Very useful comicsBe like Alex, do not be like Jack!
Many of my students have a bad experience working with scam brokers.
I will tell you the story of one of them!
He decides to try different brokers and get a lot of bonuses from them......
Everyone loves to get a lot of attention. So, the managers of these brokers called him every few times a day.
They told many beautiful stories about a wonderful life with a bag of money, expensive vacation, sports cars, and personal Jet...))).
But when they talk about such things, they sit in a small room without air conditioning, dressed in cheap clothes and eating fast food.
Yes, he will get it all if he cheats you and hundreds of other novice traders!
Then you can think about the police, court, or indictment, but they just change their head office address and contact phone number.
They never refund money, except when you have a good influential friend.
I have two videos for you on my youtube channel.
The first one is about how to identify a cheating broker and the second one about how to choose a reliable broker.
I recommend that you check both of them and never make the same mistake as my friend.
He did not get his money back and that managers (traders, bots) are losing most of their deposit.
Be careful, take care of your money, take care of your nerves, take time... be like Alex!).
Don't forget to support this idea with your like!
Commodities
How to trade GOLD/SILVER RATIO in Any platform!?This is the first educational post I Make on Tradingview so make sure you like and comment and follow if you like it,
in this post I will explain how to trade The GOLD/SILVER RATIO in any platform
You can use the same strategy to trade ETH/BTC in Binance Futures with leverage ...
first lets define what is gold silver ratio ,
The gold/silver ratio (GSR) is the current price of an ounce of gold divided by the current price of an ounce of silver. It's a simple numerical calculation that shows how many multiples gold is trading relative to the price of silver, a common indicator used by precious metals investors worldwide.
this indicator help us know which is going to gain more or wich is going to lose more in some cases when there is high volatility in the markets you might find this chart stable with very strong trading opportunity for example back in the 26/2/2020 when the markets were uncertain and volatile this chart made a very good breakout and huge gains! you can find that on the chart above
so now lets explain how to trade it in any platform that have GOLD/USD and SILVER/USD
if you want to short the GSR
all what you need to do is to sell short GOLD and buy long SILVER with the same amount of money and leverage in each of the positions
Example
if you open a long position with 1000$ and x3 in SILVER/USD you have to open a short position in GOLD/USD at the same moment with 1000$ and x3 leverage.
If you want to long the GSR
all you need to do is the opposite of shorting we buy GOLD/USD and sell SILVER/USD with same rules again we should use the same amount of money and us the same leverage in each of the two position.
thanks for reading good luck
Gold 100 pips Buy Breakdown 1890-1900Gold had formed a clear support during London Session on the 30m and 1h timeframes. We had strong bullish momentum so my bias was bullish in the short term. I then switched down to the 15m timeframe to look for a good entry to minimise drawdown.
When a bullish 15m candle closed starting from support, I waited for the next candle to form bullish and my final confirmation was that it broke the high of the previous bullish 15m candle. Then I entered the trade.
My stops were below the 15m wick rejections and my two targets were 1897 and 1900.
Both targets were smashed within a few hours with very minimal drawdown.
If any candle from 15m upwards closed below support, I would have closed my positions as it was invalidate the setup.
OIL10.4.20 I am generally satisfied with the video, but I wasn't clear at the end because I was worried about upload failures for the video. Please read this for a minute so the end of the video will be more clear: oil has traded lower to a support area, but it closed near the low of the daily bar. There will be some traders who think in terms of probabilities... think that the market is likely to move lower because it's a bearish swing that closed near its low>>>and they might be correct. From a risk reward point of view, you can find a relatively close structural stop... and because of this, even knowing that the market may have a slight edge for sellers... you may be willing to take the long trade. On the other hand, even if the market favors the price moving lower, there is no nearby structural stop to manage a short trade... and that may be enough to walk away from the trade. It is for me, personally. Bad R:R filters out lots of trades for me, personally. This is because I have a core belief that I will find better trades, and I don't need to settle for this trade.
GOLD: Exploiting a trend - secrets shared! Some have asked me about my rather different methodology. This 15 min chart of Gold which isn't my favourite, shows it all. No secrets. No fees. No signups. No signals. No obligations! 😃👍 The position setup shown looks back only to show how it works. There are 5 points at which this trend could have been shorted. If you're a day trader, you might have lost some sleep on this one, but it would have been worth as much as 69 points, or multiply that by whatever you put in for a position sizes. If you had the 'bottle' (not recommending alcohol), you could have added one or two position sizes. (The trend shown could have happened on any time frame - no law says it couldn't. Unlikely on a 4H but who cares).
