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J200 trade ideas

How AI will revolutionise the trading world – 14 WaysThe era of AI has unleashed in almost every aspect of our lives. And I believe that there will soon be a seismic shift in financial trading with AI. I feel it’s my duty to share some of the ways, we will incorporate, adapt and integrate AI into trading. To explain in simple terms… AI is a concept to teach machines, robots and computers how to perform human actions. And trading is just another element that AI will apply to. Let’s start… #1: AI Trading Bots We’ve had EA (Expert Advisors), chat bots and machine learning when it comes to trading. As AI adapts more into the financial world, they will be able to signal, alert and even optimise our trading strategies, risk management and financial profile. #2: AI will alert more markets into our watch lists Not all markets work with our trading strategies. Right now we have to manually search for different markets to back, forward and real test. Once AI adapts to our trading strategy, it will be able to pinpoint the most efficient and effective markets to include into our trading arsenal. #3: Real-time risk management AI’s rapid data processing will be able to identify our risk profile. In the near future, it will be able to identify not only trading setups, but also the volume we’ll need to buy or sell to enter or exit a trade. It will alert us when trades are ready to go and will ask us whether we want to go ahead and action the high probability trades (according to our risk management. #4: Algorithmic automatic trading Once we lay out the parameters of what we want our AI trading bots to do, they will be your employee. They’ll be able to take action while you’re away such as: Layout the chart setups Plug in the trading levels (entry, stop loss and take profits) Execute trades on our behalf They will work for us, which will limit our time staring at screens. #5: Sentiment Analysis: Read the market’s mood This tool will help us identify who’s dominant in the markets. Are the bulls or bears stronger. It will then give us a gauge meter to tell us whether demand or supply is higher. And this will help us make calculated decisions, based on our own trading analyses. #6. Freeing humans from the grind When AI takes over our trading, it will do all of the mundane tasks for us. It’ll focus on: What markets work best with the system Which markets to remove from the watch list and whether we are in favourable or unfavourable terrorist according to our system This will free traders from spending hours behind a screen on the daily. #7: Automation: Back and forward testing When AI learns a system with the right parameters and criteria, it will be able to backtest for us. It’ll be able to go through hundreds of trades in the past and will provide a full review of the stats and measures. It’ll tell us the: trades of winners and losers Win and loss rate Average winner and loser per trades Costs, risks and losses Accumulation of profit and losses and more… #8. Pre-emptive fraud detectors AI doesn’t just detect fraud—it sniffs out all the unregulated and fraudulent type companies, brokers, market makers. It also analyses the markets micro and macro analyses to see which companies are doing well, cooking the books and / or are red flags to buy or sell. Its predictive capabilities will be able to save millions of traders from falling into financial trading traps and scams. #9: Customizable AI trading assistants Also, I bet we will see companies create their own trading assistants. Similar to Siri, Alexa and Google. You will have your own finance-savvy cousin ready to act on your trading needs. Whether you want to trade, find setups, talk about tested systems, create new strategies, learn real time info about markets and instruments. You’ll have your own AI trading assistant just call away. #10: The rise of quantitative trading Quant trading will soar to new heights. AI will be able to crunch numbers and optimise strategies with high speed and precision. This will make sense of complex financial models at lightning speed. #11: Real-Time chart pattern identification Eventually, AI will adapt machine and deep learning into charts. We will finally see the day where market patterns, trends are identified on any time frame. As they learn the bends, turns, vectors and consistency with the charts through predictive analysis from historical market data… AI will adapt and learn to plot more accurate, recurring chart patterns and use them to predict future price movements on any market. And AI will be able to scan hundreds of charts simultaneously and highlight significant patterns as they emerge. This will present high, medium and low probability setups for our trading. #12: Past chart patterns predictive analyses Not only will it identify real-time chart patterns. It will also spot historical price patterns and insights that took place in the past. This will help us to back test the systems and how they worked on particular markets. AI will be able to identify the chart patterns that have proven to be most successful for that particular trader. #13: Personalized and customised trading strategies What if you have a new chart pattern you’d like to adapt into your analysis? Well I’m sure AI will have the ability to learn, recognise and incorporate your chart patterns into the system. This way you can personalise what chart patterns, candlestick patterns or strategies you would like customised to your style. This means that each trader can have a unique set of chart patterns to look for, tailored to their trading style and risk tolerance. This personalized approach can potentially enhance your trading performance and your profitability. #14: Integration with other data sources This will most likely be open-ended. It’ll work via the network where AI will improve chart pattern recognition in financial trading by integrating with other data sources. Imagine AI learns from millions of traders, millions of strategies, systems and new inputs. I can only imagine that traditional manual chart pattern systems will be a thing of the past. With the new set of systems, formation, price and volume data – we will see integration of brand new forms of analyses and strategies. And this will bring a new era of financial trading. Final Words and summary! It’s all exciting and frightening at the same time. Because with AI integration, we will see yet another shift in the algorithms and it’ll bring a new future for trading. Only those who learn to adapt and evolve – will make it… Let’s sum up all the AI elements that will we mentioned here. #1: AI Trading Bots #2: AI will alert more markets into our watch lists #3: Real-time risk management #4: Algorithmic automatic trading #5: Sentiment Analysis: Read the market’s mood #6. Freeing humans from the grind #7: Automation: Back and forward testing #8. Pre-emptive fraud detectors #9: Customizable AI trading assistants #10: The rise of quantitative trading #11: Real-Time chart pattern identification #12: Past chart patterns predictive analyses #13: Personalized and customised trading strategies #14: Integration with other data sources
TVC:SA40Education
by Timonrosso
