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BTC/USD - Bullish Order Flow Resuming [SWING TRADE]Hello, Various sentimental analysis is building bullish order flow volume into this cryptocurrency. As seen on higher time frames, such as the monthly, we are bullish. Furthermore, weekly, and daily are bullish as well. The two blue zones I have labeled are inactive weekly/daily demand zones. I say that these zones are inactive because price can touch this zone and pass right through. If price touches either one of these zones and forms various higher highs and higher lows on a lower time frame, such as that of the 4H time frame; this will confirm that the weekly/daily zone has been activated. Should this happen, I'll do further investigative analysis to pinpoint the entry that I'll be taken. Details coming soon. As for the projection of where BTC/USD could be trading at in the next few weeks? Quite difficult to speculate, however, at the moment it appears as though bullish order flow volume is favoring the bulls rather than the bears. Lets choose to run with that stampede rather than against it. More updates coming soon. Best of luck to the remaining experienced traders, inexperienced traders, get ready for a long journey. Regards, Authors
BITSTAMP:BTCUSDLong
by authors
Topping Pattern Ahead of Earnings: AAPLNASDAQ:AAPL needs to have a great earnings report on August 1st but it has a topping formation at the moment, after huge speculation from promoting something that is not yet proven to increase sales. You can't take hope to the bank. Speculation occurred as investors assumed that AI would sell more new iPhones in droves. This earnings report will reveal reality one way or another. There is a negative divergence between the price trend and accumulation/distribution suggesting there may have been quiet rotation against the retail speculation.
NASDAQ:AAPL
by MarthaStokesCMT-TechniTrader
Is USD/JPY Trade of Decade? US Dollar Nears 34-Year High Again.If you’re a ‘90s baby, the yen is the weakest you’ve ever seen it. Putting it back with the cool guys in forex town isn’t going to be easy. In this Idea, we discover why. Yen Languishes in 34-Year Lows The Japanese yen is trading at a 34-year low against the stronger US dollar. This means that the volatile USD/JPY pair is flying high. Very high. To many, this is the opportunity of a lifetime — pop a short, load up on the leverage and go for the jugular (to use Soros slang ). Only that it’s not as easy as it looks. So not-easy that there’s even a term for that. It’s called “widow maker trade” and it describes those unfortunate souls who dare to bet against the Bank of Japan in hopes of anticipating the right direction. It’s so difficult to predict the path of Japan’s interest rates that many have seen their fortunes wiped out in trying to do so. So why’s the yen so badly hurt? Until recently, Japan’s central bank was the only one in the world to flaunt negative interest rates. It was holding on to an easy-money regime to stimulate economic growth — low to negative rates encourage businesses and consumers to borrow cheap money and spend it on whatever they want. Biggest Loser on Forex Board But this loose money policy has a downside — it makes the local currency highly unattractive. The Japanese yen is the biggest loser among the major currencies on the forex board so far in 2024. It’s down more than 13% against the dollar this year. Against that backdrop, in March, the Bank of Japan abandoned its negative rate regime and hiked interest rates for the first time since 2007. The shift provided little relief to the yen. The USD/JPY this week blasted beyond ¥159 and extended its winning streak to seven days in a row. But bulls’ efforts to carry the exchange rate above the ¥160 milestone might meet an archnemesis. Japanese officials have been monitoring the speculative moves around the yen and have said many times they’re ready to intervene by buying boatloads of it. Traders, however, have already seen this play out. And they've seen the aftermath, too. A Failed InterYention In late April, the Japanese yen tumbled beyond the key ¥160 level to the dollar, hitting ¥160.20 — a low last seen in 1990. Japan then decided to lean against the skyrocketing dollar and sank as much as $60 billion going long the yen and shorting the dollar. Briefly, the yen rose about 5% before bargain-hungry traders were back for more. Moral of the story? The downturn of the yen is predictable and until the Bank of Japan introduces a more aggressive policy to buck the trend, it may remain vulnerable to attacks. More of the Same? Meanwhile, bullish traders are excited to try their hand at shooting the dollar-yen pair to a fresh 34-year high. It must be noted, however, that the exchange rate is overstretched and overbought. This skews the risk-reward ratio and makes the upside look fairly limited, at least in the short term. Or does it? Zoom out, and you’ll see the yen was trading at ¥300 to the dollar back in the ‘70s. And that’s not something Japan wants to see now. A cheap yen is generally good for exports but it makes imports a lot more expensive. And that’s where the Asian economy is getting its technology, energy, cars, and many foods from. Japanese officials, namely the Ministry of Finance, remain tight-lipped about any potential intervention. What’s more, the Bank of Japan joins the silence with no forward-looking guidance on future interest rate hikes. And all this means one thing — yen volatility is bound to continue as traders engage in some extra spicy speculation fundamental price discovery. Long or Short? If you’re in the trade, which side are you on? Are you long the dollar-yen or short it? Let us know in the comments below!