Some knew that gold was likely to head south, but nobody could predict how far, when an important plunge came. Trends predict nothing. You just follow and 'a system' can determine your get-out point.
I can't provide skill in this methodology. It sure has it's losses like any other methodology. I can only show how it's composed. The following are important:
1 - one has to spot the trend switch early - so alerts can be set up to spot it.
2 - flattening of price and trend may say something is about to happen (north or south)
3 - price alerts can be set up, so you know to look when something happens (if you're asleep - tough).
4 - an initial RSI plunge or punch does not necessarily mean that price is going to recoil - it could mean start of a big move.
5 - do not fear the RSI - but respect it.
6 - take some or all profits in a very deep or high RSI (depending on direction of trade).
7 - Watch for a 'theory of curves ' - it often gives a warning of the trend ending (approx 55% chance).
Skill in any methodology means lots of time and effort sequencing and practicing. Do it on a paper trading account. If you don't do the time you don't get the 'dime'.
One day traders will wake up to the value of teamwork. So some can take the watch while others have a nap - the 'watchman' wakes everybody when important stuff happens. 😃🤣
Disclaimers : This is not advice or encouragement to trade securities. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
BTC: How Will Bitcoin React To Trump Testing Positive?After a few of the most uneventful news this week, Friday (Oct. 2) has brought a couple of interesting developments that are rather unexpected. Just a few hours ago, United States President Donald Trump announced on Twitter this morning that he and First Lady Melania Trump had tested positive for COVID-19, an unexpected movie plot twist that has sent shudders down into the global economy at the time of writing. Will Bitcoin become the safe haven for investors after such an incident? We are shunned by such an incident as well, but let's dive into some of my deeper thoughts on both sides of the spectrum, as we are seeing gold decouple from Bitcoin.
Overview / Current Aftermath / Technical Analysis:
At the time of writing, Bitcoin has fallen 2.5% as the news broke out dropping from $10,660 to $10,300, and is now stabilizing on the short term with a slight bullish divergence on the one hour time frame. From a technical standpoint, we can assume there needs to be some form of a recovery bounce; however, there was a larger fall when the BitMEX news broke a few hours before that, where Bitmex has been accused of preventing money laundering. There has been a minor recovery to the $10,450 levels at the time of writing which has put the asset back to weekly support near the 20MA. From a larger perspective, the 20MA has acted as a strong support for Bitcoin, but with more unexpected global crisis looming, we aren't sure of the outlook on Bitcoin. As Bitcoin has been a traditional safe haven investment, we have been witnessing Bitcoin slowly align with traditional equities markets, where we aren't seeing the true decoupling from the stock markets.
Looking at the larger picture and time frame, Bitcoin is still within its range-bound channel and this reaction by the news-selling bears has been just a blip. But what about the short term? We can expect some form of reaction most certainly during and after the hours of US trading hours, whether it will be up or down - we do not know for certain. Gold prices has spiked over a percent in a short time span following the news taking the precious yellow metal back over $1,900/oz again. Highlighting the investor flight from risk was a drop in Bitcoin, with Bitcoin down by more nearly 4% on the day, while Ethereum fell by 6-8%, respectively.
US futures on the S&P 500, Dow Jones and Nasdaq 100 traded around 1-1.5% lower, suggesting the major indices will fall at the start of trade later on today, while oil suffered the heaviest blow, sliding by more than 3%, as investors fled risk-linked assets. Even the US dollar came under strong pressure to the benefit of typical safe haven assets such as the Japanese yen, gold and US Treasuries - all of which are up at the time of writing, respectively.
Bullish Perspective:
Analysts who have been less critical of Bitcoin and other cryptocurrencies in the past seem to believe that BTC won’t be too drastically affected by today’s chaotic news cycle–after all, it hasn’t been (at least, not yet.) As stated by Joseph Young, a crypto market analyst from Forbes, has stated, "...BitMEX charge and Trump contracting COVID-19 couldn’t take Bitcoin far below the $10k level even briefly... The resilience of Bitcoin during this cycle is quite impressive.” Similarly, Marcel Burger, founder of crypto investment consultancy boutique Burger Crypto, wrote on Twitter that “Trump testing positive on COVID and the entire market tanks again. Bitcoin also dealing with bad news around Bitmex (founders arrested), but actually manages to control the damage. Pretty bullish to me.” The election cycle will continue to have a big effect on crypto prices, but how far? That is only determined by time and the equities market.
