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📈HOW TO RECOVER FROM A TRADING LOSS📉 🔰Analyze the reasons behind the trading loss: Understanding what caused the loss is essential to avoid repeating the same mistake. Analyze the market conditions, trading strategy, and emotions behind the loss. 🔰Stick to a trading plan: A trading plan acts as a blueprint for a successful trading journey. Follow your trading plan and avoid any impulsive decisions. 🔰Cut losses short: Don't hold onto losing trades in the hope of recouping your losses. Cut the losses immediately and move on to the next opportunity. 🔰Diversify: Diversification can reduce your overall risk. Spread your investments across multiple channels and avoid investing all your money in a single asset. 🔰Learn from successful traders: Successful traders can provide valuable advice and insights into trading. Follow their strategies and learn from their experiences. 🔰Reduce the trading size: To avoid significant losses, reduce your trading size. Start with small trades and gradually increase the position size. 🔰Control emotions: Emotions play a significant role in trading. Avoid trading based on emotions and stick to the trading plan. 🔰Stay informed: Keep abreast of the latest market news and events. Follow economic indicators, news releases, and expert opinions. 🔰Take a break: Taking a break after a trading loss can help you clear your mind and recharge. Take time to assess your trading journey, re-evaluate your strategy and come back refreshed. ❗️Remember that trading losses are part of the journey, and everyone experiences them. Recovering from a loss requires discipline, patience, and a willingness to learn from mistakes. Stick to your plan, manage risk, control emotions and with time, recover from the loss. I Hope you guys learned something new today✅ Wish you all Best Of Luck👍 😇And may the odds be always in your favor😇 Do you like this post? Do you want more articles like that
Education
by ProSignalsFx
12
The Dragon Bouncing BackSwift dismantling of zero-Covid policy in China has triggered a surge in demand resulting in robust economic recovery. Is this a flash in the pan or a structural shift? Bouncing off from 2022 bottom in early November, Chinese equities (represented by FTSE China 50 Index, "China50 Index") rallied 64% on COVID easing. The rally has stalled based on specific sector weaknesses causing a 12% correction in February. This paper argues that record revenues (over CNY holidays in January), anticipated pro-growth Government stimulus, record-levels of consumer savings, and loose monetary policy will collectively drive Chinese equities higher. A long position in CME’s E-Mini FTSE China 50 Index futures will deliver a reward-to-risk ratio of 2.35x while riding this economic shift. SECOND LEG OF RE-OPENING TO LEAD TO RECOVERY Five reasons support our bullish stance on Chinese equities: First, favourable technical signals. Stalled rally plus weak sentiments have caused the markets to retrace 12%, leaving it right below a key Fibonacci retracement level. This suggests that the FTSE China 50 Index could continue its upward trajectory in 2023 as reopening turns into recovery. Second, pro-growth fiscal policies. Investors hold high anticipation of upcoming National People's Congress (NPC) scheduled for early March. During the “Two Sessions,” the government is expected to make pro-growth policy announcements to boost the economy. Historical analysis shows that the Two Sessions (NPC plus top political advisory body meeting) tend to provide solid tail winds to the stock market. Shares have previously rallied ahead of the meetings and afterwards as investors digest the news. Over the last decade, real estate & healthcare shares delivered the largest excess returns following these meetings. Third, accommodative monetary policies. Meanwhile, PBOC added liquidity into the financial system to meet a rapid rebound in loan demand. PBOC kept short-term & long-term Loan Prime Rate (LPR) unchanged for the sixth straight month. Short-term LPR was at 3.65%. Long-term LPR (used to calculate mortgage rates) was at 4.3%. Both are at their lowest level in 20 years as China tries to balance economic growth and currency stability. Fourth, revenge spending. Forced to stay home due to Covid restrictions & unable to spend, Chinese consumers saved one-third of their income last year, depositing RMB 17.8 trillion (USD 