GOLD (XAUUSD)
Dominant Bias: Bearish 
Gold is bearish in the long-term, and neutral in the short-term. Apart from the noticeable downwards movement in the first half of May, price has not assumed any directional movement so far this week. A rise in volatility will be witnessed in this June, which would most probably favor bears, to corroborate the long-term bearish outlook on the market. The support levels at 1280.00, 1270.00 and 1260.00 may be breached to the downside.  However, the expected southwards breakout may not happen without any challenge from bulls.


SILVER (XAGUSD)
Dominant Bias: Neutral
Silver has been mostly neutral this year. The ongoing consolidation started in January     and it may continue in June (although this does not rule out any possibility of a maniacal breakout in the month).  This year, price has generally oscillated between the supply level at 17.600 and the demand level at 16.000. As long as price stays within those demand and supply levels, the neutrality of the market will be in place. The more the neutrality continues, the stronger and the more protracted a breakout will be when it does occur. This is not a good market for swing and position traders, but market neutral strategies are ideal right now.


Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
There is a very strong Bearish Confirmation Pattern on EURUSD. Price went southwards by 100 pips last week (it has gone south by almost 750 pips since April 19). The line at 1.1650 has been tested and breached to the downside, slightly. This week, further bearish movement is a possibility, and the support lines at 1.1600 and 1.1550 can be reached as well. However, there is also a possibility of a bullish reversal before the end of the week.

USDCHF
Dominant bias: Bullish
This trading instrument is bullish in the long-term, and bearish in the short-term. Last week, price turned southwards, testing the level at 0.9900 several times and eventually closing below it on Friday. One reason why the market became bearish in the short-term is the strength in CHF. CHF still strong, as evident on major CHF pairs. The market can thus reach the support levels at 0.9850 and 0.9800, thereby erasing the long-term bullish outlook on the market.


GBPUSD
Dominant bias: Bearish
This pair went southwards last week, closing below distribution territory at 1.3300 on Friday. Price shed almost 170 pips last week, and it has shed 1,050 pips since April 17 (an ideal market condition for trend followers).  The GBP remains very week, and it is not advisable to seek long trades here, except to go short on rallies. The market is expected to lose at least, additional 150 pips this week, reaching the accumulation territory at 1.3150.

USDJPY
Dominant bias: Bullish
The trend is also bearish in the short-term, but bullish in the long-term. From the high of last week, price went downwards by 230 pips, to test the demand level at 109.00, closing above it on May 25. Further bearish movement is expected this week, and this may affect the long-term bullish bias, as the demand levels at 109.00, 108.50 and 108.00 are aimed, for there is a considerable stamina in Yen.

 
EURJPY
Dominant bias: Bearish   
The downwards movement that happened last week has put an end to the recent sideways movement that was seen in the market. From May 9 to 22, the market consolidated in the context of a downtrend, and at last, there was a breakout in favor of sellers. This has really put more emphasis on the Bearish Confirmation Pattern in the market, coupled with the weakness in EUR. This week, the demand zones at 127.00, 126.50 and 126.00 may be reached.
 

GBPJPY
Dominant bias: Bearish
The bias on GBPJPY is bearish and it should continue to be bearish. GBP is weak and JPY is strong. Besides, there was a huge drop of over 450 pips last week, slashing more and more demand zones as bears rejoiced.   Since April 17, more than 800 pips have been shed, and this just seems to be the beginning, as stronger bearishness is anticipated. At least, another 200 pips would be shed this week.

This forecast is concluded with the quote below:

“…Trading appeals to so many of us. It generates a sense of freedom – a notion that we can do it from anywhere at anytime. The engagement with the market is at our own timing and on our own terms. We can in essence wander in and out whenever we want. Our movement is not at the behest of someone else and it not set according to their timetable. The nomad in us is fulfilled as a trader.” – Chris Tate

Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair trended downwards last week, testing the support line at 1.1750. The market went essentially sideways on Thursday and Friday, and may go below the support line at 1.1750, to target another support line at 1.1700. About 250 pips have been lost this month, and it just seems to be the beginning. The outlook on EUR pairs is bearish for this week (EUR would be seen going downwards versus major currencies).


USDCHF
Dominant bias: Bullish
This trading instrument is bullish in the long-term, but neutral in the short-term. Price has been consolidating in the past two weeks; whereas that is not strong enough to render the recent bullish bias useless. There is going to be a breakout at last, but the movement to the upside will no longer be a serious thing. While USDCHF is supposed to go upwards, there would be a challenge to the upwards move, because CHF is expected to gain serious stamina this week (major currencies will drop versus it). This means that the coming strength in CHF may hinder USDCHF from getting seriously pushed further northwards. 

GBPUSD
Dominant bias: Bearish
The Cable is bearish in the long-term, but neutral in the short-term. The bearish movement that started last month, has continued this month (although price has been ranging in the short-term). There remains a valid Bearish Confirmation Pattern in the market, despite the fact that it has been ranging in the last two weeks. A breakout is imminent, which would most probably favor bears. The accumulation territories at 1.3450, 1.3400 and 1.3350 could be reached thus week.
.
USDJPY
Dominant bias: Bullish
The bullish movement that was witnessed last week has saved the ongoing bullish bias in the market. The bullish movement started in March 2018 and it has held out till now. The supply level at 111.00 was tested before price closed below it on Friday. This week, there is a high probability that the market would continue going upwards, reaching the supply levels at 111.00, 111.50 and 112.00.

 
EURJPY
Dominant bias: Bearish   
The bias on this cross is bearish, but it is a precarious bias. What the market did last week was a zigzag movement without a clear directional propensity. Price moved upwards, downwards, and upwards again, within the supply zone at 131.50 and the demand zone at 129.50. A 200 –pip movement to the upside or to the downside would easily change the bias to bullish or bearish, and that is exactly what is expected this week.
 

GBPJPY
Dominant bias: Bullish
The market is bullish, at least, in the very short-term. The current bullishness (which is not very strong), started on May 8, and it has been dragged on in spite of constant interferences from bears. Price succeeded in moving further northwards last week, almost reaching the supply zone at 150.00, before closing below it on May 18. This week, too much weakness in GBP could frustrate a clean bullish movement. Nevertheless, the supply zone at 150.00, might once again, be breached. 

