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Stock Market Daily Recap Nov 14, 2012 – DJIA, QQQ, IWM, EEM, FB

November 14th, 2012

The Market and Indicies

The market today already was at the brink. After President Obama spoke today discussing taxes for the wealthy and other economic items, the stock market started to sell off. All though there were a few stocks that made some great pops, most of the stocks are pushing to the down side or are still at critical levels.

The Dow dropped over -185 points to close at 12,570. The SPX, EEM, IWM, QQQ have all broken their support levels. They may go back up to retest those new levels as resistance levels to see if they can go to the upper channel, but you can not deny that today they were broken, so probability they will stay in this lower level until things rebalance.

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Why Many People Believe Stock Trading is Like Gambling and Why It’s Not

November 14th, 2012

Many people believe that stock trading is like gambling. I even hear this from my mom who actually trades from time to time. Even she mentioned that stock trading is like gambling. The fact that they could be so far from the truth for a person who is more educated on the market or human psychology. Typically the people that say this, either hear of the bad stories, incur incredible losses, or to simply do not understand the markets. They could also be looking for someone or something to blame to make themselves feel better.

There is a recent post I did on my personal website about the things I study. Primarily most people think I study investing if they hit my Tradersfly.com website, others will say marketing if they visit Marketingkite.com, some may even think Business to Business or Internet SEO. The fact is I study one main topic and one main thing only. That is human behavior and psychology of peoples actions, reactions, and people interaction. Read more from my blog post here.

The financial view of why stock trading is not like gambling

One key principle to understand is in the casino if you walk in, place your bad on black or red, you lose all of your money. The same goes with the slot machine. Every now and then you win and get some money back but this is winning.

With the stock market when you place your bet on a certain stock or company, if the stock does not go in the direction you want to go you can sell it off and get a portion of your initial investment back whereas with the casino you would lose all of it if you did not choose the correct direction.

What makes the stock market much harder is that if you did choose the right direction when do you actually sell in cash in your chips? This is what many stock traders struggle with especially beginners.

The fundamental level of livestock trading is not like gambling

However there is a deeper core I think behind it. If you read my blog posts from my personal website, you already know the answer to this. The reason I believe stock trading is not random is that all of it is based on human behavior. Not just simple one person human behavior, but mass quantities and mass behavior. It has never been random, nor will it ever be random unless you are one of the few that cares to say that to make yourself feel better.

Stock Market Daily Recap Nov 13, 2012

November 13th, 2012

Video Recap:

Market In General

The market dipped on the open today, and slowly went back up hitting its peak at 11.00am. After that it continued its sell off. Start high early on and sell off to the end of the day. Bull markets start low and trend higher towards the end of the day. Basically sellers pushed things to the down side.

Read More  

Stock Market Daily Recap Nov 13, 2012

November 13th, 2012

Video Recap:

Market In General

The market dipped on the open today, and slowly went back up hitting its peak at 11.00am. After that it continued its sell off. Start high early on and sell off to the end of the day. Bull markets start low and trend higher towards the end of the day. Basically sellers pushed things to the down side.

Read More  

Discussing the Apple (AAPL) Gap and Fade Play for Intraday

November 12th, 2012

In this video I discuss the Apple Gap and Fade play. If you are a day trader this is basically the things I watch for. The gap and fade plays can also be known as the Green to Red play, meaning a stock went green and when it turns red its headed towards the bottom. Personally I like to watch the price action, volume levels, and support and resistance key points to know the entries. Remember this is strictly a day trade play and would not be held overnight.

Things I am Watching Nov 12, 2012 – TLT, ALXN, MA, ROK, and EEM

November 12th, 2012

Here are some things I am currently watching. Primarily the TLT looks healthy for bonds. I also been talking about ALXN, MA, and ROK in my other daily posts. EEM still appears to be consolidating so just keep an eye on it. Some charts are forming but still looks like a cash market until things re-balance. Do not be in a hurry to jump into stocks. Wait for your opportunities then pounce hard when the time is right!

Basics of the Bid, the Ask, and the Bid-Ask Spread in Stock Trading

November 12th, 2012

If you want to purchase shares right away, you are going to have to pay the asking price. Similarly, if you want to sell shares right away, you have to pay the bidding price.

Bid

  • What people are looking to get the order at
  • If you want to purchase 100 shares of Nike, you might bid $50.90, but the ask is $50.98
  • In order to get that order, you need to pay $50.98

Ask

  • What people are looking to get for the stock

Bid-Ask Spread

  • It is the difference between the bid and the ask
  • What the market makers have to make
  • i.e. $50.98-$50.90 = $0.08
  • $0.08 is what the market makers get paid to execute that order
  • As soon as you purchase the stock you lose $0.08 per share
  • You can't buy and sell immediately because it will be costly
  • You need to take the bid-ask spread into account when trading

Understanding the Different Between Swing Trading and Day Trading

November 9th, 2012

There are advantages and risks to both swing and day trading. You can determine which to practice based on the current market.

Swing Trading v. Day Trading

Swing

  • Potential to make more money than with day trading
  • Going across multiple days (e.g. a 100 day period)
  • You do have the risk of holding positions overnight; you also have the risk of news, politics, etc
  • Gives you more room to grow than with day trading
  • Requires more research about the company

Day

  • Market opens at 9:30am
  • You purchase stock at 10:20am
  • You have bought and sold stock and now own nothing at 3:00pm
  • You are trading on the day's gain (or losses)
  • Everything is done withing one day
  • Advantages: no risk behind holding positions overnight, news events (i.e. earthquake), etc
  • Usually stocks will not jump very high in one day unless they are higher priced shares

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.