12 Most Common Trading Myths - BUSTEDAs long as people lose money with trading (and that is like 98%) of the lot. They will preach the bad word. And this will lead to rumour which will create false beliefs - I.E Myths... Well I've been trading for two decades and I'm going to put these myths to bed. Let's go! Myth 1: It’s a Get-Rich-Quick Scheme Trading has long been shrouded in the myth of transforming anyone into an overnight millionaire. But it’s an illusion. It’s what drives newbies and amateurs into the trading world. And then a few months later, when they realise what it actually takes to grow an account. They move to the next “best” thing. Trading is a forever life-style that requires ongoing discipline and patience through strategic planning, knowledge and presteen execution. And not to mention, it also involves periods of losses. There are no shortcuts to wealth in trading, it’s a journey, not a sprint! Myth 2: It’s Just High-Stakes Gambling Trading is a form of gambling. But strategic gambling. It’s not like pulling the slots machine and having a chance of being right or wrong. Or flipping a coin. No, trading has an element of risk and reward control. And it is based on nothing more than probabilities and comprehensive understanding of market trends, money management and analytical skills. Unlike gambling, which is based largely on luck. You have an element of control with the outcome. That’s through trading journals, back and forward testing and making stringent decisions. Myth 3: More Risk, More Reward Yes! If you risk more you’ll gain more. But when you risk more, you can also LOSE way more. With trading derivatives and leverage, you’re exposed to more than what you put in. Sometimes 10 times, sometimes 50 and other times 500. So, this alone should tell you how dangerous trading is. When your portfolio goes to 0 – due to high risk – That’s it. And many traders full port their accounts. And majority become the 98% losing stat of trading. Stick to low risk, low return. Keep consistent and the return will start adding up and you’ll reap the rewards in time. Myth 4: Only the Rich Can Trade The myth that trading is a club exclusive to the wealthy is just that, a myth. Decades a go, you would have needed thousands to start trading and investing. But no longer is that the case. Some brokerages don’t even have a minimum with trading. You can start off with a demo or practice account. As long as the competition and innovation picks up, trading will be cheaper, faster and more accessible. Myth 5: Trading is Only About Buy low – sell high Although this seems like a logical strategy. It’s not the only way to profit. Trading techniques like short selling allow traders to profit from falling markets. Not only can you buy low and sell high. You can also sell high and buy low. Myth 6: More Trades Equal More Profit Trading isn’t a game of ping pong. You don’t just play as many times as you can in a day, to profit. First, Overtrading can lead to rushed decisions, increased transaction costs, and significant stress. Patience often plays a crucial role in a trader’s success. And second, it all depends on the market environments. If the market is not trending, you can go long or short and still lose every bet. Rember you still have to let the market move up or down a bit to make up for the trading costs! And so you’re already at a disadvantage when you take a trade. Sometimes the best move is to sit on your hands. Neutral is also a position and a powerful position during certain periods. Myth 7: Successful Trading Means Winning Every Trade Even the most successful traders get knocked down by losses. It’s the nature of the trading game. What matters is the net outcome over a period of time. Your job is to make sure the losses are small and the gains are bigger. That way, even with a 50% win rate you’ll win and the profits will outweigh the losses in the long run. Myth 8: Complicated Strategies Yield Better Results You’ve heard of analysis paralysis right? When you literally plant so many indicators on your chart it looks like a Jackson Pollocks Christmas Tree painting. Complication does not equate to success. You’ll learn that: Too many indicators will conflict with each other. You’ll struggle to back test a system. You’ll struggle to find high probability trades. You’re making it more complex than it needs to be. And most important… You need to learn to KISS (Keep It Simple Stupid). Often, the best trading strategies are the simplest. What’s essential is understanding your strategy thoroughly and executing it consistently. Myth 9: You Need to Monitor the Market 24/7 Thanks to stop-loss orders and other automated tools, you do not need to be glued to your screens all day. The most important attention you’ll need to apply is trading layout, setup and execution. Once you’re done and the trading levels are in place. Go live, do something else. Don’t be a nerd. Enjoy life. Trading requires attention, indeed, but a healthy balance is crucial to maintain clear-headed decisions. Myth 10: Markets Are Always Rational Markets, unfortunately, aren’t always rational. Just like you learn in school. There is ideal and real ways of the world. Sometimes, the market is one clusterfreak of confusion. Correlations don’t work according to the book. Trends don’t match up the micro and macro analyses of companies. Good news doesn’t mean strong uptrends. Markets are run by many, many, many other factors. They can be swayed by demand, supply, algorithms, Smart Money, greed, panic, emotion, rumor, and corruption and manipulation. This will lead to price distortions. There is a famous quote attributed to Great Depression-era economist John Maynard Keynes – “Markets can remain irrational longer than you can remain solvent”. Myth 11: Brokers Want You to Lose Money Yes there are a ton of brokers who make money when you lose. But reputable, credible and top regulated brokers – do NOT want you to lose. They make their money from brokerages, spread and from trading volumes. They want you to succeed and grow. Because if you blow your account, they lose a client. Hence, when brokers approach me I always tell them the importance of education, guidance and helping them SUCCEED. Myth 12: Once a Successful Trader, Always a Successful Trader Market conditions, strategies, and personal circumstances change. If you want to be a successful trader and remain one it requires constant learning, adaptation, and diligent risk management. This includes me! Despite how long I’ve been in the markets, I treat each day independently. I follow my system, risk management rules. I look for future opportunities and prospects to improve my trading, platform, journals and even testing. This is forever an alive game that requires action. We are always learning, growing, improving and adapting. Like they say, past success doesn’t guarantee future profits. Let’s sum up the 12 common Trading Myths: Myth 1: It’s a Get-Rich-Quick Scheme Myth 2: It’s Just High-Stakes Gambling Myth 3: More Risk, More Reward Myth 4: Only the Rich Can Trade Myth 5: Trading is Only About Buy low – sell high Myth 6: More Trades Equal More Profit Myth 7: Successful Trading Means Winning Every Trade Myth 8: Complicated Strategies Yield Better Results Myth 9: You Need to Monitor the Market 24/7 Myth 10: Markets Are Always Rational Myth 11: Brokers Want You to Lose Money Myth 12: Once a Successful Trader, Always a Successful Trader Can you think of anymore?