This forecast is concluded with the quote below:

“According to Kermit the Frog, it’s not easy being green. For skillful traders, it’s not hard to be green. May your trades be green.” – attributed   


Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair trended downwards last week, testing the support line at 1.1850. Several attempts to breach the support line to the downside were not successful, and as such price bounced upwards by 100 pips from the line. The upwards bounce is seen as an opportunity to buy at slightly higher prices because the outlook on the market remains bearish, and price may continue going further downwards, eventually breaching the adamant support line at 1.1850 to the downside.     


USDCHF
Dominant bias: Bullish
In the context of an uptrend this trading instrument went sideways last week, ranging between the resistance level at 1.0000 (previously a support level) and the resistance level at 1.0050. Eventually, price closed below the resistance level at 1.0000 on Friday, and it may even test the support levels at 0.9950 and 0.9900. However, price would rise again, possibly reaching the resistance level at 1.0000 and breaching it to the upside. 

GBPUSD
Dominant bias: Bearish
The current bearish trend started in April 17, and what happened last week was just a pause the bearish trend.  The pause was a consolidation throughout last week; thus a breakout is imminent, which would most probably favor bears. The accumulation territory at 1.3500, which had been tested before, would soon be breached to the downside, as price targets other accumulation territories at 1.3450 and 1.3400.

USDJPY
Dominant bias: Bullish
The bias on the market is bullish – and the trend is still in a precarious position. Price did not go in a strong directional movement last week. It only oscillated between the demand level at 109.00 and the supply level at 110.00. A breach above the supply level at 110.00 is anticipated this week, although bulls may not be able to enjoy that victory for a long time, because there is a possibility of a fall back towards the demand level at 109.00.
 
EURJPY
Dominant bias: Bearish   
In a bearish outlook, price trended downwards on Monday and Tuesday, and then started to make a rally effort. It managed to close above the demand zone at 130.50 on Friday, in the context of a downtrend. Unless the Euro gets strengthened considerably, there might be a reversal in favor of bears, which would enable the market to target the demand zones at 130.50, 130.00 and 129.50.

GBPJPY
Dominant bias: Bearish
This cross was characterized by a zigzag movement throughout last week, although that did not affect the current Bearish Confirmation Pattern in the market. This week, price is supposed to continue moving further and further south (as soon as the current short-term trendlessness ends).  The demand zone at 147.50 was tested last week, before price rallied a bit further. The demand zones at 147.50, 147.00 and 146.50 may be tested this week

This forecast is concluded with the quote below:

“Of course, most traders enjoy the process of building up profits, the satisfaction of adept trading, or simply outwitting the crowd. But it is not just the outcome that is important, it is also the process.” – Andy Jordan


Source: www.tallinex.com

A little bit of humor to get your Friday off to a chuckle:

Chart - what you check after you exit trading, trying to understand what went wrong.

Day Trading - trading which you start too late or exit too early.

Margin - (if you are up) a safe situation with huge potential return (if you are down) an evil trick by Unseen Forces that can cause you losing more money than you have.

Margin Call - what happens when your broker makes an accounting mistake.

Moving Average - a curly line that has nothing to do with price movement if you have an open position.

Position Trading - day trading that went the wrong way right after you took a position.

Trend Line - an imaginary line on the price chart that only changes when the market is closed or when you are not looking.

Source: Tradingeducators.com

www.tallinex.com wants you to be a successful trader

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD went downwards by 170 pips last week. It has gone downwards by 430 pips since April 19. There is a Bearish Confirmation Pattern in the market and it is supposed to continue going lower and lower, reaching the support lines at 1.1900, 1.1850 and 1.1800. USD is supposed to continue being strengthened, and so long trades are not currently recommended, until it is clear there is a change in the market.   


USDCHF
Dominant bias: Bullish
This pair has normally been going upwards as EURUSD is going downwards. Price has gained over 800 pips since February 16 (it gained 130 pips last week). The great psychological level at 1.000 has eventually been reached and a lot of activity has started around that level, as bears are struggling to prevent bulls from pushing price above the level. However, bulls will eventually win the struggle, and enable price to stay above the psychological level at 1.0000, as another resistance level at 1.0050. The USD reigns.

GBPUSD
Dominant bias: Bearish
Since testing the distribution territory at 1.4350 on April 17, Cable has nosedive, shedding 850 pips since then (including 250 pips that were shed last week). Price tested the accumulation territory at 1.3500 on Friday, but closed above it. The outlook on GBP pairs is bearish for this week, and thus Cable should continue its downwards exploration, reaching the accumulation territories at 1.3500, 1.3450 and 1.3400.

USDJPY
Dominant bias: Bullish
The bias on the market is bullish, but the trend is in a precarious position. Price did not go upwards significantly last week, neither did the bearish correction that followed help the matter. Once the supply level at 110.00 was tested, price got corrected by 100 pips, moving briefly below the demand level at 109.00 and then closing above it on Friday. Since the bullish bias is in a precarious situation, any movement below the demand level at 108.00 will result in a clear bearish signal.  A movement to the downside is very much likely this week.
 
EURJPY
Dominant bias: Bearish   
This trading instrument has dropped by 300 pips since April 26. Roughly 250 pips were shed last week, owing to the weakness in EUR and a show of energy in JPY. There is a huge Bearish Confirmation Pattern in the market, and price is expected to continue going southwards, owing to the bearish outlook on JPY pairs this week. The demand zones at 130.00, 129.50 and 129.00 would be reached. 

GBPJPY
Dominant bias: Bearish
A very weak GBP has met a strong JPY, and the result was that price went out of balance, in favor of bears. There is a huge drop in the market (nearly 300 pips), as the demand zone at 147.00 was nearly tested. There is a bearish outlook on this cross, and further southwards journey is expected. There could be transitory upwards bounces in the market, but they would serve as good short-selling opportunities. 

