Updates

Update: 11th January 2016

Well the markets opened very softly today with both Japanese and Chinese equity markets closing negatively. It seems that the risk aversion mode is still lingering in the minds of investors, although much more gently than last week, possibly eased by last weeks US employment data. I have thought a little more about this one and think that this is what has supported the USD today. It is entirely possible that with Chinese inflation due to be released over the weekend that traders did not want to go into the weekend holding positions (this to me would explain the spike and sell off that occurred on Friday). Reading the CFTC we can see that people turned bullish on the JPY overall for the first time since 2012 last week (the overall positions are 4k net long) which indicates that risk appetite is yet to return to the market. In short the first trading week has left many people rattled.

Anyway back to today’s events:

The JPY has softened for the first time in 5 days. I see this as a direct result of the USDJPY pair movements. This morning it fell to 116.70 (as soon as Asia opened, despite Japan being on holiday) and then quickly wiped out all its losses and currently trades at 117.85. This happening despite commodities and equities not performing particularly well indicates the following things to me:

1.) It reached a vital support and was bought.

2.) People have begun profit taking on the JPY after it gained for 5 consecutive trading days last week.

3.) Once risk aversion passes, the JPY will weaken as quickly as it strengthened.

With regards to accounts:

Etoro:

Still deeply in the red, but significantly less so after all positions wiped out a few hundred pips of losses today. However, the situation is still dire.

Hotforex:

Situation is nowhere near as Bad as Etoro. With unrealised losses being only 4% of account equity at the moment.

USDCHF trade was entered after yesterdays trade idea and is currently profitable. It has its SL in profit just in case recoil should effect us.

EURGBP sell is now only 40 pips in the red and headed in the right direction. It’s SL will be moved to profit at the earliest opportunity.

USDJPY buys are now 100 pips in the red and look to be headed in the right direction, technically and fundamentally (if the market can close above 118 today).

Anyoption:

I did some one month calls for pairs I believe will strengthen to limit my exposure just in case. Came within 40 pips today of getting wiped on Saxo bank (for a VERY large amount) and literally nothing more than luck saved me. Will try to execute more options with longer expiry times to take advantage of pairs that have been forced to extremes due to the equity collapse of last week and risk aversion in the market.

Let us hope that the rest of the week continues much in the same way as today, and it will be a much happier one for us,

Regards,

Mohammed

P.s. Thanks for the kind comments from all of you who are still reading. It really did cheer me up. <3

16 Comments

  1. Thanks once again for a comprehensive and forthright update. I didn’t comment yesterday but as always your commentary and appraisal is well recieved.

    It just comforts me some to know that you are still the same pragmatic Mo regardless off the emotion and hysteria going on.

    Keep on Keeping on.

    I know you can steer us though this.

    Jon

  2. Mo, of course we still read your thought, and learn from it. From your words, I feel that you are an honest and trustworthy man. If we are blown out, it hurts yet I for the first time see and experience a brotherhood of people in so many different places and races, the kind words from them to one person – a leader & a friend.

  3. Mo Hello and thanks as always! CSL struck me … I did not lose much by luck! as soon as I get the salary of this month, I start to imitate you with enthusiasm !!!

  4. i still a live in etoro 🙂 after last nigth…

    Thanks, crossing fingers that they continuos to go up, and we can see green… i need some positive things in my life, and money will help a lot, even to pay medicians to my daugther.

    Good year for all of you…

    Hope God is is our side this time 🙂

    Thanks Mohammed for everithing, we are here and we bealive in you.

    Thanks

  5. Nothing better than bad times To know the people. Thanks for update and for your hard work.
    One of your “readers” 😉

  6. Hi Mo
    Thank you as always for your update.
    Very glad to hear luck was on your side with Saxo, you needed and deserved that!
    You have the full backing and support of loyal group of like minded people, who are genuinely excited to be part of this and to partake in your knowledge.
    All the best
    Huw

  7. Thanks for the insights and for keeping us up to date. It’s good to see that things are looking better now and I do believe that those who stayed with you will see some bright days in the future.

    As for anyoption, unless I’m mistaken, you’ve never published a link to copy you directly, right? I haven’t seen a search possibility on anyoption, so I don’t know how to find your account and if you still want people to copy you there.

  8. Thank you for the update, Mo. Will continue to copy you and I am confident that all out trades are going to be very profitable over the next few week. Regards

  9. Hello Mo, etoro got stopped out but still in on hotforex and got some money in anyoption too, and planning to keep it there, my trust in you hasnt been shaken in the slightest despite the CSL 🙂

    Though I am thinking I’ll probably trade on my own at etoro with the money left in my account (Still about 1/4th of initial input so not great but doesnt hurt that bad either lol)

    After all, isnt that what this site was all about in the end, so we could take the knowledge onboard and trade for ourselves.

    Am happy leaving the hotforex PAMMas per planned for 2 years, but would like to copy over at anyoption too. Though I seem to have missed the link to your account, how can I copy you over there, since I have some money in there too already?… Would be happy to keep copying you on those platforms, while standing on my own 2 feet at etoro.

    Anyway kudos for staying transparent and communicative even in these dire times. It takes a big man not to skulk away when the going gets rough like this and with the abuse you surely get from some dbags on etoro, huge respect to you for that.

    Don’t let ’em get to you mate, am sure you’ll be in profit again in no time and as always look forward to reading your thoughts on these fickle markets!

  10. Hi Mo! These words are highly welcome as they are some kind of not that negativ after some bad days! Still crossing my fingers for us ?

  11. Great work Mo. Frankly, I am pleasantly surprised of you having such a strong composure after all the stuff happening on eToro in Dec and Jan. You recently talked about the deserving factor of people… and to me you have a very high deserving factor for success. Thank you for this and for inspiring us all with it. Ofcourse we have lost a lot of money in recent times… but as long as we continue to learn from it, keep our heads above the ground and keep going… we will be fine. Looking forward meeting you one day.. hopefully soon as you called out in your December closure note.

    IN regards to Trading, could you please remind me or redirect me to the blog where you mentioned about the plan for Hotforex! whats the difference between eToro and Hotforex? what was the intention of opening two accounts?

    Thank you and happy trading.

  12. Dear Mohammed,

    My own GBP/JPY trade was closed due to stoploss as I did not have the time to monitor my trading account for the past 1 week and I did not have sufficient fund to extend the stoploss too. So I was quite sad that my own GBP/JPY was closed due to my own negligence.

    Thus I have just stopped copying the 2 traders I was copying so that I would have extra fund to increase the copy amount on you. Hopefully we can get through this tough period together.

    Thank you so much for keep updating us about the progress.

    All the best, Mohammed!

    Regards,
    Liszen

  13. Hi Mo,

    I gave up on the GBP/JPY position.
    Didn’t want to wait to get CSL’d out on it.

    Still reading your posts ofcourse but I have to reduce risk as I’ve already lost $3000 of my initial $3500 investment.

    Let’s hope for a quick turnaround of the markets, especially the JPY.

    Kind regards.

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