TVC:SA40Education
by Timonrosso
5 Ways to Improve your Trading - WORTH THE READYou’re going to need a cup of coffee or two for this one. It is my longest trading article I’ve ever written. I’ve written it because I care about you and I want you to succeed. So, please take the time to read this and save it for the future. Or if you don't have the time then at least go to the bottom to see the highlights of the article... Enjoy and trade well! Part 1 – EXPERTISE Choose your markets wisely. There are so many different markets to choose from, that you need to upper your knowledge. Whether it’s understanding market, assets, securities and instruments – you need to have basic knowledge. Here are some to consider… #1: New ETFs (Exchange Traded Funds) Exchange-traded funds (ETFs) are a popular way to invest in a diverse range of assets. If you want to improve your expertise in ETF trading, stay informed about new trends and opportunities in the market. Keep up to date with the latest developments in the ETF industry, such as new ETFs being introduced, and be aware of market trends and movements that may affect your trades. #2: New AI Tech Companies and Technology Artificial intelligence (AI) technology is revolutionizing many industries, including finance. To stay ahead of the game in financial trading, be sure to keep up to date with new AI tech companies and technologies. See what Google, Open AI (ChatGPT, Dallee), Apple and Meta are doing. Even some crypto AI companies. Familiarize yourself with the latest innovations in the field, and consider investing in companies that are developing or utilizing AI technology. #3: Electric Vehicles Electric vehicles are an emerging trend in the automotive industry. Even in Greece and Europe, we are seeing more Teslas on the road and electric garage stations. And they are expected to have a significant impact on the global economy, environment and with the automotive sectors. Stay up to date with the latest news and developments in the electric vehicle market, and be aware of how it may affect your trading strategies. #4: Space Tourism Space tourism is a new and exciting industry that is attracting significant interest from investors. Keep an eye on the latest developments in the space tourism market, including new companies (SpaceX, Virgin Galactic and even Amazon technologies. #5: Metaverse The metaverse is a virtual world that is becoming increasingly popular, and it is expected to have a significant impact on the way we live and work. They are here to stay, improve and evolve. From virtual reality, augmented reality and a mixture of both. Get yourself a Quest headset (or wait for the Quest 3) and see the new opportunities in the space. Don’t get left behind.There are many other areas of expertise of industries that you should be aware of. Just do a bit more research and incorporate them into your trading and investing lives. Part 2 – TIME Time is all we have. It’s also something you can’t get back but it’s something you can utilise and take advantage of. With trading, you need to use your time wisely, In this part we will talk about how you can improve on this aspect. #1: Be Punctual One of the most important aspects of successful financial trading is being punctual. Be sure to arrive at your trading desk or platform on time. Be ready to take action when the markets open. Be prepared for when trading opportunities align and when they are ready to execute. Don’t miss these opportunities, because it just takes ONE big one to take your portfolio out of your drawdown and in the green. #2: Don’t Miss a Day Missing a day of trading could lead to missed opportunities and lost profits. Be sure to stick to your trading schedule and avoid missing any trading days. And if you miss a day, make up for it the next day. Spend extra time on analyses, execution and even during your evaluations and tracking of your portfolio. #3: Set a Reminder To help you stay on track with your trading schedule, set a reminder on your phone or computer. Even better. Set an alarm for when you know you need to trade. Time slips by so quickly and we can get distracted in the day. How many times have you forgotten to have lunch, drink water and miss your favourite TV show? Use your timer and set reminders with trading. This will help you to stay focused and ensure that you don’t miss any important trading opportunities. #4: Sticky Notes Sticky notes can be a helpful tool for staying organized and focused when trading. Use sticky notes to remind yourself of important dates, deadlines, trading setups, ideas and trading strategies. Also use sticky notes to maybe have a plan on what you need to do as a trader that day. They help and are great to bring to your notice with the actions you got to take. Part 3 – ACTION Without action, it stays a dream. Without action, it stays an idea. Without action, it stays a what if… You need to DO instead of SAY. You need to ACT. That’s what this is all about with improving another area with your trading. #1: Place Your Trading Levels Don’t just look at what is lining up. Write them down on sticky notes. Have them all drawn up on your charting platform. And make sure EVERY detail, trading level and reason is somewhere you can see. Then you have no other choice but to set your trading levels carefully. Or if you need to adjust them as necessary to reflect changing market conditions and lock in gains where you can. #2: Prepare Your Trading Setups You need to prepare your trading setups carefully. This will help you to stay organized and focused when trading. Set up your trading platform, charts, and other tools before you start trading to ensure that you are ready to take action when the markets open and