2.6 trillion) into banks. Even for a thrifty nation like China, that's massive. With restrictions gone, will Chinese consumers revenge to spend their excess savings? Finally, valuations of Chinese shares are seemingly still in bulls’ favour despite the reopening rally. The MSCI China Index is trading at 10.9x forward P/E, below the 10-year average of 11.2x. In tandem with equity market price retracement, China centric commodities such as Iron Ore and Copper have also stalled. But are looking to rise again. ECONOMIC DATA PAINTS A HOPEFUL FUTURE AHEAD Economic data from China show positive signs of economic recovery in 2023. Purchasing Manager Index (PMI), an important leading indicator of business activity, rebounded sharply in January. GOVERNMENT PRIORITIZING ECONOMIC GROWTH The Chinese government has announced stimulus packages to support its struggling Real Estate and Tech Sectors. For instance, Guangzhou recently committed $29 billion to local tech funds to inject capital into high-tech sectors. The government also announced a 21-point plan in January to boost property developer’s balance sheets with $67 billion in aid. Moving in tandem with pro-growth Government accommodative fiscal policy, the PBOC continues its commitment to accommodative monetary policy by keeping key short- and long-term Loan Prime Rate (LPR) at their lowest level in almost two decades to boost growth. However, this monetary stimulus comes at the cost of rising inflation in the country. PROFESSIONAL INVESTORS ARE BULLISH CHINA AGAIN In a note recently published by Goldman Sachs, the bank expects Chinese stocks to surge as much as 24% by the end of this year as the economy shifts from reopening to recovery. The bank highlighted that "professional speculators" on their prime brokerage platform are showing a greater appetite for Chinese stocks. Goldman highlighted that hedge funds had substantially re-risked their exposure in offshore Chinese equities with net Chinese exposure to total equity exposure reverting to all-time highs. FOREIGN INVESTORS ARE BULLISH CHINA TOO HKEX's Stock Connect program’s north bound flows shows that foreign investors heavily bought into Chinese equities in January and continue to so do in February despite retracement. The Shanghai Northbound Stock Connect, which allows HK investors to access Chinese equities listed on Shanghai Stock Exchange (SSE) saw net buying of RMB 83.4B so far in 2023. The Shenzhen Northbound Stock Connect shows net purchases of RMB 74.1B this year. In comparison, these investors bought RMB 9.6B of Shanghai & RMB 25.4B Shenzhen shares in December. Besides the connect program, foreign investment into China scaled up in January to the highest level since June 2022. Foreign investors bought RMB 128 billion ($18.7 billion) according to China’s Ministry of Commerce. That was 14.5% higher YoY and a 75% jump in investment into high-tech manufacturing. This spike reversed two months of double-digit drops in late 2022. DEMYSTIFYING THE CHINA 50 INDEX The FTSE China 50 Index comprises of the 50 largest and most liquid Chinese stocks that are listed and traded in Hong Kong. The index is specifically designed for international investors to get exposure to Chinese equities. The China 50 index is dominated by large tech stocks representing 23.4% of the index. Bank stocks have a 18% weightage with retailer shares weighing in at 15%. The overall index provides a balanced with a mildly skewed tech exposure to Chinese equities. TRADE SET UP With a raft of Government and PBOC policies supporting Chinese economic recovery amplified by optimistic investor sentiments, this paper proposes a long position in CME’s E-Mini FTSE China 50 Index futures expiring in June 2023 to harvest a 2.35x reward to risk ratio. Each futures contract offers exposure to $2 x China 50 Index. Entry: 12,990 Target: 15,800 Stop: 11,800 Profit at Target: $5,620 Loss at Stop: $2,380 Reward-to-Risk Ratio: 2.35x MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER This case study is for educational purposes only and does not constitute investment recommendations or advice. Nor are they used to promote any specific products, or services. Trading or investment ideas cited here are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management or trading under the market scenarios being discussed. Please read the FULL DISCLAIMER the link to which is provided in our profile description.
