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This wonderful offer is music to my ears. I've been trying it since January, and have made profits of N8,500,000 so far this year.

POSITION SIZING AS A SOURCE OF ALPHA

In trading we have a concept known as alpha – that is the measure of skill we bring to the investment process as measured by comparison to a given benchmark. Traditionally we think of generating alpha via our instrument selection or timing. The aim of being a trend follower or momentum trader is to buy instruments that are moving in the right direction. The naive trader or investor sees this as some form of prediction when in actual fact it is simply a bet.

The philosophy behind this is that the ones you get right pay for the ones you get wrong and once or twice a year you get a trade that does extremely well. The trick is not to go broke waiting for the one that does extremely well. And it is this not going broke that is the key to the entire equation.

If you look at fund managers or hedge funds who have gone broke you notice that what has sent them broke has been what I would called a conviction bet. They are absolutely and completely convinced of their opinion, as such they effectively bet the farm on a given trade or series of trades. This is much more common than you would think and has been responsible for some spectacular collapses, the most notably was Long Term Capital Management in 1998.

More recently we have seen Bill Ackman of Pershing Square drop what is conservatively estimated at in excess of $500 million on a bet that Herbalife was a pyramid scheme. The notion of conviction bets reveals more about the psychology of the traders placing the bets than it does about their methodology since their methodology is simply to bet big and hang on.

This recent paper by Novus looks at the notion of position sizing/money management as a source of deriving alpha, that is profitability is derived by sizing bets correctly and as you might assume not going broke. Novus make an interesting point –

Many elite managers owe most of their winnings to their ability to consistently generate value through sizing decisions. In other words, they consistently make accurate sizing decisions. To that end, position sizing alpha is a good measure to evaluate the sizing decisions made by a manager and assess their skill at optimizing a portfolio – at least with regards to relative performance of their own positions.

This underlines survivability as the key issue in being profitable – it might seem obvious but to the funds management industry it isn’t. You can read the entire report here but there is a point they make that I want to concentrate on

We found that more than half of the managers in our universe benefit from position sizing in absolute return terms. Since January 2010 through the end of last year, 57.5% of our HFU managers outperformed equally-weighted versions of themselves, and 41% underperformed. The remainder saw no difference in annualized return due to sizing.

My view of this is that it is not the winning positions that they sized correctly but rather the losing ones which were sized correctly which influenced their performance. This meant that no single trade had a disproportionately negative impact upon the portfolio. None of them experienced a situation where they had the bulk of their fund in a single instrument that tanked taking them with it. As an historical example of what can happen when you have a concentration of bets consider the fate of the somewhat aptly named Tokyo based Eifuku Hedge Fund. This fund in the space of nine days lost effectively all of its capital due to its bets in three trade groups.

If there were a take home lesson in this it would be to pay defence and wait for the winners to reveal themselves. However, this presents a problem since it requires the trader to admit when they were wrong and to admit that mistake and act accordingly. The means that the traditional mechanisms we put in place to defend our ego have to disappear in order for us to be successful.


Author: Chris Tate

Article reproduced with kind permission of http://tradinggame.com.au/

www.tallinex.com wants you to become a successful trader.

Some of the points here are very important.

This is terrible. God save us ooo!

A real eye opener. In fact this is the true reality of education system in Nigeria.

Go to school, get good grades, work (slave) at a good company, rely on pension, and then die.

Your children go to school, and the cycle continues...

Weekly Trading Forecasts on Major Pairs (October 17 - 21, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
This pair trended downwards by 220 pips last week – just as it was expected. Price closed below the resistance line at 1.1000, going towards the support line at 1.0950. Bears may eventually target the support line at 1.0900, but they would meet some opposition at that place. The bias on the market is bearish, and any rallies seen here should be taken as opportunities to sell short at better prices.

USDCHF
Dominant bias: Bullish
USD/CHF was able to trend higher last week, managing to reach the resistance level at 0.9900. Based on the prognosis last week, bulls were unable to push price beyond the resistance level, though they may be able to do that this week, due to the perceived buying pressure in the market. The current price action shows that price is almost above that resistance level. Once price goes above the resistance level, next targets would be other resistance levels at 0.9950 and 1.0000. Once again, it is unlikely that price would go above the psychological level at 1.0000, though USDCHF would remain bullish as long as EURUSD remains bearish.

GBPUSD
Dominant bias: Bearish
Cable plunged last week, reaching the low of 1.2088 on October 11. Price then consolidated till the end of the week. The bias on the market is bearish in the short and long-terms, and thus, it is logical to anticipate another bearish journey once this consolidation ends. This does not rule out a possibility of a rally, which cannot be significant enough to threaten the current bearish bias. The movements on GBP pairs this week would not be as strong as the movements that would be witnessed next week.

USDJPY
Dominant bias: Bullish
This market has managed to maintain its bullish stance; as price continued to trudge northwards. The supply level at 104.50 has been tested and it would be tested again. Some bearish forces would attract the current short-term uptrend, but unless USD itself experiences loss in stamina, the bias would not turn bearish. The bullish outlook would remain as long as price does not breach the demand level at 102.00 to the downside.

EURJPY
Dominant bias: Bearish
EURJPY has not moved significantly in the short-term, though a closer look at the market reveals that bears have upper hands over bulls. As long as EUR is somewhat weak, price may face some difficulties in going up. Price is currently below the supply zone at 114.50, and it may test the demand zones at 114.00 and 113.50 this week. On the other hand, a movement above the supply zone at 116.00 would result in a clear bullish signal.

This forecast is concluded with the quote below:

“My belief is that the markets are a very friendly place. Whatever you want in life, the markets will find a way to give it to you. I’m not being facetious here.” – Dr. Van K. Tharp

Source: www.tallinex.com

osemoses1234:
Op u are a mad man sir

I wonder why some people give thoughtless answers...

Bill Gross: A Wise Financial Manager

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 19

“However, master traders tend to act differently than most humans. They look inward for direction. They are not afraid of taking risks, even if it means hurting themselves in the end. Throughout history, famous traders, investors and business leaders have had tremendous ups and downs in their lives. Unlike most people, they have learned to overcome human nature.” – Joe Ross (Source: Tradingeducators.com)

Name: William “Bill” Gross
Date of birth: April 13, 1944
Nationality: American
Occupation: Financial manager, author and philanthropist

AMERICA’S MOST PROMINENT BOND INVESTOR
Bill was born in Middletown, Ohio, to a homemaker and a sales executive for AK Steel Holding. He also has Canadian blood in his veins.

