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Watch A Typical Day Of A Real Day Trader
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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
$VKTX Viking Therapeutics stock attempting to move higher off the 64.24 support area, volume 47% above normal, https://stockconsultant.com/?VKTX -
By HFblogNews · Posted
Date: 26th April 2024. Alphabet Easily Beat Earnings Predictions But Focus Shifts to Today’s PCE Data. Microsoft and Alphabet’s earnings reports beat expectations pushing the NASDAQ to the top of the charts. The Bank of Japan keep interest rates unchanged applying pressure on the Japanese Yen. The Yen Index declines 0.36% and is down 40% against the USD over the past 5 years. The US GDP growth rate falls below its 2.5% expectations, reading 1.6%, but economists advise the Fed may only cut once in 2024! The market turns its attention to the Core PCE Price Index which analysts expect to fall from 2.8% to 2.6%. USA100 – Alphabet Easily Beat Analysts’ Earnings Predictions and Sees its P/E Ratio Fall! The price of the NASDAQ ended the day higher and rose to a slightly higher high. As a result, the index is close to forming a traditional bullish trend and making Wednesday’s decline a retracement or medium-term correction. In terms technical analysis, indicators are mainly indicating a reverting price condition where the asset cannot maintain longer term momentum. However, momentum indications provide a slight bullish bias. The upward price movement is being driven by earnings reports from Microsoft and Alphabet which beat earnings expectations. Microsoft is the most influential stock for the NASDAQ while Alphabet is the third most influential. Alphabet’s earnings beat expectations by 21.61% and revenue rose more than $6 billion. As a result, the price of the stock rose 11.56% after market close. Furthermore, Microsoft’s Earnings Per Share beat Wall Street’s expectations by 3.40% and revenue by 1.50%. The stock rose by 4.30% after market close and is close to trading at the all-time high. However, investors should note that from the “magnificent 7”, Alphabet and Meta have the lowest Price to Earnings ratio. Meaning these stocks are the most likely to be trading below their intrinsic value. However, investors should note that negatives for the stock market in general remain. This also supports the bias shown by technical analysis. The GDP growth rate fell considerably below expectations while inflation data continues to show signs of rising prices. Investors will closely be monitoring today’s Core PCE Price Index which is the most watched index by the Federal Reserve. Analysts expect the Core PCE Price Index to fall from 2.8% to 2.6%. If the index reads more than 0.3%, a rate cut will become unlikely making stocks less attractive. Whereas, if the PCE Price Index is not as high as expectations, Bond Yields will likely decline, as will the US Dollar and a rate cut will be put back on the table. As a result, investors may look to take advantage of the strong earnings and continue purchasing stocks. USDJPY – BOJ Hold Interest Rates Unchanged! The price of the USDJPY exchange rate again rose to an all-time recent high after increasing in value for 3 consecutive days. Trend and momentum-based indicators point towards a higher price. However, the exchange rate is trading within the overbought range of most oscillators and is also showing a divergence pattern. Both are known to indicate a decline, but not necessarily a complete change of trend. The Bank of Japan’s statement from earlier this morning was largely “dovish” and gave no clear indication that the central bank wishes to keep rising interest rates. However, shortly the Governor will answer questions from journalists and may give a more hawkish tone. Either way, investors are mainly concentrating on if the Federal Government will again opt to intervene within the currency market. Most economists believe the intervention will only come if the USD continues to rise and it will not be before the Core PCE Price Index. 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. -
📁 Population in 2100, as projected by UN Population Division. 🇮🇳 India: 1,533 million 🇨🇳 China: 771 million 🇳🇬 Nigeria: 546 million 🇵🇰 Pakistan: 487 million 🇨🇩 Congo: 431 million 🇺🇸 US: 394 million 🇪🇹 Ethiopia: 323 million 🇮🇩 Indonesia: 297 million 🇹🇿 Tanzania: 244 million 🇪🇬 Egypt: 205 million 🇧🇷 Brazil: 185 million 🇵🇭 Philippines: 180 million 🇧🇩 Bangladesh: 177 million 🇳🇪 Niger: 166 million 🇸🇩 Sudan: 142 million 🇦🇴 Angola: 133 million 🇺🇬 Uganda: 132 million 🇲🇽 Mexico: 116 million 🇰🇪 Kenya: 113 million 🇷🇺 Russia: 112 million 🇮🇶 Iraq: 111 million 🇦🇫 Afghanistan: 110 million @FinancialWorldUpdates Profits from free accurate cryptos signals: https://www.predictmag.com/ -
“If the West finds itself falling behind in AI, it won’t be due to a lack of technological prowess or resources. It won’t be because we weren’t smart enough or didn’t move fast enough. It will be because of something many of our Eastern counterparts don’t share with us: fear of AI. The root of the West's fear of AI can no doubt be traced back to decades of Hollywood movies and books that have consistently depicted AI as a threat to humanity. From the iconic "Terminator" franchise to the more recent "Ex Machina," we have been conditioned to view AI as an adversary, a force that will ultimately turn against us. In contrast, Eastern cultures have a WAY different attitude towards AI. As UN AI Advisor Neil Sahota points out, "In Eastern culture, movies, and books, they've always seen AI and robots as helpers and assistants, as a tool to be used to further the benefit of humans." This positive outlook on AI has allowed countries like Japan, South Korea, and China to forge ahead with AI development, including in areas like healthcare, where AI is being used to improve the quality of services. The West's fear of AI is not only shaping public opinion but also influencing policy decisions and regulatory frameworks. The European Union, for example, recently introduced AI legislation prioritizing heavy-handed protection over supporting innovation. While such measures might be well-intentioned, they risk stifling AI development and innovation, making it harder for Western companies and researchers to compete. Among the nations leading common-sense AI regulation, one stands out for now: Singapore.” – Chris C Profits from free accurate cryptos signals: https://www.predictmag.com/
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By Stocks4life · Posted
$NFLX Netflix stock hold at 556.59 support or breakdown? https://stockconsultant.com/?NFLX
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