Stockstrading
How The Economy Affects The Stock Market ? How The Economy Affects The Stock Market ?
There are many factors that affect how the stock market is doing, and whether it’s moving up or down: the political climate, social factors, interest rates, trends and shifts in what investors prefer.
So how does the economy affect the stock market?
If the general population feels as if the economy will soon be taking a turn for the worse, they tend to sell stock because bonds and treasuries offer a safer return. On the flip side, when people are feeling confident and optimistic about the economy, they tend to buy stock, taking more risk for greater reward.
From a high-level approach, when people feel good about the economy, they tend to buy more stock. When things are happening in the world make them feel unsure, they will be more conservative, and might gravitate toward lower-risk investments such as bonds and Treasury bills.
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Why Is The Stock Market So Difficult To Predict?━━━━━━━━━━━━━
Let’s assume stock prices have been rising for several years. Investors realize that a correction will come and stock prices will tumble. What we don’t understand is what will trigger the selloff or exactly when it will occur. Therefore, some investors will sit on the sidelines holding cash, waiting for the opportune time to get in. Those who are willing to assume the risk may jump in because the return on cash is so low and it hurts to earn zero while watching stocks move higher. This begs a couple of key questions. If you’re on the sidelines, how will you know when to get in? If you’re already in, how will you know when it’s time to get out? If the stock market was predictable, these questions could easily be answered. However, it is not. There are actually three issues an investor should consider. The first is understanding the point at which stock prices are fairly valued. The second issue is the event that will cause a downturn
WAVES within WAVES within Waves | How to Buy Stocks that Go UPHow to Chose and Trade the Stocks that have a higher probability of Rising in the next 2-3 days
A technique I use that we call AIMS The Setup One Strategy.
The Market moves in waves. How to know when is the right time to buy and when to Sell?
How i know what stock have a good future in a crisis - TutorialHello,
Some people asked in Telegram / PM how i know what stock will go up and which one should them short or long.
I made a list about the different sectors of SPX 500 if its needed to go bear or bull on it.
After you choose the sector you need to check the ADX of the coorporation, it need to be strong and always remember to chose the strongest coorporations of the sector that you selected.
Here is the graphic:
imgur.com
You can see my last charts that i did green on almost all of them.
Hope you liked and helped to you!
Please follow me to keep doing daily analysis for free!
Thank you so much!
Regards,
Pinterest is worth your interestPinterest #PINS is a fast-growing company with favorable demographics, the stock has dropped in price while outperforming expectations.
Pinterest (PINS) debuted on the public markets less than a year ago at a price of $23.75. Since that time, Pinterest has dropped in price by a great percentage and do not thing for a moment that the coronavirus is to blame 🙂
The interesting part is that Pinterest has actually been profitable and has beaten earnings estimates in the last quarters. So why is it that Pinterest is dropping strongly, why? Because fundamentals are not that important when trading a supply and demand strategy.
I’ve happened to read that some analysts are claiming that Pinterest #PINS is a buy for anyone with at least a two-year time horizon. Well, it may be that Pinterest stock will be revalued in two years time, but why buying Pinterest now and lock in part of your capital in a stock that is dropping like a rock reacting to super strong weekly supply zones?
It makes no sense how some analysts and web sites are recommending buying Pinterest stock to hold it for two years when the stock is in a clear downtrend.
Take a look at Pinterest #PINS supply and demand weekly timeframe analysis. There is a strong weekly supply around $25 per share, these supply zones act like magnets to price, a price level where there are a lot of interest by professional investors.
Framing Your Chart Key to Understanding Behaviour - AMT exampleIn this video tutorial, I discuss how institutional traders and investors, "Frame a Chart"
Using AMT stock as an example working through multiple time frames and plotting channels and Linear Support & Resistance zones. Then using our Elliott Wave Indicator Suite to understand the behaviour of the current trend.
This method can be used on all asset classes and is part of my Daily routine
CSIQ - Swing Trading Stocks with Two Indicators for 1 YearQuick Video swingtrading stocks journal for the CSIQ Stockover a 1 Year period.
During the last 1 year period we have used the tradethefift Roller Coaster and ElliottWave Indicator suites for TradingView to swing Trade the CSIQ Stock.
There were 7 trades in Total and only one loser! In this example we use $1000 risk per trade and the Result is a $7450 profit.
Please watch the short video to learn a little bit more about these strategies.....
Day Trading Stocks with AAPLQuick Video explanation of our B.I.T.S (Breakout Intelligent Trading Signals) Indicator for daytrading stocks. Example used was AAPL on the 15 minute timeframe from 25 November 2019.
The Secrets to Successful TradingSecret #1: Stick to ONE strategy. Find a strategy that makes sense to you and stick to it and it alone like a faithful wife and master it. This is probably the single greatest secret in all of trading. Master ONE strategy. There are no “systems” only strategies that work if you master them. If you jump around from one to another you will never master anything and be forever locked in the sucker's dream of “the system” or the “Holy Grail” of trading. The truth is, all strategies work for the ones using them if they will learn to master them.
