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J200 trade ideas

JSE ALSI showing strong upside thanks to China & January EffectJSE has been forming a fantastic Cup & Handle since March 2022. The price broke up and out of the brim level and I want long and bought it. 7>21 (Bullish) Price >200SMA (Bullish) RSI >50 (Green back) Bullish The first target is 83,209 It seems like despite the economic crisis with load shedding, water outages - The rand has gone up a bit since inflation slowed at 7.2%. Naspers and Prosus are also helping the JSE head on up with the run up on China since the Covid restrictions. I guess the January Effect is still strong and we should continue seeing upside to come - touch wood. Trade well, live free... Timon
JSE:J200Long
by Timonrosso
BEFORE and AFTER Each Trading Day you shouldA game-plan is a must, to see a potential goal, dream or vision. You got to have a proper POA (Plan Of Action) and execute. Whether it’s selling property, building a business, playing a sport or growing your wealth. You need a BEFORE plan and AFTER plan. Same with trading. You need to have a trading plan BEFORE and AFTER each trading day. BEFORE Each Trading Day: 1. Know the main market’s trend direction The first thing I want to know is, what the main market’s trend direction is. Plot the resistance (ceiling) and support (floor) levels, so you know whether they are in an up, down or sideways trend. If up – look for longs (buys) If down – look for shorts (sells) If sideways – look for potential breakout levels. 2. Scan through your watchlist Once you know the main market’s trend direction, have a quick scan through your watch list (markets you trade). Orientate yourself with where the markets are heading and whether trades are lining up. This way, you won’t go into the trading day blindly. 3. Write down high probability trade setups You know the main market’s trend direction, and have an idea of where the markets are heading – now you can plot your trade ideas. Go through the watch list again, and write down any potential trade setups (with your written entry, stop loss, take profit and reasons for entering the trade). 4. Choose your TRADES for the day Just because you have written down trade setups, doesn’t mean you need to take every one of them. Instead, look at which ones which will yield a better probability at working out and has a better chance at winning. All done before the trading day has even begun… AFTER Each Trading Day 1. Journal every trade When the markets’ have closed, and you have time to breathe, go to your trading journal and jot down the trade/s you took for the day. Each entry should have the (Market name, date, type, margin, entry, stop loss, take profit and reason for entry). 2. Outline lessons of the day If you’re just starting out or you’ve been in the markets for less than five years, I suggest this extremely useful step. Write down any market lessons you learn for the day. Here are some lessons you can write down: How the market reacted to a news event How you felt taking a trade or holding onto current trades Mistakes of the day you learnt or made Trading lessons that you want to incorporate into your trading… Write these lessons down, as they will forever be part of your experiences to become a successful trader. 3. Re-check & confirm your open trades This is extremely NB*. Make sure your entry, stop loss and take profit levels are still in the trading platform with all open trades, at the end of the day… Sometimes, brokers have certain glitches in their systems, that can remove your trading levels (automatically). It happens on a continuous basis and it’s our job, to make sure everything is running smoothly and our levels are still in place. 4. Quick scan your watch list & look for potential trades for tomorrow Last action you can take for the day, is preparing for tomorrow. Go through your watch list, look for the next batch of trade setups and write them down. This is so you know what to do for the next day… Trade well, live free. Timon
JSE:J200Education
by Timonrosso