It’s true–BTC’s +/-5% immediate reaction to either (or indeed, both) of these events could almost be considered a non-reaction in the history of an asset that is known for its extreme volatility. Still, the real reaction to these two events–and to their related affairs–could still be on the horizon as we still haven't seen a real reaction by traditional markets such as the SNP500 during opening hours. For example, Trump’s COVID case will likely have a significant effect on the US Presidential election cycle, which, in turn, could have a big effect on the price of Bitcoin, instead. While even before Trump tested positive for COVID, the American election cycles were having an increasingly powerful effect on cryptocurrency prices; and it isn’t all sunshine and beautiful angels. Most people have always more or less re-invested back into Bitcoin, eventually, as we have witnessed in August, for example.
Bearish Perspective (Higher Probability):
While both the BitMEX indictment and Trump’s COVID case made it into the New York Times today, one of these just might be more significant than the other. Both have immediate and long term effects on Bitcoin, regardless of how Bullish Bitcoin may be. Indeed, while the BitMEX's case is more specific to the cryptocurrency world, Trump’s COVID contraction seems to be having a more powerful effect on crypto markets on the immediate term. The BitMEX news has caused a 3% fall in the price of Bitcoin. Prices rebounded before Trump’s COVID Tweet sent them back down again. Together, these two stories still acted as a negative effect for Bitcoin prices in the immediate follow up. If traditional financial markets are any indication of what’s coming for BTC and other cryptocurrencies (and, historically speaking, they have been - even more so currently during the COVID-19 pandemic), further price drops could be on the horizon - short term and long term. Markets outside of the cryptosphere are reacting to Trump’s COVID announcement similarly to the way that they reacted to the widespread lockdowns in March: for example, gold is continuing its rally to the upside, continuing the rebound that began ahead of Tuesday’s presidential debate due to the uncertainty and uneventful news that followed.
Stock markets, however, can be a completely different story. If our analysis on Bitcoin and the Stock Market's correlation continues to be true, we may see further downfall for Bitcoin. The BBC reported just a few moments ago that, “(the) stock market futures showed that all three of America’s main indexes – the Dow Jones, the S&P 500 and the Nasdaq – are set to drop by at least 1.5% each when trading begins on Friday...” A number of analysts, including the X Force Global, are predicting that BTC will go the way of the stock market, just as it did when the COVID financial crisis began in March of this year. These eventful news will only exaggerate the price drops.
Trade Safe.
X Force
OIL (VIDEO IDEA UPDATED) - AMAZING RESULT Last night video idea ended up being a HUGE success.
Oil did drop up to 6% at some point and closed the day at a 4% minus!
Take a look at yesterday's video and notice how the price of Oil did drop indeed and how it rebounded and stopped at our previous support which now became a resistance.
Technical analysis for a seminar!
UNDERSTAND MACRO-FINANCE!WHILE ALL PRICES HAVE RISEN SINCE 1913 (THE CREATION OF THE FEDERAL RESERVE), SOME HAVE DONE SO MORE THAN OTHERS!
THE FINANCIAL SYSTEM HAS BECOME SO LARGE AND COMPLEX THAT IT IS IMPOSSIBLE TO TRACE THE ACTUAL SIZE OF THE ENTIRE MONEY SUPPLY ( M3 )!
WHEN IT COMES TO ESTIMATION, YOUR GUESS IS AS GOOD AS ANY EXPERT'S!
THE ONLY WAY TO DETERMINE IF M3 IS RISING OR FALLING IS BY LOOKING AT THE PRICE OF OIL , THE PRICE OF THE 1-MONTH TREASURY BILL AND THE YIELD CURVE, ALL OF WHICH INDICATE THERE WAS A DEFLATIONARY PERIOD AT THE BEGINNING OF 2020!
STOCKS, WHICH ARE THE MOST FINANCIALIZED ASSET CLASS, HAVE SEEN THE GREATEST INCREASE IN PRICE, BECAUSE MUCH OF THE CREDIT THAT THE FINANCIAL SYSTEM CREATES BIDS UP THEIR PRICE BEFORE ANYTHING ELSE!
COPPER AND OIL , THE PRICES OF WHICH ARE MUCH MORE IMPACTED BY SUPPLY AND DEMAND CONDITIONS WITHIN THE REAL ECONOMY, HAVE BARELY MOVED IN COMPARISON AND REFLECT THE LACK OF REAL ECONOMIC GROWTH FOR THE PAST HALF CENTURY!
