Mastering Your Emotions in the Financial Markets: Essential TipsHello
Navigating the financial markets can be a rollercoaster of emotionsโ fear, greed, FOMO, and more. These feelings often drive irrational investment decisions. Understanding and managing these emotions is crucial for successful trading. So, how can investors sharpen their psychological edge?
One must-read book on market psychology is "Trading in the Zone" by Mark Douglas. Douglas likens a top trader to a world-class athlete, both achieving success through mental discipline and consistent systems. To help you reach this "zone," here are five valuable tips:
1. Develop a Trading Plan
A trading plan is your roadmap through the financial markets. It outlines the conditions for buying, selecting companies, and selling. By adhering to this plan, you remain accountable and avoid impulsive decisions.
2. Keep a Trading Journal
A trading journal is essential for assessing your progress and identifying areas for improvement. Document your trades, thoughts, and market observations. This self-analysis will help you refine your strategies and understand your trading psychology.
3. Set Realistic Expectations and Build Confidence
Confidence is key in trading. Confident traders take calculated risks and accept the outcomes. Build confidence by practicing on a demo account, treating it as real money, and setting achievable goals.
4. Practice Risk Management
Effective risk management is non-negotiable. Determine risk/reward ratios, use stop losses, and trade reasonable sizes. These practices safeguard your capital and ensure long-term success.
5. Consider a Trading Therapist
Yes, trading therapists exist! Like athletes with coaches, traders can benefit from psychological support. A trading therapist helps shift your mindset from emotional to logical, improving your risk management and decision-making.
Embrace these strategies to handle your emotions and enhance your trading performance. Remember, mastering market psychology is as important as understanding market trends.
AMDC trade ideas
AMD at bottom of long-term rising trend. Potential to USD 280.00Technical Analysis of Advanced Micro Devices (AMD)
Advanced Micro Devices (AMD) shows a positive development within a long-term upward trend.
After a downward correction in recent months, the share now finds significant technical support around the current level.
The share now finds support both at the lower trend line in the long-term rising trend, and there is also a significant technical support level around USD 155.00.
Furthermore, AMD now finds technical support around the 50-day moving average, and the stock was also down some time ago and tested the support level at the 200-day moving average and then turned upwards again from that level.
In the very short picture, the stock is consolidating and meeting some technical resistance around the USD 170.00 level.
Various momentum indicators such as RSI, Stochastics and MACD signal that the stock is likely to face further upswing in the short term, and thus there may be a break above the resistance level around USD 170.00 in the near future.
The share appears to be a good buy candidate at today's price level, and a break above USD 170.00 will trigger new positive technical signals for the share.
The potential for the share is considered to be around USD 250.00 - 280.00 in the 6-9 month term.
What could possibly change today's positive technical picture for the AMD share would be if it had an established break down below the support level at USD 155.00, and below the lower trend line in the long-term trend channel as well as a break down below the 200-day moving average .
However, as the overall technical picture is today for the AMD share, a significant potential for the share is indicated from today's price level in the 6-9 month term.
AMD long trade idea- Down trend correction has done and second wave of downward push seems failed making higher lows.
- Daily MACD and RSI levels get back bullish zone as well as first green histogram forms
- Price rises back to critical range of $160-$170. If price breaks above this range next stop could be $180
AMD LOOKING TO BUY !!!- Technology sector is one of the most grown sectors in stock market at this time. So AMD is semiconductors industry which produce micro devices!
- It is second largest company with 254.88B$ market cap in this industry which is 20 times smaller that NVIDIA ๐คก - bigger competitor.
- I have marked my POINT OF INTEREST where i will look for buys to make better RR. Volume is good just need to catch my entry!
GOOD LUCK ๐คก
AMD Ready for Takeoff??! or Has the "Bubble" Burst??!!AMD has been consolidating in a horizontal trade range for over a month. The stock recently bounced from the .618% Fib Level on a Bullish retracement from the low of 5/2/24 to the high made on 5/28/24 using the 65m timeframe. A more fine-tuned look at price action reveals a Descending Channel as well as a Falling Wedge/Bull Flag pattern seen on the daily timeframe.
What I'm Watching:
1.Price has been falling on decreasing volume ever since rallying from the .618% Fib Level previously referenced when analyzing the daily timeframe.
2. Monitoring RSI(D) in anticipation of Bullish Divergence should the stock make a slightly Lower Low or the RSI(D) to break above 50 and hold, indicating buyers are in control.
3. The stock reclaiming the 5MA(D), 20MA(D), and 50MA(D) with increasing volume. The stock is currently trading beneath all three, each of which could serve as entry points, profit targets, or stop losses along the way.
4. Possible Inv H&S pattern to form on the daily timeframe with the head being formed by a DBL BTM at/near the LOD from 6/18/24. The neckline would then be at/near the upper Bollinger Band(D) and the 100MA(D). Should the stock reach that level, it would need to be re-evaluated at that time for strength or weakness.
*It should be noted that Q2 Earnings is slated for
Tuesday 7/30/24 and could affect price action.
Entry:
1. Early entry would be a bounce from the top of the Buy Zone. This entry should only be taken if a Bullish pattern formation on a smaller time frame is identified at the level.
3. A more conservative early entry would be a retest of the top of the Falling Wedge/Bull Flag pattern after a break above. Would be watching the top of the Buy Zone, the Ascending Support Zone(D) or strength above the .5% level of the previously mentioned Fib Retracement for added confluence.
