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AMT Top Ten Miscellaneous Picks for the 26th of April 2024

by with No Comment Behavioral SentimentCentral BanksEquities

AMT Top Ten Miscellaneous Picks for the 26th of April 2024

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10. Salk Institute: Work known as the Harnessing Plants Initiative is focused on optimizing the ability of plants to help combat climate change, sometimes via root systems in order to help reduce carbon dioxide. Problematically when plants die they do release carbon dioxide too. One key to the HPI project maybe altering the affects of Suberin. The Salk Institute received 50 million USD last year from the Hess Corporation to fight climate change.

9. Anticipation: Chicago is celebrating today after landing quarterback Caleb Williams and wide receiver Rome Odunze as hoped. However, as the August 2024 Democratic National Convention approaches, trepidation for the potential of nasty demonstrations is building.

8. Quantum Investing: Oak Ridge National Laboratory has announced a successful test using the H1-1 computer via Quantinuum to study the spread of disease via quantum mathematical models. Honeywell International Inc. owns a large stake in Quantinuum which is a stand alone company valued at approximately 5 billion USD.

7. Speculative: Gold is near 2348.00, the price is below values seen last week, but remains high via some perspectives as the USD creates havoc.

6. Forex: Whipsaw volatility has been seen in foreign exchange as financial institutions fight to get a proper gauge on their mid-term outlooks. Equilibrium will continue to be fought over today.

5. Fixed Income: U.S Treasury yields are battling within higher ground as investors look for guaranteed returns as behavioral sentiment remains fragile. And there is a likelihood the next four days of trading will continue to produce a whirlwind.

4. Equities: Major U.S indices continue to grapple with headwinds caused by a murky economic outlook. Retail traders speculating via CFD’s should remain careful. Patience is a key for the S&P 500, Nasdaq Composite, and Dow 30. Trying to ‘time’ the indices for short-term wagers is dangerous because technical trends are vulnerable.

3. Data: U.S Core Personal Consumption Expenditures Price Index statistics will be released today, inflation via the GDP Price Index came in higher than expected yesterday. Forex will react to the PCE results which is anticipated to have a gain of 0.3%. Financial institutions do not need another scare today. The Revised University of Michigan Inflation Expectations reading should also be given attention which will be published afterwards.

2. BoJ: The Bank of Japan is clearly playing a game of truth or dare with Forex. Having held interest rates at merely 0.10% earlier today, the USD/JPY climbed comfortably above 156.000 and is presently near the 156.540. The BoJ will remain in the news as the USD/JPY trades around a 34 year high. As financial institutions clamor for a higher interest rate, the BoJ apparently is more concerned with creating dynamic export demand and growing Japan’s economy, believing it can keep inflation under control. Speculators need to be on alert for an intervention from the Bank of Japan, but cannot count on one either.

1. Analysis Paralysis: The Federal Reserve was served an intriguing dose of results via the lower than expected growth numbers from the Gross Domestic Product yesterday, while digesting a higher GDP Price Index. Jerome Powell has stressed caution and patience. However, yesterday’s stubborn inflation numbers with waning growth creates the prospect for stagflation. This is an important political year because of the upcoming U.S elections in November. Next Wednesday the Fed’s FOMC Meeting pronouncements will be made. There will not be a change to the Federal Funds Rate on the 1st of May. It is the FOMC Statement’s vocabulary which will get attention. Today’s inflation reports will play a role in next week’s Fed meeting. Day traders may want to tune out political noise from pundits today which will certainly be sounded. The inflation numbers globally are tricky, and have created overthinking by investors and central banks which remain mostly reactive.

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Trading Tactics to Add to Your Risk Management Knowledge

by with No Comment Behavioral SentimentFeatured HighlightsRisk Analysis

Trading Tactics to Add to Your Risk Management Knowledge

Retail traders seeking quick speculative positions are not the masters of the financial world. Institutions which day traders are hoping to reflect are the real shakers of the markets. Understanding your actual place in the world of trading is crucial, accepting this point and putting ego to the side will create a better grasp of behavioral sentiment as you interpret combinations of fundamentals and technical perceptions and merge them into your risk taking.

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Making your decisions with the acknowledgement of your place in the trading world is important. Your 10,000.00, 50,000.00 and 100,000.00 USD value based positions are very small fish in a large ocean. Your trades are very unlikely to affect market direction in any meaningful manner. The more leverage you use makes your available ‘margin’ prone to failure.

Risk analysis is vital for day traders, guarding you money should be a fundamental aspect of your tactical decisions. Deep pockets are not luxuries most day traders have.

If you happen to have a solid amount of money to speculate with it will assist you, but you will still need to practice solid risk taking strategies.

Plenty of rich folks have lost all of their money trading, that isn’t written to make you feel better, it is written as a warning and highlights that speculating is dangerous when not done with a solid plan of action. Once a trade is placed your work than immediately doubles via responsibility, because you have ‘skin in the game’ and need to manage your emotions and thinking as the markets move.

Metallgesellschaft and Barings Bank are two prime examples of two institutional traders who made vital mistakes with risk management and lost everything in the 1990’s. Protecting cash reserves are vital for all. Metallgesellschaft and Barings did not supervise their traders and ‘hoped’ that all things would work out in the end, because they had the false notion institutionally that their capacity to hold onto positions that were not profitable would eventually turn into positive results. Their losing trades caused the destruction of their enterprises.

Most speculators by nature are optimists. After all day traders are gambling on the movement of assets they believe they have a correct perspective regarding future direction of value. In order to wager a trader needs to feel confident regarding their outlook, otherwise they would not pursue currency trading. The same can be said for equities and indices, commodities and all other financial assets. False hope can destroy the efforts of all traders and they must be alert to perspectives which can lead to detrimental results as they trade.

Too much leverage, no real insights about direction, and trading based on ‘noise’ that influences and causes you to make unwise decisions are dangers. It might be boring to constantly be told to be careful, a bit like a parent warning you when you were little to act in a certain way. Good risk management while day trading is vital for surviving and finding success.

Do not be stubborn. In trading no matter if it is Forex, CFDs with equities, indices, commodities or cryptocurrencies you should not ‘marry’ your position blindly. If your trading position begins to show signs of potentially failing and you have concluded you are wrong – end the trade asap.

However, at the same time do not make your decisions based on emotions which may create whipsaw reactions regarding your choices. Having solid goals before going into a trade will help you eliminate emotional stress.

Have price targets and a strategy for getting in and out of trades. If the trade is going in your direction, then protect your profits by either cashing out of the trade, or raising your stop loss to a place that you are actually still going to make money. Some trading platforms may allow you to raise your stop losses – this is called a ‘trailing stop’. If you are lucky enough to catch a trend at the correct time and it is being sustained, using a ‘trailing stop’ is a solid risk management tactic and can protect your profits.

If the trend in your position starts to reverse against you, do not cancel your ‘trailing stop’ because you think the reversal is a momentary cycle. Trading floors are littered by people who had substantial gains and then watched them vanish, all because they thought the market would reverse in their chosen direction again. Folks dream about owning a castle when all they need is a comfortable home. Cancelling stop loss orders is a sure way to the poor house.

Immodest ambitions can ruin your trades when you become stubborn, unrealistic and emotional. Make sure you stay ‘grounded’ and are pursuing trades because you believe in them, and not because you are looking for price action to fill up a boring day with wagers than make no sense.