He later moved with his parents to San Francisco in 1954, graduated from Duke University in 1966 (a degree in psychology), and then served in the Navy. He got his MBA from the UCLA Anderson School of Management in 1971, and began to play blackjack professionally in Las Vegas – an experience that made him learn how to spread risk and calculate odds to his trading positions. From 1971 to 1976, he worked as a CFA for Pacific Mutual Life.

He co-founded Pacific Investment Management (PIMCO), which grew to as huge as $270.0 billion Total Return Fund (PTTRX). Bill traded one of the biggest mutual funds in the world, thus earning the title of “the nation's most prominent bond investor.” In September 26, 2014, he left PIMCO to join Janus.

In the 1990s, Bill wrote two best-selling books on investing. They’re: “Everything You've Heard About Investing Is Wrong!” (1997); and “Bill Gross on Investing “(1998).

In September 2008, he made a profit of $1.7 billion. He and his wife are generous philanthropist, having donate many, many millions of dollars to higher education, humanity (Doctors Without Borders/Médecins Sans Frontières), charities, scientific and medical research,

As of March 2013, Bill was worth $2.3 billion. He’s a Presbyterian, who’s been married twice and blessed with 3 children. He resides in Laguna Beach, California, United States.

This great trader is also a prominent stamp collector. One source reveals that, as of November 2005, he became the third person (after Robert Zoellner in the 1990s and Benjamin K. Miller pre-1925), to form a complete collection of 19th century United States postage stamps.

What You Need to Know:
1. Yes, you can be a spiritual and be a profitable trader. In fact, spirituality helps a lot in trading, especially in the area of trading psychology. Dr. Van K. Tharp is a fine example of someone who’s found ways to apply spiritual principles to life and trading transformation, through a program called “Oneness.” Bill was reported as one of a number of prominent investors who have taken to transcendental meditation.

2. Bills said he was obsessed with delivering value to investors and winning the game from a personal standpoint. We need to desire success extremely seriously – till it appears like an obsession.

3. Why are you a trader? Why are you a fund manager? As a trader/fund manager, you don’t get paid to regret or feel sorry for yourself. You’re paid to bring yourself or your investor money. Though traders are human beings, they’re tough when it comes to trading.

4. Gross said: “The real boss in the family is my wife. She didn't want me hanging around the house all day and said, 'You don't want to retire; you'll regret it.' So I listened to her. What does this tell us? Well, good traders don’t retire as long as they’re alive. It’s one of those very few jobs in which there’s no age of retirement.

5. What drives price movements? It’s humans. Human nature, herd mentality, coupled with institutions that lose their heads and sense of mission. This is the weakness that drives price movements.

6. It’s unwise when your risk is higher than your potential rewards. This is when money runs out of time; when lenders desert credit markets for other alternatives such as cash or real assets.

Conclusion: Wise Traders don’t fool themselves into thinking that they can prognosticate the markets just as scientists do in other scientific fields. Prices have nothing to do with natural laws, since there are many hidden things that can affect price movements. We can’t do more than analyze only the information at our disposal and informed assumptions.

This piece is ended with a quote from Bill:

“In questioning initially whether I am a great investor, I open the door to question whether other similarly esteemed public icons like Bill Miller are as well. It seems, perhaps, that the longer and longer you keep at it in this business the more and more time you have to expose your Achilles heel - wherever and whatever that might be.”

Source: www.tallinex.com

No-one is the most beautiful. This is an exaggeration. There are people who are even more beautiful than Miss Universe or Miss World in my locality.

There are million of children who are more beautiful than this lass.

Question: If they contest, would they ever win?

Weekly Trading Forecasts on Major Pairs (October 10 - 14, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
This pair remains neutral in spite of strong volatility witnessed on other pairs and crosses last week. Price simply went below the support line at 1.1150 and then moved towards the resistance line at 1.1200, closing at 1.1200. The neutral bias would persist for some time, but a strong momentum is expected soon. Price needs to go above the resistance line at 1.1350, or below the support line at 1.1050, before it could be said that the neutral bias is over. This week, the most probable direction for EURUSD and some other few EUR pairs, is downwards.

USDCHF
Dominant bias: Bullish
This currency trading instrument is neutral in the long term, but bullish in the short-term. Price went upward on Monday and Tuesday, nosedived on Wednesday, and went upwards again on Thursday and got corrected again on Friday. While it is possible for this instrument to go further upwards, the movement would be limited, because it is unlikely that price would be able to go above the resistance level at 0.9900.

GBPUSD
Dominant bias: Bearish
There is a strong Bearish Confirmation Pattern on GBPUSD market, and most other GBP pairs. As it was predicted last week, price dropped sharply by 880 pips, reaching a low of 1.2031. This is a persistent bearish trend. After that, price bounced back by 420 pips, to close at 1.2421. What next? Well, the forecast for this week is that, GBPUSD would be bullish (which is also true of a few other GBP pairs). Price would go visibly upwards this week, but that would not be significant enough to override the currently long-term bearish outlook on the market.

USDJPY
Dominant bias: Bullish
As it was anticipated, USDJPY broke upwards last week, ending the recent equilibrium phase in the market. Price shot skywards by 280 pips, testing the supply level at 104.00 and the getting corrected by 100 pips. Price closed below the supply level at 103.00 on Friday, and that could be a good opportunity to seek long trades when things are on sale, and in the context of an uptrend. The outlook on JPY pairs remain bullish for this week, so price could go upwards again by at last, 150 pips this week.

EURJPY
Dominant bias: Bullish
Just like USDJPY, EURJPY went upwards seriously last week, testing the supply zone at 116.00 pips, before getting corrected by 90 pips. There is a Bullish Confirmation Pattern on the market, and further upwards movement could happen this week, thereby ending the current bearish correction. From the current locating, price may go towards the supply zones at 115.50, 116.00, and 116.50.

This forecast is concluded with the quote below:

“I learned that the market truly is your greatest teacher and that trading is a skill you must nurture and develop. The more time you spend in the market, the better you are able to understand market movements.” - Michael Patak

Source: www.tallinex.com

Friday Market Tamer (Leaked)

An Accurate Friday Strategy for Forex and Binary Options

Revolutionize Your Trading Career
The purpose of this strategy is to show you how to trade most important fundamental figures that come out on Fridays. The strategy focuses on CAD and USD pairs only. It would only take you a maximum of 15 minutes per week. It comes with about 75% accuracy. The strategy is very simple and easy to familiarize oneself with.

