8 Tips to Be in the Right Trading Mindset Before the Market Opens:
- Remember, you are responsible for hitting the keys
- Come into the office with a clear head
- Trade smaller or not at all when dealing personal issues or family matters
- Trade smaller if you are making a big purchase, or are having issues at home
- Your head should be totally clear to trade well
- Accept failure -not every day will be great, don’t get too low
- Accept success -not every day will be great, don’t get too high
- Be modest, remain humble
Day Trading Psychology
The stock market is unrelenting when teaching humility. This effect is amplified for day traders. Here are 9 trading tips that reduce mistakes:
- Do not let a winner turn into a loser
- Set trailing stops on all trades. Scale out while stocks are going in your favor. Remember you cannot go broke taking a profit!
- Do not chase stocks (the programs will destroy you)
- If you miss a move, do not irrationally chase the stock up or down. There are plenty of opportunities in a day! Being patient is key.
- The bottom is 0, the lowest a stock can go.
- It can always get worse. Stocks do not always come back. Cut your losses when you cannot take it anymore. Learn from your mistakes. Do not blow your stops and then buy more to compensate
- Do not panic –the worst thing you can do is panic. Do not be a deer in headlights. If you are trading scared, it is because you have too many shares. No one play should be so bad that you cannot hit out and move on.
- Plan your trade, trade your plan
- Greed is the ultimate killer
Pete’s Day Trading Notes:
- The bulls can’t support the bid for more than an hour.
- The short-side is offering great risk-reward. If you are looking long, you are looking wrong.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
–> Top 25 Proprietary Trading Secrets
Stock Traders Continue Dumping Shares 2-11-16
According to one technician, stocks should continue to slide regardless of the Fed’s rhetoric.
Stocks tank after Yellen warning on economy
The pan-European STOXX 600 were off session lows, however remained 3.5 percent lower. All major bourses were off more than 2 percent.
Global Stocks Retreat Sharply After Fed Sparks Investor Concerns
Global stocks staged a sharp retreat Thursday as a cautious tone from the Federal Reserve, downbeat company news and a fresh fall in oil prices fueled anxiety about the health of the world economy.
The Stoxx Europe 600 fell as much as 3.9% to its lowest level since October 2014 as banking and mining shares tumbled.
Stock futures pointed to a 1.8% opening loss for the S&P 500. Changes in futures don’t necessarily reflect market moves after the opening bell.
Investors also shed stocks in Asia and piled into havens such as gold and government bonds, while the yen hit its highest level against the dollar since October 2014.
European stock markets, including the FTSE 100, have taken a fresh dive with financial and mining stocks leading the way.
The latest plunge in values reflects heightened concerns over the state of the world economy – with US Federal Reserve chair Janet Yellen on Wednesday admitting evidence of greater risks , despite the Fed raising US interest rates in December citing a rosy outlook.
Other central banks – including the European Central Bank and the Bank of Japan – have been cutting rates to try to stoke economic activity.
Sweden’s central bank on Thursday became the latest to adopt a negative interest rate, citing weak inflation and an increased threat from the world slowdown.
— WBP Online (@WBPOnline) February 11, 2016
Chart Reading the SPY ETF
SPY support in the $182 area is the line in the sand for the bulls. The stock market is set to open lower, right at that level. Stick to your stop-loss if you’re a bullish trader. Things could get ugly below that price.
(click the chart for a full view)
Technical Analysis | Charts of Interest
Tesla shares charge on bullish guidance [related video]
(click the chart for a full view)
Stocks to Trade 2-11-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: AEM, AKAM, MJN, NEM, SABR
Negative last 20 and 5 trading days | closed 2% lower from the open: scty,mur, dvn, wib, mon, do, hcp, cop, rlyp, kss, nov, ibm, gps, tsla, achw, mchp, bby, hfc, mos, m, fdx, tgt, cmi, c, jci, swks, qcom, pypl
Quarterly Order Flow:
Bullish Stocks to Trade: TSN, RTN, DUK, KORS, JNJ, MMM, PM, NEE, CHRW, FAST
Bearish Stocks to Trade: twx, dvn, viab, mon, hcp, dis, cop, ibm, tsla, mchp, hfc, dri, ba, jpm, gs, c, lly, psx, lrcx, wdc, aig, tso, pru, lnkd, acn, ccl, amgn, ea, lnc, amzn, rcl, cah, nflx, nke, atvi
20 Day Breakdown: CSCO, INTC, SCHW, GM, VIAB, HCP, LNKD, ZTS, QVCA, WRK, XL, DRI, DISCK
20 Day Breakout: AKAM, DF, NI, SABR
2x Normal Volume: SCTY, DIS, TWX, ITC, AKAM, VIAB, HCP, HBI, LNKD, TSLA, SABR, ADBE, ARMK, CBG, EXPE, SPLK
Inside days: t, vz, ko, ebay, tsla, dow, nvda, slb, hal, mo, apa, wdc, pep, vrx, pm, ftnt, hfc, ctrp, wynn, hcn, cf, yum, adsk, fslr, ir, mbly, adi, dltr, anf, vmw, tif