also not geared either. My medium term target for Kumba is 32000.
I was long of S&P 500, Wall Street and DAX last week to close near the highs of the top of the channels on these indices.
This week, the focus was off the stock markets and onto gold again. After sitting on $1000 it rallied back to my target of $1150within a very short space of time.
Now I wait for the global markets to settle at or near their support levels on the channel. Once this happens which should be by early next week I will be taking short term trades in the stock market again.
As the dollar weakens, commodities will rise. It is a patient game waiting for the dollar to turn, find resistance in its decline and then continue its downward movement. It is the opportunity to take longs on commodities again and stocks that mine those commodities.
It's fascinating but there's always something to learn.
Short term trading is't all its cracked up to be. People have a romantic disbelief about how exciting it is. The reality is that trading is mostly boring and repetitive.
It's a great hobby for retired persons and people who have wads of money. It is NOT for someone trying to replace their job.
Some people however, can find the happy medium of having a job and being patient while waiting for the trades to come. Building confidence in their trades but also mental discipline. Lastly growing their portfolio size over time like a professional golfer.
Support levels on the S&P 500 are 1093 in the short term. For the DOW it be 10100. The DAX is around 5400. KUMBA support is 24900 but could extend to 24400 odd intraday before closing on a hammer candle formation as example.
Watch the dollar. Keep an eye on the Baltic Dry Index. Copper is also a good early indicator as prices start to edge up.
Have a great trade,
Warrick
Financial & Investment Workshops, ebooks & financial freedom @ NEWSWEEK
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
This weekly investment newsletter and trader's update focuses on the global indices, global commodities and then local stocks in South Africa as well as the Resources index and FINDI index.
I spoke about trading KUMBA Iron Ore last week Monday when it opened at 23200 and ended up at 26600 yesterday. Only 8 days to achieve over 10% return! That's no playing around! It's also not geared either. My medium term target for Kumba is 32000.
I was long of S&P 500, Wall Street and DAX last week to close near the highs of the top of the channels on these indices.
This week, the focus was off the stock markets and onto gold again. After sitting on $1000 it rallied back to my target of $1150within a very short space of time.
Now I wait for the global markets to settle at or near their support levels on the channel. Once this happens which should be by early next week I will be taking short term trades in the stock market again.
As the dollar weakens, commodities will rise. It is a patient game waiting for the dollar to turn, find resistance in its decline and then continue its downward movement. It is the opportunity to take longs on commodities again and stocks that mine those commodities.
It's fascinating but there's always something to learn.
Short term trading is't all its cracked up to be. People have a romantic disbelief about how exciting it is. The reality is that trading is mostly boring and repetitive.
It's a great hobby for retired persons and people who have wads of money. It is NOT for someone trying to replace their job.
Some people however, can find the happy medium of having a job and being patient while waiting for the trades to come. Building confidence in their trades but also mental discipline. Lastly growing their portfolio size over time like a professional golfer.
Support levels on the S&P 500 are 1093 in the short term. For the DOW it be 10100. The DAX is around 5400. KUMBA support is 24900 but could extend to 24400 odd intraday before closing on a hammer candle formation as example.
Watch the dollar. Keep an eye on the Baltic Dry Index. Copper is also a good early indicator as prices start to edge up.
Have a great trade,
Warrick
Financial & Investment Workshops, ebooks & financial freedom @ NEWSWEEK
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Thursday, October 22, 2009
Oil moves to $80
After my little rendezvous with gold the next trade position was oil... As it struggled to move passed $72 for a while it was bound to break.
As the dollar weakens, you will have oil and gold gain value due to their value being derived in dollar terms. Weak dollar translates into strong commodities!
So, looking for something else to stick our teeth into while gold consolidates its new level of $1050 support, I traded oil from $72 to $80 over the last week or so. Very tidy little trading profit!
Trading stock markets and trading commodities is simple if you can follow the market cycle and waves. If you understand the relationship between dollar currency, commodity prices and stock market sectors then you can make good profit out of trading.
Right now, it's time to take a breather. Wait for the week to finish off... But I won't be far away in case something triggers a trade position.
