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Pattern Day Trader RuleI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Now I want to talk to you about the pattern day trader rule because this rule requires that you have at least $25,000 in your trading account if you are day trading. Here’s the tricky part. The tricky part is that you could trigger this rule even if you’re only swing trading, and not day trading, which is why it’s important that you are aware of what the pattern day trader rule is. I will give you examples of what can trigger it, even if it’s accidentally, and I’ll break down what then happens if you trigger it. Most importantly, I want you to be aware of how you can avoid it. What Is The Pattern Day Trader Rule? So what is the pattern day trader rule? According to FINRA, who set the rule, a pattern day trader is a trader if you execute 4 or more day trades in 5 trading days. So if you execute 4 or more day trades in 5 trading days, then you’re being flagged as a pattern day trader. This is not a good thing. So what actually is a day trade? A day trade is a trade that you open and close, during a trading day. So as an example, if you buy a stock at the open, at 9:30 Eastern Time, and then sell it before 4:00 pm Eastern Time, you are placing a day trade. Now, very, very important: this whole rule only applies to stocks and options. It does not apply to futures, forex, or binary options. It only applies to stocks and options. How To Trigger The Pattern Day Trader Rule How can you actually trigger this rule even if you’re swing trading? Well, it actually happened to me very recently. My head coach, Mark Hodge, and I, we were trading with our Mastermind members. I asked Mark to place a trade in my account, but he accidentally placed it in the wrong account. When something like this happens, I have a rule. “When you make a mistake, liquidate.” So I asked Mark to close the position, and when he did that counted as a day trade. So we opened the trade, realized we made a mistake and closed it right away. This lead to me having one strike in this account. And again, if we would get 4 strikes within 5 business days, then we are flagged as pattern day traders. Now, here’s another scenario. Let’s say that we enter a trade tomorrow and it hits the profit target or stop loss on the same day. So this would be another strike because now we are also entering and exiting during a trading day. So as you can see with this, even if you’re not day trading, it is possible that this could happen a few times. If this happens 4 times within 5 trading days, then you’re flagged as a pattern day trader. What Happens When You Trigger The PDT Rule? What happens when you trigger this rule? Well, first of all, if you have more than $25,000 in your account, nothing happens. This is because the pattern day trader rule says, if you are a pattern day trader, then you need to have $25,000 in your account. Now if you don’t have $25,000 in your account, then you will be restricted to trade on a cash basis only for 90 days. What does this mean? Well, see, as a day trader, you actually do need a margin account, and when you trigger the pattern day trader rule and cannot put $25,000 in there, this means that now you are restricted to trading with cash only. So let me give you an example. Let’s say you are trading the Wheel trading strategy, and you put $20,000 in an account. This means if you put it into a margin account, that you get $40,000 in buying power. So when you trigger the day trading pattern rule, you no longer get this buying power here, the 2:1 leverage. You are now basically going back to whatever cash you put in there when you trigger this rule. How To Avoid Triggering The PDT Rule? Now the question is, how can you avoid this? Well, and I want to give you three tips for how to avoid it. Number one, have $25,000 in your account because if you have $25,000 in the account, then triggering the rule won’t matter. What about if you don’t. Number two, you want to make sure that you count the number of day trades. Leave the date you placed a day trade on a sticky note, and count the number of day trades that you do even if it is accidental, so you can keep track of how many strikes you have. Number three, you can avoid it here by trading a cash account. So if you’re not trading a margin account, you don’t have to worry about it. Then, of course, if you are trading futures, forex, bitcoins, so cryptocurrencies, or if you are trading binary options, this is also when the day trading pattern rule does not really matter. Summary Now you know what the pattern day trader rule is, how you can trigger it, even if it is accidentally, what happens when you trigger it, and how you can avoid this. So let me ask you this, at this point, was this helpful at all? If so, feel free to share this video on Facebook, on Twitter, and I’ll see you for the next article.