Why the INNOCENT traders always get scammedI received a very important question from a dear member named Bakang. He asked "Why do people who show the most dedication are the ones who gets scammed most of the time". Now, I have given an indepth answer with certain reasons and a book I wrote, because of how important this topic is... Please read it and share it to your friends, family and groups. You just might be helping them avoid being scammed themselves. Here is my answer: Thank you for your question and it is a very common problem in society. There are many reasons why innocent people tend to fall for scams when it comes to the stock market and other high promising schemes. Reason #1: Humans are just too trusting Humans have a tendency of trusting the fellow man and believing in the greater good of them. They read about how they’ll make fortunes with them using secretive and insider information – and they make you feel a part of something. Then as soon as they have your money, they leave you and head over to the next victim like a snake in the grass. Reason #2: Hot next thing Every scammer tries to outwit another scammer’s intention. They see what one scammer is offering and they make even more false promises, lies and tendencies. Then the innocent person is lured in because they don’t want to MISS this ‘once in a life time opportunity’. This has been happening for thousands of years, and human nature is unlikely to change. Reason #3: Being persuaded by top marketers The biggest type of scammer is the loudest, most charismatic and they show off things that they don’t have. Or the money they do have it’s from the people who have been scammed. This is where you read the loudest promos, false and misleading information and advertising. Also, my favourite is where people read FAKE testimonials with life stories on how something changed their lives… Reason #4: Fear, Greed and Ego Most people who are scammed fall for the two big sins of life. Fear and Greed. They fear to miss out on these opportunities and fear that it will never come again. They have greed where once they’re lured in, they believe in it and deposit a lot more money having this undeniable faith they will be rewarded. EGO is the one that is hardly spoken about but I think it’s equal to fear and greed. Ego is where they refuse to believe it’s a scam. They believe they made the right choice joining them and where they want to prove to everyone, he/she was right and they were wrong. Reason #5: Lack of education The first way people are scammed is when they don’t have the starting education and understanding of the true and real principles that come with the venture they’re in. They think, because they have money they will win. But when you dig into the actual principles and education, you’ll realise that there is and has never been a get rich quick way into anything. Everything requires risk and probabilities to achieve some kind of reward in the medium to long term. Other reasons! There are other reasons like feeling desperate to do something, acting urgently without thought, being persuaded by others and believe wrong and false information on a website. It is up to you and me and all of us to better educate ourselves, avoid any scams and to choose the right people to trust and learn from… Hope this helps and feel free to share this to spread awareness to fellow traders. Trade well, live free. Timon MATI Trader (Trader since 2003)
JSE:J200Education
by Timonrosso
3Cs of trading - Must readI call it the 3 Cs of trading Trading the financial markets can be a challenging and rewarding endeavor. One of the keys to success in trading is making informed... Choices - Choose the markets you want to trade, the strategy, the time frame, choose your mentor and choose your times and plans... Next you need to take calculated: Chances - Take a chance to execute, to deposit money in your account, to set up your trades and lineups. And then be willing to adapt and make. Changes - Changes to your strategy, journal, system and whatever you need to evolve with the current market conditions and environments. Did you find this helpful? I'd love to hear your feedback Trade well, live free. Timon MATI Trader
JSE:J200Education
by Timonrosso
How To Handle And Minimise Your Losses in A DrawdownI want to cover different ways to handle yourself during a drawdown to minimise your losses. Minimise Drawdown Part #1: Lower your risk per trade There are times when the market will be in a bad market environment… This is when no matter whether you buy or sell, you end up just taking a whole bunch of losses. The first trick is to pinpoint when the market is in a bad environment. For me as a breakout trader, I wait for the main index to move in a sideways trend. This way, I know I have a medium to low probability of the trades to work out. If you can find out when the market is in a bad environment, then you’ll know when to lower your risk. In my case, I drop the risk from 