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Bfbusa

Self Sabotage

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Self Sabotage

 

What is it and how to stop it.

 

Can anyone elaborate on why we do it and do you have any mental exercises

to deprogram it? ( or know any websites or mentors that help with this?)

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I think self sabotage is all about not having the confidence in yourself and/or your plan. I went through this for months and have been doing quite well overcoming most of it lately. How did I? I realized that my plan had 4 or so setups that weren't performing, and those were the ones that I was taking most often. Interesting, eh?

 

So, I cut those out of my plan and I've got 2 setups that perform very well, and I take those 2 90% of the time. They are trending setups as I'm not a good rangebound trader at this point in time, but something I'm definitely working on. Also, I've learned to identify when the highest odds trades are happening (for the most part) and that has helped tremendously with my confidence in myself as well as my system.

 

Self sabotage happens when there is a lack of trust. To get over that, you need to keep things very simple. Look at your trading plan, take the setups that underperform and cut them out. Concentrate on the setup(s) that have made you the most money and crank the hell out of 'em. Why not, right?

 

For mental exercises...I wake up every morning and tell myself what a great day it is to be able to be fortunate enough to not have a stupid boss looming over my desk. To have the ability to take control of my own life and be completely responsible for whatever happens to it. Knowing I've got complete control of my life lets me have complete control of ALL aspects of my life, which 60% of that is trading.

 

"another great day to be a trader!" is what I tell myself. That puts a smile on my face and I'm ready to take on whatever happens. If I get into a trade that doesnt work out...well, I just say "that's tradin'" ala Hubert. And I go downstairs, play with the dogs and come back up a few minutes later with a fresh head.

 

Do I still get frustrated? Absolutely! When I dont get into a trade because either it misses my limit order by a tick or 2 or I was eating lunch or whatever the case may be....I get frustrated. It's my need for participating, which I'm trying to kick the habit of.

 

Leroy (tradingeveryday) told me the other day in one of my coaching sessions that I, as well as ALL other traders) miss thousands of trades every single day. Millions of opportunities are happening any given moment across the spectrum of the financial markets. Do I get ripped up cause I miss all of those trades? "No, Leroy, I dont." Then why get upset missing 1 or 2? The market's gonna open up at 9:30am on the next trading day. It's always going to be there. That is what I call job security. Now...the self sabotage thing could put that security in jeopardy, but having some simple tools (your trading plan (and the confidence in that plan), the right mental attitude and the love of this game) will keep you from doing harm to your account.

 

So..to put it simply, I guess...my day starts like this.

 

•Wake up

•Say to myself "What a fabulous day to be a trader!"

•Eat breakfast

•Take a look at the markets and read some stories to help get me in that frame of mind

•Trade

•Eat lunch

•Maybe trade the afternoon

•Shut down my computer at 4pm

•Go on a walk, watch a movie, cook...most likely cook or bake something...

•Sleep

 

That's basically how I live every weekday. I used to spend 18 hours a day on the markets, now...I spend about an hour a day in a "study" mode and 7 hours finding a place to participate in the markets. After that, my head is cleared of the markets and I don't speak about them to anyone (except in here on occasion). Doing that GREATLY improved my clarity and balance to be prepared for the next day. It's weird...it's like the less I study now, the more I know. The more I used to study, the more I got confused.

 

Hope my rambling helped a little...

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It's weird...it's like the less I study now, the more I know. The more I used to study, the more I got confused.

 

 

Wow. Truer words were never spoken. It's almost Zen-like actually.

 

Most traders need to overcome the paralysis of analysis and just keep doing what works for them, and stop doing what doesn't.

 

Unless you're as good as Tiger Woods, and have some innate natural talent to fall back upon, you really don't need to overhaul and retool your swing every other year, so to speak, except, of course, if it isn't working for you at all.

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That was an EXCELLENT post Tingull! I appreciate your input.