Editors' picks
by TradingView
11
BASED PEPE-BRETT-TRUMP-WEIRDO-PEPE0x69-ETC - Today and BeyondBASED MEME COIN SUPERTHREAD Im gonna Start trying to Follow some hardliners and some new one's Speculate the Speculators and do some Trend Analysis as Well as Fundamentals The Based MEME Coin space is literally a Wild West and you can get Wrecked playing fast and loose BRETT has been a darling of the space with a whole host of Support coins and is popular on many DEX's providing price speculation leaving profit for scalpers
by dasBoot
Oracle (ORCL): Bearish Scenario with Long-Term PotentialSince our last analysis of Oracle on the daily chart, there has been little significant change. The stock moved into our Wave (B) zone between $128 and $138, and after reaching a high of $132.77, it was rejected. A trendline was broken but quickly reclaimed, suggesting a potential push upward. We anticipate Wave 3, the subordinate wave, to find support around $91 to $86. Currently, everything indicates a falling trend, and unless the price rises above the recent high of $132.77, we expect continued downward movement. However, our primary scenario remains bearish, expecting a further sell-off down to the range between $80 and $50. This range is broad but suitable for long-term entries. We see no issue with the size of this target zone, as it offers good long-term potential.
NYSE:ORCLShort
by freeguy_by_wmc
Meta Platforms (META): Ready for a Correction?We initially set our maximum target at $510, and the price climbed to $531—a difference of only about 4%, which is quite close given the magnitude. We're satisfied with our analysis so far and want to stay within this timeframe. While it's possible that Waves 3 and 4 haven't fully played out yet, we need to consider that Wave 5 in Meta often tends to be longer. This historical pattern suggests that the current Wave 5 might have extended similarly. If Waves 5 and (1) are not yet complete, we would need to see the price rise significantly, surpassing $575. Such a move would indicate that the bullish cycle isn't finished, and we might see a further upward spike before a deeper correction. However, the RSI shows a bearish divergence: lower lows on the RSI while the price chart shows higher lows. This divergence is typically a bearish signal and shouldn't be ignored, as it often leads to price corrections. Even though we have closed the gap, we believe that a further decline is possible, potentially down to around $384 to complete Wave A. An ideal entry zone for us would be around $306, with a worst-case scenario down to $181. This analysis takes into account both historical price patterns and current indicators to inform our strategy moving forward. Keep in mind even though META seems to be a huge organisation we have seen some bigger pullbacks in the past.