2. Ideal Entry would be a Bullish pattern formation on a smaller timeframe signaling a bounce from the bottom of the Buy Zone. Especially if the Lower Bollinger Band, .618% level of the previously referenced Fib Retracement, Bottom of the Falling Wedge/Bull Flag(D), and Ascending Support Zone(D) all can be referenced as support creating confluence. This could create the possible DBL BTM with the LOD on 6/18/2024.
Exit:
Stop Loss should be based on Risk Management and Entry Setup. The logical areas are discussed below in the "Things to cautious of" section, however, keep in mind that the obvious Stops get hit the majority of the time. The best defense against this is a solid entry.
Profit Targets should be based on Risk Tolerance and Time Horizon. Any of the moving averages mentioned before or levels of resistance depicted on the chart could serve as a potential target from here. The main thing to remember is that the stock will not go up nor down in a straight line.
Things to be cautious of:
1. A break and close below the Buy Zone on the daily timeframe.
2. A break and close below the Ascending Support Zone(D).
3. A break and close below the bottom of the Descending Channel(D).
*It should be noted that the market can do anything at any time, therefore none of these scenarios would automatically invalidate this theory, however each one of them would significantly lower the probability of a Bullish move at this particular moment in time. With all that said a break and close below the LOD on 5/14 would more than likely completely invalidate this thesis and stock should be given time to reevaluate,
AMD Breakout?NVDA and semis are weaker today, but AMD has been holding up relatively well. It's been brutal to trade lately IMO, but it's usually one of my favorite stocks and this is a nice looking bull flag. It's a shorter term pattern though and I'd be cautious with it until semis start to show more strength.
AMD UpdateIf you recall, I've mentioned in my recent posts that ideally, we should hit the purple 0.618 at $153.08 for mini-wave b before climbing higher in mini-wave c of B. Last week, that's precisely what occurred. We hit the purple 0.618 and then quickly moved up. Whether mini-wave b is complete remains to be seen. We could still technically drop to the 0.786 area. Once price surpasses the high made on May 28 at $174.54, I will consider mini-wave b definitively over.
With all this in mind, it seems we should be heading towards the target box. The target zone ranges from the 0.618-0.786 retracement fibs between $189.48-$205.27. See the orange fibs? These are the extension fibs if the mini a-b pattern is complete. Look at where the 1.0-1.382 extensions end. Is it a coincidence or the perfect setup? Only time will tell, but I am optimistic about how this pattern is unfolding. I anticipate that this c of B should take about 3-4 weeks to complete.
AMD - A potential setup for a swing tradeRemain vigilant for daily reversal candles occurring near the support area. In the event of a daily closing breach of the support levels (red lines), there is a possibility of further downward movement, emphasizing the importance of implementing risk management strategies.
AMD broke above the 3-week Bull Flag. Major buy signal!On March 13 (see chart below) we issued a major sell signal on Advanced Micro Devices (AMD), as we saw the stock topping at the top (Higher Highs trend-line) of its 2-year Channel Up:
Our projection was materialized as the price corrected significantly by -37% and has almost reached the 1W MA50 (blue trend-line), which was the level that held, formed the latest Higher Low of the Channel Up and made us give a new long-term buy signal a month ago (while also the 1W RSI reached the symmetrical Support level of the October 2023 bottom (45.50)).
Today the buy sentiment got stronger than ever as AMD not only broke above the 4H MA50 (blue trend-line) but also above the giant Bull Flag pattern that started on the May 28 High. With the 1D MACD about to form a Bullish Cross, a very strong long-term buy signal emerges that call for a new Bullish Leg similar to at least the May 02 - 28 one.
If the prevailing structure is a Channel Up then expect a +23.65% rise, which puts our Target at $190.00 (just below the 1.5 Fibonacci extension).
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AMD: Daily and Weekly Chart Analysis.Daily Chart: Support Levels and Fibonacci Retracement
The daily chart of AMD highlights key support levels and Fibonacci retracement zones. The price recently bounced from a double support level at 153.49, which is both a gap support and a 61.8% Fibonacci retracement of the prior uptrend. This level's resilience suggests a strong buy zone.
The 21-day EMA at 161.47 is acting as a dynamic resistance. If it closes above this level could push the price towards the next resistance at 174.55. The support at 153.49 remains crucial, as a break below this could signal further downside towards 148.00 and 142.00.
Weekly Chart: Ascending Trend Line and Pivot Point
The weekly chart shows AMD trading above a long-term ascending trend line, indicating a sustained bullish trend. The 21-week EMA at 162.06 provides additional support, and it is very close to the 21 EMA on the daily chart, reinforcing the important of a breakout of this key point.
The price has a pivot point of 174.55. Holding above the trend line suggests bullish momentum, with the potential for the price to retest the resistance at 174.55. A break above this level could target the next resistance at 187.00, while a failure to hold above the trend line might lead to a pullback towards the 150.00 level.
Conclusion: Key Levels to Watch for Bullish Continuation
On the daily chart, the double support at 153.49 is critical. The weekly chart's ascending trend line and pivot point at 174.55 will guide the broader trend. Maintaining support above the key levels on both charts will be essential for a continued bullish outlook.
For more detailed technical analyses and insights like this, be sure to follow my account. Your support helps me continue providing valuable content to help you make informed trading decisions.
Remember, real trading is reactive, not predictive, so let's stay focused on the key points described above and only trade when there is confirmation.
โTo anticipate the market is to gamble. To be patient and react only when the market gives the signal is to speculate.โ โ Jesse Lauriston Livermore
All the best,
Nathan.