Tuesday, January 21, 2014

Annual Trading Forecast on FTSE 100 (2014)

FTSE 100 (FTSE:UKX) has been going upwards since the middle of December 2013. This is a trend that is supposed to be sustained for the most part of this year.

On the chart, the price is above the EMA 21, which is sloping upwards; while the MACD (standard settings) has both its histogram and signal line above the zero line. That is a Bullish Confirmation Pattern. The price could reach the distribution territories of 6850.00 and 6950.00 respectively.

Conclusion: FTSE 100 is a bull market, and things would continue being bullish on it. It is therefore, better to seek long trades only and bear risk in mind. You simply need to control yourself enough and to stake as small as possible so that unforeseen events in the markets do not affect your portfolio. Your risk control measures would protect you from a huge drawdown – which means that your negativity can be recovered more easily. Besides, your life would be much easier if you look at the Big Picture (bull market) and adopt a part-time trading approach. It may not be in your best interest to sit at your PC all day long and watch every movement. Should you do this, you would not be able to control your emotions and this can be costly.

This forecast is ended with the quote below:

“Making money in the stock market requires a maximum degree of mental and strategic competence and discipline. Extra caution should be exercised at the start of trading,
which resembles a mass start at sporting events. Once the starting gun goes off, all the participants will storm ahead causing the risk of accidents to be high.” – Stephen Arnold (Source:

Eye-opening trading lessons: Lessons from Expert Traders

No comments:

Post a Comment

The default minimum deposit amounts are: $100 for Micro accounts, $500 for Pro-Managed accounts, and $2,000 for Pro accounts However, an optional "suggested deposit amount" parameter may be used.