Secret #2: YOU are the main secret in trading. You are the greatest secret in trading. You have been gifted with the fastest computer known to man at your birth and you have the ability to learn, adapt and modify everything you see and come into contact with. The way you “see” things is very different than the way other's “see” things. If you can master “you” and your emotions about trading (talked about in another of the “secrets), you WILL become successful. And that leads us to secret #3.
Secret #3: Simpler is better. Simpler is always better. The more complex a strategy is, the harder to learn it will be and the easier it will be to make mistakes that will shake your confidence, slow you down and cost you, possibly, years in mastering trading. Anyone who says differently probably has a “system” to sell you.
Secret #4: Accept the “numbers game” view of it. Mastering trading is not hard. It's just an issue of accepting the “numbers game” of it all. All things have a “probability” ratio or a “numbers game” that creates the success of the effort. Whether it's sports, industry, sales or trading, there is a “numbers game” behind it all. The more you can find an “edge” something you can exploit, the faster you will become will become consistent at your effort and that consistency leads to success.
Secret #5: Master yourself, master your trading. Your own emotions are the only real “enemy” in all of trading. Brokers who manipulate price feeds cannot defeat you. Market makers who charge large spreads cannot defeat you. The news cannot defeat you. Changing markets cannot defeat you.
Greed is extremely deceptive. It's not wanting to have large accounts, it's not wanting to be wealthy. In trading, greed is none of the normal things you are taught it is. In trading, it's wanting to get that next point when the strategy says your done. It's wanting 30 points when the strategy's rules say 15 is enough. It's wanting to swing for the fences on every single trade. Greed is not being willing to take it slow and allow it to grow. It's not allowing compounding to work and wanting to have it “now.”
Fear will kill your trading and add years to your effort of being successful. The rules of any strategy are designed to take the emotions out of your trading. Allowing yourself to “second guess” the rules is fear. Not taking a trade instantly on the signal is fear. Exiting a trade before the rules call for is fear. Anything that keeps you from following your rules is fear and it short circuits all of your efforts and all of your training and adds years to your trading and robs you of success. You must eliminate it from your trading.
Revenge will destroy you as well. You are not the target of any great conspiracy and the market couldn't care less about your trade or your position. The brokers may want you to be a victim, but trading out of a desire for revenge will skew your thought and twist what you “see” on the charts. It will defeat you as will greed and fear.
Arrogance will destroy you just as fast as either of these others. Trading from the perspective of any emotion will kill your trading. Arrogance will do it just as fast as greed, fear or revenge. You are NOT mistake proof. Even IF you believe you have mastered a strategy, any strategy you will still make mistakes. Arrogance will lead you to even bigger mistakes, then to revenge to try to make up for it, then to greed to try to get “just a little more” so you can earn back what you lost.
Complacency threatens to bite you after a few good trades. Suddenly you feel bulletproof, and the next thing you know you've made lazy mistakes, abandoned the rules that got you in those good trades, and you're handing back the money you earned. Each trade has nothing to do with the one before and needs just as much attention, caution and care.
Secret #6: There are no makeup trades. Trade each trade and each session as if it were the only one. Yesterday is gone and does not deserve to be remembered in trading. The only thing that exists in successful, consistent trading is the trade you are about to place. Make it the best on possible and forget the past so your emotions don't have a place to take hold on you.
Secret #7: Persistence and attitude will overcome everything. If you believe you can do this, you can. If you do not believe that, quit now. Nothing can stop or defeat you but you. That is true of everything in life, not just trading. It does however apply specifically to trading. Never ever listen to anyone who says you can't trade.
Secret #8: If it's not boring, you are NOT trading correctly. People love excitement and things that are interesting. SOLID trading is exceptionally boring. One of the hardest battles you will fight is to just trade and not try to “fix it” or “improve it.” or worse, get impatient and “wing it”.
Secret #9: Some days you just have bad days! Every single athlete of any sport in any age has faced the “gremlins” of a bad day when for no apparent reason, someone whose skill and physical prowess are not even close simply trashes them. There are no reasons, to rationales, no analysis that can stop it. It will happen, but you can limit it! Trading is no different.
This is the reason for rules. They are to supersede your mind, instincts, emotions and all of your efforts to overcome it, which runs counter to everything we have ever been taught in life. STOP! Walk away when you start violating ANY rules, ESPECIALLY the 6 winning trades and STOP or the THREE LOSS and STOP rules!
If you're ever, ever, tempted to not set stop losses as you're sure the market's going your way, STOP TRADING AND WALK AWAY. If you have positions that are open without stops, close them immediately, even at a loss, and shutdown your computer. If you keep trading you will undo days, weeks of hard work in one session.
LEARN to limit your arrogance and pride of how good you have become, or how good your strategy is. LEARN to limit your losses! Follow the RULES!