NASDAQ:METALong
by freeguy_by_wmc
BTC Long, possible path to 100k if bulls step in fast and hardBTC has a chance to reach ~100k if it can get above the previous ATH of ~74k considering the recent uptrend and interest since the 57k bottom forming a higher high. Otherwise, if BTC gets under 65k, it will likely continue its range until Aug and form another pivot. More so, if it closes under 62k on a daily candle. It'll bring consideration of reaching 45k if we close under 57k. In the event of hyperinflation or BTC exceeding 110k, I suspect it to max out at 145k, 195k, or 235k. 30k-35k is roughly the capitulation zone/hard bottom in a worst-case scenario to where it begins to compromise the network for this cycle. Note that current prices above 65k are met with extreme resistance for good reason if you're looking at the right charts surrounding liquidity/fair value, pointing toward a cycle top or at least a mid-cycle top similar to 2019. Also, the market shifted bullish at the 70k top on May 20th, so there is consideration for a correction. BTC wouldn't be abnormal to trade as a ranging asset considering how fund managers will likely rebalance/offset risk with the near 100% returns since the ETF's inception. By ranging, I mean both, 74k-57k until Aug, and 74k-30k until EOY. Early June may present itself as an unexpected downward move. Not sure of its strength, guessing -8-10%. Be weary of more geopolitical events affecting price in the coming months. Overall, the BTC is neutral/bullish in the short term if it can hold 65k and overtake 74k, giving the chance of reaching 100k by Aug. Bearish long term while it is under 75k, vulnerable to ranging to 57k until Aug, or even worse to a low of 35k or 45k through the rest of the year. However, its more probable that the short term neutral/bullish case takes place at current prices and conditions as of when this idea is published. Long at 67.5k tp 76k, 85k, 94k, 106k (likely close here) sl 62.5k Long at 60k (if prev long got stopped out and we do range) - expires by early Aug if not filled same tps sl 55k Long at 46k same tps sl 40k
CME:BTC1!Long
by linebands
Speculation to correction risk: COSTNASDAQ:COST was over-speculated by retail groups. Extreme angles of ascent do not hold. The severity of the recent angle of ascent due to speculation warned well ahead of time that COST would have a meltdown when buyers evaporated. The first strong support level is at the black line. The Weekly chart shows stronger runs up than down. Costco is frequently speculated as there are retail gurus and chatroom groups, etc. that run the stock up from time to time. However, this stock is absurdly overpriced at this level and needs to do a split.
NASDAQ:COSTShort
by MarthaStokesCMT-TechniTrader
1
Protective Puts to Ride SpeculationOverview SoundHound AI ( NASDAQ:SOUN ) doesn't appear to be fundamentally sound, however, its technicals support a potential spike to around $15.50. While the rest of the market also appears to be nearing a peak, there may be a few more weeks of squeezing which is where SOUN may find a second, yet short-lived, wind. Fundamentals SoundHound AI has experienced significant negative income the last three years. There was an increase in cash flow which appears to be from the solicitation of its company's shares. The company has also downsized by 40% which it annotates in the 10-K Annual Report for 2023. Overall, my impression is that SoundHound is struggling to find its balance and is shrinking. I believe that the only reason it has surged as it much as it has is due to the market's overwhelming interest in artificial intelligence. Strategy Unfortunately it's not enough to be right about the health of a company especially when the rest of the market is chasing a high. Despite SOUN's lack of a healthy fundamentals, I would not be surprised to see a spike to the 1.618 Fibonacci level. This gives me the desire to utilize protective puts in case the market euphoria ends sooner than expected.
NASDAQ:SOUN
by Shepherd_Investor
BTC LONG Speculation, no major corrections until 75k-80k?Since the ETF, it seems to have been a sell the news, followed by buying the dip event at the 100D MA. Dips since the start of the bull run, even before the launch of the BTC ETF, have averaged ~20% followed by a continued massive bull run. Some, including myself, speculated a break of this trend of 20% dips (breaking 38k) followed by a continued sell-off into 34k or even 30k. The ETF launch was a perfect event to sell along with outflows from the GBTC takeover until recently. Assuming this pattern of 100% returns after a 20% dip, technically BTC can reach ~80k. Considering the shortened duration to reach such returns, we may reach 80k sooner than expected in this cycle. Note that we have recently (in the past few weeks) broken a multi-cycle trendline that acted as resistance roughly two months before the FTX collapse. So it could validate prices rising on top of ETF inflows increasing. Note that upon reaching 74k-80k, it is likely a significant pullback within 30k-40k will occur, given the lack of test of structure that BTC normally does pre-halving. This idea is invalidated with a daily close under 49.5k. Closing over 59k will likely have the rally continue toward 74k, with any price beyond it being risky to hold without selling, likely maxing out at 80k roughly the end of March. Closing under 44k would be bearish enough to consider going to 30k. Overall, this idea is very speculative and assumes a trend continuation that breaks BTC's normal patterns/expectations of price movement. Upward price movement is 34%-44% toward 74k and 80k, with a downward price movement of 42+% toward 31k, so entering now is dabbling more in the middle, slightly favoring bears in the long run. This is likely all that's left for BTC to continue the rally past ATHs assuming it can hold 50k before a significant correction. You could even argue of strong resistance ~57k-59k, but inflows are too strong, as is the narrative of RWA and the Tokenization of Financial Assets . Be weary that there are still other risks (cyber pandemic, bank runs, civil unrest, real estate, labor market participation/retraining, shipping routes in the Middle East, control of rare earth minerals/semiconductors) that have been deferred thanks to speculation/attention of tech around AI, and may conveniently come back. I'm not sure when, but I'd speculate starting the second half of 2025 to 2026. Trades: Long 55k SL 49.5k TP 74k (close or by the end of March) Short 77k SL 85k TP 60k, 45k, 35k (close)
CME:BTC1!Long
by linebands
Baby Bonk at $10M Market CapConsidering that this token is only at $10M market cap and BONK is at SEED_TVCODER77_ETHBTCDATA:1B market cap, we can expect this token to get to the SEED_TVCODER77_ETHBTCDATA:1B market cap region within the next couple months (Perhaps even weeks :o). The Baby Bonk team is on point with their marketing and are very active on social media. Already , 95% of the token's supply is in circulation, with plans to release the token on more centralized exchanges in the (very) near future, alongside the centralized exchanges that already list the token. Not financial advice. Good luck, and God speed. TO THE MOON!!!