 

I have realized something about trading. Not only do you learn the setups, the markets , patterns, tape etc. You also learn about your self. Your strength, your weaknesses, hopes and fears. I've learned what kind of person I am. A trader once said if you want to get an idea of what kind of trader your going to be,a disciplined one or not, take a look at yourself in your daily life. It may show up in your trading.

 

The biggest obstacle to success is your-self, at least in my case. I feel SO close to crossing the Rubicon. Just a few steps away to becoming consistently profitable I have the setups, I have the trading plan and risk management in place. I've even identified my impulse trades and eliminated them. The discipline fades in and out but I am getting better. But I still manage to take the losing trades and always seem to " miss out" on the trades that would have been winners. I am also still a victim of my own fears. After a wining trade or 2 losing trades in a row I get fearful and often let a winner go buy.

 

If you know anybody who wants to learn about them self, tell them to try trading because when you do you will be face to face with yourself.

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Hey Bill,

 

Thanks. Hoped that was helpful. As for getting the impulse trades out of the way, great job on that. Thats a tough thing for some traders to realize they are doing and do away with them. If you've got risk management in place, then you shouldn't need to think on the risk side so much as the profit side. You need to start identifying the highest odds trades, and for that, I'd definitely check in with Leroy. He's been the single thing that's really put me on track. And...no offense to the chatroom here...but you should try to stop going. I found that when I was alone with my trading and not being influenced by what others were doing, I have been doing huge amounts better. Try it out, and if you find yourself doing better, than you now have eliminated one of the issues.

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Just curious, what type of Zen-like moment have you had when trading? When did the lightbulb finally go on, and what was it that triggered the "ah-ha" moment for you?

 

A trader once said if you want to get an idea of what kind of trader your going to be,a disciplined one or not, take a look at yourself in your daily life. It may show up in your trading.

 

CORRECTION: It WILL show up in your trading for certain. Your true inner self will be revealed, with all its flaws and imperfections when your money is on the line, every day, every trade.

 

If you're still in the stage of "papertrading" on the electronic demo, you won't have a clue until you put your money where your mouth is.

 

Too many newbies think it's so easy when their demo trades show a positive expectancy; real world trading just ain't so easy - and they find out the hard way.

 

Getting control of your emotions is the key to trading successfully, followed by money management, and a positive real-world expectancy on your trade setups. All the winning trades in the world won't help you if you don't have a handle on how to properly manage your trades via proper position sizing. Overleveraging, and overtrading is symptomatic of letting your fear and greed get the best of you - only your best winning setups should be taken, and only in accordance with your trading plan.

 

Simply put, plan your trade, and trade your plan.

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Tingull,

 

We think alike. As much as I like being in the chat room, it has distracted me from trading and has caused me to miss a few trades. Thats why I wasn't there yesterday. I just wanted to concentrate on trading. What I will do for now on is trade first and then enter the room during a quiet period.

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Just curious, what type of Zen-like moment have you had when trading? When did the lightbulb finally go on, and what was it that triggered the "ah-ha" moment for you?

 

HI Cooter,

 

First let me say your right, it WILL show up in your trading is what I should have said.

 

AS for the ah-ha moment. A couple that I've had are as follows.

 

1. Someone mentioned, I don't recall if it was in a book or another trader, that when we trade we shouldn't try to make money from the markets but look for opportunities to extract money from the opportunities the markets presents to us. It helped me the think of the markets in a different way that was less emotional and more disciplined. Which also ties into the second ah-ha.

 

2. See the setups, trade the setups. I go that from Carter and Hubert. It is helping me to remove the emotion. A Work still in progress.

 

Both are really the same dictum. I guess I needed a 1, 2 punch.

 

There are a few other ah-ha's but those are the the most recent.

 

Hope this helps.

 

ASlo, about paper trading. I really don't paper trade too much anymore. I only paper trade to test new setups, but as you said, you can not get a true feel unless you are actually trading. So I just start out with just one or two contracts at first.

 

Hope this helps.

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Just curious, what type of Zen-like moment have you had when trading? When did the lightbulb finally go on, and what was it that triggered the "ah-ha" moment for you?