This forecast is concluded with the quote below:

“(Good) Trading happens outside your comfort zone… What I love about trading is the ongoing challenge and it makes me happy to know that I’m competing against some of the brightest minds on earth in the markets. They do what works.” - Marco Mayer


Source: www.tallinex.com

GOLD (XAUUSD)
Dominant Bias: Bearish 
In the first half of April, Gold made some visible bullish attempt. However, price came downwards noticeably in the second half of that month. Generally the market is very choppy… It has been coming down since last week, and May was started on a bearish note. Since there is a Bearish Confirmation Pattern in the market, the resistance levels at 1300.00, 1250.00 and 1200.00 would be reached this week. As the market is quite choppy and volatile, some transitory spikes, rallies and gap-ups could be experienced in May, but bears would win ultimately.


SILVER (XAGUSD)
Dominant Bias: Bearish
Silver is bearish in the short-term and the medium-term. Just like Gold, it went upwards within roughly the first two weeks of April and then came downwards in the last two weeks of the same month. Over 6,000 pips were shed last week, and this week has already seen a loss of additional 4,500 pips, as price reached a low of 16.0484. There has been a recent temporary upwards bounce in the market (while a Bearish Confirmation Pattern is present in it). The upwards bounce could end up being another opportunity to sell short at slightly higher prices, because price would come downwards in May, reaching the demand level at 16.0000 and possibly exceeding it southwards.


Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair experienced a strong bearish movement last week, dropping 230 pips, and nearly reaching the support line at 1.2050. However, price closed above the support line at 1.2100, and that might be a good opportunity to sell short at a better price, for price may continue going downwards this week, because USD keep on being strong. The support lines at 1.2100, 1.2050 and 1.2000 are the next targets. EUR pairs will also experience strong volatility in May. 


USDCHF
Dominant bias: Bullish
This trading instrument went upwards last week (gaining 150 pips). Over 300 pips have gained in the last two weeks, and this is just the beginning, because the northwards journey would continue as a result of the stamina in USD. The resistance level at 0.9900 has been tested and it would be tested again, and get breached to the upside. That is when price would target additional resistance levels at 0.9950, and ultimately 1.0000.

GBPUSD
Dominant bias: Bearish
GBPUSD shed 250 pips last week, and it has shed more than 600 pips since April 17. There is a huge Bearish Confirmation Pattern in the market, which portends possibility of further southwards journey. The accumulation territories at 1.3750, 1.3700 and 1.3650 could be reached before the end of the week. The accumulation territory at 1.3750 was tested last week, and it would be tested again this week, for the outlook on GBP pairs remains bearish. GBP pairs will also experience high volatility in May.

USDJPY
Dominant bias: Bullish
Price started rallying last month, and it rallied considerably last week. The bias on the market has thus turned completely bullish as price neared the supply level at 109.50, and it is now close to the demand level at 109.00…  However, price may not be able to go protractedly upwards again, because there is a very strong bearish outlook on JPY pairs for this week, and for May 2018. Long positions should be liquidated because bulls will suffer seriously in May.
 
EURJPY
Dominant bias: Bullish   
This cross did not made any strong directional movement last week. Price made a weak bullish effort on Monday and Tuesday, consolidated on Wednesday and then got a bearish correction on Thursday and Friday. Although the ongoing bias is bullish, bulls are obviously getting weaker and weaker, showcasing their lack of interest in pushing price upwards. The recent bearish correction may eventually turn out to be something significant. A large movement is expected on EURJPY in May, and it would mostly favor bears.

GBPJPY
Dominant bias: Bearish
Just like EURJPY, albeit in a significant mode, this cross pair made a clear bullish effort on April 23 and 24, then ranged on April 25; only to dip on April 26 and 27. The dip on April 27 was strong enough to enforce a formation of a Bearish Confirmation Pattern in the market. Given the weakness in GBP and a bearish outlook on JPY pairs (Yen would become strong), this cross would continue to go further southwards, reaching the demand zones at 150.00, 149.50 and 149.00 this week.

This forecast is concluded with the quote below:

“What you need is the safety of a detailed trading plan: specific guideline to follow. Making a plan follows the wisdom of any job being 80% preparation and only 20% execution. The more clearly the plan is laid out, the easier it is to follow. And when the plan is easy to follow, it's likely that you'll stick with it. You'll be disciplined and in control of your emotions and thought processes.” – Andy Jordan (Source: Tradingeducators.com)

Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
The pair is bearish in the short-term, which is still a weak bias. Price went downwards last week, moving briefly below the support line at 1.2250, and closing above it on Friday. There are resistance lines at 1.2300, 1.2350 and 1.2400. Things will go bullish when the resistance line at 1.2400 is breached to the upside. There are support lines at 1.2250, 1.2200 and 1.2150. Things will go strongly bearish when the support line at 1.2150 is breached to the downside.


USDCHF
Dominant bias: Bullish
The market remains bullish in the short-term (and its fate is largely subject to whatever happens to EURUSD). Price went upwards last week, almost reaching the resistance level at 0.9650, and then getting corrected lower. The short-term bullishness will be rendered ineffectual only when price goes below the support level at 0.9500. On the other hand, a movement above the resistance level at 0.9700 will result in a stronger bullish bias on the market.

GBPUSD
Dominant bias: Neutral
The market is neutral because there was no significant directional movement last week. Price hovers between the distribution territory at 1.4200 and the accumulation territory at 1.3900. Price would need to go above that distribution territory or below the accumulation territory, for a directional bias to form, but that would require a big momentum to happen. A possibility of a movement to the upside is very strong because the outlook on GBP pairs is very bullish for this week. Therefore a rally is likely in the market.     

USDJPY
Dominant bias: Bearish
The trading instrument is bearish in the long-term, and bullish in the short-term. In the short-term, price gained 180 pips from the low of last week, reaching the supply level at 107.50. Then there was a slight bearish correction in the market, which would eventually turn out to be an opportunity to buy long at better prices. A rally is very likely this week, which would push price upwards by 200 pips. This movement would be strong enough to override the long-term bearishness in the market.

 
EURJPY
Dominant bias: Bearish   
This cross is bearish in the long-term, and rather neutral in the short-term. Another reality is that the market condition is currently choppy, but that might come to an end when a rally occurs in the market. There is a strong likelihood of a rally here, owing to a bullish expectation on JPY pairs for this week. The supply zones at 131.50, 132.00 and 132.50 could be reached when a bullish movement begins.


