Category: Trading tips

Why am I optimistic about the US stock market?

Posted on by Stan

Hi there!

Are you negative about the perspectives of the US stock market? Well, that’s easy to be pessimistic in the context of massive bearish sell-offs, which we had seen recently.

But what about now? If you ask me, what I do, I will tell you that I hold several stocks, thus, having skin in the game. And below, I will explain to you why I consider rebound of stock indices highly probable, which means that we may see that soon.

First, we see that we have the decreasing volume as the market goes down. Take a look at QQQ (Nasdaq ETF), and you will see that most recent bearish swings were accompanied with the decreased volume. Usually, that means insufficient participation of the long-timeframe sellers in the process. And, guess what? It is a sign of rather a range-bound market conditions than bearish ones.

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Will Volatility Come Back In 2018?

Posted on by Stan

Hello there!

Stan here. First of all, I wish you a Happy New Year!

Have you already planned New Year resolutions for 2018?  If no, I’d advice you to add these to your list (of course, it’s a trader’s blog, so they are all about trading):

 

  • Learn to trade in the low volatile environment;
  • Master a mean-reversion strategy;
  • Invest a certain time and money in trading cryptos.

 

The previous year was quite challenging for many traders since volatility for most liquid markets were declining. Well, not for cryptocurrencies, of course, which are the wholly different story. A one picture is worth thousand words, so take a look at the collage below:

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How To Prepare For The Trading Day

Posted on by Stan

Preparation for the trading day is one of the essential parts of decision-making process. You can’t get prepared for everything, but those who have done their homework, have better odds of success.

Trading is an art of managing risks and gauging probabilities. “Art” is a key word here. As markets are not random, we can’t really use probability theory to calculate the odds. Markets are driven by fear, greed, rumors, expectations and other elusive factors, which are difficult to measure.

It is an “art” unless you have sophisticated pattern recognition algorithm based on machine learning. We bet you don’t have it otherwise you wouldn’t read this article now. Time will pass by until you master this art and would be able to read the market like an open book. Before that time, it’s better to follow a step-by-step plan, which helps you recognize opportunity as soon as it appears.

This article is dedicated to “trader’s checklist” – preparation plan, which you can follow before your trading day starts. You can use this template or develop your own one. Enjoy the read!

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