GOLD , FOR ANYONE WHO CONSIDERS ITS PRICE EVEN REMOTELY ELEVATED, HAS BARELY EVEN KEPT UP WITH THE INCREASE IN M2 (WHICH INCLUDES PHYSICAL CURRENCY, CHEQUING ACCOUNTS AND SOME SAVINGS ACCOUNTS).
THROUGHOUT HISTORY, THE MARKET CAPITALIZATION OF GOLD HAS ALWAYS EVENTUALLY MATCHED THE TOTAL MONEY SUPPLY, AND THEREFORE THE PRICE OF GOLD MUST INCREASE BY SEVERAL TIMES EVEN FROM HERE TO BE VALUED CORRECTLY!
The financial world different market participantsHolding periods are at record lows and people are whining about it. Time to talk a bit about who participates in the market.
1- Liquidity
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Something like half of the trading volume is done by specialists & HFT firms as well as a couple of scalpers which is a name for retail traders that hold for a few minutes to gracefully provide liquidity to real traders.
It is not something "shocking", investing requires market makers as intermediaries and an exchange or at least reputable liquidity providers (banks, I said reputable not honest) as well as some rules, and derivatives trading has had this - or most of it - since at least 1750 BC.
Yes, HFT are pigs and have no shame front running big funds or sniping day traders which is a name for another group of retail traders, but back in the "floor" days they did just the same, today everything is electronic and smooth, costs have gone down, reactions are better etc.
Algos have caused big crashes, so let's hope man does not lose control and we do not end up screwing the markets that we need with technology.
1 issue with HFT is they are undercapitalized, the head of global markets research at Goldman Sachs says they are less capitalized than just 1 major bank. This causes them to aggressively adjust their bids when the market price drops. Back in 1987 human specialists had to beg their banks to give them more money to buy during the crash or the entire world would collapse. You should be able to easilly find an interview of Tom Sosnoff about it.
I wonder what would happen if this happened today... The FED in hindsight would print infinite money and give it to hft?
The players in this categories are various market makers that we call HFT, as well as to a much lesser degree a few retail traders called scalpers and front running algos.
2- Intraday
**********************************
This, if my sources are correct, represents another 30% or close to 30% of stock volume.
This had a boom in the 80s and 90s, and again recently with crypto and now tech stocks.
Most of the people behind this are brokers that spend alot of money to acquire new clients.
"Educators" or "influencers" that refer new suckers to brokers get paid up to hundreds of dollars per client (I should have just done this rather than tryhard).
The amount of quant funds infesting the market AND the success they have is directly correlated to how much retail traders (especially day traders) are around and also how much money these day traders are losing.
You could say they are all day traders but this should be divided in 2 groups: the technical "day traders" which are all retail, and the professional "quants" that abuse day traders. The biggest quants that made big money are Jim Simons & George Soros quants from the 80s and 90s as I said technical analysis and day trading were very popular.
Might have wanted to keep that for myself idk. Bah no one cares.
2 major groups: Day traders & quants. Also much more rare penny stock pump and dumps can be included.
3- Short term participants (days to weeks)
**********************************
Once again, alot of the money being extracted here comes from retail investors using random strategies called technical analysis.
> Pre rolls.
One group of participants that exploit flaws on very small timeframes (days) are all the pre-roll strategy investors.
They exploit commodity ETFS that all lose money over time and have to sell their 1! positions at fixed times to then buy on 2!
These funds regularly blow up, and lately the Oil fund USO was in the news because it became so big the regulators made it diversify its oil position, what got it so big is a very big supply of dumb money getting all excited at very low Oil prices thinking it was free money (below $20 then below $10 then even negative).
Professionals that use these strategies made hundreds of millions from both dumb ETF "investors" as well as retail swing and day traders that jumped at the opportunity to get ran over. Alot of these profits/losses are actually being covered by Interactive Brokers of which dumb clients turned a few hundred thousands into decamillion losses. And they are a prime broker with a barrier to entry (2 years verified experience and $10000 in capital).
As usual regulators, after alot of dumb money got hit hard, started an "investigation". USO suckers lost tens of millions months ago, the profit has been taken that's it, but they do not know it yet. According to Robintrack, most retail investors 6 months later are still bagholding what was supposed to be a quick swing trade.
Pre-roll traders will sell on 1! before the ETF sells and also buy on 2! before they buy, and sell after the big operation moved the price.
In the case of the huge Oil crash, fund traders bought before the price collapse and ended up buying back from idiots that "bought cheap".
They made money not by "crashing the price", they made money by holding their winners while dumb money was underwater.
