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What is the Simple Trading Strategy for Full Time Traders
By
divyanshisharma, in General Trading
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By Pro_Traders
Hi Everyone,
A lot of people are investing in the stock market as a preparation for retirement days. Yes, it is one primary reason why you should start getting involved in the world of trading but there are other valid reasons you might need to look at. Investing in the stock market means for most people, securing their immediate future and of course hoping that along the way, they earn a considerable amount of cash. Investing in the stock market could give you the power and means to possibly buy the home you've always wanted. While you do not essentially need the full money upfront, you still need the money for down payments to lower down the interest and get a good deal. With a better deal, you will pay less over the years you need to complete to pay the house in full. It also means that you will have immediate equity in your home as an additional bonus. Another good benefit of investing in the stock market is you are not only preparing your future but as well as your children's future. Winning big in the market possibly set up scenarios in which you could send your kids to college for them to start establishing their careers and make their dreams and your dreams a reality. This is yet another long term goal but not that long compared to retirement.
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By MoneyMaker-Research
The Nifty FMCG index slipped 1% on Wednesday amid heavy selling pressure seen in UBL, United Spirit, HUL, Jubilant Foodworks, and GlaxoSmithKline Consumer Healthcare.
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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 HFblogNews · Posted
Date: 23rd April 2024. European PMIs Paint Mixed Picture, ECB advise a June Cut is Certain. The German DAX recorded its highest monthly increase as investors continue to predict a weaker EU monetary policy. JP Morgan again advised stocks are overcrowded and may see a stronger downward correction. However, economists advise this is only possible if geo-political tension escalates or companies fail to beat earnings predictions. Gold witnesses its strongest decline in 2024 falling 2.64% on Monday and a further 1.32% during this morning’s Asian session. The Euro is the best performing currency after the day’s PMI releases. However, investors should note that the US Dollar during the Asian session was performing significantly better. USA500 – Visa and Tesla Ready Shareholders For Earnings Release! The SNP500 rose 0.87% during the US trading session and also broke the previous swing high. However, JP Morgan again told journalists there are signs that the stock market is “overcrowded”. When institutions are overexposed to certain stocks or industries, it only takes one big fund to start de-levering and then others will follow. Though, investors should note that this would also depend on three factors. The first is earnings, the second is geo-political tensions and the third is inflation. This week, investors will largely watch earnings, particularly Visa and Tesla. Visa and Tesla currently hold a weight of 2.00% and are two of the most influential stocks. Tesla continues to be one of the worst performing stocks, but Visa’s earnings are less certain. Visa has beat earnings and revenue expectations over the past 4 occasions but has been struggling over the past 30 days. Analysts expect earnings and revenue to remain at the same level compared to the previous quarter. However, higher earnings can potentially increase demand. Visa stocks have risen 5.20% in 2024 and have a dividend yield of 0.76%. However, as mentioned above, the performance of the stock market will largely depend also on inflation and geo-political tensions. Though these are not likely to change within the upcoming days. In regard to inflation, investors will be eager to see if inflation again rises, in which case, interest rate cuts will likely not be possible for 2024. If this scenario materialises, stocks can decline between 20-30% ($3,700-$4,220). GER30 – ECB Ready To Cut Rates In June 2024! On a 2-hour timeframe the price of the GER30 is trading above the 75-Bar EMA and above the VWAP. In addition to this, the asset is obtaining buy signals also from oscillators and price action. The index has retraced since the release of the European PMI data, but if the price rises above 18,067, without breaking the day’s low price, buy signals will become active. One of the key drivers, along with this morning’s PMI release for Germany and France, is the latest comments from members of the ECB. According to ECB representative Mr Villeroy, even if oil remains volatile, the regulator will look to cut in June 2024. In addition to Mr Villeroy, Mr De Guindos told journalists that a rate cut in June is “crystal clear”. The guidance given is increasing the demand for the German DAX as are indications of stronger economic data. The French PMI data saw the Services index rise above 50.00 for the first time since May 2023 and beat expectations. However, the manufacturing index continues to struggle and fell compared to the previous month. The German PMI was a similar picture. The Services PMI rose to a 10-month high and beat expectations, but the Manufacturing Index read lower than the 42.8 expectations and is at a 6-month low. 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 on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Michalis Efthymiou Market Analyst 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
$DVN Devon Energy stock moving higher off support, https://stockconsultant.com/?DVN -
By Stocks4life · Posted
$COF Capital One stock nice breakout, from Stocks To Watch, https://stockconsultant.com/?COF -
By Stocks4life · Posted
$CVNA Carvana stock back to 70.8 gap support area, high trade quality, https://stockconsultant.com/?CVNA -
By Stocks4life · Posted
$VKTX Viking Therapeutics stock important area, back to 64.34 gap support, https://stockconsultant.com/?VKTX
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