KAZ Minerals is a stock that gave us good profit in the bull run from 2016 to 2018. This was a stock that went through excellent periods of trend followed by extended periods of consolidation. That is just the nature of this stock but one that can deliver very good profit if given the time to develop.
We were stopped out of all our long positions in the pullback from earlier this year. Since then, price has remained in consolidation and is now on its way to entering its 7 month of a being a range-bound market.
Market conditions now dictate that we stand aside from this stock whilst the bulls and the bears battle it out for supremacy and determine a trend direction. There is no edge in range bound markets but many are often lured in to trade in the belief that trading areas of consolidation is easy. Simply go long off support and short off resistance. If only it were that easy. Periods of consolidations are notoriously difficult to trade as they are made up of multiple levels of support and resistance which can cause whipsaw moves in the market that can take traders out and cause premature losses.
Trading is definitely not easy. It certainly is not as difficult as many end up making their trading but anyone who thinks it is easy will soon have their ego put in check. There will be the odd person who slips through the net and gets away with over-leveraging trade after trade in what just so happens to be prime conditions. Most will not be so lucky.
The correct expression is "trading is simple, not easy. " The best and most profitable techniques are the simple ones but growing trading accounts is not as easy as many think. One of those techniques is simply understanding that growth is made during periods of trend and protection of money is done during periods of consolidation. It is a time-tested formula used by the best for decades now.
With KAZ Minerals, we are now waiting for a breakout. As the trend was bullish prior to this current lengthy period of consolidation, our bias is with a breakout to the upside. Ultimately, it does not matter as we as traders have the ability to make money in both directions.
It is down to the forces of the market to dictate a breakout, wait for optimal environments in either direction and we then react accordingly.
For now, there are far better opportunities presenting themselves in FX such as on the USDJPY. It seems like, finally, FX is where the money is.
Sublime Trading
We were stopped out of all our long positions in the pullback from earlier this year. Since then, price has remained in consolidation and is now on its way to entering its 7 month of a being a range-bound market.
Market conditions now dictate that we stand aside from this stock whilst the bulls and the bears battle it out for supremacy and determine a trend direction. There is no edge in range bound markets but many are often lured in to trade in the belief that trading areas of consolidation is easy. Simply go long off support and short off resistance. If only it were that easy. Periods of consolidations are notoriously difficult to trade as they are made up of multiple levels of support and resistance which can cause whipsaw moves in the market that can take traders out and cause premature losses.
Trading is definitely not easy. It certainly is not as difficult as many end up making their trading but anyone who thinks it is easy will soon have their ego put in check. There will be the odd person who slips through the net and gets away with over-leveraging trade after trade in what just so happens to be prime conditions. Most will not be so lucky.
The correct expression is "trading is simple, not easy. " The best and most profitable techniques are the simple ones but growing trading accounts is not as easy as many think. One of those techniques is simply understanding that growth is made during periods of trend and protection of money is done during periods of consolidation. It is a time-tested formula used by the best for decades now.
With KAZ Minerals, we are now waiting for a breakout. As the trend was bullish prior to this current lengthy period of consolidation, our bias is with a breakout to the upside. Ultimately, it does not matter as we as traders have the ability to make money in both directions.
It is down to the forces of the market to dictate a breakout, wait for optimal environments in either direction and we then react accordingly.
For now, there are far better opportunities presenting themselves in FX such as on the USDJPY. It seems like, finally, FX is where the money is.
Sublime Trading