GBPJPY
Dominant bias: Bullish
GBPJPY cross remains bullish, especially in the medium-term. The market gained roughly 500 pips on March and it has gained over 200 pips this month, closing above the demand zone at 150.50 on Friday. There is a Bullish Confirmation Pattern in the market, and thus, price is expected to continue going upwards this week, reaching the supply zones at 151.00, 151.50 and 152.00. The supply zone at 152.00 could even be exceeded.

This forecast is concluded with the quote below:


“You have what it takes to be a great trader! You may know this already or you may be curious to find out if you really do have what it takes.” – VTI

Source: www.tallinex.com

Do you want to be a successful trader? Then you need to unlock your potential and develop the right habits and routines.

Experience shows that people want to keep doing what they are doing, while expecting different results. In trading, that means they carry on trading in a certain way even when it brings poor results. Making a career out of trading means you have to identify what doesn’t work for you, and stop doing it. But that’s not easy – nobody likes being told they are wrong.

Your mind is the biggest obstacle that you need to overcome. It prevents you from following trading plans and deceives you into disobeying winning rules because of a transitory setback, thus missing great opportunities to make decent profits.

You can only unlock your trading potential through the realities of trading.

This book explains the traps that your mind can fall into and the methods you should use to avoid them. The author talks about how to use trading strategies, how to stay disciplined, and the right attitude to take whether you win or lose a trade. He covers trading situations from the past, such as the Greek debt crisis and the Swiss franc/euro upheaval in 2015, and explains how he traded those opportunities. He also talks about position sizes, the right time to trade and what you need to know about drawdowns.

Throughout the book, the author pinpoints ways in which bad habits can sabotage your trades, and how to prevent this happening and unlock your potential to become a great trader.

Trading realities: http://www.advfnbooks.com/books/unlockpotential/index.html   
 
www.tallinex.com wants you to be a successful trader

GOLD (XAUUSD)
Dominant Bias: Neutral   
The market bias is neutral in the long-term and bearish in the short-term. Since February 2018, price has been ranging (whereas December 2017 and January 2018 were bullish). However, going short-term, price dropped sharply in the last week of March, and made a rally attempt on April 3, only to get corrected lower on the following day. Given the current price action, a movement to downside is much more likely than a movement to the upside, when a breakout does occur. There is a strong supply barrier at 1360.00, which has been the major supply zone within the last two months. The demand zones at 1320.00 and 1310.00 would likely be tested this month.


SILVER (XAGUSD)
Dominant Bias: Neutral
Silver is also neutral in the long-term and bearish in the short-term, just like Gold. Price has been consolidating since February; whereas December 2017 and January 2018 were bullish. In a smaller time horizon, last week was bearish, plus this week, whose bearishness follows an abortive effort to effect a rally. A closer observation of the market behavior in the last several weeks reveals that bulls are getting weaker, and thus, bears would take advantage of this by pushing price lower and lower, towards the support levels at 16.2000, 16.1000 and 16.0000. Should this happen, the precarious Bearish Confirmation Pattern in the market would become stronger. 


Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
The market went upwards last week, to test resistance line at 1.2450; a level from which a bearish correction was experienced. Price came down to test the support line at 1.2300, and then closed just above it. While the current bias on the market is neutral, it is expected that a rise in momentum will happen before the end of this week, which would most probably favor bearish, because the outlook on EUR pairs is strong bearish for the week.

USDCHF
Dominant bias: Bullish
This bias on this pair is bullish – but it is currently not a strong bias.  Since testing the support level at 0.9200 (February 16), price has managed to gain about 360 pips. Last week, it managed to stay briefly above the resistance level at 0.9550, after which it closed below it again. A rise in the market is expected this week, which would also be fueled by weakness in EURUSD. The resistance levels at 0.9550, 0.9600 and 0.9650 could be reached before the end of the week.

GBPUSD
Dominant bias: Neutral
GBPUSD is bearish in the short-term, but neutral in the long-term. Last week, price nearly reached the distribution territory at 1.4250, after which it dived towards the accumulation territory at 1.4000. The outlook on GBP pairs is bearish for this week. However it is strongly bullish for April. While the general movement is expected to be upside in April, some selling pressure would be witnessed this week, which could propel price towards the accumulation territories at 1.4000, 1.3950 and 1.3900.     

USDJPY
Dominant bias: Bearish
The trading instrument is bearish in the long-term, and bullish in the short-term. There is a Bullish Confirmation Pattern in the market, at least on a short-term basis.  Price rose 220 pips last week, to test the supply level at 107.00, and then retraced below the supply level at 106.50. The supply level at 107.00 has thus become a major barrier for any bullish effort, as price goes downwards towards the demand levels at 106.00, 105.50 and 105.00.
 
EURJPY
Dominant bias: Bearish   
This cross is bearish in the long-term, and rather neutral in the short-term. Price is currently choppy as things are now in a range. There is a supply zone at 132.00 and a demand zone at 130.00. As long as price saunters between these two zones, the short-term neutrality will hold. There is a higher probability that price will go southwards (in agreement with the long-term outlook) when a breakout does occur.

GBPJPY
Dominant bias: Neutral 
The market is choppy and without direction, although the long-term bias is bearish. In March, what generally happened could be called a rally in a context of a downtrend, as price moved from the demand zone at 145.00, to reach the supply zone at 150.50. The outlook on JPY pairs is bearish for this week, and for this month, which means long trades are not recommended (except in a very short-term context). There will be great volatility on JPY pairs, which would most probably favor bears.

This forecast is concluded with the quote below:

“It’s not about the system, it’s about the trader’s ability to execute the system.” - Curtis Faith

Source: www.tallinex.com

DO YOU WANT TO BE ENTERTAINED OR RICH?…IT’S YOUR CHOICE

I came across this excellent chart the other day. It shows those times in history when the S&P 500 doubled over a ten year period and the trajectory that this doubling took.

Please see here for a relevant chart: https://www.tradinggame.com.au/want-entertained-rich-choice/ 

Much commentary that followed on twitter related to the steady low volatility climb that characterised the latest run and how boring this was. One of the interesting thing about markets and money in general is that people betray their true desires and personality.