This strategy makes you to:
Understand the strategy and use it in real market conditions
Apply the strategy with good results on Binary Options
Apply the strategy also on Forex markets, if you trade Forex
Spend far less time in the markets, while improving your results

According to babypips.com, Fridays are among worst times to trade, because liquidity dies down during the latter part of the U.S. session. Well, this statement is correct, but there is one wonderful strategy that can take advantage of the unpredictable nature of the markets on Fridays. This is what the strategy here is all about, and it could be one of the most wonderful things you will come across in the world of trading.

Fridays are always quiet in the currency markets, unless some fundamental figures are released. Even employment figures from USA and Canada tend to have transitory effects in some cases. This is why some people believe it is difficult to trade on Fridays. However, the markets have symmetry; whatever can bring losses to traders can also bring profits.

Please get more information here: Friday Market Tamer: https://learn.tradimo.com/friday-market-tamer


Details of the Strategy

Strategy name: Friday Market Tamer

Strategy type:

Financial markets: Forex and binary options

Suitability: Good for part-time traders

Time horizon:

Indicators:

Buy setup:

Sell Setup:

Recommend risk per trade:

Stop loss:

Take profit:

Risk-to-reward ratio:

Trailing stop:

Breakeven stop:

Trade duration:

Hit rate:

Filter:

Maximum number of trades every Friday:

This piece is ended with the quote below:

“The answer to why a market moves is always an imbalance in supply and demand. So, why was there an imbalance in supply and demand? Most of the time we will never know! It could be a news event was a catalyst, but often the price reaction to news is tough to figure out. Trying to figure out the specific “why” may cause you to miss trades, so I personally don’t bother.” – Rick Wright


Please get more information here: Friday Market Tamer: https://learn.tradimo.com/friday-market-tamer


www.tallinex.com wants you to make money from the markets.

This post has piqued my interest.... I'm going to find and at least, read 2 of those books. Where's my debit card? I want to order...

Another good post. Please keep it coming!

This is a great post! I learned some good things there.

Monthly Forecasts for CFDs (October 2016)

AUS200
Dominant bias: Bullish
AUS200 started September on a bearish note, but ended it on a bullish note. From September 1 to 13, the market dipped by 2500 points from. Since then, the market has rallied by 3300 point till date. There are Bullish Confirmation Patterns in the 4-hour and daily charts, which reveal that further northward movement is possible. Next targets are the resistance lines at 5550.0, 5650.00 and 5750.0 this month.

SPX500
Dominant bias: Neutral
SPX500 moved sideways last month – and the bias on both the 4-hour and the daily charts is neutral. Price moved sideways in the first few days of September, and then dipped from September 9 – 11. After this, price became quite volatile and ended up consolidating till the end of the month. The neutrality of the bias is supposed to continue this month until “something’ pushes the market out of balance. The most probable direction is to the south, for the bullish trend has reached maturity.

US30
Dominant bias: Neutral
The situation surrounding this market is quite similar to the situation surround the SPX500. Price moved sideways in the first few days of September, and the dipped from September 9 – 11. After this, the market was riddled with high volatility and eventually moved sideways till the end of the month. This neutral outlook may continue this month until the market starts trending seriously, which would cause a directional bias to form. The most probable direction is towards the south.

GER30
Dominant bias: Bullish
In spite of a serious volatility on this trading instrument, there remains a bullish indication on it. Bulls have succeeded in preventing large pullbacks in the market; plus there is a Bullish Confirmation Pattern in the daily chart. The instrument may thus attain the supply levels at 10650.0, 10750.0 and 10850.0 in the month of October. The demand levels at 10180.0 and 10150.0 should resist any bearish attempts along the way.

FRA40
Dominant bias: Bullish
FRA40 experienced extreme volatility in September 2016, which was characterized by large upswings and downswings. In spite of this, the bias on the market is bullish (though in a precarious situation). Price needs to move further upwards by at least, 1000 points, in order to showcase stronger bullishness. For this, bulls would be willing to target the supply zones at 4550.0, 4650.0 and 4750.0 this month.

Source: www.tallinex.com

Monthly Technical Reviews on Gold, Silver and Bitcoin (October 2016)

GOLD (XAUUSD)
Dominant Bias: Bearish
Gold is bearish in the short-term, but neutral in the long-term. In the 4-hour chart, price trended downwards last week, to end September 2016 on a bearish note. Further bearish movement is anticipated this month, which would make price reach the support levels at 1298.00 and 1280.00 and 1270.00. This would make the bias on the daily chart to turn from neutral to bearish. On the other side, a serious rally may enable price to go above the resistance levels at 1330.00, 1350.00 and 1400.00, which may cause a Bullish Confirmation Pattern in the chart.


SILVER (XAGUSD)
Dominant: Bearish
Just like Gold, Silver is bearish in the short-term and neutral in the long-term. Price is volatile and there would be further struggle between the bull and the bear before price starts trending seriously, which could most probably be in favor of the bear. The bear may target the demand levels at 18.7000, 18.2000 and 17.5000 in October, which would also result in a Bearish Confirmation Pattern in the daily chart. This expectation would be rational as long as price does not go above the supply levels at 19.9000, 20.5000 and 21.0000. This month, Silver is expected to trend more strongly than it did in September.

BITCOIN (BTCUSD)
Dominant Bias: Neutral
Bitcoin remained a flat market throughout September 2016, save the bearish breakout that occurred at the beginning of this month, which turned out to be a false breakout. This flat movement is expected to continue this month, and the only thing that could force the market to go out of balance is an unexpected or extremely strong fundament factor. The outcome would be simple, very bad news would result in massive sell-offs, while very good news would result in a serious rally. A strong movement to the south would be contained at the accumulation territory at 509.00 (the low of August 2016); and a movement to the north may not go above the distribution territory at 775.92 (the high of June 2016).

Source: www.tallinex.com

Weekly Trading Forecasts on Major Pairs (October 3 - 7, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Neutral
This pair did not do anything significantly last week, save moving briefly above the resistance line at 1.1250 and testing the support line at 1.1150. The bias has become neutral in the short and long terms, and this is supposed to continue until price goes out balance, which should happen before the end of the week or next. The outlook on EUR pairs is bearish for the month of October (except in a few cases), therefore, EURUSD could be seen going lower in the month.

USDCHF
Dominant bias: Bearish
This currency trading instrument is bearish in the short-term, but neutral in the long-term. Bulls made visible effort to push the instrument upwards but bears did not allow this to happen. Although the outlook is bearish in the short-term, price did nothing more than testing the resistance level at 0.9750 and support level at 0.9650. There should be a rise in momentum this week, and USDCHF would rally only when EURUSD falls sharply.