2% per trade – down to 1.5%. If my portfolio continues to drop, I will lower the risk further to 1% per trade until the market rectifies itself. This is the first way to minimize your losses. Minimise Drawdown Part #2: Lower the number of trades you take You’ll know when the markets are looking S#@t all around. This is because the large stock markets tend to lead the emerging markets. And when this happens, the second best thing you can do is limit the trades you take. If you find you’re averaging around five to nine open trades at a time, it might be time to start cutting down. Because what if all nine trades end up to be losers, due to the bad market environment? Well you’ll find yourself down around 18% of your portfolio. So instead, limit the number of trades you’ll hold during the drawdown phase. Maybe it will four to five instead… Just remember that being neutral and holding cash is ALSO a trading position. Minimise Drawdown Part #3: Hedge your positions This doesn’t always work, but it has saved my ass a couple of times. When I find I’m long (bought) five stocks. And I see that the market has completely changed direction to the downside. I know that there is a higher chance that I’m going to get stopped out. So to limit my risk, I’ll immediately look at stocks that I can trade short (sell). For example, I am currently long four stocks. And all four stocks are in a the negative. So, in the last two weeks I’ve decided to short three resource stocks (as a hedge). This way, I’m now down only 3% of my portfolio rather than 5% since the drawdown… Minimise Drawdown Part #4: Other ways The other powerful way to control your drawdown is to lock in profits when the trades are going your way. You can think of it as a trailing stop loss. I personally often raise my stop loss when the market moves where the risk to reward is 1:1… This way I know I’ll lock in a gain, should the market turn against me. There are many ways you can adjust your stop loss including: • Trail the stop loss as the price moves further away from the trending Moving Average • Trail the stop loss after the market’s price moves a certain percentage • Trail the stop loss when you see volume starting to drop • Trail the stop loss when an indicator is oversold or overbought • Trail the stop loss after the market’s price moves to a certain risk to reward FINAL WORDS Drawdowns are inevitable. And you need to know how to manage your Drawdowns… You now have some ideas on how to handle your drawdowns better. Trade well, live free. Timon MATI Trader (Financial trader since 2003) Feel free to follow my socials below. I love writing about trading and sharing my 2 decade experiences.
JSE:J200Education
by Timonrosso
1
How Much to Recover After a Trading DrawdownA Drawdown is a drop in a portfolio value after one or more trades. It’s when the portfolio dips from the highest high. Once you’ve entered into the inevitable drawdown phase, you’ll need to know how much you’ll need to recover. That’s where the drawdown calculation comes in… The Drawdown Formula to recover after a portfolio drop Let’s use three examples of traders with drawdowns. Example #1: Timon is down 5% of his portfolio in the last three months. Example #2: Alex is down 50% of her portfolio in the last three months. Example#3: Artemis is down 76% of their portfolio in the last three months. Next we’ll need the Drawdown Formula Required gain = -1 Let’s put in three drawdown percentages to see what we need to recover to get our portfolios back to what they were… EXAMPLE #1: Timon’s drawdown = 5% Required Gain = – 1 = – 1 = 5.26% EXAMPLE #2: Alex’s drawdown = 50% Required Gain = – 1 = – 1 = 100% EXAMPLE #3: Artemis’s drawdown = 76% Required Gain = – 1 = – 1 = 316% In the above examples, I need to recover 5.26% of my portfolio to get it back to its highest level. While Alex and Artemis needs over 100% and 316% to return their portfolios to what they were. Now you know how to calculate what you need to recover after a trading drawdown. FINAL WORDS Do you now get that you need to take your drawdowns more seriously? With any business or venture, you should always be wary when you enter into a tough time. In fact, you should never be down more than 20% on your trading portfolio, business or in any other financial venture… Once you start going below 20%, it will take a heck of a lot longer to get back to what it was… That’s why this article is only part one… Trade well, live free. Timon MATI Trader (Est. 2003) Feel free to follow our socials below.