eventually hit your desired levels to action. #3: JUST TAKE THE TRADE High probability setup – tick. Trading levels in place – tick Risk analyses and volume analyses all according to plan – tick As I like to say JTTT – Just Take the Trade! Taking action is the most important part of successful financial trading. Don’t be afraid to take a trade when the opportunity arises, but be sure to do so with caution and careful consideration of the risks involved. Part 4 – VISION AND GOALS We all have our desired goals and vision in place. Or else why would we do it? Right? With trading, we have a game plan. And when we have a solid plan with a proven track record, we can almost see into the future of the outcome. But you need to write them down. You need to have realistic targets and goals. You need to incorporate the downside and drawdowns as well. And you need to remember, to achieve these – you have to take additional steps such as… #1: Deposit more money One way to improve your financial trading results is by depositing more money into your trading account However, this does not mean that you should invest all your savings. It is essential to balance your investments and diversify your portfolio to minimize risk. Maybe you want to deposit 5% per month. Or maybe you want to just deposit one fixed lump sum, to start growing your account. Be sure to evaluate your financial situation and set realistic investment goals that align with your financial capabilities. #2:Be responsible Being responsible is crucial in financial trading. You need to be disciplined in your trading activities and avoid making impulsive decisions. Stick to your strategy and stay true to your long-term goals. You should also ensure that you have a clear understanding of the risks involved in financial trading. #3: Eye on the sexy prize Short-term gains can be tempting – I get it. We are seeing the future before we are dealing with the present. And this is dangerous in the short term. It might feel slow, unprogressively and not as amazing as you thought after a year. But with compounding, eventually you will feel the success, triumph and true potential of trading power. But it is essential to focus on long-term growth and wealth potential. Be prepared to hold onto your investments for an extended period, even if there are temporary fluctuations in the market. #4: Focus on growth and wealth potential It is crucial to have a clear understanding of your long-term goals and make informed decisions based on them. If you want to grow your wealth, you need to be patient and take calculated risks. Diversify your portfolio and invest in assets that have long-term growth potential can help you achieve your financial goals. Part 5 – ATTITUDE Now it’s up to you. You have to face the elements of trading. The winners. The losers. The drawdowns. The insane winning streaks. The slowdowns. The sideways going nowhere. This all can mess with your emotions. Hence they say don’t ride the emotional rollercoaster. So let’s fix your attitude shall we? #1: Biggest mental enemy is – YOU Your mindset plays a significant role in your trading success. The biggest mental enemy in financial trading is you. It is easy to get caught up in emotions such as fear and greed. This can lead you to taking impulsive and revengeful trades. This can lead to you giving up during the bad or slow times. To overcome this, you need to have a clear understanding of your emotions and how they can affect your trading decisions. #2: Stop celebrating winners Avoid celebrating them excessively. Great you won some money! But what about the next trade? What about next month. What about next year. You are only as good as your last trade. And when you banked a winner, you need to focus on the next trade and let by-gones be by-gones. Celebrating your wins can lead to overconfidence, which can be detrimental to your trading success. Keep level headed at all times. Especially during successful trades. #3: Stop crying over losers Similarly, you should not dwell on your losses. Losses are part of the learning process. They can help you identify areas of improvement in your trading strategy. Instead of crying over losses, focus on learning from them and making informed decisions based on your trading plan. Also, go back to your track record. Go look at the biggest drawdowns you had and how you overcame them when the market went into a better environment. That will stop you crying over losing a bit of money. Besides, losing money is not a loss. It’s simply a cost of trading. Think of it like that and you will never feel another loser again. #4: Be long term oriented Financial trading is a long-term game. To be successful, you need to have a long-term mindset and a strategy that aligns with your long-term goals. I’ve told you many times. It’s not about the one trade but the hundreds of trades later. Just keep to your discipline, follow the plan and strategy and you’ll see it pay off in the long run. #4: Stop thinking of instant successes Financial trading is not a get-rich-quick scheme. You cannot expect instant success or overnight riches. Instead, you need to be long-term oriented and take a strategic approach to your investments. It would help if you were patient and persistent, even when faced with setbacks or losses. 5 Areas to Improve! We’ve come to the end of the 5 part – Areas you need to improve with trading. What a pleasure it’s been. I’ll sup up everything below so you can have a quick reminder what you need to work on. EXPERTISE #1: New ETFs (Exchange Traded Funds) #2: New AI Tech Companies and Technology #3: Electric Vehicles #4: Space Tourism #5: Metaverse TIME #1: Be Punctual #2: Don’t Miss a Day #3: Set a Reminder #4: Sticky Notes ACTION #1: Place Your Trading Levels #2: Prepare Your Trading Setups #3: JUST TAKE THE TRADE VISION AND GOALS #1: Deposit more money #2: Be responsible #3: Eye on the sexy prize #4: Focus on growth and wealth potential ATTITUDE #1: Biggest mental enemy is – YOU #2: Stop celebrating winners #3: Stop crying over losers #4: Be long term oriented #5: Stop thinking of instant successes If you found this helpful let me know in the comments. Remember to stay disciplined, be patient, and keep your eyes on the long-term prize. J.T.T.T
