1. A good trade is taken with complete confidence, and follows your trading method. A bad trade is taken on an opinion.
2. A good trade is taken with a disciplined entry and position size. A bad trade is taken to win back losses the market owes you.
3. A good trade is taken when your entry parameters line up. A bad trade is taken out of fear of missing a move.
4. A good trade is taken to be profitable in the context of your trading plan. A bad trade is taken out of greed.
5. A good trade is taken according to your trading plan. A bad trade is taken to inflate the ego.
6. A good trade is taken without regret or internal conflict. A bad trade is taken when a trader is double-minded.
Archives of “April 26, 2019” day
rssEuropean equity close: German leads the way in a mixed week
Closing changes for the main European bourses:
- German DAX +0.32%
- French CAC +0.16%
- Spain IBEX -0.18%
- UK FTSE 100 -0.12%
- Italy MIB +0.08%
On the week:
- German DAX +1.3%
- French CAC flat
- Spain IBEX -0.5%
- UK FTSE 100 -0.6%
- Italy MIB -1.2%
Here is a look at the DAX as the recovery continues:
Life lessons from Buffett and Munger — pure gold
An oldie! This ad is from a newspaper in 1953
Gold moves higher as dollar weakens
Up $8 on the day
The price of gold is moving higher on the back of a weakening dollar today.
Looking at the hourly chart below, the precious metal tumbled lower after the US GDP report (and initial run higher in the USD) but has reversed course and trades at the highest level since April 16th. At the low, the price did move back below the 200 and 100 hour MAs, but that was quickly reversed. There is a short covering going on.
The price has moved above the 38.2% at $1283.32 (of the trend move down from the April 10 high). The 50% of the same move is the next target at $1288.55. Close risk for longs would likely center on the $1280.95-$1283.32 area. The $1280.95 is the low from April 4. The $1283.32 is the 38.2% retracement.
It’s the moment of reckoning for Tesla shares
Shares break major support
Tesla is an epic battle between bulls and bears that has been unfolding for years. Elon Musk is either a genius or an unhinged fraudster as both sides have increasingly dug in.
However Musk has slowly lost credibility by over-promising and under-delivering. Now the market is losing faith.
The chart tells the story with the major double bottom near $244 now giving way. It’s a long way to support from here.
Trump says he called OPEC and told them to bring prices down
Did he call Iran?
Who did he think he was calling? 1-800-OPEC? OPEC is a group, there’s no king of OPEC.
Chinese president Xi reportedly could travel to US to sign trade deal as early as June
SCMP reports, citing sources familiar with the matter
The report says that Xi’s visit will be arrange once trade negotiators finalise a deal to end the tariffs war. Adding that Xi is open to the idea of travelling to the US immediately if the two sides can finalise a deal, also saying that “June is an option but it could be later”.
Ugh. Too many caveats there for my liking i.e. “if” and “could be later”. Didn’t we see the something along the same headlines for a deal to be signed in April or May? I would be a bit skeptical if this report spurs a more risk-on tone in markets today.
20 One liners from Market Wizards
They focus on what really matters in trading success.
They have developed a trading method that fits their own personality.
They trade with an edge.
The harder they work at trading the luckier they get.
They do the homework to develop a methodology through researching ideas.
The principles they use in their trading models are simple.
They have mental and emotional control is key while winning or losing.
They manage the risk to avoid failure and pain.
They have the discipline to follow their trading plan.
Market wizards have confidence and independence in themselves as traders
They are good losers. (Cutting losses when proven wrong and even reversing the direction of their trades when the price action dictates it).
They are patient with winning trades and impatient with losing trades.
The fully understand the right way to position size for their goals of returns and draw downs based on their risk/reward and winning percentage.
Market wizards understand comfortable trades are usually losing trades while the more uncomfortable trades are usually the winners.
Emotions are dangerous masters to the trader, they know how to manage their own emotions.
Market wizards evolve as a trader to avoid eventually failing in a method that has lost its edge over time.
It is not the news but how the market reacts to that news is what they watch for.
The best trader are always learning through their own mistakes.
Passion for trading was the fuel for their eventual success.
Reminder: Japanese markets set for a 10-day break after today
Normal service will only resume back on 7 May
As Tokyo traders are about to leave their desks today, just be reminded that they won’t be back until 7 May as Japan will observe a 10-day holiday starting from tomorrow.
The yen is holding more steady today but part of the reason why it gained some bids over the week has been speculation that traders are fearing about another possible flash crash – like the one in January – in the currencies market during this period.
I want to say that when markets tend to “prepare” for things like these, they often don’t pan out because everyone is anticipating it. However, in periods of thin liquidity, especially in the so-called ‘twilight zone’ between North American and Asian trading, it’s very much like the wild, wild west at times.
And with the sheriff leaving town for a couple of days, who knows what can happen?