Long
by UnknownUnicorn60024038
3
Fundamental Value Levels via Technical Analysis: GOOG ExampleNASDAQ:GOOG had a mega gap down on earnings news. The stock was simply over-speculated. The price of this stock was way above the true fundamental values. So the stock gapped down to its current fundamental value level. See the chart attached. The green rectangle outlines the last range where there were Dark Pool Buy Zones. Indicators like Accumulation/Distribution help to confirm a consistent level of accumulation.
NASDAQ:GOOG
by MarthaStokesCMT-TechniTrader
$ETH and $BTC Price Level in USD to achieve $ETHBTC ATHI'm going to put this straight forward simple. BINANCE:ETHBTC , essentially representing the price ratio of Ethereum to Bitcoin, serves as a key indicator of market dynamics between these two leading cryptocurrencies. Due to the recent Break Of Structure on this Chart, I was curious enough, at what prices are we looking at in USD, in order for the ATH to break. Last ATH was on June 12th, 2017. Prices at that ATH were following: ETH: $414.8 BTC: $2980 According to my beloved friends ChatGPT, he could give me many scenarious, at which the ATH at 0.15636 would have be broken. Regarding of the multiplier, you get a different answer, here few very possible for me at this stage of market. Multiplier: 1.5 New Price of ETH: $3,766 New Price of BTC: $24,085 Multiplier: 1.7 New Price of ETH: $4,269 New Price of BTC: $27,302 Multiplier: 1.9 New Price of ETH: $4,771 New Price of BTC: $30,513 Multiplier: 2.0 New Price of ETH: $5,022 New Price of BTC: $32,118 Multiplier: 2.2 New Price of ETH: $5,524 New Price of BTC: $35,329 Multiplier: 2.4 New Price of ETH: $6,026 New Price of BTC: $38,539 This might be the biggest signal, showing Ethereum has a lot of potential in the upcoming Altcoin Season / Bullmarket. Not trying to convince anyone, just speculating on some interesting numbers. Feel free to come up with more different scenarious. 100k for BTC & 15k for ETH might also be possible :D
by luxorif
AI's Insight from News Cross-Checked with Pattern Recognition 👁Dear Investors, I believe that PLTR might fall to $13.2 in the coming months. Here, I made a short idea from the insights of the different AI algorithms I use for speculative analytics. News Analytics - Natural Language Processing 1 Palantir's revenue growth has slowed in recent quarters. The company's revenue grew by 31% year-over-year in the first quarter of 2023, but this was down from 54% growth in the fourth quarter of 2022. This slowdown in revenue growth could be a sign that Palantir is facing challenges in the market. 2 Palantir's gross margin has been declining. The company's gross margin was 74% in the first quarter of 2023, down from 77% in the fourth quarter of 2022. This decline in gross margin could be a sign that Palantir is having to invest more in sales and marketing to drive revenue growth. 3 Palantir has been losing market share. The company's market share in the data analytics market is estimated to be around 1%, according to Gartner. This is a very small market share, and it has been shrinking in recent years. This could be a sign that Palantir is not as competitive as its rivals. 4 Palantir's stock price has been volatile in recent months. The stock price has fallen by more than 50% from its all-time high in August 2021. This volatility could be a sign that investors are uncertain about Palantir's future. Cross-Checking Logic Of course, there are also some positive news about Palantir that could suggest that the stock price will not fall to $13.2. For example, the company has a strong pipeline of new business opportunities. Palantir is also investing heavily in research and development, which could lead to new products and services that could boost the company's growth. Chart Pattern Recognition - Deep Neural Networks Between the two red trendlines, my neural networks believe to be a bearish channel. Your human eyes can see how Palantir rejected the upper trendline on 11 October and 21 November. I marked these price points with red ellipses. The channel had some bullish aspects when the bottom trendline acted as a support on 02 November and possibly today. Look at the left green arrow. Palantir's last rally related