GBPUSD
Dominant bias: Bearish
GBPUSD is bearish in the long and short terms. Price simply moved sideways last week, although Bearish Confirmation Patterns are still visible in the 4-hour and daily charts. Further bearish movement is anticipated this week, which should drive price towards the accumulation territories at 1.2900, 1.2850 and 1.2800. Rallies in this market would invariably turn out to be traps for bulls; and of course, good short-selling opportunities. The accumulation territory at 1.2950 is currently doing a good job preventing further downside move: though it could give way very soon. In the month of October, the outlook on GBP pairs is strongly bearish, and large downside movements would be witnessed, except in a few cases.

USDJPY
Dominant bias: Neutral
USDJPY is neutral in the short-term. In fact, the overall condition on the market has been a kind of consolidation throughout September 2016. Further sideways movement would result in a neutral bias in the long-term as well, but there is a high possibility that price may start trending seriously before the end of this week, which could result in a bearish or bullish signal forming in the 4-hour chart.

EURJPY
Dominant bias: Neutral
The condition on EURJPY is quite similar to the condition surrounding USDJPY. Price consolidated between the demand zone at 112.50 and the supply zone at 114.00, throughout last week. This week, a rise in momentum is expected which would take price above the aforementioned supply zone, or below the demand zone, resulting in a bearish or bullish bearish in the short-term.

This forecast is concluded with the quote below:

“I am now doing things I have a passion for and am full time trading.” – Stefan Carling

Source: www.tallinex.com

Marc Lasry: Making Great Wealth from Taking Risks

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 18

“Get no joy, except a superficial joy, out of winning. Get no sadness, except a superficial sadness, out of losing. Get to the point where it must almost be an act on your part to be joyful or to be sad - and not the opposite, as it is with most traders. Always remember that your joy and sadness come from and with the most meaningful aspects of your life - family, friends, acts of giving and loving and creating. Not trading.” – Andy Jordan (Source: Tradingeducators.com)

Name: Marc Lasry
Nationality: Moroccan, American
Age: 56
Occupation: Investor, fund manager, co-owner of Milwaukee Bucks

HE EARNED AN INCOME OF $280 MILLION IN 2013
Marc was born in Morocco. His family moved to the U.S. when he was 7 years old. His dad was a computer programmer and his mom was a teacher.

He got his B.A from Clark University in 1981; plus a J.D. from New York Law School in 1984. He worked as a clerk while in law school. He then worked at Angel & Frankel, following his graduation.

In 1989, he and his sister, Sonia Gardner, founded Amroc Investments. Amroc Investments was founded with $100 million, purchasing and trading claims and bank debt held by vendors of bankrupt and/or distressed companies. In 1995, they founded Avenue Capital Group, investing $7 million of their own capital. His sister had often worked with him.

Their hedge fund grew to be as much as $11 billion in AUM. Marc was ranked one of the 25 highest-earning hedge fund managers in 2013, with total earnings of $280 million.

He became a co-owner of the NBA's Milwaukee Bucks after purchasing the team from Herb Kohl for $550 million. That was April 2014.

Marc lives in New York, USA. Being a generous giver, he’s donated to science, education and politics. He’s a lover of basketball, tennis and comics.

As of September 2015, he was worth $1.9 billion. He’s married to Cathy Cohen – they got 5 children.

What You Need to Know:
1. Marc was blessed to have a sister who supported him and worked along with him. Concerning this, Marc revealed that he with his sister Sonia Gardner, was a forerunner to Avenue Capital Group. It was just the two of them and a secretary when they started – they were both working 14-hour days, 7 days a week. They slowly built one of the largest private distressed debt brokerage firms that existed at the time, and expanded Amroc to more than 50 employees. At the same time, for five years, they also ran their own money, just his sister and him. What can you learn here? I became a trader because my uncle called me many years ago, asking me to go learn trading because it was popular then. Today, I’m grateful that he advised me to do this. Sometimes, a piece of advice may be worth more than millions of dollars.

2. When you work with, or along with professionals, your life is easier. For example, Elon Musk surrounds himself with professionals and that’s one of the reasons why he appears to know much. Surround yourself with professionals, even work with them, and the results would be satisfactory. Marc met exceptionally smart guys at Bass: David Bonderman, Jim Coulter, Tom Barrack, and many others. It was a phenomenal period, and he quickly realized he was dealing with guys who were off-the-wall smart and really good guys – nice, smart people.

3. Marc looks at himself as a value investor. Trying to constantly find mispriced investments and add value in a situation. For him, investing means having conviction in your work and companies where you invest, even when the Street has written them off.

4. There’s no need to be concerned about how good a setup is, but we want to be concerned about how we can be protected in case things go wrong.

5. Good traders make profits because they view trading, price, etc. differently than what most people see. When the market reacts in panic, the public know. However, good traders analyze the scenario, assess the pitfalls and take actions.

6. No-one is too big to fail. No trader can avoid losses. No-one is immune from risk. Everybody can make it in life.

7. When you leave what you think is the best job for you, you might discover trading to be better. You won’t regret being a trader.

8. Marc says, “We are constantly searching, trying to find value, typically in troubled companies. And then we try to buy those assets at a discount. In contrast, most investors try to find companies that have no problems. And, when companies have problems, people get nervous. We look at the world very differently than most investors.”

Conclusion: There are many advanced traders who focus on the process of trading instead of money. They approach trading as if approaching sports (and like martial arts). They know they should approach trading as experts tackle opponents in matches. We tend to think illogically when we trade, which isn’t a normal mindset for traders.

This article is ended with another quote from Marc:

“People think we got to $20 billion overnight, but it wasn’t as easy as it seems. We had the background. We had good returns. We had the infrastructure, and we had good people. And, importantly, we had high-quality, stable, long-term investors that allowed us to raise money in a difficult fundraising environment. We were also lucky that we were in the right place at the right time.”


Source: www.tallinex.com

I appreciate the intelligent replies given here. However, there are psychological reasons behind this shameful act, that needs to be unearthed and treated.

Weekly Trading Forecasts on Major Pairs (September 26 - 30, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
EURUSD is bullish in the short-term, but neutral in the long-term. Against the volatility contraction in the higher time-frames, bulls managed to push price above the support line 1.1200. The next targets are around the resistance lines at 1.1250 and 1.1300, which would require strong buying pressure to be breached to the upside. The support lines at 1.1150 and 1.1100 would act as barriers to bearish attempts along the way.

USDCHF
Dominant bias: Bearish
This market is bearish in the short-term, but neutral in the long-term. Despite low volatility in the higher time-horizons, bears managed to push price below the resistance level at 0.9750, now close to the support level at 0.9700. The targets for this week are around the support levels at 0.9650 and 0.9600, which would require strong selling pressure to be breached to the downside. The resistance levels at 0.9750 and 0.9700 would act as barriers to bullish attempts along the way.