JSE:J200Education
by Timonrosso
Success is a self-introspection journey!You and I both know that financial trading the markets is an exciting and most definitely a lucrative venture for those who actually take the time and energy to get it right and trade well. But! Big But... If you want to become a successful trader, it's not just about analyzing market trends and making informed decisions – it is also about self-introspection and personal growth. This journey is one big self-discovery. And you'll find it's not only beneficial to trading but with life, love, work and even your true identity. Aas traders must know our own motivations, behaviors, and beliefs in order to truly excel. This means taking an honest look at our strengths and weaknesses, and being willing to make the necessary changes to become a more disciplined and effective trader. Do this and you WILL develop a strong sense of self-awareness in order to make better decisions under pressure. Trade well, live free. I'm off to bed. Timon MATI Trader (Financial trader since 2003)
JSE:J200Education
by Timonrosso
1
6 Thinking Hats for a TraderIf you don’t know the 6 Thinking Hats by now, I have to ask. How do you solve problems, deal with arguments or make decisions? I do forgive you though, as these strategies are not ones we learn in school. In fact, when I first read about this strategy, I got to say every aspect of my life changed (including trading). I hope this article will change your life too. Let’s start with the main man himself. The Author of The Six Thinking Hats Edward de Bono is a world-renown lateral thinker, writer and philosopher. In fact, he was the first person to use the term ‘Lateral Thinking’. Born in 1933, in Malta, Edward has achieved a number of degrees and has published over 85 books (mostly on thinking and the use of language). But out of all his works of art, there is one of the most popular techniques that changed the world and changed the way we think. It’s called The Six Thinking Hats or 6TH. Here’s how it works There are six different imaginary hats, with each having a different colour. Each time you put on a hat, you change the way you think about something. It also helps you see with better clarity and with a different perspective. Whether you’re having an argument, making a decision, solving a problem, building a business or creating a trading strategy – the 6 Thinking Hats will help streamline the process. If you’re with more people, make sure everyone is wearing the same hat at a time, to avoid conflict. Let’s now get into the inner workings of the 6 Thinking Hats, and how it can apply to your trading and other aspects in life. HAT #1: WHITE NEUTRAL VIEW This is the hat that contains all of the information, facts, data, figures, metrics and statistics. When it comes to trading there are certain facts that you need to have considered including: The broker you choose The affordability The costs involved What equipment you have to trade Back testing, forward testing and real testing data and statistics with your strategy. HAT #2: RED EMOTIONAL VIEW The second hat you’ll put on is the RED HAT. When you put this hat on, come to terms with what you feel. I’m talking about your intuition, your fear, your greed and your gut feeling. Then when it comes to trading ask yourself these questions… · Can you handle risking money you have? · Do you feel you have the discipline to pursue trading on a weekly basis? · Do you enjoy the idea of trading? · How much money do you think you can easily deposit into your trading account? · How much money do you think you can psychologically handle losing, if you take 10 losing trades in a row? · Do you think you can sleep easily at night knowing you have your money tied up in the markets? Once you go through all the feelings and you answer the questions, then you can move to the third hat. HAT #3: YELLOW POSITIVE VIEW This is the hat you’ll find is the one, you want to leave on when you think. It’s the hat that contains all the benefits and rewards. When you put this hat, you’ll think of the following with trading: What are the benefits to trade? How much money do you want to make a year trading? Why will your trading strategy work? What are your goals as a trader? Why is trading the best decision for your financial future? Feeling good? Well you’re supposed to when you put on the yellow hat. But we still have three more hats to go… HAT #4: GREEN CREATIVE VIEW With every decision comes extra out of the box thinking. And that’s where the green hat comes in. When you put on the green hat, this is where your imagination should help you with brainstorming, new ideas and add-ons to the think tank process. With trading, there are just so many different ways to be creative. And you’ll find that with ever evolving markets, you’ll need to adapt and adjust course. Here are some ideas to think