Updates

Last LONG post of the year: 17th December 2015

Well next week, I will be going on holiday from the 24th December until the 4th January and so will not be making my regular long winded posts that bore the community to tears. I will still be in touch via the new twitter account that I set up earlier today and will still be trading (although I have extreme confidence in all of our trades yielding excellent profits probably before the end of the year), but will not have time to post during this period as quite frankly, I feel that I am overdue a break and the opportunity to relax. This all started as a hobby but has started to occupy a lot more time than I originally envisioned. In fairness, without the support of many of you great people, this would not have worked and I would have given up on this project ages ago, but I have learned that with the help of others who care, one can continue.

As this is my last long post for the year (unless something drastic happens – which is highly unlikely), I just wished to share my plans for the future with all of you. Please note that this is a plan for those who are realistic and patient and who want to actually achieve something. If you are looking to wake up with a full bank account tomorrow, then this really is not for you and you should stop reading at this point.

A few things about the previous year and how we got to this point:

So a bit of background. Some of you have been following me for a few months, others are relatively new, but if you have taken the trouble to join this little community that we have been building, then I consider you one of us and I thank you for all of your support. This all started in May when I signed up at Etoro out of curiosity. I started trading, and then gained some copiers (do not even remember how that happened). Things continued and copiers built up, one by one until Etoro manually blocked my account when I reached 98 copiers and an AUM of $100,000 USD. They had contacted me to tell me to join their PI program and I refused. Many people , dozens per day started messaging me asking about how they could copy and why not, and eventually I asked Etoro how we could reach a compromise. They said that if I showed my full name and put a real picture instead of the Itachi one (which I still believe to this day brought us luck), they would lift the ban. I agreed to these terms as I had nothing to lose. I had never deceived or harmed anyone and had nothing to be ashamed of, so why hide my identity. It would be far better to simply agree to this concession and let people who wanted to, to copy. So that was that, and 2 weeks later the number of copiers swelled from 97 to 900. November proved to be an excellent month and the numbers kept growing, but Etoro proved to have many technical issues, so I decided to ask a friend to set up a blog for me to communicate with all of you. I guess I did it because I wanted people to talk to and interact with, real people, not just nicknames and avatars. One thing led to another and here we find ourselves today.

So I wont lie, since the start of this month, things have not been easy and while it would have been great to have an excellent final year to the month, that looks very unlikely. Many things went wrong. Infact everything went wrong and against our expectations. Just to name a few:

1.) The ECB failed to deliver what the market expected.

2.) Russia and Turkey had disagreements.

3.) Commodities crashed to levels not seen in years.

But none the less, we tried our best and were honest with everyone and minimized the damage to the best of our ability and we are still doing our best to make the most out of this month. I respected myself and the community and told them the truth, did not blame anyone and did not pretend that things were part of some elaborate strategy. The result, the majority of the community stood by me and were patient, understanding and supporting and for that, they have my thanks. We survived our worst month without too much damage being done and if we got through this, believe me, we can get through anything. As I look back over the past year, I realize going forward that in many ways I have grown in the last few months and a large part of that was due to the influence of many of you. So Thank you. All of you.

Oh and I forgot to add, even with December being a loss producing month thus far, our profit for the year stands at over 2000%, which I feel is excellent for the first 7 months of this adventure.

Trading strategies over the next year:

FX trading:

In 2014 where there is clear long term direction. In 2014 there was a clear divergence of monetary policy as the ECB actively sought to devalue its currency and start easing monetary policy. This made it a very easy year to trade and even complete novices were able to generate 3 figure gains. Incidentally, this is why such people were not trading or performing at a much lesser standard in 2015 and living on the glory of the past year. It is because things were not so straight forward and hence those who lacked experience showed their “novice” traits by being scared into not trading at all. With Commodities crashing to their lowest levels in years, the FED repeatedly calling for increases in rates and then stalling, the threat of Greece exiting the EU and Russia and Ukraine clashing, this year had a lot of elements that threw in an uncertainty factor.

It is one thing to avoid entering the market when there is a great deal of uncertainty. It is another thing entirely to not trade at all and say it is because of fear of risk. Anybody knows that with higher risk comes higher reward and anyone who does not trade is not a trader. I am sorry that this truth hurts the ego of some but it hurts for two reasons. Firstly, because you know it is the truth and secondly because the truth usually hurts when it shatters one self illusions.