Markets are the true window into the soul and in this instance what traders were actually saying is that they wanted to be entertained and not rich. The constant current moaning about the lack of volatility is little more than the plaintiff cries of children who bedevil their parents every school holidays with cries of …I’m bored.

This lay observation tallies with what others have found. The seminal work in this field of trader immaturity is An Analysis of the Profiles and Motivations of Habitual Commodity Speculators by W.B. Canoles, S.R. Thompson, S.H. Irwin, and V.G. France. I have summarised their findings below and have added my own emphasis.

“The typical trader assumes a good deal of risk in most phases of his life. He is both an aggressive investor and an active gambler.

 [He] does not consider preservation of capital to be a very high trading priority.

As a result, he rarely uses stop loss orders. He wins more frequently than he loses (over 51% of the time) but is an overall net loser in dollar terms. In spite of recurring trading losses, he has never made any substantial change in his basic trading style.

To this trader, whether he won or lost on a particular trade is more important than the size of the win or loss. Thus he consistently cuts his profits short while letting his losses run.

 He also worries more about missing a move in the market by being on the sidelines than about losing by being on the wrong side of a market move; i.e., being in the action is more important than the financial consequences.

Participating brokers confirmed that for the majority of the speculators studied, the primary motivation for continuous trading is the recreational utility derived largely from having a market position.

Numerous indications in our survey indicate that they are not trading solely or even primarily for profit, but may be maximizing excitement or the number of winning trades.”

So we come back to the original question. Do you want to rich or be entertained as the choice is entirely yours.

Author: Chris Tate
Article reproduced with kind permission of Tradinggame.com.au.

The article is concluded by the quotes below:


“It's in your best interest to focus on building your trading skills rather than on achieving a huge profit every month.” – Joe Ross

“No matter how good you may think you are, nobody is bigger than the market and it will beat you to your knees if you don't treat it with the respect it deserves.” - Adrian Alberts 

“Trading does not have to be very difficult — what can be difficult is finding the right path early on and properly understanding the major impact of your mental state on your trading results” - Gabriel Grammatidis 



www.tallinex.com wants you to be a successful trader


Trading realities: http://www.advfnbooks.com/books/unlockpotential/index.html

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
This pair has consolidated so far this month. Price has been ranging between the support line at 1.2250 and the resistance line at 1.2450. This week may see an end to the neutrality of the market, as price would either move above the resistance line at 1.2450 (staying above it); or it would move below the support line at 0.2250 (staying below it). However, a strong movement to the south is much more likely this week, owing to a bearish outlook on EUR pairs. 

USDCHF
Dominant bias: Bullish
In the short-term, this pair is bullish. Since the support level at 0.9200 was tested in February 16, 2018, price has rallied by over 350 pips, moving briefly above the resistance level at 0.9550. The market has been corrected lower since then, closing below the resistance level at 0.9500. A rally from here would save the bullish bias; while a plunge from here would render it invalid. Nonetheless, the market is more likely to go upwards as a result of a bearish outlook on EURUSD.

GBPUSD
Dominant bias: Bullish
The bias on GBPUSD has become bullish again, for price went upwards by 250 pups last week. Even the movement this month has been largely bullish (price has gained a minimum of 400 pips). The distribution territory at 1.4200 was tested, but price closed below the distribution territory at 1.4100 on Friday. There is a Bullish Confirmation Pattern the market, which points to a possibility of further bullish journey, as price targets the distribution territories of 1.4150, 1.4200 and 1.4250. This, nevertheless, cannot rule out a possibility of a strong pullback in the market. GBP pairs will experience high volatility this week.   

USDJPY
Dominant bias: Bearish
The pair traded southwards last week, to corroborate the presence of bears. Since January 8, 2018, price has lost 830 pips. It lost 170 pips last week, after testing the supply level at 106.50. Since there is a huge Bearish Confirmation Pattern in the market, price can still reach the demand levels at 104.50, 104.00 and 103.50 before the end of this week. A rally may occur along the way, but it should not be something that would override the extant bearish outlook on the market.
 
EURJPY
Dominant bias: Bearish   
Although the market is choppy, the bearish trend has been maintained.  Price has been going southward since February 5, having lost almost 800 pips since then. Last week, there was a rally attempt in the context of an uptrend, which was halted once the supply zone at 131.50 was tested. The market shed 250 pips following that, to test the demand zone at 129.00, and closed below the supply zone at 129.50. The expected weakness in EUR, as well as the bearish outlook on the market, may enable the demand zones at 129.00, 128.50 and 128.00 to be tested this week.

GBPJPY
Dominant bias: Bearish
The cross is bearish in the long-term, but neutral in the short-term. This is a choppy market: An abortive bullish attempt was made last week, but that was rejected as the supply zone at 150.00 was tested. Price came down after that, thus cancelling the short-term effect of the bullish attempt. This week, there may not be any rallies that will cancel the existing bearishness in the market. Price could go further southwards, but it is not expected to go below the demand zone at 145.00, which is the ultimate target for the week.

This forecast is concluded with the quote below:

“Volatility is good for trading… Volatility can and should be used to a trader’s advantage. It all comes back to understanding and believing in your trading system.” - Jasper Lawler

Source: www.tallinex.com

A TRUE LIFE STORY OF A VETERAN TRADER

We were in a midst of a popular monthly traders’ forum when an elderly man on a wheelchair was helped into the hall.

The moderator asked us to stand up for the man, whom he called “a soldier on the battlefield of the financial markets.”

As the forum was about to be concluded, someone suggested that we allow the professional on a wheelchair to give a short speech.

A mic was given to him.  He held the mic and said:

“My fellow traders. Thank you for standing up for me, and thank you for giving me a privilege to talk in this forum.

I started trading 12 years ago. And I am still trading. I will trade for as long as I breathe. I am one of the most popular Forex traders in this country.

Sadly, the one who coached me for Forex trading stopped trading in 2008, because of subprime crises and market crashes. He lacked risk control skills.

I pressed on, to become a regular columnist in a popular newspaper, writing about Forex trading on daily basis. I also provided trading signals for people, as well as trading my personal accounts.