GBPUSD
Dominant bias: Bearish
The dominant bias on GBPUSD is bearish. As it was mentioned in the last weekly forecast, price went down last week in spite of desperate opposition from bulls, who left their traces in the market. Short trades are not logical in this market because of the current price action, and because the outlook on GBP pairs remains bearish for this week. Thus, the accumulation territories at 0.2900, 0.2850 and 0.2800 could be tested before or by Friday.

USDJPY
Dominant bias: Bearish
This instrument consolidated in the first few days of last week, dropped in the middle of the week and experienced a slight upwards correction around the end of the week. There is a Bearish Confirmation Pattern in 4-hour and daily charts, which signal further bearish movement. The demand levels at 100.50 and 100.00 could be tried this week. The bearish bias would hold out until the supply level at 104.00 is overcome – something that may not happen soon.

EURJPY
Dominant bias: Bearish
This cross pair dropped significantly last week, moving briefly below the demand zone at 112.50 before the recent bullish effort in the context of a downtrend. The bullish effort could be seen as another opportunity to sell short at slightly higher prices (since the outlook on the cross pair is bearish). The demand zones at 113.00, 112.50 and 112.00 could be tried this week or next. The only thing that can overturn the current bearish outlook is a 300-pip movement to the upside.

This forecast is concluded with the quote below:

“I read charts like some people read the newspaper. My world revolves quite a bit around what I see on the charts.” – Joe Ross


Source: www.tallinex.com

The Best Time to Become a Trader

Soon, though, I became aware that there was an even bigger game available to players like me. It was, in fact, the biggest game in town -- the international financial markets. So my interest shifted from playing cards to playing the markets. - James Frazer

Someone in a West African country - a young man - had exhausted all means of getting a reliable livelihood, including hard manual labor. He resorted to commercial motorcycle riding. At least, he was able to get some money to feed his family.

One day, he’d a near fatal accident, and got confined to bed for weeks. I thought he’d never go back to commercial bike riding. I was wrong! Since he thought he’d no alternative, he went back to that job.

The young man went back to a job that nearly claimed his life because he’d no alternative; yet many quit trading because they lost negligible amount of money. People suffer ignominious defeat in other areas of their life and careers, and they don’t see any big deal in that. Nonetheless, they see a big deal in trading losses and they think there are better alternatives.

There are many people who tried to discourage me from trading when I started. These were people who were considered intelligent and successful in other fields, like religion, education, politics, etc.

For example, one respected religious man told me that he didn’t want to become a trader because he knew those who wanted to make heaven shouldn’t trade. What a totally wrong opinion about trading? That statement could discourage ignorant people from attaining their potential as traders. The man later sent me a personal email, asking me to remove him from my mailing list because he wasn’t a “businessman,” and he wasn’t interested in trading. I quickly removed him from my mailing list. He later blocked me on Facebook because he didn’t want to see some of my posts, which obviously related to trading.

I wasn’t deterred by his actions, for I knew his actions were also lined with envy. I knew he wasn’t the one to feed me or carry my responsibilities for me. He’d his own responsibilities and he’d even be glad if someone like me offered him some cash.

Years later, the same man was surprised that I’m still a trader, with a measure of success. I even sent him some money recently. He was grateful for the gift.

When Should You Become a Trader?
Now is the time for you to decide to become a trader. You chances of success are greater than you can imagine.

How can this be possible? I’ll reveal the secrets in my coming articles.

Most people come to trading as a last resort: When they’re completely down, when they’ve nothing to rely on and they’ve exhausted other possibilities. This is a wrong time to become a trader, since the financial pressure on you would make it impossible to trader with sane logic and rationality.

It’s better for you to become a trader when you’ve another sources of income. When you know that some initial challenges you encounter wouldn’t endanger your wellbeing (and perhaps, that of your family).

When you’re supported by your family, your life as a trader would become easier. Joe Ross, a trading veteran, once said his wife suggested that he write down what he knew about trading so that his children could learn in the event they ever wanted to take up trading. What he wrote at that time became his first book. Joe Ross clearly had support from his family. What a blessing!

Don’t Give Up Trying to Become a Successful Trader
Several years ago, when I encountered initial challenges in trading, I was tempted to give up. However, I was lucky to come across some things that encouraged me to keep on going. I knew I’d no better alternatives than trading. Now I’m happy to be a trader. I can only look forward to a brighter future.

Trading success is sweet, liberating and enriching. There are numerous known and unknown traders all over the world, who make decent profits on monthly and annual basis. They won’t exchange this wonderful privilege for anything! By not giving up trying to become a successful trader, you’ll soon experience the joy of financial freedom that comes with trading.

Conclusion: Many a good trader has survived the point at which chicken-hearted people quit, and has been rewarded. If we also imitate such determined traders, we’d survive whatever the hurdles we come across and we’ll enjoy rewards greater than what people think we can enjoy.

This article is ended with the quote below:

“Roald Amundsen says: Adventure is merely bad planning. I have talked about Amundsen before and focused in particular about how his success as an explorer was a function of his obsessive planning. What strikes me about people who are successful in very difficult fields is that they all share similar traits, attributes or philosophies. Much the same could be said about traders and trading/. If you are find trading an adventure or it is exciting/stressful then you are most likely doing it incorrectly.” – Chris Tate (Source: Tradinggame.com.au)


Source: www.tallinex.com

achieverme:
How much do you buy netteller?

They currently buy Neteller at N380/USD, but I was able to sell at a slightly higher rate to them yesterday because I sent more than 2000 USD to them (although this came with negotiation). They’re legit.

Weekly Trading Forecasts on Major Pairs (September 19 - 23, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EUR/USD moved sideways last week, from Monday till Thursday, and then broke downwards by 85 pips on Friday. Had price failed to break downwards on Friday, the bias would have become neutral in the short-term. Now, the bias is bearish, and price might test the support lines at 1.1100 and 1.1050 this week. This bearish bias would be valid until the resistance line at 1.1300 is breached to the upside.

USDCHF
Dominant bias: Neutral
Although this pair trended upwards on Friday, September 16, the movement was not significant enough to cause a clear bias on the market. Price has tested the resistance level at 0.9800, and it has almost breached it. A movement above the resistance line at 0.9850 would result in a bullish bias, and a movement above the resistance level at 0.9900 would result in a stronger bullish bias, although it would be a kind of difficult for bulls to move price above that level (0.9900). A movement below the support level at 0.9650 would cancel the neutral bias and result in a bearish signal.