 

Hey cooter,

 

That moment for me was when I was recently taught to look at market cycles like waves of the ocean. The trough, rise, crest and decline. Seeing what phase the market is in and trading in accordance to that has made the world of difference for me. And...learning to not THINK has been the absolute biggest. When I think instead of react...I get into trouble. So now I just look at what the trend is and trade only in that direction. Sure, it keeps me out of short trades right now, but Im done with trying to call tops. That doesn't provide dinners for people, trading with the trend sure does.

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I agree with TinGull the biggest problem with self sabotage is not really believing in yourself or your system. Both are very important,the more confidence you have (with a realistic set of goals) the better. When i take a trade i go into knowing that i will have more losers than winners i dont think short term but always longterm. For me my ah-ha moment was knowing that i dont have to be right all the time, focus longterm and not shortterm, and let price come to me,dont chase it.

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And...learning to not THINK has been the absolute biggest. When I think instead of react...I get into trouble.

 

Tin, that's such an interesting distinction. Impulsive folks often find themselves in all sorts of trouble with unnecessary drama in their lives simply because they DON'T THINK before they act.

 

Are you referring to a trader moving to the level of "unconscious competency", wherein s/he doesn't have to contemplate their trades, but merely recognizes a valid setup, as Bill noted, and simply acts accordingly? If so, you may have reached the nirvana of trade execution.

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Self Sabotage

 

What is it and how to stop it.

 

Can anyone elaborate on why we do it and do you have any mental exercises

to deprogram it? ( or know any websites or mentors that help with this?)

 

Hi Bfbusa,

 

Every one has a different experience.

 

Here's my personal experience and listening to the experience of many retail traders along with that of some institutional traders.

 

Self sabotaging occurred via a direct connection to something that's unresolved in my personal life.

 

The same is true for all those traders I personally know.

 

* I know a trader that's not organized, messy and dirty home along with not taking care of his personal grooming as if he hadn't showered in a few days.

 

In his trading, he's very sloppy...puts on trades with no stops and goes off to due personal stuff to come back to see the worst has occurred.

 

However, if you talk to him...he states its just poor trading and lack of discipline.

 

* I know a trader that doesn't have confidence in anything he has done in life. He doubts his abilities and moved from job to job until he became a trader.

 

In his trading, he moves from indicator to indicator, moving from one method to the next method without giving himself a chance to learn how to properly use something.

 

He studies the markets 12 hours per day and feels is never enough while struggling as a breakeven trader.

 

* I know a trader that is always blaming others for anything that goes wrong in his life. He never accepts responsibility nor is able to discuss that it takes two to tangle sort'uv speak.

 

In his trading he blames the market for his losses, market makers, market manipulation, data provider, ISP and anything else.

 

He frequently is telling others at forums how wrong they are and how right he is.

 

He's a losing trader and gives up very easily after easily getting frustrated with a single trade loss...

 

Overall he's a losing trader.

 

-------------------

 

I can go on and on to talk about those that are impulsive problems, anger management problems, multitasking problems, party types, liars et cetera but I think you get the point.

 

That is, before we can resolve self sabotaging, we need to be able to resolve those things in our personal lives that has transcribed itself into our trading.

 

Step back and take a long look in the mirror.

 

Myself, I'm a perfectionist in my personal life and I have worked very hard to just not be so anal about things.

 

In my trading, I've learn that losses happen and that I can actually benefit from a loss to help me be profitable in my next trade.

 

It took years to not be so anal in my trading and that improved my trading tremendously without having to change any method nor rule in my method (tweaking me system) when all I had to do was tweak myself sort'uv speak.

 

Simply, one of the commonalities of the successful traders I know is that they are in tuned with whom they are, aware of how their personal behaviors gets transcribed into their trading and they've learn to deal (resolve) these things as they interact with the markets.

 

Mark

(a.k.a. NihabaAshi) Japanese Candlestick term

 

"Volatility Analysis is a doorway to consistent profits."