This dumb money is actually fortunate that there were short sellers to buy from them so close to expiry.
I am not sure regulators with their "investigations" understand this simple concept.
From the website etfdailynews:
“I make a living off the dumb money,” says Emil van Essen, founder of an eponymous commodity trading company in Chicago. Van Essen developed software that predicts and profits from pre-rolling. “These index funds get eaten alive by people like me,” he says.
Quick! Investigations! "The trading house is now the focus of investigations by regulators on both sides of the Atlantic, Bloomberg reported."
markets.businessinsider.com
Stupid morons. And there's never investigations when "stonk price go up" or when dumb money gets lucky (making them confident and about to lose big). Remember Wirecard... No investigation here. Gee it really blows my mind just imagining the incredibly mind-bogglingly moronic less-than-human mouth breathers that come up with these "investigations". Can't wait for Bitcoin & Tesla investigations.
> Trend Followers.
"The trend is your friend". "Just follow the trend this is what good boys & girls do". Did trend following get to people heads. It was very popular in the 80s & 90s. Some famous trend followers made gigantic returns exploiting dumb money (not sure all of them knew it).
Trend following was the holy grail at the end of this period and even to today (people have slow brains or something), but it has not - or barely - worked for the last 20 years (all of this is about to change imo thought).
Today the holy grail is index passive investing , who is making this possible are central banks, and the suckers are honest hard working americans that lose purchasing power while passive investors get fatter.
One of the most famous trend followers is Richard Dennis, which in the 70s to 80s turned $1600 into $200 million, in about 10 years.
I doubt he had a clue what he was doing and I think it was both lucky timing and lucky with randomly using the right strategy.
After making big gains he was really excited and thought every one could make money with no brain (money grows on trees as we all know).
"Wow making money is really easy". Typical Dunning-Kruger, except his peak of mount stupid lasted way longer than for other people.
He got rekt in the late 80s, got back in his feet and made some profit in the 90s but much less (and never thought of trying to learn something new).
Then after the 2000 bubble exploded he just lost money and disappeared. He is probably selling courses now.
The sort of general way it all comes together over a period of a few months or years with medium term funds, trend followers & quants versus dumb money:
Here is an example from investopedia with sugar:
Those are big returns in just about 3 months.
A quote from a quant website.
"CTAs by being patient trend-followers took advantage of the random methods of chart traders and profited at their expense. Some that are new to trading are not aware of the frenzy in the 90s about intraday trading mainly financed by brokers. Systematic traders took advantage of it and made large returns. But after the random intraday and swing traders were driven out of the market, CTAs have had problems generating returns. There is scarcity of retail dumb money at this point."
The 80s & 90s were the period where George Soros and Jim Rogers made monster gains in commodities too.
George Soros kept making big profits after that period, Jim Rogers has not.
Since 2000 trend followers have been suffering.
I got into trend following a few months ago it is going all right. It is making a comeback imo, but I do not think it will last long. It might, we will see.
I trust myself to be able to adapt. When this stops working I also have my strategy I have been exploiting for years. If both stop working (unlucky) gee well I'll adapt, SOMETHING ought to be working. I'll survive. I mostly do what I do with Forex thought and it is a different world.
If trend following does not work just go for reversals 🤦♂️
It's so lame to get famous and get the glory but you were actually bad and you end up losing and have no clue why and just end up selling books and trading courses 😂
So on the short term we got retail swing traders that use random strategies, fomo gamblers, and the systematic trend followers & pre-roll people that abuse them. Also hedgers, and a couple of short term hedge funds that probably do not make money on average.
4- The medium term : Around 1 year
**********************************
I heard hedge & mutual funds had median holding periods of 9 to 12 months, I also heard they had holding periods of 17 months.
I will assume this is not counting the losers, especially if they have a low winrate, that would mean a TF much below the reality.
Retail is completely absent here.
There are various strategies. "Strategic" stock picking. Bull bias, bear bias (on the market in general, so they are looking for stocks to buy, or to sell). "Short sellers" (Enron, Tesla, ...).
Hedge funds also exploit random day & swing traders and made big profits in the 80s and 90s then last 20 years as retail investing declined have made less, but hedge funds did not go from 100 to 0, it is more tame than trend followers.
Recently some hedge funds have struck gold. Bill Ackman made 100R ($2.6 Billion) when the S&P crashed after coronavirus lockdowns.
He made big money with price go down, so of course really dumb people cried and accused him of dricing down the price during a CNBC interview ("spreading FUD") probably soon investigation and bla bla bla.