FLong
by mintdotfinance
5
Copper Turning Red HotWhen China sneezes, commodities catch cold. Developments in China over the last quarter around zero COVID have paved the path to re-opening, which has a substantial impact on lives, livelihoods, and commodity prices. China re-opening plus a raft of measures to spur the Chinese real estate sector sets the backdrop for copper prices to be bullish. This case study illustrates that a long position in CME Copper Futures with an entry at 3.95 and a target of 4.326 supported by a stop loss at 3.614 would yield a reward to risk ratio of 1.2. On 14th November, we published – Copper Melting? , in which we were short term bearish while staying long term bullish on Copper. Our call then turned out correct with prices tanking in November but given the large-scale policy shifts in China now, we believe prices are well supported and set to rise. RECOVERY FROM COVID LOCKDOWNS Bounce-back from Covid lockdowns is visibly observed in various China-centric asset classes and currency. The chart below shows that since last September, Iron Ore has spiked 19% & Copper is up 12% buoyed by real estate recovery. COVID-19 STILL LINGERS THREE YEARS ON It is 2023, but COVID-19 still lingers. Covid lockdown hurts. Weak growth and stunted consumer confidence is evident from the chart below. Consumer confidence is at its lowest in 10 years. Based on data compiled by Bloomberg, rebound in subway traffic in key cities suggests that infections might have peaked. While the situation is still challenging for many, conditions in China might have passed peak Covid, suggesting shift in sentiments for the better. MEASURES TO HELP CHINESE REAL ESTATE SECTOR In addressing sagging consumer confidence and struggling real estate market, Beijing has embarked on pro-growth policy stance with accelerated reopening plans, plus a range of support measures for the real estate sector. The measures to boost property market include (1) easing of lending restrictions, (2) lowering of mortgage rates, (3) capping real estate brokerage commissions, (4) dialing back on “three red-lines” lending policy for banks, (5) reducing down payment ratios for first time buyers, (6) removing minimum lending rates for first time purchases, (7) resuming approvals for private equity funds to raise money to invest in residential real estate, and, (8) strengthening of “too-big-to-fail” property developers. Phased rollout of these measures is starting to have a positive impact. Since lows touched in November, Bloomberg Intelligence (BI) China Real Estate Developers Index is up 62%. IRON ORE AND COPPER ARE AMONG THE FIRST TO BENEFIT FROM SUPPORT MEASURES A booming real estate sector directly benefits Iron Ore and Copper. Sea-borne Iron Ore - majority of which is imported into China has been buoyant and is anticipated to rebound to $130/ton this quarter according to Citi. Over the past month, iron ore prices have also moved up with reopening hopes boosting sentiment. Bloomberg reported late last week that China plans to tighten the supervision on iron ore pricing to curtail speculations, the National Development and Reform Commission said in a statement on its WeChat page. The Bullish sentiment in the real estate sector is showing up in buoyant copper prices. Unfettered by regulatory actions on price rise, copper has stayed more resilient than iron ore highlighting its relative strength. SPECIFIC EQUITY MARKET SECTOR INDICES INDICATING MARKET BOUYANCY Shares of mainland Chinese property developers shot up last week on talks that the authorities plan to extend supportive measures for “good-quality developers”. The chart above shows a bullish cup and handle formation on the Shanghai Stock Exchange (SSE) Real Estate Index that points to an imminent recovery in the sector. SSE Real Estate Index spiked 21% since November 1st while the SSE Transportation Index (chart below) has climbed just 3.6% during the same period. SIGNS OF BULLISHNESS IN COPPER TECHNICAL SIGNALS Copper’s short-term moving average is approaching the long-term moving average. A cross could point to the start of a rally. Copper’s Bollinger bands have started to narrow pointing to a narrowing range which suggests that a breakout from the range. Copper prices cooled off in November before recovering, this price action also displays a bullish cup and handle formation as prices have remained range-bound post-recovery. Prices hovering at these levels despite softer volumes suggests that prices have found support. INSIGHTS IMPLIED FROM OPEN INTEREST AND OPTIONS MARKETS POINTS TO EARLY SIGNS OF BULLISHNESS Based on the Commitment of Traders Report, over the past 12 