GBPUSD
Dominant bias: Bearish
GBPUSD dropped 280 pips last week, closing below the distribution territory at 1.3000 on Friday. The bias on the market is bearish in the long-term and the short-term. There is a Bearish Confirmation Pattern in the market and price is expected to reach the accumulation territories at 1.2950, 1.2900 and 1.2850 this week (unless something fundamental changes the stance). GBP pairs, except EURGBP, are currently bearish.

USDJPY
Dominant bias: Neutral
This instrument moved within volatility contraction throughout last week, which has resulted in a neutral bias in the near-term. Price moved within the demand level at 103.50 and the supply level at 101.50. This week, the most probable direction is southwards, which would become visible as momentum increases in the market. There is a strong indication that JPY pairs would go bearish this week, just in conjunction with the long-term bearish outlook on them.

EURJPY
Dominant bias: Bearish
This cross pair went down on Monday and went up on Tuesday. On Wednesday, price topped at 116.08, and began to move south from that day until the market closed on Friday. That was a southward movement of about 200 pips, which has brought about a bearish signal in the market. Since the outlook on JPY pairs is bearish for this week, it is possible that the demand zones at 113.50 and 113.00 would be tried this week.

This forecast is concluded with the quote below:

“It's tempting to tell ourselves that “it’s OK to wait” and “the market will always be there” – as we give ourselves excuses for not taking the next trade. But let’s face facts. If you sit on the sidelines for too long, you may just miss out on the opportunity that will double your trading equity.” – Louise Bedford

Source: www.tallinex.com

Paul Singer: A Very Smart and Tough Money Manager

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 17

“You actually know less than you think you do. I found this fascinating and it had me drawing bikes on a blank piece of paper. The central issue is that we actually know less about the world than we think we do. These errors abound in simple tasks and in our understanding of the way the world works. It is natural therefore that such errors creep into the way we think the market works and the way it actually does work. More importantly such errors will creep into the way we think we operate and the way we think we operate in concert with the market.” – Chris Tate (Source: Tradinggame.com.au)

Name: Paul Singer
Nationality: American
Date of birth: August 22, 1944
Occupation: Hedge fund manager, activist investor, and philanthropist

VULTURE CAPITALIST
Paul was raised by Jews; a pharmacist and a homemaker. In year 1966, he got his B.S. in psychology from the University of Rochester; plus a J.D. from Harvard Law School in 1969. He then worked as an attorney in the real estate division of an investment bank.

The hedge fund he founded - Elliott Management Corporation (EMC) – engages in distressed debt acquisitions. He’s also the founder and CEO of NML Capital Limited, based in Cayman Islands. Hi firms have more than $27 billion in AUM.

Paul has been called one of the smartest and toughest money managers in the money management industry. He’s also called a “vulture capitalist.” His hedge fund is seen as a vulture fund. Wikipedia describes a vulture fund as a hedge fund or private equity fund that invests in debt considered to be very weak or in default, known as distressed securities. Investors in the fund profit by buying debt at a discounted price on a secondary market and then using numerous methods to gain a larger amount than the purchasing price. Debtors include companies, countries, and individuals.

He started purchasing sovereign debt from nations in crisis, like Argentina, Peru, Congo-Brazzaville (through various means). When a country is in financial trouble, he would purchase some of their debt, making millions of dollars in interest repayments and fees on the original debt" when the countries stabilize.

As of August 2015, Paul was worth $2.1 billion. A generous giver, he’s supported many causes, including entrepreneurial, educational, Jewish, political, sexuality, etc. causes.

Paul’s blessed with two children; and he’s been divorced since 1996.

What You Need to Know:
1. When professional speculators speak, we should listen. They’ve learned how to take advantage of the unpredictability of the markets. According to Wikipedia, hedge fund manager Jim Chanos stated in an August 2009 radio interview that he and Paul had met with G7 finance ministers in 2007 to warn them that the global financial system was increasingly unstable and approaching a catastrophe, with banks on the verge of sinking the global economy. The pair argued that decisive action was called for, but Chanos claimed they were met with indifference

2. Your past failure or disappointment can give you energy and motivation to move on to success. Paul suffered certain losses early in his career, which led to risk aversion that still guides his investing today. He never risks too much per position. He trades with caution.

3. A good strategy will have very few losing years (if any). Paul’s Elliott Management Corporation had only 2 losing years since 1977. Even in 2011, when most money managers lost, his fund rose 4.2%. Wasn’t that impressive? From 1977 to 2008, the fund had an average of 14.7% returns per year, beating the S&P 500. You don’t need to double your account every year to be called “successful.”

4. Paul himself says successful hedge funds will be entrepreneurial; it is the essence of the craft. He prefers situations, all else being equal, that are dependent in large part on their individual efforts, as opposed to those that are dependent solely upon market forces. Some added feathers to their caps and some had their businesses shattered.

Conclusion: Normally, the bigger you stake, the more your gains, but the more your losses as well (in case things go wrong). What master traders and newbies must agree on, is that dealing with uncertainties and uncertainties themselves aren’t a bad thing. You may face uncertainties with informed decision, win and then look for next opportunities in uncertain markets. Some also face uncertainties with the gambler’s fallacy – which is normally dangerous.

This piece is ended with a quote from Paul:

“The recent trading environment has felt something like walking into a place and having a sense that something is wrong and dangerous but not knowing exactly what will happen or when. “QE Infinity” has so distorted the prices of stocks and bonds that nobody can possibly determine what the investing landscape would look like, or what the condition of the economy and financial system would be, in the absence of Fed bond-buying.”


Source: www.tallinex.com

I once sent some funds to an account denominated in Australian dollars. If you want dollars, euro, pound sterling, yen, and so on. You can open a Neteller account in that denomination and have it funded by an exchanger which would send dollars to it and have it converted automatically for you.

One good thing about it is that, the fund can then be withdrawn by you to your domiciliary account here in Nigeria or to your debit Net-Card, given to you by Neteller. You can use it anywhere in the world and for anybody in the world.

Fees and conditions apply.

Please see the exchanger I’ve used here: http://www..com.ng/pages/show/customers-experience

www.ituglobafx.com.ng is legit.

Weekly Trading Forecasts on Major Pairs (September 12 - 16, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bullish
This pair went upwards last week, testing the resistance line at 1.1300 and then getting corrected downwards. The bullish bias remains valid, though it looks like an unclear thing. Therefore, the pair is expected to trend further higher this week (for EUR would gain more stamina while USD would be weakened further), re-testing the resistance line at 1.1300, breaking it to the upside and heading towards another resistance line at 1.1350. Some EUR pairs have already started journeying upwards.