All the best trading!
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
As the dollar weakens, you will have oil and gold gain value due to their value being derived in dollar terms. Weak dollar translates into strong commodities!
So, looking for something else to stick our teeth into while gold consolidates its new level of $1050 support, I traded oil from $72 to $80 over the last week or so. Very tidy little trading profit!
Trading stock markets and trading commodities is simple if you can follow the market cycle and waves. If you understand the relationship between dollar currency, commodity prices and stock market sectors then you can make good profit out of trading.
Right now, it's time to take a breather. Wait for the week to finish off... But I won't be far away in case something triggers a trade position.
All the best trading!
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Thursday, October 8, 2009
It's my Gold Rush!
I've been bullish on gold for over a month now! What a rush!
Ever since the gold price pushed to test the support level at around $915 little over 6 week's ago I was bullish. The upside target on the gold chart is $1250!
Now from the small pull back from $1024 level to $990 again the gold price has shot up to a record of $1050 since Monday. The gold index in South Africa has skyrocketed almost 10%!
What's the reason? Some of the reason is due to the dollar weakness in the global economy as inflation takes it's toll. But also there has been a debate about the price of oil being derived from a basket of commodities rather than the dollar alone.
Guess which commodity is being considered as part of the basket of assets to price oil in future?
You got it! It's GOLD!
The Australian FED bank also increased interest rates as the first bank to start doing so as the global economy shows signs of ticking up. The combination of all these things has pushed the gold price to break records!
The medium term outlook on gold is to target $1250. We will have various waves of upswing followed by profit taking before we get there.
Be prepared to ride the waves and walk away with reasonable trading profits! Don't be greedy!
I've moved my stop loss levels to entry now. Looking to close half of my positions on the stock market in the resources sectors.
For our weekly Market Outlook newsletter visit our website link below:
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Ever since the gold price pushed to test the support level at around $915 little over 6 week's ago I was bullish. The upside target on the gold chart is $1250!
Now from the small pull back from $1024 level to $990 again the gold price has shot up to a record of $1050 since Monday. The gold index in South Africa has skyrocketed almost 10%!
What's the reason? Some of the reason is due to the dollar weakness in the global economy as inflation takes it's toll. But also there has been a debate about the price of oil being derived from a basket of commodities rather than the dollar alone.
Guess which commodity is being considered as part of the basket of assets to price oil in future?
You got it! It's GOLD!
The Australian FED bank also increased interest rates as the first bank to start doing so as the global economy shows signs of ticking up. The combination of all these things has pushed the gold price to break records!
The medium term outlook on gold is to target $1250. We will have various waves of upswing followed by profit taking before we get there.
Be prepared to ride the waves and walk away with reasonable trading profits! Don't be greedy!
I've moved my stop loss levels to entry now. Looking to close half of my positions on the stock market in the resources sectors.
For our weekly Market Outlook newsletter visit our website link below:
Financial & Investment Workshops, ebooks & financial freedom @ http://www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Saturday, September 19, 2009
Forex Trading Platform Review
Forex Trading Platform Review
There comes a time when a currency trader wants to know what else is available out in the currency market when it comes to trading platforms. I've decided that I am going to do some forex trading platform reviews over the next few weeks.
There are some big promises being made by these different trading platforms and forex trading companies providing currnecy trading services. Some of these trading platforms offer you 'free money' to start trading after you open a trading account.
There are some groups that offer free demo accounts for trading as well as good support. Some trading platforms I will be reviewing also include equities, commodities, precious metals and more. Imagine trading currency as well as your local stock market equities and commodities directly!!
Our first review is going to be a multiplatform.
Aurora Global Markets is a financial services company based in the UK and regulated by the Financial Services Authority. Its wholesale services for financial institutions include: Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates. Asset management services that can be linked to the trading platform including program trading and third party discretionary management.
What about another well known trading platform provider called AVA FX Online where you get some fantastic deals:
~ Open a free $100,000 currency account with ava fx and practice online trading. It's a great way to experience trading in the currnecy market without risking any money. The opportunity for you to learn, or to enhance your trading skills is one simple registration away.