NASDAQ:NDXEducation
by rockwelltrading
1
Short Selling Put OptionsI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. Short Selling Put Options When short selling put options, a question people ask me is, “Okay, Markus, how do you decide what strike price do you want to sell and whether there’s enough premium in there?” I made a put options calculator called “The Wheel Calculator” that I gave away as part of my recent class on selling put options (Theta Kings) that helps me determine just that. This calculator is now also integrated within The PowerX Optimizer Software as well. Using my put options calculator, I can enter a few different figures and it quickly lets me know if this stock makes sense to sell put options on. I started a small account with $25,380, and have continued to grow it substantially. This was all done by selling put premium using my handy put options calculator! So let’s take a look at a few examples using the airlines. Here’s how you can quickly compare if an option makes sense to sell. So United Airlines UAL , at the time of this is trading at $31.08/share. So I’m going to take a look at the April 24th expiration and the $20 strike price. I’m thinking maybe it would be a good idea to sell the $20 United Airlines UAL put option. So now that I have the strike selected that I would like to sell put options on, let’s take a look at the premium these options have. This will let us know if this trade actually makes sense. Right now, the Bid/Ask is $0.74 over $0.87. So I probably can get $0.80 for selling this option. This is all I need to enter in my spreadsheet, along with the expiration. With the needed inputs entered into my handy dandy put options calculator it tells me, “United Airlines can drop 36% and you’ll still be okay.” It has to drop 36% before we get in trouble. I think that’s pretty good odds in my opinion. The cool thing is that it also says that based on my account size, I should buy 17 options, and I would collect $1,320 in premium. So this means that per day I would get $110 in premium. That’s not bad at all if I can make $100 on just one position. And I like to have 4 to 5 positions in my account at any given time. So based on the number of positions I like to have, this means that you can make $400 to $500 per day collecting premium. I like this a lot because it means annualized I would make 87%! 87% is nothing to sneeze at, right? Short Selling Put Options — American Airlines So now let’s do this same thing with another airline, American Airlines AAL , and see how the numbers look. So like we did with UAL , I’m looking at what strike price in relation to where AAL is trading would it make sense to sell. For American Airlines AAL it looks like probably the $8 strike price would make sense right here. You always want to do it below the previously established low. So let’s take a look at American Airlines AAL . The price right now is $12.26. the options strike price, we said we’d probably have to look at is $8. Here we’re able to collect $0.35 per contract at the $8 strike price. And you see, I could actually, since American Airlines is so cheap, buy 41 options based on my account size. So 41 options and I would collect $1,444 in premium. This means I would get $120. That’s not bad at all. And you see, American Airlines AAL also can drop 35% and we would still be OK. We only get in trouble if American Airlines over the next 15 days drops more than 35%. Possible? Yes. This is why you should always be willing to own the stock. And this is why you want to make sure that you’re not getting in trouble. You need to adjust your position size based on your account. Here obviously, I don’t want to trade two airlines because if airlines are crashing, they probably all do. With that said, let’s take a look at Boeing AAL . Boeing Example I like trading Boeing. I'm looking at a Boeing AAL chart to see where might be a good level here to sell Boeing. Based on where AAL is trading at right now, it looks like $100 would be a good level to take a look at. Let’s first try a strike price of $100, shall we? For $100 we get probably a $1.55 right here, with Boeing AAL trading right now at $150. So if we were to sell the $100 put option on AAL , we are looking to make $1.55/contract. And you see, this means that Boeing AAL could drop 33%, so we’re good here. However, we can only buy three options. Why? Because Boeing AAL is really expensive. So if we would have to buy Boeing at $100, this is when it gets expensive, right? So you see, the strike prices here are much, much, much lower. This is where you see I would only trade three not to overextend myself. And that’s very important when you’re selling puts. You want to make sure that you’re not overextending yourself because otherwise, you’ll get margin calls. Margin calls are ugly. A margin call means that your broker tells you, “I want more money.” You want to avoid that at all costs! Because if you don’t have the money, you would have to sell the stock at a price that you don’t want. Usually, this is how you can wipe out an account. Anyhow, you see this is how we would only make $43 a day. Let me ask you, what would you rather make? $110 to $120 per day? Or $43 per day? I don’t know about you, but for me, these are better. So it’s very easy to quickly compare which options you should be trading when you’re selling puts. One of my favorite trading strategies right now is selling puts. This is what you have seen in the past few examples. My goal is to make $400 to $500 per day by doing so. The best days to sell puts is on a down day. On a down day, the VIX is usually shooting up and options premiums are higher. This is exactly what you’re looking for as a premium seller. For experienced options traders, selling put option premium in an environment like this can be a great way to consistently generate income, even if the stock doesn’t do exactly what you want. I hope this helps!
