If you look at the chart from a mountain trekking perspective, then each pull back is like a rest point for the trekkers(traders). Time to rest, eat some food, reorientate the direction before continuing the journey.
Here, we have a support at 28442, if it holds, then we can expect price continuation to go upwards.
Again, I emphasise this is a long term trade, so accumulate on correction opportunities rather than short.
Of course, the market may surprise us in the New Year with a gap down , i.e., breaking the support level to flush out the weak buyers with tight stop loss , hoping to gain some points.
Here, we have a support at 28442, if it holds, then we can expect price continuation to go upwards.
Again, I emphasise this is a long term trade, so accumulate on correction opportunities rather than short.
Of course, the market may surprise us in the New Year with a gap down , i.e., breaking the support level to flush out the weak buyers with tight stop loss , hoping to gain some points.
Note
Happy New Year to all my trading friends here ! Hope you had a blessed and prosperous one in 2019.Today marks the beginning of a brand new day, a brand new year! I hope from my trading ideas and analysis, we can continue to score another victorious and abundant year.
In 2020, I expect the FEDs to continue lower the interest rates. The signing of the phase 1 agreement trade deal with China on 15 Jan 2020 will drive the markets to go up even higher. Thus, 2019 last gift to us was a pullback so that we can buy on the cheap. Shouldn't we be thankful for that?
Of course, we can't miss the elephant in the room as well. Trump's upcoming election in Nov 2020. This will be talk of the town as he fights hard on his impeachment case in court.
If stock market continues to rise, then his election results is going to swing in his favour. Thus, he will do all in his power to achieve that. Did he not say to the Fed chairman that we are too slow in reducing interest rates ?
When rates are low, banks are pushed to lend money out to corporates. These corporates like Apple, Amazon and all the big boys will borrow in billions and a large part of it will go towards shares buyback. Yeah, so they are internally propping up their own share price to benefit the traders and themselves.
Share price goes up, shareholders happy, then they can give themselves fatter bonuses each year. Pretty straightforward, right ?
Again, do not let the media frighten you to dabble in the stock market with news of recession. Of course, some weaker retail traders will dump their shares much to the amusement of the big boys as they collect cheap and ride the trend up.
Yes, I have said before as the trend gets higher, the air up there is thinner and more skills are needed to stay alive and safe. To be safe, ensure you always trade 1-2% per trade, have a clear strategy , employ stop loss and manage your psychology in trading.
Take a break for any reasons you do not feel like trading. That's the beauty, you need not force yourself to trade like you have to in a 9 to 5 job. Have no fear that the market will go without you as it surely would. The market is always there and you can always join back.
On strategy - if you are using moving average indicator or any other that you like, stick to it for a minimum period of 6 months to 1 year. You gotta like what you are using, be familiar with it and start making money with it. The last part is important.
On mistakes - We should be happy that we all are making mistakes coz that is what makes us better , sharper and leaner. The more $ you lost , the less you have in your kitty. The lesser you have, the more careful, sharper you will be in your execution. Then, you will start to see the trees in the forest from the same chart that you had been using all this while. Nothing changes really except your perception.
Be bold and dare to try new things. Find one that suits you and stick to it.
Best wishes for 2020.
Note
28,442.50 serves as a strong support. Praise Lord, we got in at an average price of 28,573.90 and are in the profits now.Hope you too had made some good profits as well.
Note
Look at this chart closely. You say you are busy, I know. But the market is offering you 3 times opportunity to re-enter the market at 28,442. Did you make an effort to get in ?If not, when the train moves out, who else can you blame but yourself for the procrastination that you made ? Then again, inaction is itself an action. So, choose your action carefully, it has consequences.
Note
Praise Lord. Thus far, we are in profits of 532 points. If each contract is $1, then you have make 532 bucks already in a short period of 10 days.NOTE : TO NEW TRADERS !!!!
Here's the catch or temptation.
You may think to yourself. WOW, if I could make such profits in such short time, imagine if I double to triple my stake to more contracts, then I can net 4 figure income. Wouldn't that be great ?
Of course, it is great IF the market moves in your direction. And by stretching yourself too fast too soon, you commit the cardinal sins of trading, ie. overtrade by being greedy. You probably flouted the rule of trading , sticking to 2% per trade.
Just because it is riding on a bullish trend does not means there would not be correction. Do not let the recent plunge of more than 800 points on 2 & 3 Dec last year. Go see the chart, it is still riding on the bullish trend but a 3% correction would have taken many retail traders who have tight SL out of positions.
Then, when you get angry with the market, you want revenge. Please do not do that! Remember, as retail traders, we must know our limits and work within the perimeters. Some day, you will make 4 figure sums profits a day, other days maybe in hundreds or nothing. You have to accept that as part and parcel of doing business.
In my words, making money from trading is not the challenge or at least the MAIN challenge. It is making consistent profits and to the extent that your passive income can replace your active income , then you are at least somewhere there.
It is a journey of ups and downs and one filled with lots of excitement, disappointment, anger sometimes (at market and yourself) , stress , all emotions gel into one. You can learn so much from the chart as it reveals the deep desires in your heart.
You hear a voice asking you to do this, sometimes you follow, other times you don't. Such discrepancies drives you crazy and can be costly too. Not many who got burnt from blowing their accounts keep coming back to this game. Many have hang their white flags. Are you going to stay on or stay off the game ? You decide........
Note
expect it to break above 29,000 convincingly this week.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.