Anyway I am digressing from my point. 2016, certainly the second half, will prove to be another year in the form of 2014, with clear direction. Commodities have more or less bottomed out and will not have the epic crashes witnessed in 2015. The Greeks have solved most of their problems and the Fed has initiated the all-important step of normalizing monetary policy and this is what gives the market a clear direction.

The voting members of the FOMC change next year. The nature becomes more Hawkish, and it is not unreasonable to expect at least 3, perhaps as many as 4 hikes next year. This in contrast with other central banks that are expected to ease (even the ones who say they won’t want to, are likely to have to) which include:

1.) ECB.

2.) BOJ.

3.) RBNZ.

4.) RBA.

5.) SNB.

In short going long on the USD over the course of the next year (sensibly and at the right times) is effectively a license to print money and we will do a lot of this “printing” together over 2016. Of course this is not the only plan, and there are neutral currencies like the Sterling that will eventually have their central banks seeking to normalize that present many opportunities, but we have no way to see directly into the future, so for now, we will handle it as it comes.

Equity Trading:

This is a year for Japanese equities. Japanese companies are currently Cash rich. A weak Yen supports their export potential. Weak oil prices help them. They have access to cheaper borrowing than US counterparts and have had large capital expenditure on growth this last year. This will yield some results and expect high performances from Japanese companies over the next year. Keep an eye on these near reporting time and you will not be disappointed.

How I hope to help take the community forward from January 2016:

Lessons:

Will still continue to post new weekly lessons in the new year and new challenges to the community.

Distribution of responsibilities:

This is something that the community has to organise. You have been provided with a Chat Room, a forum and free blogs where you can freely post your uncensored thoughts and ideas. Many of you have already done your foundation learning. Organise yourselves amongst you and pick a currency to cover and blog about (when you have time). Help build this place into a resource that can be used by everyone, all the while improving your own knowledge and skills. Have the confidence and try yourselves, you will be surprised at what you can accomplish.

Our trading:

My trading vision for 2016 will be split into group trading and solo trading for the community as we all grow and develop together.

Group trading: Because we are a community afterall.

Etoro: The target will be 20% a month, just as it was for these last 6 months. From January on wards I will not make a single withdrawal from this account and have a 2 year target of realizing a gain of: 7949% over the course of 2 years. I will be spending almost zero time on posting open book though, the comments from some of the people who use it over the last few weeks have really made me realize that such an environment is not good for me.

Options: On January the 4th we will begin community (social trading) longer term options, with expiry periods of 1 month. This will be higher risk, but higher return and will give weekly pocket money to you that you can spend so that you do not get tempted to touch your Etoro nest egg funds.

Hot Forex: I have decided to do open a PAAM account after multiple people have suggested it. I will start with only 1000 in it and do slightly higher risk trading aiming for 6% per week with a vision to get out after 2 years with a final target of:

$1000 * 1.06^104 = $428,000 to show for it afterwards.

I will set up the fund with a requirement of 500 deposit(to show that it is accessible to almost anyone but also to keep away the people who deposit 100 and want to retire the next week) and a success fee of 10%. There are two reasons behind this, both entirely selfish:

1.) I want to do something nice with the success fee after 2 years.

2.) I want to see if this can be the first step in setting up my own fund one day. A silly dream at this point, but we all have to start somewhere, maybe this is my small start.

If you wish to join me, please sign up here. Once you have signed up you search for ohemgee invest to copy.

Should you take part, trading starts Monday January 11th 2015.

 

Solo Trading: This is important as it makes you actually put what you have learned to the test.

Solo Options: Where you can trade solo options using your fundamental knowledge starting for only $1.

CFDs: Where you can trade countless securities, commodities, currencies and stocks not offered by Etoro.

 

Finally:

This big mouth has finally run out of things to say, so this concludes what I guess will be my first annual summary. I hope that the one next year and the one in two years are even more joyful and filled with even more positives. I hope you all stick around for it. I know I am not going anywhere.

45 Comments

  1. Thanks again Mo, so nice reading!

    I will (if allowed by you) join you in thick and thin, looking forward to the jorney together with you! 🙂

    Have a nice and well deserved holliday!