USDCHF
Dominant bias: Neutral
There is yet no clear outlook on USDCHF, as price simply swung downwards and then upwards last week. There is going to be a directional movement this week, which would most probably be downwards. EURUSD could trend upwards (owing to an expected stamina in EUR), causing USDCHF to pull back. Other factors contributing to this are the coming further weakness in USD and a possibility of CHF strengthening (please watch CHF pairs). Bears would thus target the support levels at 0.9700, 0.9650 and 0.9600 this week.

GBPUSD
Dominant bias: Bearish
GBPUSD is bearish in the long-term, though bulls are fighting against all odds, to effect a meaningful rally. Price moved upwards 140 pips in the first few days of the week and started coming downwards from Wednesday. A movement below the accumulation territory at 1.3100 would cause a very strong Bearish Confirmation Pattern to form in the market. On the other hand, a movement above the distribution territory at 1.3450 would result in a near-term bullish outlook.

USDJPY
Dominant bias: Bearish
Last week, this market trended southwards by 260 pips, moving briefly below the demand level at 101.50, before starting a 170-pip rally. The supply level at 103.00 has been tested during the rally attempt. Further upwards movement is possible this week, which could bring an end to the current bearish outlook. In case this happens, the supply levels at 103.50 and 104.00 might be reached.

EURJPY
Dominant bias: Bullish
This currency trading instrument is bullish in the short-term and bearish in the long term. Bearish effort was rendered useless last week, as bulls came in to push price from the demand zone at 114.00 towards the supply zone at 115.50, thereby rendering useless the 200-pip pullback that was witnessed from Monday to Wednesday. Bulls would continue to push price upwards, owing to expectation of further weakness in the Yen. The outlook on JPY pairs is bullish for the week.

This forecast is concluded with the quote below:

“Success in the long run for me is defined as consistently positive returns with a consistency for never losing too much money when things go wrong. For those starting out I think it is very important to develop a trading strategy that will stand a very good chance in working through all business cycles. The world looks very different now to what it looked like in 2006, 1999, 1991, 1982 and is forever changing. Trading strategies that depend on a certain market environment will always get found out when the market environment changes. As a trader you want to be trading from now till the day you drop dead.” Anton Kreil (Source: Traders-mag.com)

Source: www.tallinex.com

5 Ways To Make Money From The Markets Without Capital

“Once you get your trading plan completed however, and you have a successful track record of six months of solid trading results, lock that plan up and never share it with anyone. Use it to build an incredible life for you and your family. Hold on to the edge you have worked so hard to attain. Be happy to share your knowledge but that does not have to mean giving away your strategy and edge.” – Sam Seiden

There are certain other ways through which you can make money from the markets without your own capital, and that’s what this article reveals.

Many people are eager to commit real money to trading; which is not a bad thing. However, the most crucial thing is correct trading knowledge. When you’ve correct trading knowledge, capital will come looking for you, which means that your knowledge makes you rich. If you’ve capital and you don’t have the right knowledge, you’ll soon be done away with your capital.

When you’ve the right knowledge and no capital, these are what you can do to become rich gradually as a trader:

You can work as a signals provider: If you’ve a good trading idea or strategy, you may want to become a trading signals provider at one of relevant websites like Zulutrade. Registration and services are free, and you can trade Forex, CFD and Binary Options. Once you use a positive expectancy system with sensible risk control tools, you’ll begin to gain live followers. You then get paid a percentage of the trading volume generated by trades that get opened as people copy your trades automatically.

You can get investors through proven demo track records: This is possible on relevant websites like Myfxbook.com. You can open a demo account with a good MT4 broker and register the account on Myfxbook. Your trades are recorded and analyzed automatically. After many months or a few years of positive track records (clean survival), you might convince an investor (or investors) to commit some capital to you. You then get some percentage of profits you make on that capital. I know someone who got employed as a trader in a reputable bank – only because he’d a demo account that showed good results of a few years.

You can get money by joining demo trading competitions: Luckily, many brokers organize forex trading competitions with various awards methods. Some brokers would give you a cash prize for being one of the top winners and a contract to manage money for them. Some brokers would give you a free deposit as one of the winners. You can’t withdraw the deposit, but you can withdraw the profits made on it. Some brokers can allow you to withdraw the money from your MT4 account once certain conditions have been met; like trading with some desired volume. Recently, Tallinex.com organized a demo trading competition, in which 15 winners were given generous cash prizes, which could be withdrawn immediately or traded as each winner liked.

You can make money as an IB: I wouldn’t expatiate on this. Please ask your broker who an IB is and what the rewards for a successful IB are.

When you get some money, you can provide automated trading signals with real money on some relevant websites like Collective2. People who find your trades useful would gladly pay monthly fees for the use your strategy.

There are other ways to make money from trading related activities, without having your own capital. Can you think of some more of them?

When you’ve a proven strategy, the best thing is to trade it with real money. Some people don’t have money to open a decent trading account and they got talent as traders. Once they can prove their expertise in a simulation mode, they might get seed money to start their own trading business.

I know that some negative views people have about trading are simply not true.

Conclusion: Visionaries can’t be intimidated by the markets…. Schools don’t make successful people; learning makes successful people… You’ve to be different before you can make a difference.

I wish you a profitable trading future.

This article is ended by the quote below:

“But truth is… We all have losing trades..., as we all have winning trades. We all have good days..., and bad. We all.., are only as good - as how we managed the last trade - regardless of that trade's outcome. Trading is not about the amount - it only about the process..., routine..., making a plan for each trade..., then trading that plan to fruition. It’s about discipline...., patience..., repetitiveness..., with no opinion..., and one's ego set aside low..., it about self-management in a totally uncertain environment” – Redneck (Source: Elitetrader.com)


Source: www.tallinex.com

Monthly Forecasts for CFDs (September 2016)

AUS200
Dominant bias: Bearish
AUS200 dipped at the beginning of August, and moved sideways till last week, when it went down significantly. The bias has turned bearish, and unless price goes above the resistance line at 5620.0 to effect a new bullish outlook on the market. This month, further dips are expected, which would enable bears to reach the support lines at 5350.0, 5250.0 and 5200.0 respectively.

SPX500
Dominant bias: Neutral
SPX500 has recently experienced what can be called an unprecedented volatility contraction in the last few decades. The market went flat throughout August 2016 – an action that has brought about a neutral bias which essentially started in July. This neutral bias would remain in place this September, until there is an end to it before the end of the month or early next month. Yes, the sideways movement would end as price goes conspicuously upwards or downwards. On the upside, there would not be any protracted bullish movement any longer, since the bullish phase has already reached maturity; and on the downside, price would decline seriously in case anything awakens the slumbering bears.