Where are all the investigations when some clown says that Tesla is a revolution and going up 1000 fold? Where are the investigation in Max Keiser saying silver and later bitcoin would rule the world? "Oh no no need for investigation when price go up 🤤"
5- The long term: 10, 20, 30 years
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2 categories:
- Private high net worth. Value investors like Warren Buffet, Charlie Munger, even thought they run a company, an example of a private investor is Phil Town which has a youtube channel and writes book he is not very famous but ye that's a private investor why would they be famous? Should they take a megaphone and shout their net worth on the top of buildings?
- Bagholders: Can either be retail investors that thought "Buy & Hold" meant "Buy garbage & Forget", I doubt they are aware 96% of US stocks go to zero, well 100% on a long enough horizon but we are looking at less than 3 decades here. Or can be day & swing traders that bought something stupid (USO, Bitcoin...) and refuse to cut their losses so they turn their gambles into long term bagholds. Bill Ackman is a famous bagholder, when he is wrong he is SO WRONG and he just keeps on holding his bags all the way to zero which is really crazy. Warren Buffett early in his carreer has been on rare occasion been a bagholder, what he calls his worse mistake cost him according to himself at least 100 billion, he just kept trying to get that textile company to be worth something. The company Warren Buffett bagheld is called Berkshire Hathaway.
Buffett actually rarely holds for more than 2 years, and half of his purchases are sold under 1 year. He has a 100% turnover!
From the paper linked below, "we observe a median holding period of a year, with approximately 20% of stocks held for more than two years. At the other end of the spectrum, approximately 30% of stocks are sold within six months."
papers.ssrn.com
So he loses (or breaks even sometimes perhaps) 80% of the time. But when he wins... you know... 150R.
Important: if I got this (didn't read the whole thing) they only looked at what was in his quarterly fillings!
Who knows what grandpa B bought and sold within weeks!
It is very hard to find what stocks Warren Buffett quickly exited without going over quaterly reports, every one touches themselves at his returns, wants to know what he holds to copy, looks at winners which is almost useless but out of tens of millions of die hard fans it's like not a single one gives a damn about looking at his cut losses, due to low IQ.
It is truly mind boggling that over 90% of retail investors just transformed LOOK FOR GREAT COMPANIES AT GOOD PRICES, BUY AND HOLD WINNERS, into "Never surrender never give up just buy absolute garbage down 90%, buy and forget, hold the bag to zero over the long term it will eventually go up".
You could literally tell them exactly what to do they'd end up losing all of their money and dying of food poisonning somehow because they are handicapped.
Buffett holds for 7.5 year on average (or he did in 2010), with 80% of stocks held for less than 2 years, and 20% held for more with a couple held for several decades. He ain't holding for 50 years or a century.
6- The very long term
**********************************
Big pension funds, insurance funds, sovereign wealth funds, mega bagholders (owners of ponzi shares held those to their death dreaming they would magically regain value)...
The big, big, BIG boys. They do very little volume in markets because they rarely participate, but when they do they move entire markets.
They move alot of money at once, and while random retail traders & quants do big volume day after day, they mostly cancel each other out.
The over 1 trillion dollar "NOK" fund owns 1.5% of world shares, and when they do something you can feel it. Socialism (they are not really socialist but whatever) works really well when you have immense wealth. Over 1 trillion for 5 million inhabitants.
They hold 2.6% of EU stocks and "only" 1% of american stocks. There is talk that they may sell EU stocks to buy NA holdings, mostly USA obviously.
"Norway wealth fund may move $50 billion into U.S. stocks from Europe"
www.investing.com
That would really help push the price up and help jump start a bubble.
50 billion is just a small adjustment for them.
"The central bank has said its advice was not based on any particular view on future return in individual markets or regions."
They don't really care. They are trying to preserve the country wealth and are just doing small adjustment ("small"). They hold forever.
"The minority centre-right cabinet of Prime Minister Erna Solberg must seek approval from parliament for any major strategic shifts at the fund, a process that could take months to complete and which may involve making compromises."
No day trading here...
I am old why am I focussing on Norway...
Those are the current biggest wealth funds (made of 1 or more funds for the country) in the world:
China 2,250,000 million usd - Origin: their bags come from sending free goods to fat americans. They believe they will get something in return.
UAE 1,350,000 million usd - Origin: Oil & Gas. Hehehe a few months ago I remember an idiot telling me arab countries were poor 3rd world countries.