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Tin, that's such an interesting distinction. Impulsive folks often find themselves in all sorts of trouble with unnecessary drama in their lives simply because they DON'T THINK before they act.

 

Are you referring to a trader moving to the level of "unconscious competency", wherein s/he doesn't have to contemplate their trades, but merely recognizes a valid setup, as Bill noted, and simply acts accordingly? If so, you may have reached the nirvana of trade execution.

 

That's pretty much what I'm talking about, cooter. Being able to see my setups about to occur and being poised to pull the trigger knowing it's a high odds trade. The biggest emotional battle I've been contending with lately is missing a move from having a limit order set in place and the market missing me by a tick or 2. That's the worst feeling!

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... when we trade we shouldn't try to make money from the markets but look for opportunities to extract money from the opportunities the markets presents to us.

 

I gotta agree with you here, Bill. In Vegas, the odds are favored towards the house. In the markets, the odds favor Professional Money. Thus, another ah-ha moment was when I realized the Volume does indeed paint a picture of where price will go...and that Volume is reflective of Professional Money entering and exiting the market.

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Hi Bfbusa,

 

Every one has a different experience.

 

Here's my personal experience and listening to the experience of many retail traders along with that of some institutional traders.

 

Self sabotaging occurred via a direct connection to something that's unresolved in my personal life.

 

The same is true for all those traders I personally know.

 

* I know a trader that's not organized, messy and dirty home along with not taking care of his personal grooming as if he hadn't showered in a few days.

 

In his trading, he's very sloppy...puts on trades with no stops and goes off to due personal stuff to come back to see the worst has occurred.

 

However, if you talk to him...he states its just poor trading and lack of discipline.

 

* I know a trader that doesn't have confidence in anything he has done in life. He doubts his abilities and moved from job to job until he became a trader.

 

In his trading, he moves from indicator to indicator, moving from one method to the next method without giving himself a chance to learn how to properly use something.

 

He studies the markets 12 hours per day and feels is never enough while struggling as a breakeven trader.

 

* I know a trader that is always blaming others for anything that goes wrong in his life. He never accepts responsibility nor is able to discuss that it takes two to tangle sort'uv speak.

 

In his trading he blames the market for his losses, market makers, market manipulation, data provider, ISP and anything else.

 

He frequently is telling others at forums how wrong they are and how right he is.

 

He's a losing trader and gives up very easily after easily getting frustrated with a single trade loss...

 

Overall he's a losing trader.

 

-------------------

 

I can go on and on to talk about those that are impulsive problems, anger management problems, multitasking problems, party types, liars et cetera but I think you get the point.

 

That is, before we can resolve self sabotaging, we need to be able to resolve those things in our personal lives that has transcribed itself into our trading.

 

Step back and take a long look in the mirror.

 

Myself, I'm a perfectionist in my personal life and I have worked very hard to just not be so anal about things.

 

In my trading, I've learn that losses happen and that I can actually benefit from a loss to help me be profitable in my next trade.

 

It took years to not be so anal in my trading and that improved my trading tremendously without having to change any method nor rule in my method (tweaking me system) when all I had to do was tweak myself sort'uv speak.

 

Simply, one of the commonalities of the successful traders I know is that they are in tuned with whom they are, aware of how their personal behaviors gets transcribed into their trading and they've learn to deal (resolve) these things as they interact with the markets.

 

Mark

(a.k.a. NihabaAshi) Japanese Candlestick term

 

"Volatility Analysis is a doorway to consistent profits."

 

Very good points there Mark. Mind if I ask what your thoughts are on impulsive behavior and trading? Thanks

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That's pretty much what I'm talking about, cooter. Being able to see my setups about to occur and being poised to pull the trigger knowing it's a high odds trade. The biggest emotional battle I've been contending with lately is missing a move from having a limit order set in place and the market missing me by a tick or 2. That's the worst feeling!

 

Yep. I guess how we pull the trigger is equally as important as the decision to actually do so. Such is the life of a discretionary trader versus an impulsive trader.

 

But here's one thing to consider. Would your setup still have been valid if you had entered at the time of recognition with a market order versus a limit order?