to this point. Today, the stock is near the same trendline again, and there's a chance that it can reignite a similar rally. The white arrow shows this possible scenario. I, however, feel skeptical that history would repeat itself. Ensembling Technical Indicators I asked different AIs to weigh technical indicators to represent their opinions. I ensembled the results of these AI opinions and selected MACD, RSI, and volume to simulate AI's insights in a way you can reproduce on your chart without AI. From declining volume bars I suspect the continuation of the bearish trend. The price action has been bearish over the last week, and I can't see the volume to reverse it. I can see extreme sell volumes every now and then, but they seemed to escalate the bearish trend. I don't see where the orders are that could absorb the end of the bearish trend. RSI tried to make a bullish cross below the volume indicator, but it happened to be a failed cross. RSI reversed as it crossed the SMA, which suggests a lack of bullish momentum. The potential bullish signal turned out to be an indication of how weak bulls are. At the same time, MACD has been going on the bearish side with a strong momentum, and periodically pulsing bearish momentum without signs of weakening. Overall, these indicators simulate what my AI bots believe about the market. Their ensembled opinion seems to be a bearish continuation. Chart Explanation I already explained the red bearish channel, the channel contacts, the indicators, and a potential bullish scenario, but I think bears enjoy a better risk-reward ratio. Theoretically, channel breakdown could pull the price into the support level of 13.2. I've got a green line at this level. Thus, the target price of a short could be within the green box around this level where the bearish trajectory's red arrow shows. The stock might reverse or not at this level. I'll have to reassess if I see the playout of my bearish expectation. Conclusion Ultimately, the direction of Palantir's stock price will depend on a variety of factors, including the company's financial performance, the overall market conditions, and investor sentiment. It is always important to do your own research and consult with a financial advisor before making any trading decisions. Kind regards, Ely
NYSE:PLTRShort
by Elysian_Mind
9
Swing Trade Patterns: $NKE ExampleNYSE:NKE stock has a 2-day resting pattern and then a candlestick buy entry signal that is slightly longer than its average price gains in a single day. Most Volume Oscillators are not at the top of the chart yet. Flow of funds indicators indicates money flowing into this stock. The higher line is the bottom completion level for this short-term bottom. The resistance is moderate for a swing trade, but the stock could break through if momentum to speculative buying continues.
NYSE:NKE
by MarthaStokesCMT-TechniTrader
Nobody is talking about Voyager.OTC:VYGVQ took a one way ticket to Goblin Town after the fall of Voyager Digital. For the past year the sock has been trading sideways with little action. Maybe it's the copium talking, but I have suspicion that OTC:VYGVQ is not dead just yet. Here are a few points to back up my hypothesis: -There is a massive butterfly harmonic that just completed on the 3D chart -U.S. regulators have charged Ex-CEO Steve Ehrlich for fraud and deliberately lying about customer asset protection. Funny things always happen with law suits and bankruptcy claim. -The stock recently broke out of descending wedge with a massive wick up to 0.2, which makes me think some bigger money is entering. Could it be the Composite Operator? Ehrlich? An activist investor? Who knows. 0.2 and 0.5 are key levels to watch historically; straight up and straight down between these areas. -Lastly, and maybe the most far reaching point yet, there is a prominent gap on the daily @ 1.92 meaning there is some trapped liquidity up there. The gap occurred during a weekly transition which increases the odds of it being filled from my experience. Now it could take months, even years (potentially) for OTC:VYGVQ to reach that level again (if the stock doesn't die and get delisted, which could definitely happen). Only time will tell. I'm letting it ride for now.