I have 2 powerful manual strategies that I use. I developed the strategies based on my many years of experience. Trainees who apply my strategies have been sharing wonderful testimonies since.

A few years ago, I fell ill. Diagnosis revealed that I had cancer of the bone marrow. I required surgery in a foreign hospital. I gathered all the funds I could gather, and well-wishers and friends also contributed what they could.

I was transported to a foreign country (I was already paralyzed).

Luckily, the surgery was successful. I can say, partially successful, for the paralysis was partially corrected. I can now speak and use my hands. I can also stand up, but I cannot walk.

While I was on a hospital bed and my legs were tied. I was trading profitably on mobile devices. I was even providing trading signals and mentorship to people online.

Then, a client couldn’t believe I was providing services to clients on a hospital bed until we connected on Skype, doing video calls. I was seen trading on a bed, while I was strapped to the bed.

Several months ago, I came back to my country, and I have continued trading, training and providing signals since then.

[He burst into tears].

Traders. Let me tell you this. Online trading remains the best tool for financial freedom. Please do anything possible to become a winning trader.

Look at my condition now. I am advanced in age. I can only stand up, but I cannot walk. I need crutches and a wheelchair to move about.

Imagine. If I was someone who did 9.00 A.M – 5.00 P.M. work, what would be my lot now? My employers would have laid me off. If I was fortunate enough to get anything from them, it could have been exhausted by now.

I would have become a beggar by now. Or what makes me special when compared to other handicapped persons who have now become beggars? Clearly, online trading makes the difference!

Imagine. If I go to Mr. Henry to beg for $30, I would finish spending it. If I go to Mr. Johnson to beg for $20, I would finish spending it.

If Mr. Johnson was kind enough to give me $20 three times. He would eventually stop giving me more money because he got his own responsibilities. He might not pick my calls again; or he would instruct his folks to tell me he is not at home, when I visit him next (to beg for money).

This is a lesson you must learn. Please learn from my story. I trade on a wheelchair, and I make money from signals provision, coaching and trading. I can sustain myself, my wife, my 3 kids and my aged mother.”

He dropped the mic.

And the forum ended.

I conclude this articles with the 3 quotes below:

“You must be disciplined in following the plan of your trade religiously. Once you have closed your position, you should record everything about the trade. Write down where you wanted to enter the trade, what you expected out of the trade, and what you actually did get out of the trade. Make sure to include notes that will help you learn from the trade, reasoning what actually took place once you entered the trade. Explain why the trade was a winner or a loser. If you keep detailed records, you can learn from past trades and increase your chances of recognizing your strengths and weaknesses. Build on your strengths and stay away from trades you have demonstrated weakness in.” – Andy Jordan (Source: Tradingeducators.com)

“Humans are an error based machine, we make mistakes and perfection is never really on our radar despite our best efforts. The realisation that mistakes are at the core of good trading is hard for many to accept as they are locked into the belief that you cannot make money if you get trades wrong. Fortunately there is no nexus between making money and being right. Many, many years ago i discovered that the fewer fucks I gave the more I made. To revert to a past life choice of mine – you could never be a fighter if your expectation was that you would never be hit.” – Chris Tate

“Avoid illiquid markets. Be sure to check volume. How much is it on average and is it steady day after day. And perhaps the greatest lesson of all should you happen to leap before you look--never, ever trade on hope or stay in a trade based on hope. If you are wrong, get out. If you don't have the discipline to do that, you shouldn't be trading.” – Joe Ross

Traders’ realities: http://www.advfnbooks.com/books/unlockpotential/index.html

Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
The market is generally, neutral. It initially made bullish effort last week, reaching the resistance line at 1.2400, and then retraced towards the south. Price is now below the resistance line at 1.2300, going towards the support lines at 1.2250 and 1.2200. Any rallies could be contained at the resistance line at 1.2400. There will not be much movements across the markets this week. However, next week will witness a strong volatility.   

USDCHF
Dominant bias: Bullish
In the medium-term, this market is bullish. Since the support level at 0.9200 was tested in February 16, 2018, price has rallied by over 300 pips, closing above the support level at 0.9500 on Friday. There is a tendency for the market to continue going upwards, especially when EURUSD shows signs of further weakness. Thus the resistance levels at 0.9550, 0.9600 and, ultimately 0.9650, could be reached this week.

GBPUSD
Dominant bias: Neutral
Cable has become neutral, particularly since a few weeks ago. Last week, price rose above the accumulation territory at 1.3900, and then moved sideways throughout the week. There is a distribution territory at 1.4050, which must be broken to the upside, for a bullish bias to form. There is also an accumulation territory at 1.3800, which must be broken to the downside, to form a bearish bias. 

USDJPY
Dominant bias: Bearish
Since January 8, 2018, this trading instrument has dropped 750 pips, testing the demand level at 105.50 several times. Price has not been able to stay below that demand level, but that does not rule out the possibility of testing it again. The demand level at 105.50 would offer a stiff resistance to further bearish movement. That means a strong selling pressure would be needed for the demand level to be breached to the downside. Otherwise, a rally will surface.
 
EURJPY
Dominant bias: Bearish   
The market has been in a vivid bearish mode since February 2. The demand zone at 129.50 was tested, and further bearish movement was restricted. A period of consolidation and bullish attempt were witnessed, but price is currently pointing southwards, now close to the demand zone at 130.00, which would be breached to the downside as price goes towards another demand zone at 129.50, where bears will encounter fierce opposition.

GBPJPY
Dominant bias: Bearish
From the low of March 2, price has risen by roughly 450 pips. However in the past few days, price has been coming downwards gradually. Further downwards movement could result in confirmation of a new bearish outlook. There are demand zones at 147.00, 146.50 and 146.00. The demand zone at 146.00 may do a good job in preventing more southwards journey. A very strong rally is expected before the end of this week. 

