Blog: Market Analysis

BEFORE…

… and AFTER

How did I predict the price behaviour and enter at the EXACT LOW of the turning point? How did I calculate my entry to such precision and time my entry just as the price was about to make a BIG move? This is a good example of behavioral analysis, used to decipher the minds of the BIG Boys. If you are interested to find out, I will be sharing more next year in my talks, and there are a lot of exciting events coming up next year, which I will be sending out to the mailing list soon.

Stay tuned!

Behavioral Analysis Basics: The BIG Bounce
When the mark-up and mark-down campaigns are coming to an end, the BIG Boys will deliberately play up market emotions, triggering a strong climatic move to trap unsuspecting greedy or fearful traders, which the BIG Boys use to offload their positions and take profits. This creates a BIG snapback in the opposite direction as trapped traders cut losses and try to get out.

Spencer is an avid globetrotter who achieved financial freedom in his 20s, while trading & teaching across 70+ countries. As a former professional trader in private equity and proprietary funds, he has over 15 years of market experience, and has been featured on more than 20 occasions in the media.

Forex Trading | The End of the World? Well-timed Shorts for the EUR & GBP

Overall, this was a rather good week, with the EUR and GBP trending strongly upwards in the early part of the week. On Thursday and Friday, I already saw the signs of a major pivotal point, signifying a high chance of prices turning down.

I waited patiently for the market to confirm my opinion before taking my short positions, and my patience was rewarded by the market. I am glad that my opinions were confirmed by the market, and the satisfaction of reaping the rewards of self-discipline is better than the rewards of profits. After trading for so long, the profits no longer excite me as they used to.

Next week, I expect the market to be less lively, and I will be taking a break for Christmas, and to review my trades for the past year. This year has been rather decent, and as long as a trader keeps following the rules and sticks to a winning methodology, the consistency of profits will naturally follow.

Commodities Trading | Gold – Catching the Bottom Again

This time, besides sharing in the private forum, I also shared this trade in some public forums, minutes after I caught the bottom in Gold at 1636. This kind of precision cannot be done using any software of indicators, because those are slow and it requires the human touch to pinpoint such delicate turning points. Only by observing the price action will one be able to time the entry accurately.

Singapore Stocks | Olam: Catching the Turn – Over 9% Profits in 3 Days!

A simple follow-up for those who traded based on this previous post 4 days ago:
https://synapsetrading.com/the-week-before-christmas-parties-rallies/

Olam has shot up over 9% within 3 days. How did I know the selling pressure was exhausted and a big move was coming? This has to do with reading hidden volume clues and understanding the price action.

1 Comment/by Spencer Li

Forex Trading | Behavioral Analysis – Spotting the Turning Point

As mentioned in my previous post, I stuck to my trading plan for the day, which was to stick with the trend until I spot the reversal pivotal points. I went long on the EUR/USD in the early part of the day, netting about $3,000. I got out a bit too early, as the price behaviour did not feel right.

I went for dinner and waited for the right moment until I could be certain of the reversal turning point, then I struck without hesitation. I shorted EUR/USD, EUR/JPY and GBP/JPY, making about $4,000 in less than 30 mins.

Since there was no more news for the day, I decided to call it an early night.

Note to Mentoring Program Graduates:
Whether you are trading forex or stocks, the setups are almost the same. I tend to post more forex setups because they occur more frequently on an intraday basis, while stocks tend to move slower. Study the forex chart setups I post in the forum to get a better understanding of how to identify them on the stock charts.