OTC:VYGVQLong
by thomaszkry
📈Investing vs. Speculating: Understanding the Key Differences📉Navigating the Financial Landscape: Investing vs. Speculating for Smart Financial Growth In the intricate world of stock trading, distinguishing between an investor and a speculator is vital, despite their mutual interest in market analysis. Each follows distinct approaches and objectives, and understanding these differences is paramount before venturing into the stock market. With diverse individuals seeking to capitalize on opportunities and make profits, this article delves into the contrasting methods and goals of investors and speculators, shedding light on their unique strategies. Understanding the Distinction: Investor vs. Speculator At first glance, differentiating between an investor and a speculator might seem challenging. After all, both activities involve buying and selling stocks and require initial market analysis. However, the nature of these two approaches varies significantly. Before delving into the world of stock markets, grasping the difference between investing and speculation is essential. Each day, the stock exchange witnesses countless transactions, leading to continuous price fluctuations. Behind each trade lies an individual with their own motivations, strategies, and rules, all driven by the common desire to make money. However, their approaches diverge; some choose to invest, while others opt for speculation. Let's explore the dissimilarities. Who exactly is an investor? Investing involves purchasing stocks of companies at their intrinsic value, with the expectation of long-term growth and subsequent profitability. As the definition suggests, patience is required, as companies do not experience substantial growth within mere weeks. Investors build portfolios of stocks with a focus on the years ahead. Moreover, investors can generate income through means other than price appreciation alone. By becoming shareholders, stock buyers become co-owners of the company. They can participate in general meetings organized by the company and receive dividends, which are a portion of the company's profits shared with its investors. This way, investors receive periodic returns. Investing necessitates comprehensive analysis of the company whose stock one intends to acquire. The objective is to enhance the value of the acquired assets over the long term. Evaluating the prospects of a specific sector and the company itself entails reading recommendations, staying informed about market trends, and skillfully combining relevant information. Proficient investors are capable of constructing portfolios that yield consistent profits year after year. On the other hand, a speculator approaches the stock market differently. Speculation involves buying and selling stocks with the anticipation of profiting from short-term price fluctuations. Speculators typically focus on quick gains and may not be concerned about the company's long-term prospects. Their decisions are often driven by technical analysis and market trends, aiming to capitalize on short-term price movements. While both investors and speculators participate in the stock market, understanding their differing approaches and objectives is critical for making informed choices and achieving financial growth. Meet the Speculator: Focused on Profits and Market Swings Speculators are individuals whose primary focus is on making profits in the stock market. Unlike investors who carefully analyze the specific stocks they buy and the performance of the underlying companies, speculators are more concerned with the high volatility of prices that offers potential for quick gains. They may not be as concerned about the long-term prospects of a company; what matters most to them is the opportunity to capitalize on price movements, whether upward or downward. Unlike investors who prefer to hold stocks for the long term, speculators aim to quickly buy and resell stocks to profit from short-term price fluctuations. They may even utilize financial instruments such as contracts to benefit from falling prices. For speculators, the direction of price movement becomes inconsequential; they can make gains regardless of whether stock prices rise or fall. One instance of speculation occurred during the aftermath of the Brexit referendum when stock prices plummeted. Speculators saw an opportunity to acquire stocks at low prices, and many stocks rebounded in the following days. By investing in undervalued companies and taking advantage of people's tendency to overreact, speculators made significant profits within a short period. Unlike investors who focus on a company's financial performance and long-term growth prospects, speculators rely more on charts and market sentiment. They are sensitive to emotions in the market, such as fear during potential financial crises or uncertainties surrounding elections, which can significantly influence price swings. Speculators thrive on exploiting these rapid price movements, finding ample opportunities for their trading activities. However, it's important to note that speculating in the stock market involves heightened stress and risks due to the significant price fluctuations. As prices can change rapidly, speculators need to be prepared for the potential downsides and be well-versed in managing risks effectively. Timing Matters: The Distinct Approach of Traders and Speculators Distinguishing between traders and speculators becomes evident when considering the time factor in the world of stock trading. Investing in stocks requires patience, relying on a company's future growth, financial results, and potential dividends. Successful investing often involves waiting for several years to achieve substantial growth, surpassing the performance of other instruments like funds. On the other hand, speculation hinges on understanding short-term market sentiment and making quick decisions. Swift reactions to market changes