TVC:SA40Education
by Timonrosso
South Africa Top forty is starting next leg to Bull RunThe South African top 40 index is the latest global index to have been spotted trying to begin a major up move in the next leg of the bull phase. The Index was in a corrective structure all of 2023 until the very recent Nov low. This entire corrective structure according to the Elliot wave theory was what we simply call a "wave 2 correction". The first leg of this phase (wave 1 according to Elliot wave model) occurred in Sep. 2022 and went on till Jan. 2023. The next projected target for wave 3 for this index should be the 80-85K(ZAR) mark(an up move of approx. 25% from current levels.) Note*- This post is for educational purpose only
TVC:SA40Long
by neeraj_2_sharma
2
Top 10 AI Stocks to Trade and add to Trading View WatchlistAI is definitely one of the key words for the century. And yes, I believe these are great companies to add to our watchlist to trade. ANd Trading View has all of the companies to analyse their movements. . We could even see AI companies being some of the safe-haven stocks to invest in 2024… Here are my top 10 companies that are incorporating AI into their businesses and ones I'm trading lately. 1. Microsoft (MSFT): Develops, licenses, and supports software, services, devices, and solutions. 2. Advanced Micro Devices (AMD): Designs and sells computer processors and related technologies. 3. NVIDIA (NVDA): It designs graphics processing units (GPUs) for gaming and professional markets. 4. Palo Alto Networks (PANW): Offers cybersecurity solutions and firewall technology. 5. Customer Relationship Management (CRM): This is a strategy that companies use to manage interactions with customers and potential customers. 6. Meta Platforms - formerly Facebook – (META): Operates social media and virtual reality platforms (e.g., Facebook, Instagram, WhatsApp, Oculus) Note: Oculus 3 Headset is coming out next year and it’s going to include and introduce Augmented Reality to the world. 7. Palantir Technologies (PLTR): Develops data analysis software and provides data integration and analytics platforms. 8. Adobe Inc. (ADBE): Creates software products for content creation, multimedia, and marketing. 9. Apple Inc. (AAPL): Designs and markets consumer electronics, computer software, Virtual Reality and online services. 10. Micron Technology (MU): Micron Tech. inc. designs, develops, manufactures, and sells memory and storage products worldwide I have an entire watchlist just saying AI STOCKS... There isn't an Index yet, so I'm watching them and trading accordingly.
TVC:SA40Education
by Timonrosso
3 Risk Actions to take in a Sideways Market “Do you have any risk or money management rules you take, during a Sideways Market or Twilight phase? I want to be more cautious with my trading.” These actions, no doubt, will help us protect and preserve our trading accounts. Action #1: Drop your risk even more If you’re feeling uneasy with the markets, as many have – drop your risk. You can even drop your risk to a range of 0.5% to 1% per trade, as opposed to the usual 2%. This will keep you in the game, so you don’t miss out on any moves. Action #2: Hegde your portfolios I consistently employ hedging strategies, both Longs and Shorts. For example, you can go long stocks and short gold as a hedge. Or you can go long Bitcoin and short Ethereum as a hedge. As long as your losses are smaller than your winners, then your winners will outweigh. And this will help keep your portfolio in check. Action #3: Diversify The JSE ALSI 40 isn’t the be all and end all of trading. You need to learn to diversify into other markets. I’m talking about Forex like EUR/USD, Indices, and even intraday trades.
TVC:SA40Education
by Timonrosso
History repeating with the Bear Market Rally or not?Top 40 is once again testing our patience... THe price broke below the M Formation, just to go back up to test an important downtrend level. We've seen this before with the strong buying price action, before the crash. So will history repeat itself? We will only know after the next two or three days. The price needs to either break up and trick everyone. Or touch the downtrend and come back down. The strongest sign we have of downside is lagging indicators 200>21>7... That's the only thing that brings clarity to the markets...
JSE:J200Short
by Timonrosso
The Dead Cat Bounce on the JSE ALSI 40 & why trading is so hardYou know why bear markets are so hard to trade? Because when the market bounces up (just a little), some stocks fly up. ANd this results in stop losses getting hit, before the market comes back down. That's why we need to determine the volatility movement within the indices and stocks and WIDEN stop losses and take profits - to not be victim of these short term bear market rallies. It's probably one of the most difficult aspects to getting right... We clearly see the JSE ALSI is in the bear market with the diagonal resistance along with price below the 200MA... The best we can do is short markets BUT also go long and hedge a few markets just in case we have a relief rally to make up for the stop losses hit with the shorts... That's the way of trading well.