  2. Hello mo, one word: thanks. for everything you do. for what we teach. to your experience that allows us to make profit. for the dreams that maybe we’ll realize. THANK YOU. Marco “Melocean”

  3. Hi Mo, hope you have a good rest. Really agree that as a community we need to be taking more responsibility for developing on here now you have laid the groundwork. Can I just highlight for others if they want to sign up to the PAMM account on Hotforex, money needs to be deposited under FSC as opposed to Cysec. Will be assigning monies soon.

      1. Absolutely agree regulated is better. Personally I am happier with my deposit regulated by the FSC as there is always the chance of dodgy brokers taking advantage of people but from personal experience both etoro and Hotforex are good, despite some people’s experiences. You also have my full confidence that you will protect our funds with safe but aggressive trading.

        Additionally, please let us know how we can also help you to fulfil your dreams.

  4. “I want to see if this can be the first step in setting up my own fund one day. A silly dream at this point, but we all have to start somewhere, maybe this is my small start.”

    First of all, it is not a silly dream! Secondly, yes! THIS is the small start. But never forget: Great things, started taking small steps!

    By the way, today I was thinking about you and I was like “why doesn’t he start a startup company or something?”

    Anyway, thanks once again for your update and I wish these will be the best holidays you have ever had so far, for you and your beloved ones!

    PS I have some questions about the rest trading options you provided (I missed so many updates) but I am pretty sure I will find the answers in the forum

  5. Mo,

    I’m sure others will say the same or have already said it by the time I’ve commented.

    I’m new to the community, but I think it is a great vision and if I can be a part of it or help you in any way by lightening the load then please let me.

    Like many other’s I’ve been burned in the past until I started copying you. Please know that the vast majority, and unfortunately, muted majority, are with you all the way. Don’t let the few noisy oiks that seem to flap mouths inconsequently get you down.

    This community is going to be a success. It’s down to you and your frank and honest outlook that most people are here.

    Don’t waste precious blood pressure and brain cycles on inane complaints.
    Let me and others like me shield you from them! You’ve a great and willing team here, and without sounding sycophantic we’re here to learn from you.

    So thanks so far and have a great break. I look forward to learning from you, hopefully supporting you and trying to undo some of the damage to my bank account that I and others managed before I “met” you.

    All the best

    JonK

  6. An absolute Joy to read. I’m really excited for the future. Enjoy your holiday, Lord knows you deserve it. Thank you so incredibly much for everything.

    Regards

  7. Thanks for the blog post and detailed break down. I currently copy you on Etoro (thanks for your great work so far).I also have a hotforex account. Would you recommend I move funds from etoro to your account on hotforex? If so because it is higher risk would you recommend a % split between the two? Or am I over analysing the whole thing?! Thanks and have a great holiday!

  8. Thank you for this update, really appreciate your hard work and efforts you put into all this. Have great holidays and looking forward to many new lessons and updates !

  9. Dear Mohammed,

    Thanks heaps again for going so many extra miles for us the copiers and those who want to learn trading from you.

    When I first joined eToro in March, I was very eager to learn and “dump” the money to copy whichever trader that had even just 2 months of good profits…which proved to be a disaster to my equity….then I found you in May or June (I can’t remember the exact time), you were making profits, a lot of profits, but due to my bad experience, I had decided to copy you in virtual account only in early July, and I had witnessed how you had recovered from your big losses from buying oil then (in early July), thus since then I already had confidence in your trading capability. On top of that, you are one of the rare gems in eToro that has integrity and honesty towards his copiers, thus I believe I had made the right choice in copying you.

    Having said that, I must apologize to you and all the others who have been contributing so much to this community as I am not making any contribution to this community… I’m now really tied up with my work in the university and hospital. Sorry again that I can only be a parasite to this community. I hope Mohammed you will not block me from continuing to copy you in future.

    Thanks again for your great trading and your great personality! May God bless you abundantly!
    Have a great holiday ahead!

    Regards,
    Liszen

  10. Thanks for the update Mo and enjoy your Holidays!

    I am one of the “muted ones” that appreciate and support what you do 🙂

    All the best!