are necessary as the stock market is prone to significant sell-offs followed by potential reversals. Speculators closely monitor the market and wait patiently for opportune moments to capitalize on rapid price movements. The paradox of speculation lies in the contrasting time frames involved: speculation itself is brief, but speculators invest considerable time observing charts compared to traders who simply maintain open positions. Combining Investment and Speculation In principle, one doesn't have to exclusively choose between investing and speculating. However, effectively combining an equity portfolio with a speculative portfolio demands substantial experience and time. It's essential to bear in mind that speculation carries significantly higher risks compared to investing. A seasoned investor can gradually construct a small speculative portfolio while allocating the majority of funds to long-term investments in stocks. The stock portfolio consistently builds capital, while the speculative portion can potentially yield an additional "bonus" when favorable market opportunities arise. Investor Sleeps Well: The Patient Approach of Investors While speculators engage in the challenging pursuit of profiting from daily price fluctuations, investors adopt a different approach. Investors carefully select stocks for their portfolios and patiently wait, exercising risk control. This approach enables them to focus on their professions or businesses while allowing their savings to grow through capital appreciation. One notable example of this investment strategy is Warren Buffett. Buffett has dedicated years to constructing portfolios by choosing shares of reliable companies that consistently share profits with their shareholders through dividend payments. This straightforward strategy, employed for decades, surpasses the performance of speculators and aggressive mutual funds. Success in investing relies on an investor's knowledge and understanding of prevailing market conditions. While the latter remains beyond anyone's control, the former depends solely on the experience gained with each subsequent trade. Investing is a gradual process, and as experience accumulates, positive results are more likely to emerge. Patience, discipline, and a long-term perspective are key traits of successful investors. The Best Approach: Investment or Speculation? The question of whether to invest or speculate ultimately depends on your individual goals, risk tolerance, and time horizon. Both strategies have their merits and cater to different types of traders. Investing is a long-term strategy that involves buying stocks of companies at their intrinsic value with the expectation of long-term growth and profits. Patient investors hold onto their stocks for years, conducting thorough analyses of company prospects and making informed decisions based on research and market information. They can also benefit from dividends as co-owners of the company, providing a steady income stream. Investing requires a disciplined approach to constructing portfolios that generate systematic profits over time. On the other hand, speculation is a short-term strategy driven by the desire for quick profits. Speculators are primarily motivated by profit and take advantage of high volatility in stock prices. They may not necessarily focus on a company's financial performance or the overall state of the economy. Speculators need to react swiftly to market changes, capitalizing on price swings. However, this approach involves higher stress and risk. Speculators can profit from both rising and falling prices, and their success relies heavily on understanding short-term market sentiment. While both investment and speculation have their merits, it's essential to note that speculation is generally riskier and requires a deep understanding of market dynamics. Combining an equity portfolio with speculative positions can be challenging and time-consuming. Most investors prioritize investing in stocks for long-term growth and stability while allocating a smaller portion for speculative opportunities. Ultimately, investors tend to have a more relaxed approach as they carefully choose stocks for their portfolio and patiently wait for their investments to appreciate over time. This approach allows investors to focus on their other commitments while still profiting from capital appreciation. Warren Buffett, a renowned investor, exemplifies this strategy by building portfolios of reliable companies that consistently share profits with shareholders. Investing is a continual learning process, and success depends on the investor's knowledge, experience, and ability to adapt to market conditions. So, the best approach boils down to aligning your trading style with your financial goals and risk tolerance. In the dynamic world of financial markets, the choice between investing and speculating is deeply personal, guided by individual goals, risk tolerance, and time horizon. Investors embrace a patient, long-term strategy, seeking gradual growth and sustained profits through careful analysis and informed decisions. On the other hand, speculators chase short-term gains, leveraging market volatility to capitalize on rapid price swings. While a combination of both approaches is possible, it demands expertise, time, and experience. It is crucial to recognize that speculation involves higher risks, making it essential for traders to approach it with caution and a deep understanding of market dynamics. For most investors, allocating a smaller portion of funds to speculative opportunities while predominantly focusing on long-term stock investments offers a balanced approach. In the end, regardless of the chosen path, success in financial markets requires a thoughtful and disciplined approach. Armed with knowledge, experience, and a clear strategy, traders can navigate the complexities of the market and work towards achieving long-term financial prosperity.