Norway 1,100,000 million usd - Origin: Oil from the sea. Crossed 10 trillion NOK recently I think. Their children have their future covered.
Saudis 900,000 million usd - Origin: Oil from the sand. During an interview the wealth manager Yasir Al-Rumayyan said he wanted to grow it to 2 trillion. Future gambles to take advantage of?
Those were the big famous ones. Then you got Singapore, more arab countries... The USA have a (LOL!) 200 billion wealth fund (and 30 trillion liabilities). Talk about a pyramid scheme.
If you look at the biggest fund from any source by AUM who do you have at the top?
1- FED - 7,000,000 million usd (but really you can just put an infinite sign here)
2- BOJ - 5,200,000 million usd bigger than the US one relative to population what a scam
3- PBC - 5,150,000 million usd biggest baghodlers in the world (I'm just kidding don't cry China)
Then you got plenty of multi trillion US state owned funds (sounds pretty communist to me, I wonder why they are pushing the price up at the people's expense), Japanese megacorps & banks, China communist groups/banks, European banks. Some middle east holders of course. And then a grand total of 0 african country is present in the top 100.
Banks really dominate the world. They hold all the capital.
It would be a real shame for passive investors & tiktok robinhood holders if the US communist funds that hold over $10 trillion were to liquidate their assets to cover the US foreign liabilities (China) and to pay for social programs wouldn't it? A reaaaal shame 🙃
What is this? I am feeling tingles. Team Biden! It's just a shame they have all these toxic ultra racist, anti business & anti family views.
Quick! someone tell the clueless socialist woke crew the US are holding trillions that could more than cover their student debts and social programs!
Special mention: Blackrock is the world largest asset manager overseeing more than 7 trillion. And they work hand in hand with the FED.
Risk management in trading €$¥Hello my friend | Welcome Back.
Please support this idea with LIKE if you find it useful.
***
What is market risk?
Market risk is the capacity for your trades to result in losses due to unfavourable price movements that affect the market as a whole. There are several factors that can cause market risk, but movement in any of the following can exert major pressure:
Stock prices
Interest rates
Foreign exchange rates
Commodity prices
What is liquidity risk?
Liquidity risk is the possibility that you may be forced to trade an asset at a worse price than you anticipated. For example, when trying to sell an illiquid stock you may struggle to find a buyer, meaning that you have to sell your stock for less than its current market value.
In some markets, liquidity risk can even mean that your trade negatively affects the price of the asset you are buying or selling. This is generally more of an issue in emerging or low-volume markets, where there may not be enough people in the market to trade with.
How to manage your risk
Risk management is the process of identifying, analysing and reducing risk in your trading decisions. Usually, it involves developing a trading plan that helps you decide what to trade, when to trade and where to place your stop losses. Here are three tips on how to manage risk:
1. Assess risk vs return
In general, trading strategies focus on weighing up a trade’s potential risk against its potential return. If a trade has greater risk, it should carry the chance of a greater return to make that risk worthwhile.
For example, government bonds are considered a safe, low-risk investment – but when compared to corporate bonds, they offer lower rates of return. This is because the risk of investing in a corporate bond is higher, so to compensate for the added risk investors are offered a higher rate of return.
2. Understand each market’s risks
It’s important to ensure you understand the factors that influence different markets, so you can base your dealing strategies on relevant information. Improve your success rate by learning more about the markets you’re dealing on and exploring new strategies.
Our trading skills section is a great place to learn about all the markets we offer.
3. Keep learning
Learning to trade successfully while managing your risk is a continual process – and one of the best ways of ensuring that you are always improving is by starting a trading diary. By keeping track of which trades and strategies have worked in the past, you can build on your successes and learn from your failures.
Head and shoulders typesHello my friend | Welcome Back.
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The head and shoulders chart pattern is a popular and easy to spot pattern in technical analysis that shows a baseline with three peaks, the middle peak being the highest. The head and shoulders chart depicts a bullish-to-bearish trend reversal and signals that an upward trend is nearing its end.
The pattern appears on all time frames and can, therefore, be used by all types of traders and investors. Entry levels, stop levels and price targets make the formation easy to implement, as the chart pattern provides important and easy to see levels.
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What Are Fibonacci Retracements and Fibonacci Ratios?How Fibonacci Ratios Work
Before we can understand why these ratios were chosen, let's review the Fibonacci number series.
The Fibonacci sequence of numbers is as follows: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, etc. Each term in this sequence is simply the sum of the two preceding terms, and the sequence continues infinitely. One of the remarkable characteristics of this numerical sequence is that each number is approximately 1.618 times greater than the preceding number. This common relationship between every number in the series is the foundation of the ratios used by technical traders to determine retracement levels.
