TraderPlanet is all about education; it is the reason it was built and it is the reason it keeps humming along. The world of trading is a tricky business, so a website that focuses on helping newbies and not-newbies learn the “tricks of the trade,” so to speak, is welcome. The fact that the educational information coming from a multitude of experienced sources is free makes TraderPlanet a real bargain, along with being a valuable resource for learning about the business of trading and investing.
The array of fresh articles every day on everything from the basics of trading to highly technical chart stuff I don’t even understand is amazing, and there is always something in there for readers of this column. In fact, since the market is so irrational, and I have nothing really to add to the craziness, I’d like to point you toward an article on the basics that is quite helpful for newbies and not-newbies.
http://www.traderplanet.com/articles/view/165736-10-questions-to-ask-before-making-another-trade/
It starts out with the following.
You have your finger on the mouse and are ready to click “Send”. . . But, are you 100% sure that you’ve made the right decision? Is there something you are missing or did you cover all the bases? Remember that once the trade gets filled you are committed and have real money at stake. I believe that you have to have a plan in advance. A little preparation now goes a long way when making trades, so ask yourself these 10 questions before making another trade.
Good stuff to learn and a good refresher for those of us that tend to forget because of the sheer numbers of times we have had out “finger on the mouse.”
The market is tanking again today. It has turned into a feeding frenzy, rats leaving a sinking ship, and any other metaphor other than the stampede comparison overused of late. Facts are facts and the fact is that the market is seriously afraid and when it is like this, it is best to get out of the way in the short term. Be patient. It will come back, despite the seeming endless days of going down.
Remember, we have been here before (many times in the last five years), most recently last summer and fall when we had the twin fears of … you got it – the emerging market collapse and the US politicos shutting down the government. The thing to be aware of today, though, is the technicals showing the S&P 500 dropping through the floor at 1770. This will inspire even more selling for no reason other than the charts say to sell.
Oh, the market will come back from the “dark place”, but the current cascading downhill just makes the mess messier and it will take longer to climb out of the hole. Just keep in mind that underneath all of this running from fear is a current of strength in both the economic fundamentals and the market itself.
- Let’s turn to the high yield (junk) bond sector, which is one of the primary canaries we watch. Junk bonds are among the riskiest and most volatile in the fixed income area and are definitely among the most sensitive to ripples in the liquidity stream. After being left for dead during the second quarter of 2013, they did a complete 180 and slowly and steadily marched back to all-time highs, surprising many people … It’s going to take another mini cycle before high yield warns again.
And on the economic front …
- Car sales in France and Spain rose for the fifth straight month in January, suggesting the recovery in Europe’s autos market is strengthening following a six-year slump.
- Chrysler January U.S. vehicle sales up 8% vs. estimated 5.4% gain.
- Eurozone manufacturing PMI increased to a 32-month high of 54 in January from 52.7 in December. Germany led the expansion and Greek PMI returned to growth for the first time since August 2009, while Spain hit a 45-month high and France showed signs of stabilization.
Hang in there, and as I have said more than once recently, go find something fun to do until the bears, and now the technical sellers, run out of steam. I guess I did have something to add to the craziness after all.
Trade in the day; Invest in your life …