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Very good points there Mark. Mind if I ask what your thoughts are on impulsive behavior and trading? Thanks

 

Hi Soultrader,

 

There are lots of books on how to control impulsive behavior and I myself am no expert on the subject.

 

Also, most major cities have meeting groups for adults that get together and discuss their impulsive behaviors and how it is causing problems in their professional careers.

 

I guess there must be someone with a clinical background organizing these types of discussion/resolution groups.

 

With that said, from a trading point of view, these types of traders tend to easily become overwhelmed with anything involving trading.

 

As soon as they realize something is no longer manageable, to ease that feeling or agony of being overwhelmed...

 

They take impulsive trades as in trades outside their trading plan or don't manage trades by their trading plan.

 

Myself, if I feel like I'm getting too anxious or too aggressive in my trading...I stop trading and do a physical exercise for about 20 - 30mins and then when I'm done with that I sit down and go over in my head with my eyes closed via visualizing completing any uncompleted personal task that's not trading related (ex. fixing the flat tire on my spouse mountain bike).

 

This calms me down and allows me to refocus along with giving me confidence I can stick to the trading plan and complete my trades as designed.

 

In addition, I keep a personal trading diary that documents how I felt while trading along with highlighting a few key trades where I felt things felt too stressed.

 

By the way, if anyone suspects they have a serious problem with impulsive behavior, they shouldn't be trading because they are under a high level of tension and should be under psychological professional care.

 

Mark

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Yep. I guess how we pull the trigger is equally as important as the decision to actually do so. Such is the life of a discretionary trader versus an impulsive trader.

 

But here's one thing to consider. Would your setup still have been valid if you had entered at the time of recognition with a market order versus a limit order?

 

Sure would have still been valid. Thats one thing I'm trying to work on...getting in with a market order and being able to see with the best of my abilities that I'm getting in at a great price. Something I'm sure I'll be working on for some time :)

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Sure would have still been valid. Thats one thing I'm trying to work on...getting in with a market order and being able to see with the best of my abilities that I'm getting in at a great price. Something I'm sure I'll be working on for some time :)

 

Hi Tin,

In so long as your definition of valid includes a positive expectancy (i.e. a winning setup means winning trade), one thing I would consider then is simply reducing your position size until you are comfortable with the "emotional" risk quotient of your trading when using market orders.

 

Alternatively, I would take my position and split the size into two - assign half to a market order, and the other half as a limit order - with the appropriate stops in place for both.

 

That should help ease you in to taking your setups when you see them.

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I have trained several other traders, as well as my personal experience, and one thing (from this limited "n" ) is clear:

 

it is true that the emotional aspects of trading are much more difficult for most traders to master, and are the primary impediment to profitability for most traders.

 

first and foremost, a trader should have a professional mindset. the things i list are not NECESSARY for success (because people vary individually), but for people having problems with discipline, they are often very helpful.

 

the following apply to futures scalping/short term trading...

 

1) Treat your trading as a business. Because it is. Your trading decisions are business decisions. That mindset helps keep you out of impulsively trading/

2) DO YOUR RESEARCH.

3) Have a plan, but have the flexibility to change your plan based on the price action

4) NEVER EVER EVER EVER move your stops WIDER than they were set upon entry

5) always set a stop upon (or before even) entry

6) trade a size that is emotionally comfortable for you & is small enough to give you almost no risk of ruin. just because you can trade 10 contracts doesn't mean you should

7) log your trades - reason for the trade, emotional state at time of trade, etc.

8) review your trades

9) be a professional

10) be a professional

11) be a professional

12) have a well defined ruleset

13) don't break your rules

14) have a trading manual

15) take profits out of your account and invest them in solid stuff (i like stocks like XOM JNJ BA GOOG BDX MO (i've had GOOG since IPO) etc.).

16) reward yourself for following the rules.

17) punish yourself for breaking them

18) try an audio commentary. you may feel like an idiot talking to yourself, into a mic, but it keeps you "in the moment", reflective, and calm

 

that's just a beginning, but you get the point.