NASDAQ:UALEducation
by rockwelltrading
1
How To Start A Successful Trading BusinessWhen you start trading, you need to go into it like you would if you were getting ready to start a business. Too often, I see new ‘traders’ who open their account and before ever mapping out any goals, a strategy, a trading plan, or anything, they’re already putting money into the markets… …and for me, this isn’t trading, this is gambling. So in this article, I’m going to walk you through how you can start your own successful trading business. So let’s dive in! Starting A Trading Business: Step 1 – Charting Software First, as a technical trader (like me) you MUST have good charting software. Charting software is your window into the world of stocks. As a technical trader, we rely on charts and indicators to find high-probability setups. Charting software with good indicators is an essential first step in your path to being a successful trader. I personally use (and highly recommend) TradingView. It is a paid service and for what I do, I use the Pro Version which currently costs $14.95 per month but it is well worth it. Remember, starting your own successful trading business requires a modest investment into the ‘infrastructure’ of your business. Step 2 – Finding The Right Broker Now on to step 2, finding the right broker for you! Finding the right broker can be a tricky process, especially if you live outside of the United States. If you’re trading stocks and options, I highly recommend tastyworks, or Interactive Brokers if you live outside the U.S. Starting A Trading Business: Step 3 – Trading Strategy Next, now that you have your charting software and broker, every trader needs a good trading strategy. Similar to the broker, one size does not fit all. Why? Well, there are a LOT of variables that can go into developing your trading strategy. For example, are you trading for Income or Growth or the amount you have to trade with? All of these things play a big factor in the type of strategy you want to, can, or should trade. Right now, I’m trading two strategies. My core strategies right now are, The PowerX Strategy and The Wheel. Step 4 – Trading Computer The next thing to consider when getting your trading business set up is you will need a computer. Almost all brokers and trading software are cloud-based, so you don’t need a seriously advanced computer anymore. Most computers that are less than 3 years old should be more than powerful enough to run even the most system-intensive trading platform. Step 5 – Additional Monitors. Now, for your home set up, I think at least one additional monitor is a must. The good news is that if you have a laptop, you already have one monitor! If you travel a lot (like me) I would highly recommend the ASUS MB169B+ 15.6″ Full HD 1920×1080 IPS USB Portable Monitor. They’re lightweight and work great on the road or at home. It fits easily in my backpack (because I HATE checking bags) and doesn’t add much weight. Step 6 – Trading Newsletters Next, over my morning coffee, I like to read a few different trading newsletters. I have three primary newsletters right now where I get most of my market-related news. Most of the talking heads on TV are absolutely terrible for getting non-biased information anymore. No matter what station, everything you hear is coming through some sort of filter. For this reason, I stick with these three newsletters that I’ve found to provide good info: - Morning Brew - Seeking Alpha’s Wall Street Breakfast - The Rockwell Trading Newsletter Summary Now that you have all of the pieces in place to start your trading business off on the right foot, in my next article I’m going to go through something that at first, I’m sure you will cringe: Trading Taxes. But I assure you if you’re proactive and take the time to get set up and structured properly, taxes aren’t actually as bad as you’d think for full-time traders. I hope this has helped and you’ve enjoyed it. Good trading!
