Well, that weekend went by very quickly. The combination of video games and being lazy really does help time fly by. For the record, if anybody has any good tactics for football manager 2016 or knows any good youth players that I should sign up, then please do post in the comments below. I literally cannot get more than three quarters of the way through the season with Liverpool without getting sacked by the board. In fact, I now actually feel sorry for Brendan Rodgers as I can see how difficult it must have been for him. I tried many different formations, tried all of the team talks tried to motivate the players individually and tried to put the best players in the best possible positions and I still get thrashed by the likes of Norwich. Thankfully, in real life my dear Liverpool had a much better result this weekend.
Anyway you don’t want to hear about that, you want to hear about what’s happening in the week ahead. So, I’ll get right down to it. I have three excellent trade ideas all of which you can find in the forums. I believe that they are technically and fundamentally sound and should bring us a very decent week. In this case I am not even relying on hitting the market as soon as the platform opens (after last week I don’t want to be disappointed again).
With regards to the community, it has been a very exciting weekend as well. We have our first batch of foundation graduates which is encouraging. Before I go into that, I just wish to make a comment to those of you who attempted to take the assessment unsuccessfully. Do not be discouraged. While it might look very simple on the skin of it, the questions are very short and there are few of them, but they were designed in order to examine your way of thinking and your sentiment. Particularly your knowledge of money management and how to get the highest return, your knowledge of risk aversion and risk appetite and basic fundamental knowledge about the markets in determining long-term trends of currencies. Being comfortable with these core concepts is very important to anyone who wants to achieve any degree of success in trading and although they sound basic, they are some of the most difficult concepts to grasp. In fact many seasoned traders fail because they forget these core concepts. Therefore, if you were unsuccessful please give the lessons another read and think about their implications and teachings in a trading environment and then when you feel more comfortable and confident, try again. Just because you haven’t succeeded at the first attempt, it’s no reason to give up! To those of you that passed, there was some very interesting answers. What was most encouraging is that some of you went above and beyond the scope of the question and related events to how they would directly impact a central bank’s monetary policy. I was happy to see such creative thinking and that the core principles that I tried to teach in as short a time as possible have been impressed upon you in such a way. It means that the system while simple is effective.
In addition, without revealing too much about my trade plans I just wish to give the rest of the Etoro community a friendly warning or advice rather. This week is filled with economic data about the United States economy and its general health and the releases are all forecasted to show significant improvement. Fundamentally we already are aware of the fact the December lift off in rates is a strong possibility, however if consistently strong US data shows even further strengthening of the US economy over the next week, then the fundamentals supporting the USD are likely to become even stronger. I understand that this is a frightening prospect for those who have been bearish on the USD for a long time and that have positions that are dangerously close to stopping out. Therefore if you finding herself in a position where you are overexposed to a strong dollar, I wholeheartedly recommend that you don’t keep backing the same horse and you don’t consistently open new sells against the USD. Martingale strategies will not save you this week if the data goes against you this close to the next FED meeting. They will only hurt you more.
As always, wishing all of you are very profitable week. Mohammed.