Everyone today had their opinions today on why and how the markets made their big move today, a day after President Trumps speech to Congress.
I believe that one of the biggest reasons why is that most investors including big institutions anticipated the market to go short, (down) upon his speech. As I watched the speech myself in the evening and kept my chart open on live, I noticed that as the crowd cheered for most topics investors thought he would do bad in, perhaps other big investors and retail traders were jumping on board in the overnight session.
This led for shorts to cover their positions. And what happens when shorts cover their positions? They have to buy. When you buy, value rises. As value rises, others get tempted to jump on the train and ride it. Some may fall short of a small pull back, or bad news, which occurred perfectly twice, touching the VWAP (volume weighted average price) and probably covered their positions, only for the market to make one after another moves to the top.
As the early morning market opened it was on one of the fasted pace momentums up I have ever seen in a while as more shorts were probably covering and buyers were artificially and naturally pouring in. By the first ten minutes of the market there were well over 500,000 contracts traded. Amazing. Always remember that when markets build momentum, people can be on the other side covering their positions. It helps to learn when markets have gone far out of their standard deviations and can possible be in an over valued, or under valued position.
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I wasted a lot of time and money my first year following and believing the wrong organizations on the internet. I caught myself after spending over $15k in educators to figure this out. Did I learn some fundamentals of the markets? Yes, I did. Was it worth the time and money? No. So, I opened Fortetrader to make an affordable shortcut for those interested in learning about the Futures and Commodities markets and do it in a narrowed down version of what is out there in the internet community. I was not happy with companies that keep selling people the next big indicator, or the next big strategy that they do not even trade themselves or when they did, they do not even show the proof they do. I primarily did this to start building a foundation and a footprint of my own journey, as a student, a day trader, and a lifestyle seeker of time freedom and happiness balance via day trading. It may be possible that as I progress from today into an institutional style of trading that some of my mentors I have met have directed me to do that I may implement it into a course, however as of today, that is not the plan. Up until today I have gone from using delayed indicators, to price action, and further pursuing styles such as order flows, volume profile and market profile and theory. Until then do not drop thousands on any kind of online school. Take it from me it is not worth it.
Can you find a lot of things out on YouTube? Of course, you can. I can learn how to fix appliances in my house and save a ton of money on calling a service technician. Some martial artists are known to have learned and executed some of their most explosive secret moves on the mats because of YouTube. But when you try to learn something like the markets, something so robust, with so many different styles and methods and instruments, then is when you enter a maze. A big puzzle. And it is hard to get out of it. You need screen time, or martial artists would call it, mat time. Same thing. Need to get the fundamentals then dive into the practice of the flow.
I charge $37 for an intro course that will introduce to you downloading and setting up your demo platform account with our preferred vendor, setting up charts, saving workspaces, and setting up strategies for specific markets. You can check out the course details here. May not be the perfect thing in the world but it is much better to deal with someone that has the time to pick up the phone and acknowledge you and your passions, and gets you to the next level in your journey, as you may discover your advanced strategies elsewhere. I am just preparing you to not waste money on some of those guys, “can’t say their names” that charge and then upsell you to tens of thousands. I have spoken to most of them and they are a bunch of outlying jokers.
Learn a base plan and then dig in and learn most of what you need to on your own. Our fee helps cover our overhead on server bandwidth, maintenance, and security. That is why I charge so little. And while I can I will do my best to be in touch with all your questions and inquiries. You need screen time, or martial artists would call it, mat time. Same thing. Need to get the fundamentals then dive into the practice of the flow.
Futures trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one’s financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
HYPOTHETICAL PERFORMANCE DISCLAIMER:
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES LIKE THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.