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---===Market Note===---
After falling in and out of yesterday's close, US stock indices slid around .6X% at the late session due to Bernanke's statement that the will be no QE3 just yet, but the fed will maintain stimulus. Other notes:
1. 0 - .25% will be maintained as the " extended period" clause remains
2. Economy growth forecast lowered to 2.7% - 2.9% down from April's 3.1% - 3.3%
3. Unemployment forecasts raised to 8.6% to 8.9% from 8.4% - 8.7%
4. Economic slowdown is temporary
5. Greece debt problem does not impact US banks that big as exposure is minimal.
On the commodities front, G20 (Sarkozy the Frenchie) is calling for more regulation and supervision in commodity markets to reign in on speculation, especially on food prices. I not quite sure how this will affect precious metals though...
Nice reading [b]The Principles of Successful Trading [/b] http://stocktradersnotebook.blogspot.com/2010/02/principles-of-successful-trading.html
- [b]Don’t Try to Predict the Future [/b]
NO ONE KNOWS WHERE THE MARKET IS GOING, NO ONE KNOWS WHEN THE MARKET WILL MOVE
For complete reading... http://stocktradersnotebook.blogspot.com/2010/02/principles-of-successful-trading.html
iPunter ( Date: 22-Jun-2011 09:26) Posted:
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Thank you sifu, for this wonderful guide. newbies must print this out.
The Principles of Successful Trading
- Don’t Try to Predict the Future
NO ONE KNOWS WHERE THE MARKET IS GOING, NO ONE KNOWS WHEN THE MARKET WILL MOVE
- Know that Market Experts aren’t Magicians
THEY DON’T PROFIT FROM THEIR PREDICTIONS, THEY HAVE LEARNED TRADING DISCIPLINE, THEY PROFIT FROM SOUND CASH MANAGEMENT & RISK CONTROL, and THEY DON’T HAVE SUPERIOR PERFORMANCE NUMBERS
- Be In Harmony with the Market
DON’T FIGHT THE MARKET, LET THE MARKET TELL YOU WHAT TO DO AND WHEN, and always remember THE MARKET GIVES AND THE MARKET TAKES AWAY
- Have a Healthy Time Horizon
TRADE FOR PROFITS OVER TIME and GIVE YOUR TRADING STRATEGY ENOUGH TIME TO WORK
- Understand the Psychological Keys of Trading
ACCEPT LOSSES AS A COST OF DOING BUSINESS
- Don’t Trade for the Money
SUCCESSFUL PEOPLE DON’T WORK FOR THE MONEY, instead they LOVE TRADING FOR ITS OWN SAKE
Nice reading The Principles of Successful Trading
- Don’t Try to Predict the Future
NO ONE KNOWS WHERE THE MARKET IS GOING, NO ONE KNOWS WHEN THE MARKET WILL MOVE
- Know that Market Experts aren’t Magicians
THEY DON’T PROFIT FROM THEIR PREDICTIONS, THEY HAVE LEARNED TRADING DISCIPLINE, THEY PROFIT FROM SOUND CASH MANAGEMENT & RISK CONTROL, and THEY DON’T HAVE SUPERIOR PERFORMANCE NUMBERS
- Be In Harmony with the Market
DON’T FIGHT THE MARKET, LET THE MARKET TELL YOU WHAT TO DO AND WHEN, and always remember THE MARKET GIVES AND THE MARKET TAKES AWAY
- Have a Healthy Time Horizon
TRADE FOR PROFITS OVER TIME and GIVE YOUR TRADING STRATEGY ENOUGH TIME TO WORK
- Understand the Psychological Keys of Trading
ACCEPT LOSSES AS A COST OF DOING BUSINESS
- Don’t Trade for the Money
SUCCESSFUL PEOPLE DON’T WORK FOR THE MONEY, instead they LOVE TRADING FOR ITS OWN SAKE
---===Market Note===---
US and Europe indices rebound on news of breakthrough in Greek bailout. Though no firm plans reveal over the weekend...
STI looks to rebound today as Asia indices are up. HK Finance chief warns on high property indices.
g'morning guys... :wink:
Check out this Checklist of when to buy or sell stocks and John Murphy's Laws of Technical Trading at http://stocktradersnotebook.blogspot.com/
Yes, I agree with that! Unhealthy SGX market mechanism in process, I suppose!
supremo ( Date: 16-Jun-2011 09:33) Posted:
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---===Market Note===---
The Dow got a jolt of life last session as jobless claims dropped 16,000 to 414,000 last week. New home start-up up by 3.5%, a sign of a healthy home market, which is already said to be in a double dip recession a few ago. All but the NASDAQ closed in the green.
Be watchful of any Greek debt news. Debt swaps indicated that the probability of default is around 81% ~bloomberg. Some analyst are calling the current situation as " Lehmanesque" or Europe's Lehman.
Caveat
Anyway, have a nice Friday today! Trade wisely and good luck!
Check out this Checklist of when to buy or sell stocks and John Murphy's Laws of Technical Trading
For now, the market, in general, moves by FEAR... but mostly, the one which go in and out of the market are the traders, in my opinion.
From your post, it seems general market price movement scenario is merely dominant by effect of traders, how about Investors sentiment movements? Is it none or negligible effect to the general market price movement consideration?
supremo ( Date: 16-Jun-2011 08:53) Posted:
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With the -178 point decline of the DOW today, it is no-brainer that STI will dip as early as the opening and sustain a negative tone throughout the session.
Two scenarios IMO that may sustain the negative tone,
1. Traders who were not able to sell yesterday may race against each other to sell at the opening locking any remaining paper profits. This will give pressure at the opening prompting opening prices to gap down and continue to head lower for a span of 10 to 15 minutes.
2. Traders who were not able to take profits yesterday will wait for the panic to subside and sell at the rebound .
Either way, for sure selling pressure will reign in the market today.
What to do ?
There are still an opportunities in a panicky market as well as in euphoric market. It just depends on your trading discipline and market perspective.
Check out this Checklist of when to buy or sell stocks and John Murphy's Laws of Technical Trading