of when you put on the green hat. How can I let my winners run further systematically? How can I increase my win/rate i.e. Trailing stop loss What indicator can I use for peripheral vision to help with my confirmation on each trade? I should create and print a few psychology sticky notes to help with my trading. I should name my system to be more personal with it I should find ways to tweak my system which will help with the performance I should have a trading consultation with Timon to help build and optimise my trading strategy better J. HAT #5: BLUE HAT PROCESS VIEW When you put on the blue hat you should think of three main things… Systems, criteria and planning. This is where you’ll choose the criteria you’ll follow with your trading strategy. What indicators are you using? What parameter’s are you using with the indicators? What time frame works best? What calculators do you need whenever you trade? This is where you’ll find the main work takes place once all the planning is done… And one where you’ll eventually marry a strategy to help grow your portfolio. HAT #6: BLACK HAT NEGATIVE VIEW When you put on the black hat, four things should arise instantly. Difficulties, problems, weaknesses and risks… I saved this hat for last, because it’s the only hat that will most likely help you decide whether trading is for you or not. But you can re-arrange the hats according to your won preference. The main things to ask when you put on the black hat, with trading is: What are the dangers of trading, risks, financial risks and time risks? What if the system stops working? Why are you sceptical about trading? What if the current markets go into an unfavourable territory? What if the market drops to zero when I’m in a long trade? FINAL WORDS: How awesome! You now have The Six Thinking Hats to your every decision making process. You’ll find that it will force you out of the mono-lateral way of thinking which you’ve habitually had your entire life. You’ll see things with new perspectives and compartmentalize issues in new ways… It might even pro-long your marriage or improve your relationships… If you enjoyed this article, I would love to hear your thoughts Trade well, live free. Timon MATI TRader (Established 2003)
JSE:J200Education
by Timonrosso
LEAVE ME ALONE! LEAVE ME ALONE! Once you have entered a trade and set your trade levels (such as stop-loss and take-profit), LEAVE IT ALONE. It is important to let the market play out and not interfere with the trade. This way you'll follow your trading plan and not be swayed by emotions or external factors. Also, if you leave it alone it will also stop you from taking impulsive decisions in the future, which can be super dangerous in the long term. Once you've done your bit and left the trade to do its thing, once it hits your stop loss or take profit - you'll be able to track, record, evaluate and monitor your trading results. This cuts out the subjective feelings, emotions and opinions. It's the play of patience that will help you to learn how to trade well for your financial future.
JSE:J200Education
by Timonrosso
1
Do you know what it takes to be an Algo Trader?To be an algo trader, you typically need to have a strong background in computer science and programming, as well as a good understanding of financial markets and trading strategies. Here are some of the important elements you need to be a top Alog Trader: Experience with database management and data analysis Knowledge of statistical analysis and machine learning techniques Understanding of financial markets and trading strategies Strong analytical and problem-solving skills Attention to detail and ability to work under pressure Overall, to be algo trader requires a combination of technical expertise, financial knowledge, and strong analytical and problem-solving skills. It can be as simple as having an easy and proven mechanical strategy that you can demo, back test, forward test, analyse, monitor and evaluate your results. This way, you'll have a decent idea on what your system and strategy potentially could yield in the near future. Trade well, live free. MATI Trader Feel free to follow our socials below if you enjoy this content :) Thank you.
JSE:J200Education
by Timonrosso
JSE Top 40 IndexJSE Top 40 Index - Approaching Overbought/Extended To The Upside AROUND These Levels? Ultra short term - trading 2x std deviation over 20 days (see smaller internal channel) Also, trading 2x std deviation over 200 days (see larger expanded channel) Also note the price extension vs the 200-day simple moving average. It cannot get too far without 'snapping back'. In addition, the 200-day SMA is FLAT - thus making a reversal more likely. FOMC minutes showed the FED won't be in a hurry to cut... and yesterday's data showed the labour market remains in good shape. Now we await the December payrolls report, due in 2hrs.