This forecast is concluded with the quote below:

“Good trading times may be just ahead. Are you ready? It's times like these when the right mental edge can make all the difference…. It's vital that you approach trading with the proper mindset. Be ready to work hard and do whatever it takes to come out a winner. You can trade profitably if you put in the time and effort. Think optimistically, work hard, and take home the profits!” – Joe Ross

Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
The market did not do anything significant last week.  In fact, the market has generally been choppy since February 2018. There is a support line at 1.2150 and a resistance line at 1.2450. As long as price moves within the aforementioned support and resistance lines, the neutrality in the market will continue. Ultimately, price will either go below the support line at 1.2150 to form a bearish bias; or it may go above the resistance line at 1.2450 to form a bullish bias.

USDCHF
Dominant bias: Bullish
In the short-term, the market is bullish. However, it is neutral in the medium-term and bearish in the long-term. Now, in the short-term, price moved sideways from Monday to Wednesday and then rose on Thursday, becoming bullish. From the support level at 0.9350, price rose above the support level at 0.9500, closing above it on Friday. There could be further upwards movement, but it will not last long because a considerable amount of pullback is expected this week, owing to a bullish outlook on CHF, which may cause other CHF pairs to go bearish (and USDCHF included).

GBPUSD
Dominant bias: Bearish
Cable is bearish in the long-term, but neutral in the short-term. What happened last week is best called consolidation, because there was no strong directional movement in favor of the bull or the bear. A directional movement is supposed to happen this week, as GBP rises against some currencies like USD, but it may drop versus other currencies like NZD. There are accumulation territories at 1.3800, 1.3750 and 1.3700. Likewise, there are distribution territories at 1.3900, 1.3950 and 1.4000.

USDJPY
Dominant bias: Bearish
The outlook on this pair remains bearish, but some bullish effort was made last week. For instance, price rose from the demand level at 105.50, to test the supply level at 107.00. This kind of price action can only threaten the extant bearish bias when price gains additional 150 pips, from here. There are demand levels at 106.50, 106.00 and 105.50. Likewise, there are supply levels at 107.00, 107.50 and 108.00.
 
EURJPY
Dominant bias: Bearish   
Price moved sideways on March 5, rose upwards later that day and on March 6, but then consolidated throughout last week.  The consolidation can continue this week, but a rise in momentum is also expected. When a breakout occurs, it will most likely be in favor of the bear, because the outlook on JPY pairs is bearish for this week. Therefore, initial targets may be put at the demand zones of 131.00, 130.50 and 130.00.

GBPJPY
Dominant bias: Bearish
The market is bearish, but it made bullish effort throughout last week. Last week, it rose from the demand zone at 145.50, to test the supply zone at 148.50 (over 300-pip movement). The upwards movement was considerable enough, but that may turn out to be an opportunity to go short when price rises in the context of a downtrend. The outlook on JPY pairs is bearish for this week. Within this week and next, the market is expected to drop at least, 300 pips. The demand zone at 145.50 is the initial target and that may be exceeded eventually.

This forecast is concluded with the quote below:

“Try to be humble, honest, and ready to face your own shortcomings as a trader. If you can do, you will have a better chance to be consistently profitable.” – Andy Jordan

Source: www.tallinex.com

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
The market is bearish, and the bearishness has been in place since February 16. Last week, price moved briefly below the support line at 1.2200, and then rallied in the context of a downtrend. Unless the rally enables price to overcome the resistance lines at 1.2400 and 1.2450, it would merely turn out to be another short-selling opportunity. The support lines at 1.2250, 1.2200 and 1.2150 could be reached this week. 

USDCHF
Dominant bias: Bullish
This pair is bearish in the long-term, neutral in the short-term, and it is quite choppy at the present. The bearishness in the market has been in place since early November 2017; plus last week was rough. Price rose from the support level at 0.9350, went above the resistance level at 0.9450, only to drop towards the support level at 0.9350 again. A breach of the support levels at 0.9350, 0.9300 and finally, 0.9250, would bring about a bearish outlook on the market. A movement to the upside would save the extant bullish bias.

GBPUSD
Dominant bias: Bearish
This trading instrument dropped steeply last week, losing 300 pips from the high of Monday. The movement on Friday was somehow flat, but price is expected to resume its southwards journey this week. The outlook on GBP pairs is bearish for the week, and thus, this instrument could go towards the accumulation territories at 1.3750, 1.3700 (which has been previously tested), and 1.3650.

USDJPY
Dominant bias: Bearish
This pair consolidated from Monday to Thursday, and then began to come downwards (to place more emphasis on the bearishness of the market). Price has gone below the supply levels at 106.50, and 106.00; and it may test the demand levels at 105.50, breaching it to the downside as another demand level at 105.00 targeted. On the other hand, a strong reversal could occur, which would result in a threat to the current bearish bias.
 
EURJPY
Dominant bias: Bearish   
It is interesting to see EURJPY being engaged in a long, protracted bearish movement. Since the beginning of February, at least, 700 pups have been shed. In the past few weeks, short-term rallies have been invariably followed by further southwards movements. Price would continue moving downwards towards the demand zones at 130.00, 129.50 and 129.00. Nonetheless, a strong rally is in the offing, as the outlook on EUR pairs is bullish for this week. 

GBPJPY
Dominant bias: Bearish
The recent price movement on GBPJPY is similar to that of EURJPY, except the fact that GBPJPY moves faster than EURJPY. For instance, since testing the supply zone at 156.50 on February 2, price has gone downwards by more than 1,100 pips, reaching the demand zone at 145.00.  More than 450 pips got dropped last week alone! All this has brought about a Bearish Confirmation Pattern in the market, which points to the possibility of price reaching other demand zones at 140.00 and 139.50. However, there could also be a strong bullish reversal in the market.

This forecast is concluded with the quote below:


“A strategy is a definitive set of rules that specifies the exact conditions under which trades will be established, managed and closed.” - Jean Folger

Source: www.tallinex.com

WHY ONLY SORBONNE-EDUCATED, LITERATURE PH.D.S SHOULD CUT YOUR HAIR

You get a haircut every few weeks. Everyone does. Men, women, children. Even balding men need a trim occasionally (as I’m finding out, sadly).

But what if I told you that you’ve been doing this all wrong?

What if I told you that your barber, or hairdresser, is terribly under-qualified. That you have been risking your hair — which is just a few centimeters from your brain, after all — to an under-educated, under-trained amateur.