The key Fibonacci ratio of 61.8% is found by dividing one number in the series by the number that follows it. For example, 21 divided by 34 equals 0.6176, and 55 divided by 89 equals about 0.61798.
The 38.2% ratio is discovered by dividing a number in the series by the number located two spots to the right. For instance, 55 divided by 144 equals approximately 0.38194.
The 23.6% ratio is found by dividing one number in the series by the number that is three places to the right. For example, 8 divided by 34 equals about 0.23529.
Fibonacci Retracement and Predicting Stock Prices
For unknown reasons, these Fibonacci ratios seem to play a role in the stock market, just as they do in nature. Technical traders attempt to use them to determine critical points where an asset's price momentum is likely to reverse.
Fibonacci retracements are the most widely used of all the Fibonacci trading tools. That is partly because of their relative simplicity and partly due to their applicability to almost any trading instrument. They can be used to draw support lines, identify resistance levels, place stop-loss orders, and set target prices. Fibonacci ratios can even act as a primary mechanism in a countertrend trading strategy.
Fibonacci retracement levels are horizontal lines that indicate the possible locations of support and resistance levels. Each level is associated with one of the above ratios or percentages. It shows how much of a prior move the price has retraced. The direction of the previous trend is likely to continue. However, the price of the asset usually retraces to one of the ratios listed above before that happens.
The following chart illustrates how a Fibonacci retracement appears. Most modern trading platforms contain a tool that automatically draws in the horizontal lines. Notice how the price changes direction as it approaches the support and resistance levels.
Fibonacci Retracement Pros and Cons
Despite the popularity of Fibonacci retracements, the tools have some conceptual and technical disadvantages that traders should be aware of when using them.
The use of the Fibonacci retracement is subjective. Traders may use this technical indicator in different ways. Those traders who make profits using Fibonacci retracement verify its effectiveness. At the same time, those who lose money say it is unreliable. Others argue that technical analysis is a case of a self-fulfilling prophecy. If traders are all watching and using the same Fibonacci ratios or other technical indicators, the price action may reflect that fact.
The underlying principle of any Fibonacci tool is a numerical anomaly that is not grounded in any logical proof. The ratios, integers, sequences, and formulas derived from the Fibonacci sequence are only the product of a mathematical process. That does not make Fibonacci trading inherently unreliable. However, it can be uncomfortable for traders who want to understand the rationale behind a strategy.
Furthermore, a Fibonacci retracement strategy can only point to possible corrections, reversals, and countertrend bounces. This system struggles to confirm any other indicators and doesn't provide easily identifiable strong or weak signals.
The Bottom Line
Fibonacci trading tools suffer from the same problems as other universal trading strategies, such as the Elliott Wave theory. That said, many traders find success using Fibonacci ratios and retracements to place transactions within long-term price trends.
Fibonacci retracement can become even more powerful when used in conjunction with other indicators or technical signals. Investopedia Academy's Technical Analysis course covers these indicators as well as how to transform patterns into actionable trading plans.
How to Trade the Head and Shoulders PatternThe head and shoulders chart pattern is a reversal pattern and most often seen in uptrends.
Not only is head and shoulders known for trend reversals, but it’s also known for dandruff reversals as well.
In this lesson, we’ll stick to talking about trend reversals and leave the topic of dandruff for another time.
Head and Shoulders
A head and shoulders pattern is also a trend reversal formation.
It is formed by a peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder).
A “neckline” is drawn by connecting the lowest points of the two troughs.
The slope of this line can either be up or down. Typically, when the slope is down, it produces a more reliable signal.
In this example, we can easily see the head and shoulders pattern.
The head is the second peak and is the highest point in the pattern. The two shoulders also form peaks but do not exceed the height of the head.
With this formation, we put an entry order below the neckline.
We can also calculate a target by measuring the high point of the head to the neckline.
This distance is approximately how far the price will move after it breaks the neckline.
You can see that once the price goes below the neckline it makes a move that is at least the size of the distance between the head and the neckline.
We know you’re thinking to yourself, “the price kept moving even after it reached the target.”
And our response is, “DON’T BE GREEDY!”
Inverse Head and Shoulders
The name speaks for itself. It is basically a head and shoulders formation, except this time it’s upside down.
A valley is formed (shoulder), followed by an even lower valley (head), and then another higher valley (shoulder). These formations occur after extended downward movements.