~ Open the real currency account and begin trading with $100 with the chance for a free bonus of up to $1200 on your account!!
I've got loads more work to do to fill you in on the top trading platforms available out there and what they offering. It's a challenge I take up eagerly.
What's the benefit about a review? You will benefit from seeing what the different trading platforms offer and what their trading costs are.
Get to learn who the best of the trading platforms are over the next few weeks!
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
There comes a time when a currency trader wants to know what else is available out in the currency market when it comes to trading platforms. I've decided that I am going to do some forex trading platform reviews over the next few weeks.
There are some big promises being made by these different trading platforms and forex trading companies providing currnecy trading services. Some of these trading platforms offer you 'free money' to start trading after you open a trading account.
There are some groups that offer free demo accounts for trading as well as good support. Some trading platforms I will be reviewing also include equities, commodities, precious metals and more. Imagine trading currency as well as your local stock market equities and commodities directly!!
Our first review is going to be a multiplatform.
Aurora Global Markets is a financial services company based in the UK and regulated by the Financial Services Authority. Its wholesale services for financial institutions include: Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates. Asset management services that can be linked to the trading platform including program trading and third party discretionary management.
What about another well known trading platform provider called AVA FX Online where you get some fantastic deals:
~ Open a free $100,000 currency account with ava fx and practice online trading. It's a great way to experience trading in the currnecy market without risking any money. The opportunity for you to learn, or to enhance your trading skills is one simple registration away.
~ Open the real currency account and begin trading with $100 with the chance for a free bonus of up to $1200 on your account!!
I've got loads more work to do to fill you in on the top trading platforms available out there and what they offering. It's a challenge I take up eagerly.
What's the benefit about a review? You will benefit from seeing what the different trading platforms offer and what their trading costs are.
Get to learn who the best of the trading platforms are over the next few weeks!
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Visit Aurora Global Markets for Global trading platform in equities, foreign exchange, commodities, precious metals and interest rates.
Saturday, August 29, 2009
Forex Trading Room
It has been a while since I last posted. There's a good reason for that! I have been working on a new currency trading experience that I believe you would absolutely profit from!
Give me a minute to tell you more!
I have been working with a Forex Trading Pro that averages around 30% per month online trading money profits! How does he do it? Well, it's a mix of consistently trading a strategy and ensuring trading discipline regarding risk management.
If you don't know what these two things mean, then we can point you in the right direction! Believe me, YOU can't become a consistently successful Forex Trader without mastering risk and reward together with trading discipline.
How can we help you to achieve these two pillars of success? Well, Forex Trading Pro is now offering a membership Forex Trading Room that runs monthly. You decide to become a member of the Forex Trading Room and Forex Trading Pro teaches you his strategy, risk to reward method and discipline every day for a month.
If a month isn't enough, you have the option to renew your membership and KEEP it going for as long as you need to so you CAN achieve your currency trading goals of making money online.
Let me know if you want to get more details.
P.S. I've personally seen Forex Trading Pro make money online by trading currencies and make 8% return over 48 hours!
P.S.S. What could you do with regular profits derived from making money online while trading currencies from your own home?
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
Give me a minute to tell you more!
I have been working with a Forex Trading Pro that averages around 30% per month online trading money profits! How does he do it? Well, it's a mix of consistently trading a strategy and ensuring trading discipline regarding risk management.
If you don't know what these two things mean, then we can point you in the right direction! Believe me, YOU can't become a consistently successful Forex Trader without mastering risk and reward together with trading discipline.
How can we help you to achieve these two pillars of success? Well, Forex Trading Pro is now offering a membership Forex Trading Room that runs monthly. You decide to become a member of the Forex Trading Room and Forex Trading Pro teaches you his strategy, risk to reward method and discipline every day for a month.
If a month isn't enough, you have the option to renew your membership and KEEP it going for as long as you need to so you CAN achieve your currency trading goals of making money online.
Let me know if you want to get more details.
P.S. I've personally seen Forex Trading Pro make money online by trading currencies and make 8% return over 48 hours!
P.S.S. What could you do with regular profits derived from making money online while trading currencies from your own home?
Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za
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