DJ:DJIEducation
by rockwelltrading
How To Place A Wheel TradeI’m Markus Heitkoetter and I’ve been an active trader for over 20 years. I often see people who start trading and expect their accounts to explode, based on promises and hype they see in ads and e-mails. They start trading and realize it doesn’t work this way. The purpose of these articles is to show you the trading strategies and tools that I personally use to trade my own account so that you can grow your own account systematically. Real money…real trades. All right, so how exactly do you place a trade for The Wheel? Well if you have been following me for a while, then you know that I love trading two strategies. The first strategy I trade with is The PowerX strategy and it’s my bread and butter strategy. The second strategy I love trading is The Wheel strategy and this strategy has a very high winning percentage. In fact, I’ve been trading it publicly live on my YouTube channel over the past few months, and thus far, knock on wood, I have a 100% winning percentage. Having a trading strategy is key, but how do you actually place a trade? In this article, I will show what steps you need to take, from what type of account you need, to how exactly to place the trade. I’ll show you these steps using two popular brokers, first on tastyworks, and then on Interactive Brokers because I know that many international traders use this platform. Getting The Right Trading Permissions Firstly, you can trade The Wheel in any account you want, even in a retirement account. You just need to make sure you have the right options for trading permissions. When it comes to options trading there are four levels. On any account opening form they ask you, as any broker would, “What type of activity do you plan to conduct in your options account?” It doesn’t matter whether it is a cash account, a margin account, or a retirement account, all you need for trading The Wheel strategy is the lowest permission possible which is Tier 1. With Tier 1, you can write and sell covered calls, as well as writing and selling cash-secured puts. This is exactly what we are doing with The Wheel strategy. So this is step number one because if you don’t have these permissions, there’s not a whole lot that you can do. Contact your broker and make sure that you have Tier 1 options permissions, which again, are writing covered calls and cash-secured puts. If you have a higher Tier, like Tier 2 or 3, that’s okay, because Tier 1 is included in the higher Tiers. The 4 Things You Need To Know Before placing a trade, there are the first four things that you need to know: What type of option are you trading? Are you trading a call or a put? You need to know what is the expiration of the option. What is the strike price? What’s the minimum premium that we want to get in this trade when trading The Wheel strategy? For those who may not be aware, when I take a trade I send out an alert notifying those who opt into our Power Income Alerts feature. I recently sent an alert out for a trade with WYNN that I recently took. According to this alert, the idea is we believed that WYNN would stay above 70 by October 30th, but if it is less than $70, we would be assigned shares, then sell calls against the position. The alert contained the four things needed to know in order to place the trade. It had the strike price, the expiration, and the credit that we wanted to achieve. With this information from this alert, I’m now going to explain to you how would enter this trade in tastyworks, and then I will explain to you how exactly you do this on Interactive Brokers as well. How To Enter A Trade In Tastyworks Once you bring up the tastyworks platform, the first thing that you need to do is enter the symbol. In the upper-left-hand side, we would enter WYNN because this is the stock that the alert went out for, so we type in W-Y-N-N. Now, the second thing is, as soon as we bring it up, you click on the “TRADE” on the left-hand side. After you click the “TRADE” tab, you have to select the expiration from the list that populates. According to the alert, the expiration we are looking for is October 30th so this is the expiration we would select. Now you’ll see all the calls on the left-hand side and all the puts on the right-hand side. You just click on the bid price, and after clicking, it’ll say “S1”. So this means now that you are selling one contract. Now, depending on your account size, you might want to sell more than one contract. This is why the alert will tell you the buying power that you would need to trade one option if you want to trade it cash secured, which I highly recommend you do cash secured, and that would be $7,000 for each option that you want to trade. So for me personally, in the account I was using, I wanted to trade three options so I adjusted the quantity until I saw three options. So the next thing is that you need to specify is the minimum amount of premium that you want to achieve. In the alert, I specified that you should receive at least $0.50 credit. The bid/ask of this option right now is between $0.80 for the bid and $0.84 for the ask, and it makes sense to go with the mid-price which most brokers suggest. Now click on “REVIEW AND SEND”, and then you have the opportunity to quickly reviewing your order. So now we have three WYNN options here that we are selling (-3), with an expiration of October 30th, and a strike price of 70. You’ll see a P which stands for “put,” and STO means “sell to open.” The limit order I used to sell it was at $0.82. Now $0.82 is above the $0.50 credit that I suggested that you get at a minimum in the alert, so if you are able to get more than the