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How to Control Emotion While Trading

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stock market crash with covid and stock picks recovery

Most people consider trading as an easy job where you just need to buy and sell and you will get tons of money by which traders buy expensive stuff. Even in Hollywood movies, they show traders like this and people often do not get to know how trading is. Trading ads what you are going to find but when you are surfing the internet is like you just need to click and you will be in profit. But if you also consider trading like this then you are still in a dream. There are lots of variables goes through in traders mind and this profession is not as easy as it looks in ads and movies. Controlling your emotion is the hardest task when you are a trader. In this article, we are going to talk about the ways how you may able to control your emotions.

The ups and down

Think out the first day when you ride on a rollercoaster and how was the feeling that time. We know it was scary so you can consider the trading market like riding a rollercoaster because you do not know when and where the next turn can take. So when you are in the trading industry you must have to be able to deal with losing as well as winning and sometime it may occur within few seconds and this is the hardest part to keep your mind focused no matter how well or worst the situation is. To become a winning trader in Australia, you must need to take this type of pressure very easily and without this, you cannot go far just with the best trading strategy in the world. So your first step of becoming a winning trader has to be mastering your own emotions so that it can’t control your decisions.

Research the market

You are going to invest your money with Saxo markets, so at first, you just need to know the market well enough so that you can make buy and sell decisions very confidently. This will also help you to control your rollercoaster trading life. For example, you may be thinking about investing in a certain company and if you have a clear view about that market then you may buy or sell that companies share confidently as you know everything about that company. So knowing about the market make you more sensible and you can make a more effective trading plan and can act accordingly. People who trade bonds online knows exactly how they should research the market data. So, develop your researching ability.

Follow some successful traders

Here following does not mean coping a successful trader rather than we are trying you to research a few successful traders. How they make their trading decisions, which indicators they prefer, how they manage their risk, and from where they collect financial news. So once you get to know these things it will help you to find your own lacking and you may work on them and which will help you to boost your trading career.

Losing money is natural

You will not find any trader in the world who has a 100% winning rate in trading and so you have to understand that losing money is ok here and it is not a bad thing. You cannot avoid it no matter how good you do your analysis and how good is your knowledge you will lose now and then in this market. But the key thing that you have to do when you are losing is that you need to find out the reason you lose and work on them so that it will not repeat. Keep in mind that even if you are winning 55% of your trades then you are doing just fine and you don’t need to be tensed.

People often get emotional no matter he is earning money or losing money and earning money can make you overconfident and losing money can make your confidence level very low. So you need to control your emotion and don’t let emotion control you.

Trading Signal Services: Evaluating Your Options

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We all want to make money trading the market and trading signal services seemingly make that a lot easier. You simply follow the trading signals provided and (ideally) make a shed load of cash.

trading analysis forex signals

But with so many people offering trading recommendations, who do you choose? First and foremost, you need to make sure that the individuals at the company are reputable.

Trading Analysis Signals and performance

Lookup people of interest on LinkedIn, check their endorsements and true work history. Google their name and see what you can find out about them. If possible, also try and arrange a catch up with them over the phone or in person to really get to know them.

In addition to that, you’ll also want to look at past performance. Although past performance isn’t necessarily a guide to future returns, it’s a damn good indicator!

You’ll want to see performance going at least 18 months back. Furthermore, check to see if the return figures have been externally audited. For individual and “small traders”, that may not be possible. However, they should provide some way for you to verify their claimed returns.

For example, if they provide Dow Jones forecasts they should show the past recommendation documents that backup their analysis, gains and losses. Although it may be tedious, look back at market prices to see if in fact they did make the gains that they claim.

The third key feature to evaluate is the “trading style”. Do they aggressively trade in and out of markets? Or do their positions last a few weeks? If their style doesn’t match your style or what you’re looking for, move on. Signing up to a Forex signal service that provides 20 updates throughout the night can become overwhelming if you’re just getting started.

And finally, evaluate their process. One of the reasons why Madoff got away with his elaborate trading scam for so long is because people didn’t question his trading strategy. Ask questions, understand the process and if things seem too good to be true, they probably are.

The coming of “Hidenburg Omen” !!

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what is the Hindenburg omen ?

The hindenburg omen named after famous German airship  that crashed in new jersey in 1937 , is a technical indicator that predicts not  just a bear market but a stock market crash. As per wikipedia . The Hindenburg Omen is a technical analysis pattern that is said to portend a stock market crash. It is named after the Hindenburg disaster of May 6, 1937, during which the German zeppelin Hindenburg was destroyed.

