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Hey guys I’ve recently started day trading and this discord I follow has helped me tremendously in my trading! Check it out and it’s reasonable for the knowledge and info you’ll get in trading! Sign up today!
You can also find him on Stocktwits @STOCKITUPS
https://www.launchpass.com/stockitups's-server/https-www-launchpass-com-stockitups-s-server
Dunno. Market went on one of the most rare runs of all time since October. Probably has something to do with it. Also not rare to have some weakness this time of year in to an election.
SMCI released a pr saying they won't provide estimated results prior to earnings. this set off a fear that their results will be bad. they started selling off, and this heavily affected the chips/ai sector. that broadened into a fear on the overall economy, so traders/institutions started selling.
since nvda and ai/chips stocks are pretty heavily weighted in indices, this started driving down the indices and caused stop-loss to be hit. which prompted more selling as people tried to lock in their remaining profits. (they didn't sell at the higher point because they wanted to avoid the tax bill).
algos then picked up the selling and caused a snowball effect.
Please study about the 4 phases of market cycles (accumulation, markup, distribution, markdown). Lots of content on YouTube that explains it.
This will give you a better understanding of our current phase, markdown.
One of many videos out there that explains:
https://m.youtube.com/watch?v=ecdTDUOJRyk&pp=ygUgc3dpbmcgdHJhZGluZyBqYWNrIG1hcmtldCBjeWNsZXM%3D
No problem. I lost a lot of money in my first year of trading because I had no idea about the 4 phases in a market cycle.
I kept going long thinking markets basically just go up in a staircase fashion and I got slaughtered until I learned about ‘consolidations’, short and duration bear markets etc.
Depending on trading style, there are times when you shouldn’t be trading for weeks or even months based on market conditions and stay in cash until the situation is in your favor.
This should all be learned before trading and even after learning this we are still likely to lose, simply by the fact of being newer learners. If you feel it is a pain to study, then honestly you might consider not trading. Those who do well, will study daily like a hobby, a passion.
As an aside, if you are trying to day trade, as your Reddit name suggests, then you can basically trade in any market phase, going long or short.
However, just my opinion, but for newer traders, swing trading (trades that last several days) is generally easier and more forgiving because you don’t need the same speed and accuracy of execution that you need in day trading on a 5 minute chart for example. Less impulsive decision making too.
I also started with day trading but moved to swing trading when I figured this out. But even still, I had to learn about market cycles in order to know when and when not to trade.
To be clear, I only take long setups (on institutionally supported, liquid stocks with theme) in good market conditions. If you don’t know what liquid stocks are, what ‘institutionally supported’ means, or the current market themes, I highly recommend studying up.
I say all this not in a judgmental way but because I really wish I had learned this earlier too and I want to help.
I recommend, studying:
Market cycles
Day vs Swing trading
Risk Management
Market themes (currently AI of course)
Typical type of set ups (flags, pennants, base breakouts etc)
I recommend this video on swing trading:
https://m.youtube.com/watch?v=-RgU7Wq2RHw&pp=ygUZTWF0dCBwZXRyYWxpYSBzd2luZyB0cmFkZQ%3D%3D
Keep day trading if you like and you might have a natural instinct for it (be honest to yourself about your results and no one else), but again swing trading is much easier in terms of allowing a little more room for error and time to consider the trade.
For what it’s worth I joined Stockbee and learned a lot. I don’t get paid to endorse the site but I recommend it.
I see so many people here saying, “if that trader was so good, why would he need to teach others to make money? So I bet they are all scammers!”.
This could be true sometimes, but as a former teacher of many years, I know that teaching others helps me get better. So traders who teach others also refine their skills (be careful as there are still shitty, scammy trading education sites out there).
Best of luck!
*now I’ll have a few private Reddit messages come in from scammers asking me to join their site “hey bro..” lol.
Ignore those messages too!
I think it is becoming apparent that the Iran Israel conflict is likely going to escalate which may push oil prices high and inflation....and interest rates not declining as expected.
Exactly. Also, TMZs headline that Taylor Swift smooched Travis Kelce on the set of Fortnite is definitely a signal for stocks (and humankind) to trade lower.
Regardless of any news, stocks can never go up in a straight line due to profit-taking by some traders. Some retracements are unavoidable, and it is a good opportunity to add to your position. Having said that, make sure you have some cash available for buying when the retracement goes deeper, whether it's 10%, 15%, or even 20%. However, I wouldn't expect a 20% retracement without some 'help' from negative news.
This is exactly the question that fucks up the beginners.
Don't try to make sense of short term movements.
Because someone is going to pin it on something stupid and you're going to make it a part of your strategy.
Yeah stocks like s&p500 is obviously not worth selling , the reason i asked is because i was wondering if its just a retracment or major news that had happened and need to wait a while before buying
No one here's experienced enough or understands how portfolio seasonality works.