JSE:J200Short
by Timonrosso
How to Adapt to the Ever-Evolving Financial Markets – 4 WaysThe only constant with the financial markets is… Change The market is constantly changing in a way that it’s bringing: New demand New supply New volume and fresh changes in the complex algorithms. If you want to thrive you need to learn to learn to adapt, evolve and grow with the markets. I want to cover four elements to today’s topic. The Inevitability of Market Change Change is not only constant but inevitable in financial markets. There will always be new elements streaming into the markets from: Global and political events Micro and macro aspects Economic indicators Regulatory shifts, and Investor sentiment These elements are perpetually at work, shaping and reshaping the market. These catalysts can shift the trajectory of entire sectors, leading to volatile market movements. Influx of New Volume on Market Dynamics Every day, the market sees a deluge of new volume. There are new traders and investors constantly joining the financial markets world. And we are seeing an inflow of capital from retail traders, institutional investors, and high-frequency trading firms. The big institutions like Smart Money (banks, hedge funds, brokers etc…) are causing the big volatile moves in the market. The smaller guys – dumb money and retail traders – are also helping with liquidity in the markets. Every transaction is causing a shift in the market. No matter how small it’s the “Butterfly Effect of the financial market”. The Role of Algorithms in Market Evolution In the era of digital transformation, algorithms have become a pivotal part of the financial markets. Algorithmic trading or ‘algo-trading’ employs complex mathematical models to execute trades at lightning speed and frequency. I’m talking about Copy Trader, Robinhood, AI trading bots, EA Expert Advisors and pre-determined automatic mechanical trading methods. This practice is now an integral part of the trading landscape. And they will continue to have an influence in price action, and market patterns. Haven’t you noticed? In the 50s through to the early 2000’s. The markets trended on a more consistent basis. Any monkey could choose a list of good stocks and hold them until they were up 200% – 1000%. But nowadays with derivatives, algorithms, shorts and automatic execution – markets have never been more volatile and more difficult to ride the trends. Always Adapt to Thrive in Changing Markets It’s our job to learn to be more flexible and to adapt to these market conditions. As markets evolve, so must we evolve with them. We need to always: Apply new markets to our watchlists Look for better trading instruments Change the trading strategy to make it more conducive with the environments Always look for the next best broker, trading and charting platform Look for ways to reduce costs and maximise profits. I’ll end off with this. The market is constantly changing, adapting and evolving. We need to embrace the change and not see it as a threat. Have this mentality and you’ll always have the opportunities to improve, anticipate and grow as a trader.
TVC:SA40Education
by Timonrosso
1
Bear market rally before the crash? We stated that since the price broke below the 200MA, that we entered and have remained in a bear market. And during bear trends, the market tends to zig zag along the way with strong downside pushes... Right now, the price is heading up to retest the most recent resistance. This is normally, where traders and retail traders will buy in and believe the market is heading up. But this is where we need to be cautious with our decisions. Yes we will see upside in many stocks, but we mustn't think this is the start of the bull market UNTIL we see the price go above the 200MA... The target for now remains at 56,483
JSE:J200Short
by Timonrosso
What is a REIT and how do they work?A. Let’s start with the basics: REITs stands for 'Real Estate Investment Trusts'. These are essentially property companies that are listed on the stock market which you'll find pretty much most of them on TradingView. So how do they work? Step 1: An individual decides to invest in a REIT company. Step 2: The money is then collected into a large pool (like all trusts). Step 3: The pooled money is then invested into the property that the company either owns, operates or finances. Step 4: Over time the company starts to make revenue and profit. Step 5: The profits are then accounted and collected. Step 6: The profits are then distributed in parts to the initial investors who helped finance the company through a REIT. Sounds great in theory… But in reality, there is always a catch… And that catch is timing. The Big five SA Reits have lost over R100bn in value since 2018. The BIG five REITs are: 1. Growthpoint 2. Redefine 3. Resilient 4. Vukile and 5. Hyprop. Of course, this could be seen as an opportunity but there are several other factors we need to consider before deciding the best time to trade this type of asset. A trick will be to overlay the five companies on a chart. See how they move and operate in conjunction to each other. And then we can decide which are buys or sells. Apples with apples.
TVC:SA40Education
by Timonrosso
Has the Twilight Zone with the World Markets ended? -DOWN we go!If you've just been a position (swint trader) with shares this year. You'll know it's been bvery difficult and challening. We've seen world markets move in a sideways motion which I like to call the Twilight Zone. FTSE 100 - UK- DAX 30 - Germany CAC 40 - France ASX 200 - Australia It breaks down, it goes back up into the range. It breaks up and it goes back down into the range. The only semblance of hope right now is that the price has broken BELOW the range and has remained below the 200MA Blue LIne. This means, the markets are more likely to be and stay in the downtrend for the next couple of weeks and months. And we might need to look to short (sell) more than we go long and buy. The overall trend is down right now, but for how long? We as traders can only react and anticipate based on what we see in front of our eyes. It's all we can do really with strict money management principles to preserve and protect.
