Traders Fair & Gala Night

This coming weekend, I has been invited to speak at Philippines (Manila), and to take part in the Gala Dinner.

I will be sharing about my trademark “15 minute strategies”, and how they have helped me maintain my consistent returns while travelling across 50+ countries.

And after the event, I might also be taking a few days off to tour the area, so do drop me a PM if you are around the area!

Thank you Finexpo for the invitation! smile

market cycle

Since the highs in December 2017, Bitcoin and most cryptocurrencies have seen a sharp decline, and agile traders/investors have mostly exited to await better buying opportunities.

This includes myself, and after cashing out my profits in early 2018 (after the double top reversal), I have started to accumulate small amounts of Bitcoin for my long-term portfolio when prices are low.

Despite the volatility, I am still optimistic for the long-term potential of Blockchain and Cryptocurrencies, hence it is important to know which catalysts will likely move prices in the future.

1. Increased Regulation

At first glance, this might seem like a bad thing, as many countries around the world (China, Australia, Taiwan, Philippines, US, etc) start to clamp down on Crypto-related activities, or impose some kind of restrictions and controls. And prices reacted to such news of regulation negatively as expected, with a prolonged downtrend lasting several months.

However, what most people don’t realise is that such regulation is actually a good thing in the long run, and necessary for Cryptocurrencies to become more “mainstream” and widely adopted. Which means that while we can expected prices to fall, it is also a good catalyst to enable us to buy these assets at lower prices in the future. Timing is key.

2. Institutional Funds

Once their is sufficient regulation and prices are low enough, institutional investors (hedge funds, asset managers, etc) are likely to come into the market. This is where the big moves are going to come from, as we saw from the dotcom boom. And recently, we have heard some news/rumours that big names like George Soros, Rothschild, Rockefeller, etc are starting to come into the market.

If we look at the graph below, we can see that a major trend is usually driven by institutional investors, which means that despite the meteoric rise of Cryptocurrencies over the past few months, it is still nowhere near a bubble, since the “real big money” from institutional investors have not started to pour in yet.

Imagine a future where fund managers and pension funds all include Cryptocurrencies as one of the asset classes in their portfolios, together with stocks, bonds, gold, etc. This will definitely create a huge demand for it, and push up prices faster than we have ever seen.

valuation
3. Scale & adoption

One major debate is whether Bitcoin (and other cryptocurrencies) can serve its purpose as a global currency with a stable store of value, and cheap & fast transactions. Currently, it is not there yet, and how fast it can get there will depend on how well the product can be improved. The volatility will naturally decrease over time as the market cap increases, but the speed and cost of transactions will depend on innovations and improvements from developers.

 

timeframes 2

One of the simple yet powerful techniques I use to allow me to quickly identify trading opportunities with minimal time and effort (typically 15 minutes a day), is to use this Excel table which combines price action with multiple timeframes. Multiple Timeframes 3

To create this table, I observe the daily and weekly charts of various products (forex, stocks, cryptocurrencies, commodities, etc), and list down whether I think it is bullish or bearish on each timeframe. For the weekly chart, I only need to update it once a week, and for the daily chart, this takes me a few minutes a day.

Here are some chart examples:

 Multiple Timeframes 2

This is the daily chart of the EUR/USD, and you can see that it just completed a pullback and is looking bullish. So under EUR, I mark it as bullish. For most products, I always benchmark them against the USD for easy comparison.

 

 Multiple Timeframes 3

This is the weekly chart of the EUR/USD, and you can see that it is also very bullish, and rebounding off a large trendline. With the alignment of both the daily and weekly trends, this make the EUR/USD a very good long trade to be in. And since the GBP is also weak, going long on the EUR/GBP is also a good idea.

 

 Multiple Timeframes 4

For the S&P 500, the long-term trend is bullish, but the short-term trend is bearish. In such a scenario, we will pass and wait for more price action. The goal is to take the best trades, not take as many trades as possible. Quality over quantity.

If you are unsure about any of the signals, or require clarification, you can comment and ask directly on any signals, and Spencer (or anyone from the community) will be able to answer your questions.

This is also a great way to share trade ideas, and pick up up practical and useful trading tips, based on real market situations.

 

Trading Signals WTIUSD 240222

Trading Signals WTIUSD 2 240222

daily trading signals discussion 280222

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This is a quick reminder that we will be having a free 1-hour market outlook on Cryptocurrencies (and other markets), where we will discuss the current trading opportunities, and how you can get started.

To join in, just click the link below to enter our FB group community immediately. No registration is required, and you can watch from the comfort of your home, and ask us any questions in the comments (which we will reply in real-time).
Join now: https://www.facebook.com/groups/livetradingnetwork/

Details: 
Date: 28 Jan 2018
Time: Sunday 9pm to 10pm Singapore Time (Sunday 1pm GMT)

We also created a simple countdown timer which you can use to keep track of the date.

P.S. If you cannot make it during the live streaming, you can still watch the replay at your own convenience.

See you inside! 1f642