weeks, funds, institutional investors, and managed money have reduced their net short positions in copper futures by a striking 71%. Meanwhile, during the same period, small speculators while individually small but collectively non-trivial have shifted from net short positions of -1,004 lots to net long of +4,838 lots. The put-call ratio on CME Copper Options is 0.57, a sign that participants are bullish on the prospects of copper price. TRADE SET-UP Each long position in micro copper futures (February 2023) provides exposure to 2,500 pounds of copper. Entry: 3.950 Target: 4.326 Stop Loss: 3.614 Reward/Risk Ratio: 1.20 Profit at Target: $940 Loss at Stop Loss: $840 MARKET DATA CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com DISCLAIMER Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services. This material has been published for general education and circulation only. It does not offer or solicit to buy or sell and does not address specific investment or risk management objectives, financial situation, or particular needs of any person. Advice should be sought from a financial advisor regarding the suitability of any investment or risk management product before investing or adopting any investment or hedging strategies. Past performance is not indicative of future performance. All examples used in this workshop are hypothetical and are used for explanation purposes only. Contents in this material is not investment advice and/or may or may not be the results of actual market experience. Mint Finance does not endorse or shall not be liable for the content of information provided by third parties. Use of and/or reliance on such information is entirely at the reader’s own risk. These materials are not intended for distribution to, or for use by or to be acted on by any person or entity located in any jurisdiction where such distribution, use or action would be contrary to applicable laws or regulations or would subject Mint Finance to any registration or licensing requirement.
COMEX:HG1!Long
by mintdotfinance
3
Will we see another dead period for Crypto?It's no secret that we're heading into a global recession in 2023. The question is, will the Crypto market feel the effects too? At the start of 2021 we saw massive buying power come into play and the Crypto market boomed. We saw a 250% increase in prices over 2018's boom before it promptly imploded during mid-late 2022. The previous "dead period" lasted for 2 and a half years . How long will the upcoming one last for? Will we see immediate recovery? Or will we need to wait it out? Crypto is here to stay, so of course we go long (when looking long-term), but for now I'll keep my money in stocks and bonds elsewhere.
BITSTAMP:ETHUSDLong
by Chris4XTrading
2
DASH May Have Found The Strong SupportDASH may have found the strong support, as we see it recovering within an impulsive five-wave cycle from Elliott wave perspective. DASH with ticker DSHUSD is bouncing strongly and in an impulsive fashion away from the lows and it’s just about to break channel resistance line. It means that ending diagonal within wave 5 of (C) on a daily chart can be completed and bottom already in place, however, keep in mind that first bullish evidence is only above 69 region. In the 4-hour chart we are tracking now a minimum three-wave (A)/(1)-(B)/(2)-(C)/(3) recovery that can send the price higher within wave (C) or maybe even wave (3), but ideally after a pullback in wave (B)/(2) which may show up as soon as it completes a five-wave rally within wave (A)/(1). Happy trading!
POLONIEX:DASHUSDLong
by ew-forecast
6
Crypto Market Is Recovering; Elliott Wave AnalysisCrypto market is recovering as strong rebound from the lows suggests a temporary support from Elliott wave perspective. Cryptocurrencies are in a recovery mode again following news that SEC Division of Corporation Finance is about to Add Industry Offices Focused on Crypto Assets and Industrial Applications and Services( source ). Looking at the Crypto total market cap chart, we can see sharp and impulsive intraday bounce into first leg (A), which indicates for bigger (A)-(B)-(C) rally, especially if we consider an USD slow down. However, after a five-wave rally within wave (A), we should be aware of some pullback into wave (B) before we will see more upside for wave (C) towards 1.1T resistance area. Due to dominance of BTC in the last couple of days, we will look for some BTCUSD longs with our members if we get slow corrective setback in wave (B). Trade well! If you like what we do, then please like and share our idea. Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
CRYPTOCAP:TOTALLong
by ew-forecast
1