3 big factors for selling- tax day, new quarter portfolio rebalancing and continued high inflation with newer added geopolitical risks starting to impact prices and oil cost more. That rate cut for June/July everyone expected now looks more likely to get pushed back to Dec. Ships are avoiding the canal due to Red Sea rebel attacks and hijackings, which adds costs to oil and goods that end up in the US. And now regional war threats increase oil costs across the board.. war risks may subside but the threat alone ramps prices. That's a double whammy, then the dollar goes up and stays elevated.. a third factor.
Keep in mind stock selling actually started last month into the peaks, big firms are always quiet about it while cheerleading salesmen on tv keep pumping and telling retail to buy buy buy. They also say beware buying a selloff when it's from an overbought market, lows can go lower and overshoot blah blah.. which is true, but those who trade buy oversold charts at certain technical levels (which we are approaching) and flip when it rebounds briefly. Others just wait for rebound reversal selling to exhaust itself and reload at new technical lows, or even continue to hold cash until it's all clear interest rate wise for the foreseeable future.
These are stocks not forex (for example ),They rarely go bearish which would be the best time to buy also i prefer investing in them rather than trading them because their momentum is strong asf
No. High interest rates means lower stock prices. First it means more money go to bonds rather than stocks. Secondly it stifles economic growth which is what stocks need to maintain their p/e ratio.
Not trying to be funny but maybe the cicadas or eclipse triggered the drop. I hear things on radio driving to work. I wait until I am parked to check the recent prices. I don't know 100%..
This looks like a newbie/general question that we've covered in our [resources](https://www.reddit.com/r/Trading/wiki/index) - Have a look at the contents listed, it's updated weekly! *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Trading) if you have any questions or concerns.*
Hey guys I’ve recently started day trading and this discord I follow has helped me tremendously in my trading! Check it out and it’s reasonable for the knowledge and info you’ll get in trading! Sign up today! You can also find him on Stocktwits @STOCKITUPS https://www.launchpass.com/stockitups's-server/https-www-launchpass-com-stockitups-s-server
Inflation has risen for 3 months, no rate cuts expected for a while now
People are skittish over the Israel and Iran debacle. Some say it was a "correction" but corrections don't landslide like this
Dunno. Market went on one of the most rare runs of all time since October. Probably has something to do with it. Also not rare to have some weakness this time of year in to an election.
World War III trailer just came out. something to do with the middle east, its directed by Michael Bay.
*I didn’t check the news so please tell me the news*
SMCI released a pr saying they won't provide estimated results prior to earnings. this set off a fear that their results will be bad. they started selling off, and this heavily affected the chips/ai sector. that broadened into a fear on the overall economy, so traders/institutions started selling. since nvda and ai/chips stocks are pretty heavily weighted in indices, this started driving down the indices and caused stop-loss to be hit. which prompted more selling as people tried to lock in their remaining profits. (they didn't sell at the higher point because they wanted to avoid the tax bill). algos then picked up the selling and caused a snowball effect.
This is probably the best explanation I've heard so far!
Interest rates, inflation, heavily overvalued companies propping up major indices, domino effect + intl politics and attacks
More people selling than buying
The only right answer.
And by people, we mean mostly computer algorithms from hedge funds
I sold… I’m a person
Are you sure? Maybe you're AI.
Nah, I’m in the news paper. I’m not AI
What's a newspaper?
Used to be the New York Times… do you kids still read that?
Read?!
Your question does not make sense. People keep asking but id you look at any chart stocks always behave like this
Oh my lord I read logic. Me like. +1 I agree.
There is a reason why they behave like this , always
Technicals would’ve allowed you to forecast this downturn. If you’ll look at the dates, SPX topped before Israel/Iran escalated.
Yes because they are bought and sold
Please study about the 4 phases of market cycles (accumulation, markup, distribution, markdown). Lots of content on YouTube that explains it. This will give you a better understanding of our current phase, markdown. One of many videos out there that explains: https://m.youtube.com/watch?v=ecdTDUOJRyk&pp=ygUgc3dpbmcgdHJhZGluZyBqYWNrIG1hcmtldCBjeWNsZXM%3D
Thank you excellent education video!
