TST NEWSLETTER – 3/05/2021
Smack Down For Robinhood By Buffet
Topics:
- Smack Down For Robinhood By Buffet
- Last Week In The Forex Markets
- Top 3 Pairs For Next Week
Smack Down For Robinhood By Buffet
On Saturday (May 1st 2021) Berkshire Hathaway held their annual share holders meeting, where we would usually see a large number of investors flock to Omaha to see CEO Warren Buffet, and Vice Chair Man Charlie Munger.
As always, we where gracefully addressed by Buffet, concerning major topics within investing, business, and the stock markets, and crypto currencies. We also where updated on Berkshire Hathaway's (BRK.A) (BRK.B) performance.
But Buffet took some time to address the record-breaking number of new retail investors, who have flooded since the global pandemic in 2020. Buffet went on to say the following about Robinhood "They have become a very significant part of the casino group that's joined the stock market in the last year and a half."
We can see Buffet doesn't think it is illegal or wrong for people to be doing but he goes on to say "I don't think you build a society around people doing it."
Is Buffet an old school trader who doesn't quite understand what Robinhood and other brokers alike are doing? Or does is there a real concern for people well being and life savings?
We may also see the disagreement in what brokers alike are doing when people have been flooding the stock markets in search of quick riches. We witnessed the greatest victory for the little guys when GameStop (GME) was gaining retail attention, consequently leaving some big hedge fund's mopping up their sour sell positions, and with Berkshire Hathaway being in a certain realm of billionaire investors he must've seen the repercussions this had.
Warren Buffet addressed it and moved on to more relevant topics at hand, many factual and interesting topics were covered and this would make this a very long read, check out the full video below.
Link to watch the full stream by Warren Buffet and Charlie Munger –
Last Week In The Forex Markets
Last week was a fruitful week for us here at TST, we have been adapting the strategy we teach our Pro Members.
We will be releasing the new strategy in the coming months, with some updated videos coming shortly.
Furthermore here are some trades we banked last week.
EURNZD: [+11.5%]
EURNZD was a beautiful trade last week, seeing a huge reaction off the order box.
Using the 1h chart we can see that price has pushed up breaking the highs marked out.
The market pushed down but we know we would have to see a pull back to continue the current trend.
We identified the order box which had caused the most recent break of low (BOL).
Executing the trade we saw price tap our order box getting us in the trade and comfortably pushing away from our entry we accordingly trailed our stop loss securing profits.
EURNZD: [+13.4%]
With our first position banked on this pair, we were looking to enter a long position, to take us back up to where we had entered.
This trade was identified because we knew that the block of orders would have to be mitigated giving us another way to trade this price action.
This banked a little over 13% profits.
GBPUSD (-1%)
Here we where looking to trade a order box that had caused a break of structure.
Unfortunately the markets didn't play ball and this order box became invalid shortly after entry.
But with our tight risk management, we have only take a -1% loss after seeing some great gains on EURNZD, a small price to pay for a good week trading.
Top 3 Pairs For Next Week
EURUSD: [Short to Long]
Every Saturday we send a 'Market Breakdown' to our Pro Members.
This week we have been looking at EURUSD.
We can see that price action has broken the previous low, naturally, we would be looking for that lower high to continue this counter-trend move.
We have identified the block of orders, which had caused the break of low, so we are expecting the price to tap this area again before pushing to the downside.
Then we will be looking to take the according long position continuing the pro trend move.
GBPJPY: [Short to Long]
Another setup we are keeping close eyes on going into next week is the GBPJPY.
Here we can see the price has broken two previous lows, again we are looking for a pullback of price to the order box that broke the structure and then takes this trade in the continued direction.
We may be attempting a long position if price action continues to play ball.
EURAUD: [Short]
EURAUD is looking great heading into this week.
Here we have price action acting a little messy but when broken down we can see we have a break of low.
Since then price has been trickling its way back up to our order box. As expected we are looking to see a reaction around here giving us a way to capitalise on this move.
It would be advised to have a point of invalidation (POI), if price action hits your POI then this trade becomes invalidated.
Want to learn exactly how we trade the markets?
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We thank you for reading this week's addition to the TST Newsletter, have a great trading week, and stay consistent. – 'The Social Traders Team'
Written by – Karl Milward