minimum, good, do it. There are estimated commissions and fees, and then you just have to hit “SEND ORDER” and the order gets placed. You now just have to wait to get filled. If you’re not getting filled right away, you can adjust your bid and ask, so instead of going for $0.82, you can then try lowering your bid to see if you get filled. As you can see, it’s very simple, and next, I want to show you also exactly how to do this on Interactive Brokers, and it’s just as easy. How To Enter A Trade In Interactive Brokers All right, so let’s go over how to place a trade with the Interactive Brokers platform. Now I will be using the information from the same alert we used when placing the tastyworks trade. This platform looks slightly different, but the functionality is always relatively the same. There will be a place where you can enter the symbol, so we are typing in WYNN as the symbol in the upper left. As soon as we hit Enter, it will ask us if we want to trade stocks, or do we want to trade options, so of course, we pick “options.” This will bring up the options chain. An alternative way to bring up the options chain is to click “New Window” above the field where you input the stock ticker and click “OptionTrader” to bring up the options chain. I will look almost similar to how it looks on tastyworks. So here again, we enter, simply W-Y-N-N and now we need to pick the expiration. The expiration going back to the alert is October 30th and a strike price of 70. Just like we did in tastyworks, after selecting the strike price of 70, we click on the bid. Once we click on the bid, it will bring up the order at the top. It asks for a limit order, and we can also adjust the number of contracts. So instead of trading one contract, we can trade three contracts. We can also adjust the limit order to 82, as we had with tastyworks. When we’re done, all we need to do right now is hit the T for Transmit. Summary As you can see, there are differences between these packages. I personally use Interactive Brokers a lot, and it is very popular with international traders. I also use the tastyworks platform and find it a little bit easier to use. Now you know how to place a trade according to the Wheel, using tastyworks and Interactive Brokers. Other brokers, other than these two, will be very, very similar. After reading this article, you now know what type of account you need for trading The Wheel Strategy, and you can use a cash account, a retirement account, or a margin. It doesn’t matter as long as you have Tier 1 options permissions meaning you can write/sell covered calls, and cash-secured puts. Within the platform, all you need to do is input whether you’re trading a call or put, the expiration, strike price, and what’s the minimum premium that you want to collect. It really is that easy.
NASDAQ:WYNNEducation
by rockwelltrading
How i know what stock have a good future in a crisis - TutorialHello, Some people asked in Telegram / PM how i know what stock will go up and which one should them short or long. I made a list about the different sectors of SPX 500 if its needed to go bear or bull on it. After you choose the sector you need to check the ADX of the coorporation, it need to be strong and always remember to chose the strongest coorporations of the sector that you selected. Here is the graphic: imgur.com You can see my last charts that i did green on almost all of them. Hope you liked and helped to you! Please follow me to keep doing daily analysis for free! Thank you so much! Regards,
NASDAQ:ZMEducation
by aleex5893
REVIEW: DJI (Wall Street), DAX and nuclear options. I've looked into the DJI and the DAX because they are connected. I also considered events affecting the Hong Kong index. In the text below, I consider China's 'nuclear option'. Overall I'd say the probability is greater for the south on these indices (from this point in time). But caution - because there is a residual probability for the north and I can't know how far south the markets may go if the markets are with me. These are very troubled times. 1. The markets are overbought because of QE4.0, lowering of interest rates and high hopes about a China 'Phase one' trade deal. 2. But there is trouble in the Hong Kong Stock market. 3. POTUS signed the Hong Kong Democracy Act which could cause the Chinese to retaliate in some way (nobody knows how). The 15th of December 2019 is an important date on which $160 Billion of tariffs on imports to the USA, get lumped on China or they are withdrawn. If the tariffs are withdrawn, expect markets to head to the moon (stupidly). If the tariffs are applied, expect a correction of some sort. Bond troubles In other trouble China has begun the so called nuclear option of selling off US Treasuries. Note that Treasuries are bonds, which means that money is owed to China by America i.e. they represent a debt owed by the US. Why would China sell off US Treasuries - which are debts owed to China? Perhaps because China expects the US Dollar to be worth less in times to come. It's like this - if I lend you money fixed in USD value, and then you decide to devalue your US dollar by various means, it means I'm getting back less value. For an exploration of Bonds go here . China holds about $1.2 Trillion of US debt. A sell off of US Treasuries is said to destabilise financial markets. How - is a separate complex story. The point is that China's retaliation on the Hong Kong Act could be this 'nuclear option'. The point of all this is that there are complex issues affecting the markets. Disclaimer: Nothing shared here is investment advice or encouragement to trade in securities. If you lose your money, kindly sue yourself.