  11. Hi Mo,

    Have a fantastic well earned break! This has been a fun ride and long may it continue!

    You’ve built a great community that I really enjoy being part of! Roll on 2016!

    Kind regards

    Mark

  12. Mo,

    Great read as usual; first things first:
    Happy Holidays!
    Merry Christmas and a Happy New Year!

    Just wondering about the HotForex, will you be trading currencies only? I ask this question cause in my Country we have to pay A LOT of taxes on trading other stuff. (33% on the winnings and worse of all you can NOT put your losses into the count :|). Cause if you will trade other things besides currencies I don’t think it’s worth it for me. Anyway good luck with that if the answer is negative for me.

    Next thing I noticed you will be continuing trading on eToro! WOOP WOOP!!! That alone makes my day :). Would be sad to see you go.

    To come to a conclusion:
    Tx for all the greens, tx for all the updates, tx for well everything the passed year and looking forward to 2016. Will not be redrawing money, on the contrary only depositing more and more. 🙂

    Kind regards,

    Ken Provo

  13. Hi mo! Just wanted to thank you and have a great holiday next week! Unfortunately hotforex does not allow Canada and USA users 🙁 wanted to tag along with that platform. Guess I will have to stick to etoro haha since plus500 doesn’t work either. Very hard to find a good platform that is international

  14. Hi Mo, that’s really good news. I’m very looking forward to next year.
    Thank you for all the inspiration and your teachings! Have a wonderful holiday!
    Isabella

  15. Hi Mo thanks for all the hard work you have done in etoro under difficult conditions. I have an account with hotforex already what ulis the name of your fund

  16. Evening Mo, a fantastic post as always. I will certainly be joining you on the journey and following on Twitter. Enjoy your well deserved break my friend.

  17. Dear Mohammed,
    thank you for this update which clarifies many things for me.

    I was about to give up on trading because I was getting nowhere. I’ve started at the end of last year with etoro, hoping the community would help me to learn and grow. Unfortunately I was bitterly disappointed because whilst I was getting bits of helpful information here and there, none of the so called star traders were really helpful. Everytime I got the feeling that they didn’t really know what they were doing and I didn’t like their trading style. I’ve then started my own account determined to learn it by myself but wasn’t successful either because I was sucked into the technical analysis community without realizing there is so much more to trading. It is after some heavy losses that I’ve decided to give a last shot to etoro when I’ve stumbled upon you commenting on a trade. There was some depth and substance to it so I’ve scrolled over your profile and got the feeling that there was a guy who actually seemed to know what he was talking about. So I gave it a last shot… The rest is history..

    I feel extremely lucky to be part of this community and to have stumbled upon your profile at the right time. Thank you so much for taking us all on this journey and I wish everyone all the success in the world in the coming year. Many blessings, greens and happy trading everyone! Here is to the future!

    Tania

  18. Hi Mo, excellent read as always! I realy would like to copy You on HotForex but I have made realy bad experieces there. So I started to copy someone with 500$ and have now (after 3 weeks) an equity of 18$. I have no Chance to recover it, as all new money that is deposited by others is summarised to a big pot. So my share is now somewhat like 0.005 %. So if the trader makes a profit of let’s say 10.000 $ my equity rises by 0,5 $… So the only chance would be to deposit more funds – but there you need again 500 at least.
    So it’s a completely different system😞

    Wish you all the best for the coming days and wonderful holidays! And a good ride on eToro die n 2016!
    Regards,
    Thomas

  19. so if you allow, I will be at his side and giving my support and for sure we will achieve our goals next year. I can only thank you …

  20. Thanks for the update. I’ll be taggging along on all platforms with 1 or 2k each, and will be keeping a portion of money on the side for doing my own trading so I can stand on my own feet in this game. It is amazing how much confidence in my trading ability you and this community have given me. A bit of red no longer fazes me lol/ Though I hope it will never be really necessary to stand fully on my own as when in 2 years you build your fund I’ll sign up there too 🙂
    Enjoy your very well deserved break!

    P.S. Anyone know if it’s worth it trying to get some sort of deposit bonus from hotforex? Or is it just nonwithdrawable money to make you think you got extra money in the bank lol

  21. is the hotforex trusted? in the pass i was scamed with companys of bynary options. Just asking and confirming, i cant copy with $500 at this time 🙁 aniway.

    and the options, how i can join it ?

