It has been a painful journey for Aussie bulls. Weaker commodities, strong dollar ..whatever, you’ve read it on the papers. I have been following it all this time. Here are some observations. Is Dollar hitting resistance now? Are Aussie and Gold reaching support now? uhm… What do ya think?
Here are the ….CHARTS!
Dollar Index
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Gold
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AUDUSD
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Charts and data provided by Market Club
Article from News.com.au. Nothing really new, but it might a good reminder.
A common definition (of Rich) is a person with at least $US1 million ($1.2 million) in assets not including the family home.
“The rich are normal human beings, but with bigger wallets, and invest in much the same sectors and asset classes – property and shares – as most investors do, but on a much bigger scale,” said Bourke Shaw Financial Services principal Lawrence Orlando.
“There is no desire to have huge holdings in cash or fixed interest investments that have an earning capacity of 4-5 per cent. These asset classes are generally used as short-term parking bays,” he said.
“Wealthy people want to preserve their assets as well as keep building wealth. They are patient accumulators of assets that generate solid income. Within shares, it’s the blue-chip Australian companies with a good track record of growth and paying dividends that are most favoured.”
common characteristics of wealthy people included:
*LIVING well below their means all their lives.
*ALLOCATING time, energy and money to increasing their wealth.
*BELIEVING that financial independence was more important than displaying a high social status.
*THEIR parents did not provide financial handouts.“They are extremely focused and passionate about their business or occupation and about earning strong income from that. They are also driven to live within their means, which enables them to invest on a regular basis,” Mr Grey said.
“I think the real answer to the question about how people become rich is – in my experience – because they have a business idea that they then turn into reality.
“They have the courage to start their business when others want the comfort of a pay cheque, they take calculated risks and they work damn hard to achieve their goals.”
…they have been through market cycles more and expect bad times. They don’t do things with their heart – they react with their head.”
Where the world’s wealthy live
High net worth individuals are those with at least $US1 million of financial assets.
North America ……….. 3.3 million
Europe …………………… 3.1 million
Asia-Pacific ……………. 2.8 million
Latin America ………………400,000
Middle East …………………400,000
Africa ………………………….100,000
Total……………………10.1 million
I made 2 day trades yesterday. Long EURUSD, Short USDCHF. Simple setup. But, instead of waiting for the planned target, I chickened out on exit. Well…
Beautiful charts.
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Side note. If you are not reading this post on tradergav.com, please leave immediately. My posts are stolen by some sissy birds recently. They created a new website and published my work without my knowledge.
I have not been upgrading my trading hardware for a long time. I used to trade with my laptop and a old 15″ LCD monitor for the past few years. OK, I am a stingy asian man. 😆 . Anyway, I just got my Samsung SyncMaster 2253LW 22″ LCD monitor from ebay yesterday. Cool stuff. Now here is my new hardware setup.
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Here is one nice chart to show. Two day trades, 1 stopped, another with couple of Rs. Small positions, still playing around with new setups.
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I have been busy with my day job and struggling to have sometime in finalizing my trading system. That explains why posting has been lagging. Anyway, I hope I can get back on track soon.
In the August version of Currency Trader magazine, Ken Jakubzak was interviewed. There are a couple of points which I pretty much agree with him..
it was a major shift for the currencies.They dont trend like they did in the 1980s and early 1990s.Look at the overall trend of the Euro (Figure 2). It hit a bottom of roughly .8600 in 2001 and now it trades at 1.5600 (as of July 7). Thats a move of 60 handles (one handle = 100 points, or pips). But it took seven years to get there.
If you want to say thats a long-term trend, then good luck trading it. In December 2004, the Euro hit a high of 1.3660 and then dropped to 1.200 a year later. Thats a drop of 16 handles (1,600 points). Do you want to ride that down?
My point is that there are no long-term trends in the currencies anymore. They may go up 10 to 12 handles, but they will also drop almost as far. You can make some money using a trend-following approach in currencies, but youre not going to find big trades like you can in grains or crude. Also, 90 percent of all trades are losers. The other 10 percent should make your year and if they dont, then youre going to lose big. Its very difficult to trade that way.
Full article can be found here