FOREXCOM:US30Education
by Captain_Walker
1
MENA takeover: IntroductionEurope (and NA and JP) have been ruling the world for 700 years, ever since Fibonacci brought back the number 0 and created finance. Gunpowder helped too. Europe domination really went exponential once the stock market put people with money in relation with people with ideas, especially in UK. Before that the arabs ruled the world for a few centuries, so MENA, before that the romans (and greeks a bit) so europe, before that the carthaginians I think? so mena, before that it alternated between Egypt, the Iraq region, Turkey, Iran (persians)... India and China have always been big but actually so big they just do their thing. They're a planet by themselves I guess. Mongols conquered the world so there is that too but otherwise the military + economic + standard of living + science domination has been alternating between europe and mena. And Europe time is running out... (This includes NA). The end of an era is happening... People trying to sound smart are saying china (and sometimes india too) will take over but I doubt it. They just do their thing, they always have. I do not think it is highly probably. Ye sure their gdp probably keeps going up but their culture etc won't dominate. They could go into complete isolation (again). Do they even need the outside world that much tbh xd ps: poor hong kong. rip. This is just an intro, there are plenty of reasons that show us what is happening (including inflation and all that scammy nonsense). 1 thing I really like is "biohistory" it's a new subject they have a couple of videos on youtube I recommend watching them. North Africa has seen the arab revolutions about 10 years ago, so they have started leaving the middle ages (finally). It takes time but... In the 70s the shah of Iran turned the country from middle ages into a regional superpower (some say he got too ambitious and this is why the US didn't help him and even helped the islamists take over). So it can go pretty fast. And it doesn't take that much! That region including non listed countries has a GDP of 3 trillion. Their economy (per capita) could triple, it's not crazy (didn't it already triple the past few decades?) their population triples, and bam in 30 years you got a GDP of 27 Trillion, while NA EU JP stagnate or even decline. The MENA region on their side also has oil, natgas, fertilizers, and idk what else, that are only going to go up in value. This can help support 500 years of world domination. Europe dominated the world for less reasons than this. Anyway, the gap between developped world and the rest (except sub saharan africa, they are rekt) will tighten I can guarentee this. The US have just declared sending troops to Saudi Arabia to deal with Iran... With the coming UBER depression, likes of which you have never seen, the US won't be able to keep the region tamed. Pay attention to this: "During the two decades before 1975 per capita income in Iran grew faster than in Turkey and kept pace with Korea. By 1975 the level of per capita GDP in Iran was more than double those attended in Korea and Turkey. However, since the late 1970s income per head in Iran has witnessed a rapid decline. . . By 1990, GDP per capita in Iran had declined by half, almost down to the levels prevalent in the early 1960s and falling behind Turkey and Korea." Double digit growth. The 15 years before 1975 were called the "white revolution" led by Iran shah, and 1978/1979 (when the decline started) was when the shah had to quit the country and the religious "supreme leaders" took over. This is very long term (several decades), but when the "developped world" sees their greatest depression in history with nothing left to slow it down (rates at zero or less, inflation high already, debt insane already, QE pushed to the max, etc)... developped world economies are going to be the safest ones and the ones to recover faster. Let me repeat, when the west depression begins, investing in a middle east country with plenty of issues and potential wars will be MUCh safer than investing in the developped world. Great time to start looking at this region. Warren Buffet and John Templeton did not have access to double digit growth, but maybe we will. The ones that have the vision to look at the right place while every one else is focussed on the previous opportunities. OF THE PAST. Don't be sad because it is over. Smile because it is beginning :)
TADAWUL:TASIEducation
by MrRenev
1
US Stock Markets: And what's Mueller got to do with you?!This screencast is speculative - and I invite the full brain power of Tradingview's community to consider the variables which might affect the US Stock Markets around this time. Let's do this together. The stock market has retreated, probably due to nerves about the Mueller report - among several other things. If the report contains nothing on which Trump is impeachable then, I'm expecting a pump north. Mueller's hit list so far has been : 1. PAUL MANAFORT 2. RICK GATES 3. MICHAEL COHEN 4. MICHAEL FLYNN 5. GEORGE PAPADOPOULOS 6. ALEX VAN DER ZWAAN 7. RICHARD PINEDO (Names are in all caps only due to copy and pasting. Names and convictions are all in the public domain, so I'm not defaming anybody.) Some may think that with so much dirt around it's unlikely that Trump will come out of this clean. Hey, this bull market is about Trump - let's not debate that. If Trump goes down the markets go down like lead balloons. Alternatively, if Trump comes out clean enough, expect bullish moves which may then be limited by other factors. Separate to Mueller's investigation and report, there are 16 other investigations into Trump. If just one sticks, there could be catastrophic collapse of the American markets - with shock waves globally, hitting Forex as well. We have other variables to consider : 1. The Fed 'money printing' press going to be turned up. 2. Bleaker than expected economic projections by the Fed and Draghi. 3. Expected weaker US Dollar - creating bullish pressure in the long term. 4. Flattening or inverted yield curves 5. Uncertainty's and delays on deals with China. 6. Potential Brexit shock waves. 7. Germany struggling against recession. 8. 'Housing' market bubbles in several countries including the US, in trouble. 9. US and Global debt totally out of control. 10 etc. .. and much more. Sorry - I don't know what's gonna happen. I do not give tips on entry positions.
