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Market Profile Crude Oil Analysis Friday 8.08.14
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Speculator70, in Market Profile
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By vin2019
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By inthemoneystocks
One of the most important reasons why traders take big losses is because they often fail to recognize when a trade has gone wrong. You see, stopping out of a trade is probably the biggest fault of traders and investors. Often, this happens to young and inexperienced traders and investors, but I know many veteran traders and investors that struggle with this as well. Early in my own career I struggled with stopping out of a bad trade myself, so I can sympathize with this problem.
The problem with taking a loss is really two fold. First, the trader has to admit that he is wrong. As you all know, as human beings we all hate to be wrong. The ego simply gets in the way and we all want to always be right all the time. The first secret in this business is to check the ego at the door. The market does not care about your the color of your skin, religion or anything else. It will move in the direction of the money and that is the bottom line. Once a trader or investor goes into what I call 'hope mode' the trade is over. I'm sure everyone has been in this position at one time or another. Simply put there is no room for ego or hope in the stock market. The market is always right and there is no reason to fight it.
Here is the second problem with taking a loss, it hurts. Pain and pleasure are the two reasons why humans do anything at all. As a human being, we are always looking to have pleasure and avoid pain. Well, losing money is painful and many people would rather simply hold a losing equity than lock in a small loss and move on. I cannot tell you how often I see a trader hold a losing trade only to see the position move further out of the money. Many years ago I watched a day trader blow up a $200,000 account in a single day averaging in on a bad day trade. To this day I can remember the look on his face as his money vanished in thin air. Believe it or not, this trader could have exited the position with a $500.00 loss, but instead he kept averaging in and fighting the position until he was wiped out. As a rule, once you have your full position you should never average in on a trade. At that point, it is critical to know where your max loss is going to be and stop out if that level is breached.
Now when should we stop out? The answer to this question is not that simple, but here is what I personally do. I always place my stop loss below an important breakout or pivot on the chart. You see, prior breakout or pivot levels are usually defended when retested. After all, this is usually an area where institutional traders and investors got involved, that is why there is a pivot low or high on the chart to begin with. If that level is breached on a closing basis then I will move out of the position. So If I took a trade based on a daily chart pattern then I will usually check the daily and weekly chart levels. If there is a major pivot on the weekly chart then I will use a week chart close as my stop out level. While this method may not be perfect, it has saved me from much bigger losses when I have been wrong.
Nicholas Santiago -
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By Stocks4life · Posted
BLND Blend Labs stock breakout, from Stocks to Watch at https://stockconsultant.com/?BLND -
By HFblogNews · Posted
Date: 6th December 2024. How Will NFP Impact The Trading Markets? The Euro increased in value against most currencies on Thursday, but investors remained cautious over the ECB President’s comments. According to economists, the ECB is almost certain to cut interest rates next week. President Lagarde advises the Eurozone is likely to witness lower economic growth than previously expected. Analysts changed expectations for the US Unemployment Rate to rise to 4.2%. Most experts now expect the US rate of unemployment to remain unchanged. Poor US employment data can increase the potential for a December rate cut and further fuel the bullish trend in the stock market. EURUSD – Will The Fed Cut Interest Rates? The EURUSD rose in value on Thursday ignoring resistance levels but now moves closer to a stronger resistance point. This key level can be seen at 1.05969, but in order for the EURUSD to find bearish momentum at this level investors will be hoping for poor employment data. Economists expect the NFP Employment Change to read 215,000 and for the Unemployment Rate to remain at 4.1%. Analysts also continue to expect the growth in salaries to continue. If these three releases indicate a resilient and strong employment sector, the chances of a Federal Reserve rate cut fade. However, if the data is poorer, the US Dollar can potentially decline as a rate cut this month becomes more certain. Regarding the Euro, market participants are turning their attention to macroeconomic data from the Eurozone. Retail sales declined by 0.5% MoM, slightly worse than the expected ˗0.4%. Additionally, Germany’s industrial orders for October decreased by 1.5%, following a 4.2% rise in the previous month. This indicates weak domestic demand in both the German and broader European economies, potentially prompting the European Central Bank (ECB) to consider further interest rate cuts. A recent Reuters poll of leading economists suggests the ECB may lower borrowing costs by ˗25 basis points next week and by at least ˗100 basis points over the next year. Supporting this outlook, ECB President Christine Lagarde stated yesterday that economic growth in the Eurozone could be weaker than expected in the coming months, with risks of further deterioration likely to dominate in the medium term. The US Dollar Index is the best performing currency index so far today, but is not seeing significant gains. The Euro Index remains unchanged. The worst performing currency of the day is the Australian Dollar and the Japanese Yen. NASDAQ – How Will NFP Affect The NASDAQ? The NASDAQ retraced after gaining in value for 5 consecutive days and rising to an all-time high. So far in 2024, the NASDAQ has almost risen 30% but the short to medium term price action will depend on the upcoming employment data and next week’s consumer and producer inflation. Employment data for last week was released yesterday, showing that initial jobless claims rose by 224,000, surpassing both the forecast of 215,000 and the previous figure of 215,000. However, the total number of individuals receiving state assistance decreased from 1.896 million to 1.871 million, defying expectations of an increase to 1.910 million. Commenting on the situation, Federal Reserve Chair Jerome Powell noted that the US economy is performing better than anticipated, with declining risks of labor market deterioration. In this context, Powell suggested that the Federal Reserve could adopt a more cautious stance on monetary policy, aiming to achieve a neutral position for interest rates. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission. -
By Stocks4life · Posted
WGS GeneDx stock, strong open, watch for a top of range breakout at https://stockconsultant.com/?WGS -
By Stocks4life · Posted
UIS Unisys stock, nice top of range breakout at https://stockconsultant.com/?UIS -
By Stocks4life · Posted
BX Blackstone stock, nice trend, pull back to 185.05 support area with bullish indicators at https://stockconsultant.com/?BX
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