Hindenburg omen Air_Crash_ australia market crash

The core idea behind the Hindenburg Omen, for those of you who haven’t been reading your investment blogs over the last two weeks, is that it’s bearish whenever there are a large number of both new 52-weeks highs and new 52-week lows on the NYSE.

For this crash to happen , the 5 criteria of the Omen  should be fulfilled:

1.That the daily number of NYSE new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of total NYSE issues traded that day.

2.That the smaller of these numbers is greater than or equal to 69 (68.772 is 2.2% of 3126). This is not a rule but more like a checksum. This condition is a function of the 2.2% of the total issues.

3. That the NYSE 10 Week moving average is rising.

4.That the McClellan Oscillator is negative on that same day.

5.That new 52 Week Highs cannot be more than twice the new 52 Week Lows (however it is fine for new 52 Week Lows to be more than double new 52 Week Highs). This condition is absolutely mandatory.

The Hindenburg Omen is going to make things very bad, very soon, if technical analysts are correct. Never heard of it? You’re not alone. It’s a market anomaly that happens very rarely. However, when it does happen, it can mean we are heading over a cliff, and fast. The last time it happened? June 2008.

The creator of the  this  omen is a blind mathematician named jim Miekka , said that his indicator is no predicting  a market meltdown next month. will this affect australia is it a bad omen for australia  only time will tell .

Trader’s million dollar mistake makes Market almost collapse

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Both Fox News and CNBC reported that a trading error involving P&G stock could have been responsible for part of a  massive dip that dragged  and shocked the Dow Jones Industrial Average within a hair’s breadth of a 1,000-point drop.

 

The Dow fell 998.5 points, slipping well under 10,000 after a sudden sell-off that saw investors desert stocks .

A trade done by mistake may have been partially to blame for a huge crash in the US markets on Thursday, reports said, as observers questioned why Proctor & Gamble’s stock tumbled precipitously.

CNBC and Business Insider reported that a trader from Citigroup was to blame, though a Citi spokesman cautioned it was too early to tell what had happened. Suspicions that an error, whether mechanical or human, had contributed to the market dive emerged shortly after the Dow leveled off, and it began to climb almost as quickly as it had fallen.

Australian stock market today

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Australian stock market update today

It looks like the stockmarket got bitten by a huge aussie croc today with the market in freefall today.

  • Stocks hitting a new 52 week low include: Alesco Corp(ALS), AWE Ltd(AWE),Bannerman Resources(BMN), Elders(ELD) and Santos(STO)
  • Lihir Gold (LGL) Chairman Ross Garnaut said he has received “encouraging results” from testing the market for alternative bidders to Newcrest (NCM). He added that discussions are with more than one party and are at “various stages”. On the current NCM price the bid is worth 376c. LGL down 7c to 372c.
  • Origin Energy (ORG) announced the super tax could delay the timetable of their proposed APLNG LNG JV with ConocoPhillips. Both ORG and Conoco want to make a final investment decision on the project by the end of the year. ORG down 2.7% to 1513c.

      • Macarthur Coal (MCC) announced they are waiting on Peabody to consider the tax impact of their takeover and have extended their Gloucester Coal offer to May 27. MCC down 4.26% to 1304c.

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    • Gindalbie Metals (GBG) in a trading halt pending a project update. GBG was down 6c to 102c before the halt.
    • Building Approvals up 15.3% in March, its highest percentage move in 6 and a half years.
    • Sales of new carsand trucks in Australia increased by a seasonably adjusted 12.9% in April from March.
  • Tabcorp (TAH) had an analyst’s presentation this morning. They say revenue has grown by 1.6% in the year to April 30, trading conditions remain uneven in the short term and that they are encountering pressure in Victoria and QLD from contracting gaming markets. TAH down 6c to 677c.
  • Westpac Bank (WBC) – 1st Half Profit Result – 1st H cash profit has come in at $2.983bn, up 30% from $2.3bn last year. Analysts were expecting on average the figure to come in at $2.857bn and have said this morning the result lacked some quality. WBC down 3.1% to 2647c.
  • News Corp (NWS) – 3rd Q Profit Result – Net profit came in at $US839m. The result has been described as good. NWS shares closed 3% lower overnight in the US but were up 4% in after market hours. NWS down 5.4% to 1873c.
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  • U.K. stocks fell, led by commodity producers, amid concern Australia’s tax on resources companies will crimp profit at BHP Billiton Ltd. and Rio Tinto Group and BP Plc’s costs to clean up an oil spill will escalate
  • ———————————————————————————-
  • Australia’s central bank increased the benchmark interest rate for the sixth time since early October after policy makers raised their outlook for inflation and judged the nation is insulated from Greece-sparked debt woes.

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