Editors' picks
OANDA:XAUUSDEducation
by FOREXN1
27
Let's Talk About "Perspectives"Let's talk about the perspectives people often bring up in trading . . . Under various conditions, such as different market trends, timeframes, strategy logics, and technical analyses, everyone's view and perspective on the market varies. TV is filled with people's opinions and perspectives on market trends. Some people seek validation from others, while some wish to share what they believe to be profitable opportunities and be appreciated for it. Sharing perspectives sometimes tie down traders as well, limiting them to their own published analysis articles and ego, causing some people to be unwilling to admit their mistakes and seize the next trading opportunity. Regardless of the validation of these opinions and perspectives, we must admit that every profitable trade has an element of "Luck" involved. "NO ONE WINS EVERYTRADE". . "And what's more interesting Is that if you find two long-term, consistently profitable traders, they are very likely to have completely opposite views on the same trading product at the same time, but both of them still stay profit." . . . I believe that when a mature trader being asked about their opinions or perspectives, they should be able to clearly differentiate between their views and their trading plans. Possible question and responses include: 1. "Asked about the upcoming market trend" I currently have a positive outlook for a specific period of time, believing that the market may rise (or fall). However, I'm not certain if I'm correct. If things go wrong, I will cut my losses according to my trading plan. Admitting mistakes and respecting the market. Search for the next trading opportunity. 2. "Asked about positions and trading opportunities" I am temporarily trading "Target" in the direction of a rise (or fall), but I do not recommend anyone to follow my trade because I have no idea if my next trade will be profitable. What I do know is that I can achieve my deserved expected return through long-term trading. 3. "Asked about specific trading methods" I cannot give you specific advice, as I don't know how much capital you have or how much risk you're willing to take. Everyone's pursuit of returns and tolerance for losses are different, which will be reflected in the trading strategies they use. 4. "Asked about medium to long-term future trends" I am a trader, not a financial expert, and definitely not an economist. Predicting the future is too difficult, even for Nobel Prize-winning economists, who may not be able to forecast market trends right as well. So, what I can do is play the role of a good observer, watch price trends for potential trading opportunities, and make the most cost-effective trades or positive expected value trades. 5. "Asked about making money in short-term trading" In the short term, there is a high probability that my trades will incur losses, and speculative trading can also result in terrible consecutive losses. However, I am fully aware of the expected win rate and returns for each trade. Through each trade, I accumulate expected value and manage my funds with proper risk control. I believe that time and a large number of trades will realize this expected value. . . . This is also why I am not very willing to share trading opportunities directly. . . . I am very clear that my trading pattern has a win rate of less than 45%, and I am quite certain that following my trades is more likely to lead you to stop-loss. More scenario below: A. If I share an opportunity and make money by being right, there might still be people who lose money because they set different trading plan and can't tolerate fluctuations. B. If I share an opportunity and lose money by being wrong, you could find me to blame. However, everyone needs to take responsibility for their own profits and losses because it's your money and your decisions. C. If you follow my trading plan and gain profit. You learn nothing about it. Also one trade's win/loss most likely depands on "Luck". Not so much different from "Gamble". Of course, occasionally drawing some charts to remind everyone of the current general trend direction is not a problem! In the short term, "Luck" is essential for speculation, and I hope everyone can have good fortune. . . . I am Beta, If my articles are helpful, please leave a "like" or "comment", and "follow me" for more good stuff.
SP:SPXEducation
by Eleta1228
3
The Fact. Traders Worth Nothing ?Sharing My Idea About Professional Traders. A trader who makes profit "Should not be respected or admired". Because they don't contribute anything to society. Traders make money by exploiting price differences and engaging in arbitrage, that sounds good doesn't it ? But let's face it, that don't help anyone in the world except themselves, and It's not noble than any other job out there. I want to build a community with traders who can make a positive influence to the world. The simplest way is to help those in need by donating. There are way more people need money or resources than you do. If you agree with my ideal, welcome follow me. I'm Beta. Let's do some effort to the world.
SP:SPX
by Eleta1228
5