 

if you trade index futures you are competing with other traders. be a professional, and take money from the amateurs.

7)

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I have trained several other traders, as well as my personal experience, and one thing (from this limited "n" ) is clear:

 

it is true that the emotional aspects of trading are much more difficult for most traders to master, and are the primary impediment to profitability for most traders.

 

first and foremost, a trader should have a professional mindset. the things i list are not NECESSARY for success (because people vary individually), but for people having problems with discipline, they are often very helpful.

 

the following apply to futures scalping/short term trading...

 

1) Treat your trading as a business. Because it is. Your trading decisions are business decisions. That mindset helps keep you out of impulsively trading/

2) DO YOUR RESEARCH.

3) Have a plan, but have the flexibility to change your plan based on the price action

4) NEVER EVER EVER EVER move your stops WIDER than they were set upon entry

5) always set a stop upon (or before even) entry

6) trade a size that is emotionally comfortable for you & is small enough to give you almost no risk of ruin. just because you can trade 10 contracts doesn't mean you should

7) log your trades - reason for the trade, emotional state at time of trade, etc.

8) review your trades

9) be a professional

10) be a professional

11) be a professional

12) have a well defined ruleset

13) don't break your rules

14) have a trading manual

15) take profits out of your account and invest them in solid stuff (i like stocks like XOM JNJ BA GOOG BDX MO (i've had GOOG since IPO) etc.).

16) reward yourself for following the rules.

17) punish yourself for breaking them

18) try an audio commentary. you may feel like an idiot talking to yourself, into a mic, but it keeps you "in the moment", reflective, and calm

 

that's just a beginning, but you get the point.

 

if you trade index futures you are competing with other traders. be a professional, and take money from the amateurs.

7)

 

Adding to this list that improved my trading is the simultaneous use of chart recording with personal commentaries. When you back to review at a later time, you get a better feel how you were, more vivid, than you'd look back at the journal alone. That is, keep a journal AND video record your charts with audio commentaries before and during the trade. You'd be surprised how much improvement you'd making, catching yourself with no-nos. It's a bit nerve-wracking at first concentrating on the trade and fondling other tools. Practice it first without trading and become quick and efficient at turning on and off, etc before doing it with a live real trade. It's a hassle at first, but it'll pay off in the end. Try to replicate what John Carter and Hubert do in their chat room: audio and video trading.

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Alternatively, I would take my position and split the size into two - assign half to a market order, and the other half as a limit order - with the appropriate stops in place for both.

 

That should help ease you in to taking your setups when you see them.

 

Thats very interesting, and something I never thought of. I might try that out.

 

Thanks cooter!

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Nice responses everybody. I really appreciate the input. Keep it coming.

 

I find that I agree with both points of view.

 

Self sabotage I feel can and does come from not fulling having confidence in your system. That will only be corrected from back and forward testing.

 

But I also agree with the other point of view that self sabotage can also come from a much deeper cause. Something in someone's psyche, what that is, I don't know.

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It's true that self-sabotage will be self-evident in your own personal life when you interact with others and view of yourself. How many times did you lose control when a certain situation didn't go your way, say lost a friendly game, got into an argument with a family member, lose your job, etc. if those moments made you feel like a nobody or a loser, next thing to do was validate that feeling by either going out on a drinking binge or something that just to inflict yourself and say, "you see, you are a loser." If those scenarios sound familiar, there's your answer.

 

Been there, I got over when I realized what I was trading exactly the same way I acted out in real life. I remember many times I would go into a drawdown, I didn't try to pick myself pick or walk away and count to 10 and refocus, I just kept getting back in and re-validate what I thought of myself in a negative way. When I started to make changes in correcting my thought process and deal with the aftermath of a situation above, things somehow smoothed really well. I trusted in myself NOT to lose control, not to inflict myself by validating my view of worthlessness by doing just the opposite. That simple change made a huge difference in trading. Try it, you may like it. What turned me around was actually a parenthood site that a list of recommendations on how to be a better parent. It was an eye-opener. Like Elder with his AA analogies, I felt more identified with parenthood problems. Made a huge impact on me.