What if I insisted you were making a huge mistake in your barber choice. Instead of your current choice, you should choose another kind of haircutter. A better one. This one should be qualified. He (or she) should be properly educated. He should hold a Ph.D.

In Comparative Literature.

From the Sorbonne.

If I told you that, what would you say?

You’d say I was crazy.

Because having a Comparative Literature degree from a French university has absolutely nothing to do with how you perform at cutting hair. Of course.

But wait a second. Such “crazy” advice is given to us every day. Very smart people, with net worths of millions of dollars… even billions of dollars… regularly follow similar advice.

I’m speaking about the hedge-fund industry. This is an industry that manages almost a trillion dollars of civilization’s wealth. The role of the hedge fund is to produce “alpha” — a fancy way to say that it is asked to produce “market-beating returns.” If you are a wealthy person who, over her lifetime has earned ten million dollars, you prefer not to leave all your cash sitting in a bank, earning negative interest rates, after inflation. You want your wealth to earn a return. And so you give a portion of it to a hedge fund.

Thus the “hedge fund industry” plays an important role in the financial world.

You would think, wouldn’t you, that the people who run hedge funds would want to hire the most talented traders and analysts to work at their firm. You would think that hedge-fund customers would insist upon such a thing. You would think that hedge-fund hiring departments would scour the world, looking for smart people who have creative and interesting ideas about how to manage money — how to create those market-beating returns while controlling risk.

Except… none of this is true.

In fact, the world of hedge funds is bizarrely insular. If you do not live in New York, if you do not live in London, if you did not win the birth lottery by being born in an English-speaking country, if you did not go to Harvard, if you did not get a job at Goldman… well, then, good luck getting a job at a hedge fund. I suppose you can apply, but… don’t let the door hit you on the way out.

Which is strange, when you think about it, because all those qualities: where you live, what language you speak, what name is on your diploma, whether you held a job at Goldman Sachs — all of those things are entirely unrelated to how you will perform as a trader or investor.

In other words, the hedge-fund industry operates as if it thinks all hair-cutters must hold Literature Ph.D.’s from the Sorbonne.

Everyone in the industry knows this is absurd — that the performance of any new hire is orthogonal to where a person went to school, or even if he did; or to where a person held her last job.

I’ll take this a step further. Really smart hedge-fund operators ought to know that hiring one more me-too Harvard ex-Goldman prop trader will generate, at best, me-too performance. Every Goldman clone will have similar “ideas,” will look in the same places for financial opportunities, will pile into the same lame trades, will follow the same stampeding herd.

Here’s an idea. What if we hired hair-cutters who were actually good at… cutting hair?

My company, Collective2, has a mission. It’s a simple one. We are going to destroy the entire hedge-fund industry. We are going to tear it down, burn it to ash, plow salt into its earth.

We think that anyone can generate alpha.

No, not that everyone can… simply that anyone might:

1.   That guy in India, who didn’t win the lottery by being born near Manhattan, but who can code algos to predict market movements.

2.   That doctor in Boston, who has a full time job helping humans live longer, and who has utterly no desire to work at a hedge fund, thank you very much; …but who notices that one particular pharma company’s sales reps seem to be applying high-pressure sales tactics, and who therefore decides to short its stock.

3.   That Chicago-School economist, whose ten years of research have shown him that cartels inevitably collapse, and who therefore shorts oil futures, knowing that OPEC’s latest “production quota” announcement is just a bunch of hot air.

Here’s the thing about trading performance. It’s the one job in the world where it’s obvious who’s good at it, and who’s not. You simply look at the person’s track record. Nothing else matters. Not where a person lives. Not which company he worked at five years ago. The performance matters. That’s it. Period. Full stop.

Please read more here: https://trade.collective2.com/french-barbers 


Source: Collective2.com. Reproduced with permission.

This article is also concluded with 3 more quotes:

“… Don't personify the markets. Anger is an interpersonal emotion. We are usually angry with someone because we believe that he or she has purposely tried to harm us. The markets may consist of people making trades, but it doesn't make sense to make up imaginary relationships with the markets. There is nothing that is personal going on. You are merely making it personal, and taking setbacks personally, as if someone were out to wrong you. The people participating in the markets may engage in actions that thwart your goals, but their actions are not directed toward you personally. It is best to look at the markets as an abstract impersonal entity. Pretend you are playing a videogame. The more impersonal you can make trading, the better you will feel, and the more profits you'll realize.” – Joe Ross (Source: Tradingeducators.com)   

“There is a fundamental disconnect between the reality of trading and the academic and regulatory interpretation of how markets should work in a bubble. Unfortunately, too many traders get sucked into the complexities of academia and think that such intricacies are the ticket to their salvation. As always we come back to the notion that trading is a simple affair that is driven not by what the market does but by your reaction to it.” – Chris Tate

“By design, my trading system produces a highly asymmetric return with 80% of my total gains coming from 20% of my trades. Since the majority of profits from the system come from a minority of trades, missing out on just one could be a costly error as it could become one of the most profitable trades.” – VTI

www.tallinex.com wants you to become a successful trader

GOLD (XAUUSD)
Dominant Bias: Bearish 
The market has been showing weakness since last week (price dropped more than 1200 pips last week alone). A bullish attempt was made on February 26, but the attempt was later halted as price dived again, laying more emphasis on the recent bearish bias. Price is intent on going further southwards, and there is a possibility that the support levels at 1310.00, 1300.00 and 1290.00 would be tested. These are initial targets that could even be exceeded, when selling pressures on the market increases. The resistance levels at 1340.00, 1350.00 and 1360.00 should hinder meaningful bullish attacks along the way.

SILVER (XAGUSD)
Dominant Bias: Bearish
Silver is a rough but bearish market. In January, the market consolidated as bulls were making unsuccessful effort to push price upwards. In February, the market went far lower in the first few days of the month, and again, consolidated for the rest of the month. Nothing significant has been done this month, but the general outlook on the market is bearish. A movement below the demand levels at 16.2000, 16.1000 and 16.0000 (which could possibly be exceeded), should make the Bearish Confirmation Pattern in the market become more conspicuous. There are supply levels at 16.7000, 16.8000 and 16.9000. 


Source: www.tallinex.com