    Thanks

  22. Always enjoying your thoughts Mo. Really Thanks for everything, such inspiration, such community, the community you started (What a butterfly effect! Karma should loves you after such contribution). I wish you achieve your dreams and setup your own fund one day Mo. I -if you allow me- will join you, bro. and hope someday I can give back. looking forward to the journey, Mo.

    Thanks again for your update and I wish you the best holidays you have ever had, for you and your beloved ones.

  23. Mohammed hello thank you again for your work! I read your last post and I wanted to ask before to wish you happy holidays (by the way you will do nice for these holidays?) if you open the account immediately on hot forex or on vacation since we wait for the start of the year (it’s a Stupid question I know, but in December between taxes and Christmas is a month expensive for my pocket)! I thank you again for all your work and I wish you a Merry Christmas and a wonderful New Year

  24. Hey Mo,

    Thank you, this is a very insightful post and clearly displays you have a comprehensive understanding of the markets. I’m a new trader in the CFD markets, having only entered into stocks, funds and bonds without leveraging in the past with some good success and returns.

    I’m a new ‘copier’, per se, and in for the long haul, it was your longterm strategy what initially attracted me so it’s highly reassuring to know and read about your diversification plans and, again, longterm ambitions. I don’t have a great deal of time on my hands however an eager learner looking to indulge as much as possible over the coming year.

    Enjoy the holiday and your time off, and all the best for the new year!

    And last but not least good luck to all in the community!

    KR
    Rich

  25. Thanks for a fantastic post, Mo!

    Will be following you for the next two years on both eToro and HF. Enjoy your holiday, and wish you all the best!

    -Rune

  26. I have no words. I can only say thank you Mohammed. I wish you the best and i feel very lucky i found you few month ago. I am with you in those exciting adventures. Keep going!

  27. I just wanted to ask you one question Mo and I respect you fully ..
    where will be your main capital money here or on hot forex? just a normal question and I really hope you respond to this.

  28. Thanks for the update Mo. Hope you have a nice holiday. I have just checked out Hot Forex, and although I will be joining you there, I am not sure I like the way they report their statistics. Had a look at some of the top PAMM accounts that are showing amazing gains, only to discover they have massive darwdowns, which in some cases goes up to 95% in the red as a floating loss. I mean how can that be a winning strategy?! They calculate their stats based on closed trades only. At least with eToro it is a lot easier to spot people that keep trades open forever, hoping they will turn around. Your strategy will be fine wherever you go because you don’t rely on these “hedging” strategies that are designed to keep copiers.

  29. Copio o Senhor a 2 meses, e apos muitas perdas, gracas a seus comentários, começo a entender… Muito obrigado e um excelente 2016!!!

  30. Dear MO,

    I started following you in order to learn and I have much respect to your behavior so far to us and our money!

    I have learn a lot in a small period of time. As I have stated in your forum my background is not in economics. Maybe it should have been now that I am thinking about it.

    Anyway, I would like to express my apologies for not having so much time to contribute to the lessons and forum. I have graduated from the first series of lessons but I have much pressure at work that I can’t do really analysis and express my thoughts in a daily basis. I read the updates in weekends and read financial news.

    I have opened my account with another broker and trying with my own short term trades but I am afraid that I will lose track of the lessons and the general progress.

    Of course I will try to follow you and support you.

    That’s all. Have a great rest!

  31. I will be joining you on hot forex mo. Can anybody help me as this is my first time investing into a PAMM. How do i work out what percentage of profits i will get if i deposit eg $1000. Thanks and have a good holiday and new year 🙂

    1. All monies allocated to the PAMM will be under Mo’s control, eg if 10 people invest $1000 he can place trades up to $10,000. Profits will be divided according to the percent of your investment, eg if you invest 10% of the fund you will receive 10% of the profits. Additionally, Mo will receive a performance bonus that is taken from are own profit at the end of the month which I think is 10% and he has plans for. There is also a penalty fee if funds are removed early. Not sure what the timeframe for the penalty is but it ensures funds are not removed that could jeopodise current trades. Please ensure deposits are invested under FSC. Hope that helps.

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