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    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Hello citizens of the U.S. The hundred year trade war has leaked over into a trading war. Your equity holdings are under attack by huge sovereign funds shorting relentlessly... running basically the opposite of  PPT operations.  As an American you are blessed to be totally responsible for your own assets - the govt won’t and can’t take care of you, your lame ass whuss ‘retail’ fund managers go catatonic  and can't / won’t help you, etc etc.... If you’re going to hold your positions, it’s on you to hedge your holdings.   Don’t blame Trump, don’t blame the system, don’t even blame the ‘enemies’ - ie don’t blame period.  Just occupy the freedom and responsibility you have and act.  The only mistake ‘Trump’ made so far was not to warn you more explicitly and remind you of your options to hedge weeks ago.   FWIW when Trump got elected... I also failed to explicitly remind you... just sayin’
    • Date: 7th April 2025.   Asian Markets Plunge as US-China Trade War Escalates; Wall Street Futures Signal Further Turmoil.   Global financial markets extended last week’s massive sell-off as tensions between the US and its major trading partners deepened, rattling investors and prompting sharp declines across equities, commodities, and currencies. The fallout from President Trump’s sweeping new tariff measures continued to spread, raising fears of a full-blown trade war and economic recession.   Asian stock markets plunged on Monday, extending a global market rout fueled by rising tensions between the US and China. The latest wave of aggressive tariffs and retaliatory measures has unnerved investors worldwide, triggering sharp sell-offs across the Asia-Pacific region.   Asian equities led the global rout on Monday, with dramatic losses seen across the region. Japan’s Nikkei 225 index tumbled more than 8% shortly after the open, while the broader Topix fell over 6.5%, recovering only slightly from steeper losses. In mainland China, the Shanghai Composite sank 6.7%, and the blue-chip CSI300 dropped 7.5% as markets reopened following a public holiday. Hong Kong’s Hang Seng Index opened more than 9% lower, reflecting deep concerns about escalating trade tensions.           South Korea’s Kospi dropped 4.8%, triggering a circuit breaker designed to curb panic selling. Taiwan’s Taiex index collapsed by nearly 10%, with major tech exporters like TSMC and Foxconn hitting circuit breaker limits after each fell close to 10%. Meanwhile, Australia’s ASX 200 shed as much as 6.3%, and New Zealand’s NZX 50 lost over 3.5%.   Despite the escalation, Beijing has adopted a measured tone. Chinese officials urged investors not to panic and assured markets that the country has the tools to mitigate economic shocks. At the same time, they left the door open for renewed trade talks, though no specific timeline has been set.   US Stock Futures Plunge Ahead of Monday Open   US stock futures pointed to another brutal day on Wall Street. Futures tied to the S&P 500 dropped over 3%, Nasdaq futures sank 4%, and Dow Jones futures lost 2.5%—equivalent to nearly 1,000 points. The Nasdaq Composite officially entered a bear market on Friday, down more than 20% from its recent highs, while the S&P 500 is nearing bear territory. The Dow closed last week in correction. Oil prices followed suit, with WTI crude dropping over 4% to $59.49 per barrel—its lowest since April 2021.   Wall Street closed last week in disarray, erasing more than $5 trillion in value amid fears of an all-out trade war. The Nasdaq Composite officially entered a bear market on Friday, sinking more than 20% from its recent peak. The S&P 500 is approaching bear territory, and the Dow Jones Industrial Average has slipped firmly into correction territory.   German Banks Hit Hard Amid Escalating Trade Tensions   German banking stocks were among the worst hit in Europe. Shares of Commerzbank and Deutsche Bank plunged between 9.5% and 10.3% during early Frankfurt trading, compounding Friday’s steep losses. Fears over a global trade war and looming recession are severely impacting the financial sector, particularly export-driven economies like Germany.   Eurozone Growth at Risk   Eurozone officials are bracing for economic fallout, with Greek central bank governor Yannis Stournaras warning that Trump’s tariff policy could reduce eurozone GDP by up to 1%. The EU is preparing retaliatory tariffs on $28 billion worth of American goods—ranging from steel and aluminium to consumer products like dental floss and luxury jewellery.   