TVC:SA40Short
by Timonrosso
Why It Pays to be a Patient Trader – 10 PointsPatience, passion and persistence. The three Ps of what it takes to make it as a trader. We like to say 5% is action and 95% is waiting. And that’s why I’ve written a complete guide to being a patient trader. Let’s start… No Impulsive Decisions Impulsive decisions are the bane of any trader. The market is known to be volatile, jumpy, fickle and are prone to make sudden swings. These swings can cause panic, fear and can lead to really poor trading choices. If you have the patience to wait for your setup, the right market environment and for your trade to play out – you’ll stop the impulsive and emotional decisions. Wait for the right and conducive market conditions Many trading systems are designed to work optimally under certain market conditions. For trend, momentum, and breakout traders – we need to let the market move and continue to move in the directions. Patient traders will need to continue taking their trades, when the system lines up. And only when the environment is right, will they make money. That’s why you need to learn to risk little with the losses. And when the winners kick in, they’ll make up for the dips and will help your portfolio flourish eventually. Spot only the high and medium probability trades Don’t be a rash trader. When you jump with every opportunity you can. There are low, medium and high probability setups. Wait for only the high and medium probability trades. Skip the low probability trades that align or risk very little (0.5%). Only trade those that align with your system’s strength and exhibit strong, favourable signals. This will help boost your win rate and drop the chances of loss. Hold onto winners To grow your portfolio, you need to let your winners run. Let the great trades, run their course. Many traders, especially beginners, often exit winning trades too soon due to fear of a reversal. They also exit quickly as they don’t want to take the trade to turn into a loss. And as a result, they bank a measly gain. A patient trader understands that great profits are made when you ride the big trends. This will require you to resist the urge to close a winning position prematurely. Wait it out A trader must sometimes wait: Wait for a setup to come to fruition. Wait for the trade to play out. Wait for unfavourable trading periods to end. Emotional stability While you’re being patient. Cut out the emotions. That feeling of ants in your pants. Rather learn to maintain emotional stability, and avoid the emotional highs and lows. Your trading should not feel like an emotional rollercoaster. Just do your job and treat it as a job. Not as the lottery. Not as a gamble. Not as a be all and end all situation. Don’t let anything cloud your judgement that can lead you to trading bad. Master your trading strategy Just because you have a trading strategy and gameplan. Does not mean, you know how it works over the long haul. A patient trader takes time to master their trading strategy. Back, forward and real test the strategy carefully. Trade them on different markets. See how they work taking into account the costs (brokerages, daily interest charges and even spreads). Know how the game-plan works in all different situations and environments until you are consistent and have a proven and tested methodical execution. Avoid overtrading Patience helps traders avoid overtrading. This is a common pitfall where too many positions are taken. You have to stop revenge trading (to make up for losses). You have to stop over trading (to try make more gains in a day). Stick to high probability trades, a careful selection of markets and the best times to trade. Learn from mistakes The main time you’ll actually learn, adapt and grow as a trader – is through your mistakes. When you make a mistake, do not sweep it under the rug. Take the time to write them down, screenshot them and jot down a memo to yourself about these mistakes. When you learn from them, it will prevent you from making them again and you’ll even be able to refine your strategy to avoid them. Develop discipline into integration Patience cultivates discipline. That is trading well every single day or week. Once you adapt into a routine and you have the discipline to act accordingly. Then you will enter into a lifestyle integration. You won’t think twice. You won’t need anything to motivate you to trade. You will just trade well like you brush your teeth, sleep or eat everyday. Once you have integration, there’ll be no need for motivation. Summary Patience in trading is a trader’s virtue. It is an essential strategy for you, if you wish to attain long-term success in the financial markets. Here are the key points we mentioned in this complete patience guide. No Impulsive Decisions Wait for the right and conducive market conditions Spot only the high and medium probability trades Hold onto winners Wait it out Emotional stability Master your trading strategy Avoid overtrading Learn from mistakes Develop discipline into integration
TVC:SA40Education
by Timonrosso
Become a Trading Machine – 11 Ways!If you want to trade well and consistently. You have to be more mechanically orientated. I’ll be literally quick and brief. Saying “literally” was unnecessary and made it longer. Sorry. Here are the pointers: 1. Stay committed 2. Cultivate patience 3. Avoid herd mentality 4. Be long-term oriented 5. Stop crying over losers 6. Review your performance 7. Stop celebrating winners 8. Adapt to market conditions 9. Keep your emotions in check 10. Don’t think of quick success 11. Adapt and advance with technology Are there any ways you take to be a trading machine? Let me know!
TVC:SA40Education
by Timonrosso
Is the JSE ALSI forming a W Formation or is it darts to playIt's like throwing darts and guessing whether it's going up or down for the month... This is an intraday traders haven rather than a swing (position) traders environment... The best we can do is diversify and hedge different longs and shorts at the same time and risk a little... Only technical thing I can say is if the support holds and the price goes up, it could form a W Formation... This will be the only semblance of hope of upside to come. But we'll play it by ear as always.