OANDA:US30USDEducation
by Captain_Walker
2
THE BIG EIGHT: Where is the world heading?In this screencast I review 8 important markets. There are some common levels and patterns of price movements. The India50 is the odd man (woman) out. The forecast of a global recession has been made (not by me). This is related largely to global debt now standing at around $233 TRILLION US-Dollars and debt in America currently around $22 Trillion US-Dollars. The picture is complicated by trade tensions, political and other macroeconomic events. Our inheritance is will be the result of a decade of ultra-low interest rates and quantitative easing (aka printing of money), now complicated by global geopolitical and macroeconomic issues. Stock markets (and related indices) have a complex but important relationship to the Forex markets.
FX:US30Education
by Captain_Walker
DANGER: Amazon and FANGS could be in trouble. Amazon has just crossed $1 Trillion in market value. This is without doubt a parabolic expansion. History has shown us that parabolic charts like this suffer a significant correction. Do not expect me to say when - as I have no crystal ball. Tech stocks have been propping up Wall Streets expansion. But there is a problem. The stock markets in the US and around the world are being eroded in value. Google is your friend. Around the globe there is market contraction due to trade wars and international political tensions. Reliable research shows that value of stocks below the top 30 is falling in average. This is a danger signal. The traditional 'news' is not your friend. From day to day we hear different news casts. These people are there to sell their news - that's all. Dig deeper. The world is in trouble! Amazon cannot fight and win over the whole world. It just ain't that big or powerful. Tech stocks have been living on borrowed time and feeding frenzies. If Amazon goes south, and the rest of tech goes south, expect to see major corrections on Wall Street. Those looking to short the stock markets may wish to look for trend changes on the 4H - 6H time frames and with Amazon.
NASDAQ:AMZNEducation
by Captain_Walker
Dow Jones (Wall Street) - crash is an irrelevant issue.I explain in the screencast why I think 'crash' is an irrelevant issue. It is impossible to know whether 'we're in a crash' because a crash can only be discovered well into into it or after it has happened. True trend-followers will appreciate that all one can do is find a suitable trend - and follow it. Simple but I didn't say it was easy. In fact I will assert that true trend followers really don't care whether there will be a crash or the next market melt up. What people (in general) want, is to be able to foretell the future. Sorry, they can't - and no guru has such powers. We might prepare for the future in various ways. This is not ordinary life. It's not everyday activities like trying to find the safest point in time to cross a road. The reality is that markets are wild random things - pure chaos of a different order - where the 'normal rules' we may apply in everyday life just fail miserably. As I've said in other posts, a whole new mindset is needed to manage this very different sort of chaos. With 76 to -90% of real trader accounts consistently losing money (hard data), the battle is not with the charts or the markets. The battle is with yourself and your psychology.
OANDA:US30USDEducation
by Captain_Walker
Big trouble in 'Little China'In this video I review again some evidence that everybody can see with their own eyes. The US30 or the DJI is in trouble. There are observable signs of a trend change in a parabolic picture from the Weekly right down to the 4H time frame. The market is convulsing with hope and greed. But the geopolitical situation is very unstable at at this time, and a terribly overbought market as it is, is pretty fragile. Have a look at some entertaining and informative videos from Francis Hunt which goes into greater detail. DOW Jones - SKULL & BONES day crash to be real deal! Dow Jones and US Indices in deep sell off more serious then most suspect
DJ:DJIEducation
by Captain_Walker