JSE:J200
by techpers
TRADERS! One step is a step forwardHello traders, Are you feeling stuck in your trading journey? Are you constantly asking yourself "WHICH WAY AM I MOVING?" Let me tell you something: as long as you are taking one step at a time, you are moving forward. It's easy to get caught up in the day-to-day ups and downs of the financial markets. We can get so focused on the short-term fluctuations that we lose sight of the bigger picture. But here's the thing: those short-term fluctuations are just noise. They may affect your account balance in the short-term, but they don't define your long-term success as a trader. So how do you stay focused on the long-term and keep moving forward? Here are a few tips: Set clear goals for yourself. hat do you want to achieve as a trader? Do you want to be consistently profitable? Do you want to learn a particular trading strategy? Whatever your goals may be, make sure they are specific, measurable, and achievable. Keep a trading journal. Writing down your trades, your thought process, and what you learned can help you reflect on your progress and identify areas for improvement. Seek out education and mentorship. There is always more to learn in trading, and having a mentor or joining a trading community can help you gain new perspectives and stay motivated. Remember that trading is a journey, not a destination. It's easy to get caught up in the thrill of making a big trade or hitting a home run. But the most successful traders are the ones who are in it for the long haul. They are the ones who are consistently learning, adapting, and improving. So don't get discouraged if you have a few losing trades or if you feel like you're not making as much progress as you'd like. Keep taking one step at a time, and you will get there. Trade well, live free. Timon MATI Trader Feel free to support me and follow my socials below...
JSE:J200Education
by Timonrosso
Why Multitasking is Dangerous for Traders – 6 REASONSWe have come to believe that juggling multiple tasks, will somehow reward us eventually. But with trading, I can’t think of anything worse. In fact, I think it’s counterproductive to multi-task when making financial decisions for your trading. And no! Lying on the couch, or on the beach with your phone while talking to friends is ALSO a no go. Here’s why I think multi-tasking is dangerous… DANGER #1: You miss crucial opportunities: If you’re focused on watching TV, eating chips and watching TikToks at the same time, I guarantee – you will miss out on high probability trades. You need to have full focus and pay attention to the markets, when you’re trading or it will affect the quality of your trading and setups. Danger #2: Delays in trading decision making Multitasking can slow down your decision-making process and prevent you from acting in a timely manner. Think about it… It’s one more video to watch, it’s 10 more minutes until the show ends. Let me just finish my beer first. The market waits for NO ONE! So act accordingly. Danger #3: Stress levels through the roof You’re going to make impulsive, emotional decisions. You have your heard earned money in an account ready to take on the local and global markets. If you have sounds, food and other distractions in the background – it will affect your stress. This will not only put you off trading but might also scare you out of it completely. These types of decisions can be costly in trading. I mean, trading can be stressful enough on its own. Add multitasking to the mix and your levels of stress and increase feelings of anxiety will sky rocket. This can lead to burnout and negatively impact our overall performance. Danger #4: Drop in prod You might feel that you can get more done by multi-tasking but it actually will decrease your productivity and efficiency. When we try to do too many things at once, it takes us longer to complete each task and we may not do them as well as if we had focused on them individually. Danger #5: More mistakes Trading needs to be laser focused! If you multi-task you need to remember something. You are human and you are susceptible to making mistakes and errors. You might miss a trade setup. You might type in the wrong trading levels. Or worse… Trading volume. You might miss opportunities to lock in profits through adjustments. Just take it one trade at a time and focus on the time in the markets… Danger #6: Ruin relationships Ok this one is a bit of a stretch, but I think it relevant. If you multi-task while trading, what about the rest of your life. You most likely will multi-task while eating dinner, talking to friends, driving or even spending time with your children. This can most definitely have a negative effect on not only your trading but your life, relationships and will lead to even more stress… If you’re still reading this then I want you to do something for me. I want you right now to take a DEEP breath in…. . . . . . And out….. Just slow down. Take it easy. Focus on one thing at a time and enjoy the process. Be more present and you will find life will be a lot more easier in your everyday. I am writing this because I want you to start your year on a calm, focused and powerful note. You got this. Trade well, live free and take it EASY! Timon MATI Trader