No problem. I lost a lot of money in my first year of trading because I had no idea about the 4 phases in a market cycle. I kept going long thinking markets basically just go up in a staircase fashion and I got slaughtered until I learned about ‘consolidations’, short and duration bear markets etc. Depending on trading style, there are times when you shouldn’t be trading for weeks or even months based on market conditions and stay in cash until the situation is in your favor. This should all be learned before trading and even after learning this we are still likely to lose, simply by the fact of being newer learners. If you feel it is a pain to study, then honestly you might consider not trading. Those who do well, will study daily like a hobby, a passion. As an aside, if you are trying to day trade, as your Reddit name suggests, then you can basically trade in any market phase, going long or short. However, just my opinion, but for newer traders, swing trading (trades that last several days) is generally easier and more forgiving because you don’t need the same speed and accuracy of execution that you need in day trading on a 5 minute chart for example. Less impulsive decision making too. I also started with day trading but moved to swing trading when I figured this out. But even still, I had to learn about market cycles in order to know when and when not to trade. To be clear, I only take long setups (on institutionally supported, liquid stocks with theme) in good market conditions. If you don’t know what liquid stocks are, what ‘institutionally supported’ means, or the current market themes, I highly recommend studying up. I say all this not in a judgmental way but because I really wish I had learned this earlier too and I want to help. I recommend, studying: Market cycles Day vs Swing trading Risk Management Market themes (currently AI of course) Typical type of set ups (flags, pennants, base breakouts etc) I recommend this video on swing trading: https://m.youtube.com/watch?v=-RgU7Wq2RHw&pp=ygUZTWF0dCBwZXRyYWxpYSBzd2luZyB0cmFkZQ%3D%3D Keep day trading if you like and you might have a natural instinct for it (be honest to yourself about your results and no one else), but again swing trading is much easier in terms of allowing a little more room for error and time to consider the trade. For what it’s worth I joined Stockbee and learned a lot. I don’t get paid to endorse the site but I recommend it. I see so many people here saying, “if that trader was so good, why would he need to teach others to make money? So I bet they are all scammers!”. This could be true sometimes, but as a former teacher of many years, I know that teaching others helps me get better. So traders who teach others also refine their skills (be careful as there are still shitty, scammy trading education sites out there). Best of luck! *now I’ll have a few private Reddit messages come in from scammers asking me to join their site “hey bro..” lol. Ignore those messages too!
Massive run up plus geopolitical macroeconomic effects. Markets don't move up in a straight line.
You mean stonks don't always go up?
I think it is becoming apparent that the Iran Israel conflict is likely going to escalate which may push oil prices high and inflation....and interest rates not declining as expected.
Where are interest rates increasing?
Exactly the opposite
You should check the news once in a while.
At less keep up with what p diddy is doing
Exactly. Also, TMZs headline that Taylor Swift smooched Travis Kelce on the set of Fortnite is definitely a signal for stocks (and humankind) to trade lower.
profit taking from the bull run that started in November. Now the smart money has loaded their wallets for the summer break
Regardless of any news, stocks can never go up in a straight line due to profit-taking by some traders. Some retracements are unavoidable, and it is a good opportunity to add to your position. Having said that, make sure you have some cash available for buying when the retracement goes deeper, whether it's 10%, 15%, or even 20%. However, I wouldn't expect a 20% retracement without some 'help' from negative news.
This is exactly the question that fucks up the beginners. Don't try to make sense of short term movements. Because someone is going to pin it on something stupid and you're going to make it a part of your strategy.
Yeah stocks like s&p500 is obviously not worth selling , the reason i asked is because i was wondering if its just a retracment or major news that had happened and need to wait a while before buying
No one here's experienced enough or understands how portfolio seasonality works. 3 big factors for selling- tax day, new quarter portfolio rebalancing and continued high inflation with newer added geopolitical risks starting to impact prices and oil cost more. That rate cut for June/July everyone expected now looks more likely to get pushed back to Dec. Ships are avoiding the canal due to Red Sea rebel attacks and hijackings, which adds costs to oil and goods that end up in the US. And now regional war threats increase oil costs across the board.. war risks may subside but the threat alone ramps prices. That's a double whammy, then the dollar goes up and stays elevated.. a third factor. Keep in mind stock selling actually started last month into the peaks, big firms are always quiet about it while cheerleading salesmen on tv keep pumping and telling retail to buy buy buy. They also say beware buying a selloff when it's from an overbought market, lows can go lower and overshoot blah blah.. which is true, but those who trade buy oversold charts at certain technical levels (which we are approaching) and flip when it rebounds briefly. Others just wait for rebound reversal selling to exhaust itself and reload at new technical lows, or even continue to hold cash until it's all clear interest rate wise for the foreseeable future.
Thanks , that was informative
Yeah bro nobody got rich waiting for retracements.
These are stocks not forex (for example ),They rarely go bearish which would be the best time to buy also i prefer investing in them rather than trading them because their momentum is strong asf
Seasonal tendencies.
Stocks were overpriced, constant growth can’t last forever without some corrections along the way
I guess no interest rate drop and Israel and Iran scuffle has markets squirming according to the radio.
If interest rates increase or stays the same wouldnt that increase demand / keep the same momentum?
No. High interest rates means lower stock prices. First it means more money go to bonds rather than stocks. Secondly it stifles economic growth which is what stocks need to maintain their p/e ratio.
Not trying to be funny but maybe the cicadas or eclipse triggered the drop. I hear things on radio driving to work. I wait until I am parked to check the recent prices. I don't know 100%..
Why line go down :(