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Thursday, August 3, 2017

Trade cryptocurrencies with Etoro

Cryptocurrencies have taken investment community by the storm.

What is a cryptocurrency?

The term might be relatively new to an average trader or investor, but basically it is a  currency in which encryption is used for generation and transfer of funds and that is done outside of central bank regulation system.

So, we may say that cryptocurrency is an alternative currency and a financial instrument that can be used for investment and also for purchases and payments across the world. Of course, it is not accepted as a universal payment method everywhere, but the popularity of payments using cryptos is getting more and more popular.

There is a story circulating in internet how a developer of the currency paid 10 thousand bitcoins for two pizzas in 2010. Now, 10 thousand bitcoins would be worth 20 million US dollars. Wow! If you look at a chart of Bitcoin you will see that the price of the security increased 5 times over the last year. Another wow! You never know what can happen with your investments. Obviously, you can lose too, but there is a tendency with new financial instruments that are traded in the market to increase hundred times, sometimes thousand times in value.
( From 500 to 3000 in just one year)

Today, these crypto currencies surely record bigger changes than most financial instruments and present opportunities as well as risks, but there hardly re any secure investments nowadays, that would guarantee you safe profits year in and year out.

If you got interested and would want to try trading cryptos I would recommend using Etoro trading platform. They are currently offering 6 cryptos: XRP, LTC, ETHEREUM, ETC, DASH  and finally BTC or Bitcoin.

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Sunday, July 30, 2017

Oil and Gold to form intermediate top

Both oil and gold have been in a mild uptrend for over a year now moving up and down in waves. It has been a time where you would have made more money by buying the commodities than selling them. However, if you are intermediate or short term trader you might see that playing on both sides would have been a good choice. Looking purely technically you can spot waves on both commodities. Taking that into account I will state that we will probably see gold and oil turn around in August and start trending down. I expect oil to top at around 50.00 this week and gold possibly too at 1270-1275 level.

If you look at gold chart below you can see three finished peaks. However, the second and the third peak are at about the same price level (the third is some 30 cents higher). Then you will spot a lower low formed and a rally right after it. I assume we will now see another leg down, that will take us lower to 1195-1180 level. I expect the fourth peak to be finished this week. I have intentions to short gold when I see strong selling on my short term hourly charts.

The same is true with oil. Oil chart actually more resembles head and shoulders pattern. You can spot around 5 technical peaks in the chart, with the last two peaks being lower than previous two ones. This leads me to a conclusion that another peak in oil is due any time soon. I actually think 50 level is the mark and oil may form its first leg down this week. Again, I intend to be a seller when I see strong selling coming on hourly charts.

At some point both commodities will pick up and start trending up, because the world geopolitical and economical situation does not look rosy at all, but for the time being, technical analysis tells me to be on the short side.

If you want to trade commodities, currencies, stocks, indexes and cryptocurrencies with a reliable broker, look no further, Etoro is your best option. 

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.

Wednesday, September 14, 2016

Summer Ranges Maybe Over Soon

It is no big secret that price action during summers tend to be range bound rather than trend driven. This summer was no exception. Major currencies as well as crosses were range bound. gbp/usd has been in 700 pip range (not a small one) since July, result of post Brexit consolidation after a huge collapse. As we have BOE coming out with interest rate decision tomorrow we may see the pair consolidate around 1.3100 area. Next week FED interest rate decision may send gbp/usd either back to support of 1.2800 or to 1.3500 and beyond that to 1.4000 or even 1.5000 level. 

eur/usd, on the other hand stayed in much smaller range of about 500 pips, July and August range being only 400 pips. After FED releases its’ interest rate decision the pair will most likely gain direction and either drop to 1.0500 or rise to 1.1700. The most likely scenario is that it will revisit the lows of 1.0500 before going upwards. A rare, but a possible case would be for the pair to keep dropping and reaching 2000 lows of 0.8200. That would have made a full bullish and bearish cycle of eur/usd. Seven years of rise and seven years of going back to the exact spot where Euro started its’ ascend.

If we look at the gold chart we can also see that it has been caged in a range for a number of months. One thing is clear that the commodity is in an uptrend after correcting downwards for a few years. At the moment, technical analysts and traders can spot a bullish flag forming on 8 hour and a daily chart, meaning that we may see a breakout upwards sooner rather than later. 

If you want to practice trading or make real money from your trades I recommend Etoro broker, one of the best retail brokers in Forex market. Click here to try it.

Friday, March 18, 2016

Big Moves After Narrowing Range

Markets have a few distinctive states that they fall into and stay till other state develops. One of the most popular ones is a range. Traders take advantage of that by trading support and resistance in a range. One of the best patterns in a range is a narrowing range. It may come in the form of a triangle or a rectangle. It will always end in a strong move. One can use it to make nice cash by simply placing buy stop orders above the most recent high and a sell stop below the most recent low. 

The example below of eur/usd pair clearly shows that. You may see how the pair went into a range mode after a strong move and in a period of three days stayed in a range. A catalyst for the breakout upwards occurred this Wednesday when FED came out with interest rate decision. US dollar collapsed across the board. The rally netted around 200 pips and the amount may increase if the pair keeps on rising the last day of the week. 

Remember, narrowing range is a good opportunity to take breakout trades and make a lot of pips as a result.
If you want to trade patterns like these I recommend opening anaccount with Etoro and start trading. Good luck.

Wednesday, August 12, 2015

Gold to go higher

It is obvious that gold has been battered in the last couple of months. However, most recent price action suggests that gold may rebound in the nearest future. In fact, the recovery has already started. I want you to look at the chart below to see for yourself. From 20th of July to 10th of August, 2015 gold has been in bottoming process. The last low on the 20th of July was quickly rejected as price crashed dramatically and then rose suddenly. 

In the next couple of weeks a process that traders call “accumulation process” occurred. You can see how price tried to test previous lows on at least 5 separate occasions and failed. Each time buying pressure came and price rose. On the other hand, price was also rejected at resistance. You can see how the range was “squeezed” during these couple of weeks. Narrowing range is a strong indicator that a break will occur sooner rather than later. It often presents the best opportunities for trading a breakout.

Most breaks fail and I would strongly advise against trading them. However, when you see a narrowing range it is one of those rare situations when breaks turn out to be true rather than false. This type of situation happened on the 10th of August when price eventually broke the narrowing range and now is rising up in waves. 

Just by measuring the base of the narrowing range pattern I assume that the minimum target for the move is around 1143 level (classical technical analysis count). Of course, price may go well beyond that and it is really difficult to say where exactly the rise will be over. However, a technical trader would at least try for the minimum target. Buying on dips seems to be the best strategy now if initial “buy on a break” strategy was not implemented. 

If you want to see and experience what real investing in financial markets such as Forex, stocks and commodities is all about I recommend trying innovative social investment platform of Etoro. Initial deposits are as low as a few hundred bucks. The best dealer I have heard of so far!
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Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.