JSE:J200Education
by Timonrosso
3
How a Simple Cup of Tea Can Improve Your TradingTraders are always on the lookout for ways to improve their performance. They are always trying to find ways to make better decisions in the markets. While most people might not think to turn to tea as a solution, it turns out that… This simple beverage can actually have a surprising impact on trading. The amazing benefits of drinking tea with trading. Benefit #1: Relaxation What is amazing about tea is its ability to help you relax and calm you better. In the fast-paced and high-stress world of trading, it’s easy to get caught up in the excitement and intensity of the markets. This can lead to impulsive, emotional decision making that can be costly. Once you have a cup of tea, it can help you take a step back, relax and allow you to approach the markets with a clearer and more rational mindset. Benefit #2: Focus Tea can also improve focus and concentration. Many traders rely on caffeine to help them stay alert and focused, but it’s important to remember that too much caffeine can lead to jitters and anxiety. Tea, on the other hand, contains a lower amount of caffeine and also includes antioxidants and other compounds that can help improve cognitive function. My favourite tea is good old Rooibos “Red Bush” which is a special tea from South Africa that doesn’t contain any caffeine. When you sip on a cup of tea, you’ll find it will help improve your focus and attention to detail. This is crucial when analysing the markets and making financial decisions. Benefit #3: Health Great health is great wealth. Another benefit of tea is that it can improve with your physical health. You’ll find trading can be a sedentary job, and it’s important to take care of our bodies in order to maintain optimal performance. Tea is packed with antioxidants and other compounds that can help improve digestion, boost the immune system, and reduce the risk of certain health conditions. When you add tea into your daily routine, you will most definitely improve your overall health and well-being, which can in turn improve your performance in the markets. Of course, it’s important to remember that tea is just one piece of the puzzle when it comes to improving trading performance. It’s important to have a solid trading strategy, stay informed about market developments, and manage risk effectively. In conclusion! Not only does this simple beverage promote relaxation and calmness, allowing you to approach the markets with a clear and rational mindset, it can also improve focus and concentration, thanks to its lower levels of caffeine and cognitive-boosting compounds. And, let’s not forget the physical benefits – by incorporating tea into your daily routine, you can improve your overall health and well-being, leading to better performance in the markets. So, trade well, live free, and don’t forget to enjoy a cup of tea! Timon MATI Trader (Financial trader since 2003)
JSE:J200Education
by Timonrosso
1
24 Hour Trading Stocks Around the Clocks!Doesn’t it feel almost inevitable? That in the near future we’ll be able to trade shares 24 hours a day, five days a week? Well, during the last week, I’ve been wondering what the future of trading will look like and what we need to prepare for. In this article, we’ll go through the practicalities of trading 24hour markets and what you may need to prepare for. 24 Hour markets available today Right now, there are more markets available to trade 24 hours a day than ever before including: • Forex • Commodities • Crypto-currencies • Exchange-Traded-Funds • Indices I guess the important question to ask is… Will it make a big difference if the world opened up to trading stocks 24 hours a day? Could it be the end of stock traded sessions? Currently, the trading sessions for shares are restricted to the hours the exchanges are opened. This is normally from 9:00am until 5:00pm. There are two historical reasons for having stock traded sessions: Maintain liquidity and timing for efficiency during operating hours. But what would happen if stocks never closed their trading times? Think about it… We’d have hundreds of thousands of stocks open to the public to trade at your disposal whenever you desire… We’ll need to address the pros and cons of how this would work… GOOD & BAD reasons for trading stocks around the clock Let’s start with the BAD. BAD #1: Less trading – Small price moves We could see thin volume of buying and selling taking place for each stock, as there’ll be little demand when people are off work or asleep. BAD #2: Higher price manipulation With the low trading volume, this can incite shady investors and traders to manipulate the share prices, causing major sudden price fluctuations So with low demand and movements for stock trading around the