US30
Dominant bias: Neutral
This market also did not go upwards or downward significantly last month, which has resulted in a sideways phase. Price would continue to swing to and fro within resistance level at 18670.0 and the support level at 18240.0; until something forces it to go above that resistance level or below the support level. When the market gains momentum, most probable direction would be southward, because smaller timeframes like 4-hour and hourly charts reveal that bears are currently making some covert attempt to end the neutral bias against bulls.

GER30
Dominant bias: Bullish
As it was anticipated last month, this trading instrument was able to go above the high of June 23, 2016, which was 10470.8 (which had been our goal since the large pullback of June 24), therefore enabling buyers to fully recover their recent losses. The bias remains bullish in the daily chart and neutral in the 4-hour chart. Bullish effort is noticeable in the market, as it closed with bullish candles in daily and 4-hour charts. This means that bulls are still willing to push price upwards this month, which could reach the supply levels at 10805.0, 10855.0 and 10900.0. These targets are attainable this year.

FRA40
Dominant bias: Bullish
Just like GER30, FRA40 also closed on a bullish note last Friday. In August, price reached a low of 4290.4 and a high of 4525.9. Bulls are also willing to effect further northward movement, for there are Bullish Confirmation Patterns in the 4-hour and daily charts. Price is now at the highest level since April 2016, and the achievement for this month would be to break above the high of April 2016, which is located at 4612.9.

Source: www.tallinex.com

Weekly Trading Forecasts on Major Pairs (August September 5 - 9, 2016)

Here’s the market outlook for the week:

EURUSD
Dominant bias: Bearish
EURUSD went bearish last week, closing at 1.1152 on Friday. Bulls made serious effort to push price upwards on Thursday and Friday, but bears came with stronger hands to effect a movement to the downside. There are support lines at 1.1100 and 1.1050, which may be tested this week. On the other hand, the resistance lines at 1.1300 and 1.1350 would oppose any meaningful rallies in the market. This bearish bias cannot be overridden until price goes above the resistance line at 1.1350.

USDCHF
Dominant bias: Bullish
USDCHF went bullish last week, closing slightly above the support level at 0.9800 (on September 2). Bears made serious effort to push price downwards on Thursday and Friday, but bulls came in to put a check on this, thereby preventing a serious decline. There are resistance levels at 0.9850 and 0.9900, which may be tested this week. Additionally, support levels at 0.9750 and 0.9700 would check any pullbacks that may occur in the week. This bullish outlook would remain valid as long as price does not go below the support level at 0.9700.

GBPUSD
Dominant bias: Bullish
Cable consolidated in the first few days of the week, and then began moving upwards on September 1. The upwards movement was significant enough to result in a Bullish Confirmation Pattern in the 4-hour chart. Further upwards movement is possible, which might enable price to reach the distribution territories at 1.3400 and 1.3450 this week. We would continue to witness high volatility on Cable and other GBP pairs this week and this month.

USDJPY
Dominant bias: Bullish
USDJPY has been able to sustain the bullish movement it started on August 26, 2016. Since then, price has gone up 400 pips, assayed to stay above the supply level at 104.00, but closing below it on Friday. The outlook on the market, as well as other JPY pairs, has become strongly bullish, and that is the reality right now. This means that USDJPY is expected to continue going north until there is a significant change in the market situation.

EURJPY
Dominant bias: Bullish
As it was expected, the protracted equilibrium phase that occurred on this cross from August 8 to 26, 2016 has ended. Price has rallied by approximately 290 pips since then, currently making effort to settle above the supply zone at 116.00, which is trying to aid bears in their current losing battle. Bulls have to overcome that supply zone in order to effect further rally, which is anticipated for this week. Since JPY is now weak, any currencies (like GBP) which become strong would enjoy massive gains versus the Yen.

This forecast is concluded with the quote below:

“The world's most successful traders believe in themselves and their ability to win. In fact, many of them feel that they “own” the market. They are not necessarily being arrogant, but they are sure of themselves and that they are able to take profits out of the market.” – Andy Jordan

Source: www.tallinex.com

Noam Gottesman: Founder of a Successful Trading Business

WHAT YOU NEED TO KNOW ABOUT MASTER TRADERS – PART 16

“Traditional risk management simply fails to account for the fact that the most dangerous risks are those which occur infrequently and don’t show up in track-records.” - Jack Schwager

Name: Noam Gottesman
Year of birth: May 1961
Nationality: American, British
Occupation: hedge fund manager, businessman

HE APPROACHES TRADING AS A BUSINESS
Noam is of Jewish ethnicity. He also has dual citizenship (the US and UK); and based in New York. He got his B.A. from Columbia University.

He first worked at Goldman Sachs, in a London branch, and rose up the executive ladder, becoming a manager of one of their private client funds. After leaving Goldman Sachs in 1995, he co-founded GLG Partners.

As of year 2014, Noam was worth $2 billion, which made Forbes list him among 400 richest people in that year. This means that his trading activities were hugely profitable.

In 2007, GLG Partners grew up to the point of managing $24.6 billion; and becoming a publicly traded company on New York Stock Exchange.

Noam has other business and activities of interest like, TOMS Capital (investment Company), Eleven Madison Park (restaurants), the Tate Gallery Foundation (trusteeship), etc. He was blessed with 4 children.

What You Need to Know:
1. Contrary to what certain people believe, trading is no gambling. Well, it’s gambling for those who see it as such. For those who see it as a serious business, like Noam, it’s just what it is: a business. Treat your trading career as a business and you’d have higher chances of being successful.

2. You track record is important. It shows how you controlled risk in the past and profited from uncertainties. Noam has his track records, making him an undisputed super trader.

3. Your trading system(s) must be able to survive all market conditions, and you must be able to follow your rules flawlessly. By this, I mean winning rules. Adhering to losing rules would only make you lose your money.

4. Yes, when you become successful in trading, you can also try other businesses, just like Noam. Breakthrough in a very tough but highly rewarding business like trading might encourage you to venture into other fields. Peter Thiel is another good example.

5. As you become richer, then enjoy your money. Forbes revealed that Noam got married in May 2015 (second marriage) to the sales director of fashion label Reed Krakoff in Italy, an elaborate event attended by such celebrities as Beyonce and Jay Z.

This article is ended by the quote below:

“A mistake occurs when you don’t follow your written trading rules, and if you don’t have written rules then everything you do is a mistake. An efficiency level of 80% (two mistakes in ten trades) can ruin your trading system and your profits.” – Dr. Van Tharp

Source: www.tallinex.com