Starting Wednesday, the US is expected to impose 25% tariffs on key EU exports, with Brussels ready to respond with its own 20% levies on nearly all remaining American imports.   UK Faces £22 Billion Economic Blow   In the UK, fresh research from KPMG revealed that the British economy could shrink by £21.6 billion by 2027 due to US-imposed tariffs. The analysis points to a 0.8% dip in economic output over the next two years, undermining Chancellor Rachel Reeves’ growth agenda. The report also warned of additional fiscal pressure that may lead to future tax increases and public spending cuts.   Wall Street Braces for Recession   Goldman Sachs revised its US recession probability to 45% within the next year, citing tighter financial conditions and rising policy uncertainty. This marks a sharp jump from the 35% risk estimated just last month—and more than double January’s 20% projection. J.P. Morgan issued a bleaker outlook, now forecasting a 60% chance of recession both in the US and globally.   Global Leaders Respond as Trade Tensions Deepen   The dramatic market sell-off was triggered by China’s sweeping retaliation to a new round of US tariffs, which included a 34% levy on all American imports. Beijing’s state-run People’s Daily released a defiant statement, asserting that China has the tools and resilience to withstand economic pressure from Washington. ‘We’ve built up experience after years of trade conflict and are prepared with a full arsenal of countermeasures,’ it stated.   Around the world, policymakers are responding to the growing threat of a trade-led economic slowdown. Japanese Prime Minister Shigeru Ishiba announced plans to appeal directly to Washington and push for tariff relief, following the US administration’s decision to impose a blanket 24% tariff on Japanese imports. He aims to visit the US soon to present Japan’s case as a fair trade partner.   In Taiwan, President Lai Ching-te said his administration would work closely with Washington to remove trade barriers and increase purchases of American goods in an effort to reduce the bilateral trade deficit. The island's defence ministry has also submitted a new list of US military procurements to highlight its strategic partnership.   Economists and strategists are warning of deeper economic consequences. Ronald Temple, chief market strategist at Lazard, said the scale and speed of these tariffs could result in far more severe damage than previously anticipated. ‘This isn’t just a bilateral conflict anymore — more countries are likely to respond in the coming weeks,’ he noted.   Analysts at Barclays cautioned that smaller Asian economies, such as Singapore and South Korea, may face challenges in negotiating with Washington and are already adjusting their economic growth forecasts downward in response to the unfolding trade crisis.           Oil Prices Sink on Demand Concerns   Crude oil continued its sharp slide on Monday, driven by recession fears and weakened global demand. Brent fell 3.9% to $63.04 a barrel, while WTI plunged over 4% to $59.49—both benchmarks marking weekly losses exceeding 10%. Analysts say inflationary pressures and slowing economic activity may drag demand down, even though energy imports were excluded from the latest round of tariffs.   Vandana Hari of Vanda Insights noted, ‘The market is struggling to find a bottom. Until there’s a clear signal from Trump that calms recession fears, crude prices will remain under pressure.’   OPEC+ Adds Further Pressure with Output Hike   Bearish sentiment intensified after OPEC+ announced it would boost production by 411,000 barrels per day in May, far surpassing the expected 135,000 bpd. The alliance called on overproducing nations to submit compensation plans by April 15. Analysts fear this surprise move could undo years of supply discipline and weigh further on already fragile oil markets.   Global political risks also flared over the weekend. Iran rejected US proposals for direct nuclear negotiations and warned of potential military action. Meanwhile, Russia claimed fresh territorial gains in Ukraine’s Sumy region and ramped up attacks on surrounding areas—further darkening the outlook for markets.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • AMZN Amazon stock watch, good buying (+313%) toi hold onto the 173.32 support area at https://stockconsultant.com/?AMZN
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