clock – right now, it just doesn’t seem to be practical having 24/5 stock trading sessions. But right now – does not mean it will always be like this in the future. Here are the GOOD reasons for a 24 hour trading stocks around the clock. GOOD #1: Higher employment numbers Most companies, will need to employ more brokers and dealers – for after hours – until they incorporate robo-advisors… GOOD #2: No more open price gaps The unexpected sudden price gaps on stocks will almost be eliminated. You won’t have to wake up to a nasty surprise seeing the market jump your stop loss overnight again. GOOD #3: Follow international events We will be able to base stock trading decisions and prices on any news event, earnings and ratings that comes out internationally. GOOD #4: New stream of investors This will attract many new investors and traders to trade stocks from other countries which will help companies share liquidity. Why we could see trading stocks around the clock in the future We are seeing a major rise in the number of investors and traders. Trading has never: • Been more affordable • Been easier to learn. • Been more accessible (with just a smart phone). • Shown such superior customer services. And we definitely have the technological structure and networks, to support around the clock trading for all markets. And when it comes to stocks. Well, with the increase in adoption of new technologies, and improvements with off-market liquidity – we will very well see stocks trading around the clock. And now you know what to prepare for… Trade well, live free. Timon MATI Trader (Est. 2003)
JSE:J200Education
by Timonrosso
Happy New Year 2023 - Only 1 tip for you!If you don't know your trading levels, then you don't have a game plan... The only time you're ready to trade is where you have the exit plan in mind through risk and reward as well as WORST case scenario... Are you ready to trade in 2023! My only tip for this year is go where you are appreciated NOT where you are tolerated. Trading View is such a special place because we all have one thing in common. To take control of our own life without any dependency. I've been trading since 2003 and now have the platform to share some ideas and experiences that I've gone through to eventually trade for a living from 2011. Welcome to 2023. May it be a year of learning, improving, growing and profiting. Trade well, Live free... Timon MATI Trader
JSE:J200Education
by Timonrosso
1
What Billionaires Taught me About TradingDid you ever wonder why influential people wear the same clothes every day? • Mark Zuckerberg wears his famous round neck grey t-shirt. • Richard Branson wears his famous pair of jeans. • Steve Jobs wore his black turtle neck. • Barack Obama wears either his blue or grey suit. Well other than promoting their signature look, there is a much more deeper and important reason for it… You might want to consider this analogy for not only trading, but for every important aspect of your life. Why Mark Zuckerberg wears the same outfit Facebook CEO, Mark Zuckerberg held the first ever public Q&A session at FB California headquarters in November 2014. During the hour session, he was asked why he wears the same grey t-shirt every day. Here was his answer: “I really want to clear my life to make it so that I have to make as few decisions as possible about anything except how to best serve this community,” “I feel like I’m not doing my job if I spend any of my energy on things that are silly or frivolous about my life,” Less decisions – More success This concept to make one decision on what outfit to wear, is to help prevent ‘cognitive fatigue’. One less decision to worry about in life will save your brainpower capacity to help make decisions that matter for the future. Besides, the more decisions you make – the more complicated life is. Ok, so you got the gist… Here’s what this lesson taught me about trading As a trader, there is plethora of events taking place every day. There are countless factors to consider: • Markets (Forex, shares, indices, commodities and cryptos) • News events (Employment, GDP, macro & micro announcements) • Indicators (Moving averages, RSI, MACD, Price action etc…) • Time frames (Tick, 5 minutes, 30 minutes, daily, weekly) • Strategies (Moving average crossovers, breakout patterns, volume analysis) It’s enough to test everything until the end of time! That’s why, I have personally worn the same metaphorical outfit for the last 14 years. NOTE: It took me 7 years to find this outfit! 1 Strategy – MATI Trader System 1 Time frame – Daily 1 Indicator – Price action 1 Risk level – 2% 1 Financial instrument – CFDs It’s all about finding what you find comfortable, consistent and sustainable… How to find your one outfit when you trade This is most definitely a self-introspection journey to find the ‘outfit’ you will be wearing as a trader. To start, write down your trading strategy and markets you want to trade… My biggest tip – Keep it simple, minimalistic and comfortable…
JSE:J200Education
by Timonrosso
1