How do you balance risk and opportunity as a day trader?
We strive for profits, but the truth is we are risk managers first. Our job as traders, is to identify acceptable risk, in exchange for profit potential. The question in your mind should be simple; “Do I believe there is a better chance of my stop loss or profit target being hit?”
If you can answer with conviction, you believe in your trading edge. You believe you can identify a probability, this is good, this should be your first goal. In exchange for this answer, we determine if the risk is worth the potential reward.
Results driven traders do not have this focus, they believe each trade should earn money. This is not only foolish, but impossible. Your attention, your focus should be on probabilities, which means results over time.
When you understand this, and then believe it, your trading will transform overnight.
Stock Market Today: Map of the S&P 500
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The $SPY found technical support at the psychological $200 level. Gap fill profit target on a move higher is $205.14.
(click the chart for a full view)
- Financials weak the last five weeks. Let’s see if the FOMC gives them life tomorrow.
- Retail no bounce for the holidays.
Technical Analysis | Charts of Interest
SCTY is giving us textbook technical analysis off the lows. The stock is in our tracking journal for the last 2 weeks, (for members of our trading room) perfect technical analysis shows it trade above the 20 ema, trade and pause at the 50 sma.
Price action gives us green candles showing institutional sponsorship, 5 weeks of buying, leading to a solid trend day. Should be on your radar,
(click the chart for a full view)
Crude Oil Prices Rally 12-15-15 | Stocks to Trade
> 20sma | positive week | closed 2% higher from the open: CSIQ, SCTY
<20sma, negative last 5 days and closed 2% lower from the open: thc, gpro, cyh, dvn, etp, pbf, wdc, car, apc, hfc, bx, mpc, vmw, ben, nbl, mos, tol, aig, akam, bbby
Bullish Ideas ATR/Volume/Price: ADBE, DLTR, HD, MCD, QUNR
Bearish Ideas ATR/Volume/Price: thc, dvn, etp, wdc, apc, hfc, rrc, mpc, uri, lvs, vrtx, akam, qcom, cmi, unp, utx, pru, gme, cat,
Weak Stock Weak Close: thc, cyh, dvn, etp, clr, grub, wdc, car, apc, hfc, mpc, vmw, wmb, lng
Strong Stock Weak Close: ANF
Weak Stock Strong Close: lulu, do, mbly, cop, eog, abbv, xom, oke, apa, bhi
Strong Stock Strong Close:
20 day Breakdown: gpro, aig, sbux, etp, apc, rrc, dvn, bx, mpc, twx, ben, gs, len, tol
20 Day Breakout: MAT, TSL
2x Normal Volume: KMI, GPRO, NWL, BHI, ETP, APC, RRC, DVN, BX, CLR, BEN, AR
Watch List Longs: HD, MCD, JNJ, INTC, MSFT, ADBE, DAL
Watch List Short: met, hal, wfc, all, adm, axp, adm, hon, akam, lvs, qcom, m, taol, csco, c,
Inside days: jpm, dis, csx, wfm, ctsh, hd, atvi, vrx, kss, ma, adbe, ace, bidu, mbly, ua, altr, hcn
U.S. oil rises, reversing course after nearing 11-year lows
U.S. crude rose nearly 2 percent Monday, recovering slightly after moving within a hair of 11-year lows, but analysts and traders said it is still too early to declare the market has reached its bottom.
Both U.S. and global benchmark Brent crude have been tumbling downward since an OPEC meeting Dec. 4 at which the oil-producing countries removed their production ceiling, exacerbating global crude oversupply. Monday’s close marked the first significant rebound since the meeting.
Early in the day, both Brent and U.S. crude futures fell by as much as 4 percent to their lowest levels since the start of the 2008 financial crisis, before turning around midday in the United States.
Continue reading on reuters.com