JSE:J200Long
by Timonrosso
Most difficult trading environment since 2011I've been trading since 2003. And if you're a position (swing trader , medium term) trader, you'll know there comes a time where the markets flow in a difficult range... There are two types of markets when it comes to strategies. Favourable and Unfavourable. Right now, I don't mean to speak for everyone else, but I believe the markets are in an unfavourable territory for medium term traders. Initially, I was blaming the JSE ALSI 40 (South African) index. I blamed the Load Shedding (cutting of electricity) Incompetency of the government providing sufficient water and services I blamed us being downgraded to grey (which has pushed out Foreign direct investments). I blamed the low liquidity and volume and the blame game kept going on... But then I realised something even more problematic. This horrible market environment has not only been for the JSE ALSI 40... It's been for the ASX (Australia), CAC40 (France), DAX (Germany) and even UK 100 (FTSE 100)... And I'm sure there are a lot more stock markets that have had this tight and ongoing range... So, what market environment are we in at the moment. It's not going up so it's not the Mark-up phase It's not going down so it's not the Mark-down phase We can either call it Accumulation or Distribution, but it's been moving in a sideways range for obver a year. So clearly we are in a larger market environment, which is known as the capitulation stage. The volumes are low worldwide, the prices are erratic and volatile. Many traders and investors are holding tight onto their money and not even dabbling into these markets at the moment. How long will this last? Well in 2011, it lasted two years. And right now, we are not seeing any strong signs of change yet... So what do we do? Well I don't have the holy grail nor some incredible points. But I can share what I'm doing during these timultuous times... 1. I've reduced my risk to 0.5% to 1% per trade (Instead of 2%). 2. I'm always hedging with Longs and Shorts 3. I'm trading other markets (Forex, Indices and intraday trades). 4. The drawdown isn't bad so I haven't halted trading 5. I've come to terms that this is the new normal for the next year or too. Expect disppointment and you'll never be disappointed. You learn a thing from Marvel Movies now and then... What are you doing and can you relate to these difficult trading conditions right now? What are your thoughts on the matter?
JSE:J200Long
by Timonrosso
PUT TO BED: Trading VS GamblingIt’s a big debate that runs the financial market. Is trading gambling? Well I’m going to try put it to bed in just a few sentences. There are two types of gambling. Gambling by chance and total randomness like slot machines, lotteries, Bingo, Wheel of Fortune and flipping coins. And strategic gambling which allows you elements of control of coming out with a probabilistic chance of winning. I believe trading is a form of strategic gambling. Let’s talk about the similarities between certain strategic gambling games and see how we can learn from them with trading. Game #1: Trading and Poker: Skill, Strategy, and a Bit of Luck In poker, each player gets a unique hand of cards. To win, players must devise a strategy based on their understanding of the game, their observation of their opponents, and their willingness to take risks. Players can choose to play, bet or fold. The same principles apply to trading. Traders have their ‘hand’ in the form of markets to choose to trade. To yield profit, they must understand market trends, observe competitors’ behaviours, and manage risks. In poker, one needs to know when to fold and when to bet aggressively. In trading we have stop losses to get us out of the trade. We have take profits to bank our wins. We have volume choices of how much to buy or sell. And we have the choice to stay out completely. Poker also teaches the importance of emotional control and patience, which are crucial in trading, where emotional decisions can lead to significant losses. Game #2: Trading and Roulette: Understanding Probabilities Roulette is largely a game of chance where players bet on numbers, colours, or sets of numbers. You choose whether you want to bet on red, black, even, odd, specific numbers and so on… Although the outcomes are random, players can use probability to guide their decisions. In trading, while certain market movements can’t be predicted with absolute certainty, we rely heavily on technical, fundamental, statistical analysis and probabilities to make trading decisions. Trading, much like roulette, is where you need to diversify your positions and bets. But instead of placing chips on certain numbers, we place deposits (margins) in the hopes of a probable outcome. Game #3: Trading and Blackjack: Playing Against the Market (House) Blackjack involves strategic decisions, where players decide to ‘hit’ or ‘stand’ based on their current hand and the dealer’s visible card. The main goal is to try and get the cards we’re dealt to hit 21, be close to 21 or be closer to 21 than our opponent’s hand. Bet too high past 21 and you burn. In trading, technical analysis serves a similar purpose by predicting future market movements based on past data. Bet too high with trading and you stand to lose a lot more. And if you can’t count with Black Jack, then you have a much bigger disadvantage to the game. If you don’t have strong and stringent money management principles, then good luck trying to maintain, preserve and protect your portfolio. Game #4: Trading and Horse Racing: Know your horse! Horse racing involves choosing the right horse based on its: Form Characteristics Conditions of the race Weather on the day and other factors. This is like trading. You need to understand each market you trade. It has its own personality, form, movements, and style. You also need to know which market is conducive for your trading portfolio. And you need to choose the right stock or asset to trade based on its performance history, current market conditions, and other factors. In horse racing, experienced bettors also diversify their bets across multiple races and horses to spread risk. With trading we diversify our portfolios over different accounts, markets, sectors, instruments and types. Game #5: Trading and Sports Betting: Predictive Analysis and Risk Sports betting also works similar to trading. You need to know how to analyse a team’s or player’s form, weather conditions, home and away records, and more to predict an outcome. Whether it’s football, rugby or cricket – you need to know your team players, strategy and likelihood of who is to win what game. Traders also conduct similar analyses, studying companies’ financial health, market trends, and technical indicators to predict market movements. And as always, there are both risks that need to be calculated and managed for high probability successful outcomes. So next time when someone tells you trading is just gambling. You tell them, they are right but it’s strategic gambling rather than gambling by chance.
TVC:SA40Education
by Timonrosso