Basics Of Stock Market Trading: A New Era
Basics Of Stock Market Trading: A New Era

Basics Of Stock Market Trading: A New Era

Basics Of Stock Market Trading: A New Era

Basics Of Stock Market Trading:  Do or Die

March 2023

Market technicians, contrarians, the average Joe, and value investors will confound themselves by the new market system. Why do you ask? The answer is that a new era is upon us, where anything goes. Volume and the indicators market technicians have long relied upon will no longer provide an accurate outlook. The methods used seamlessly will no longer be as effective or perhaps ineffective. This applies to both fundamental and technical analysis.

A new era in stock market trading is upon us. As previously stated, what once was, will no longer be, and what is not will be. One must become a modified contrarian or market technician to navigate these swings. The key lies in identifying the extremes. For instance, a contrarian can no longer rely on the masses jumping in as a signal to jump out. Instead, one must analyze the speed at which they are jumping in, the number of individuals jumping in compared to the volume that was dormant just a few months prior, and their staying power, among other factors.”

The Basics of Stock Market: Key Concepts

Instead of selling, one could utilize this data more effectively. For instance, if the masses are jumping in after sitting out for an extended period, it would be fair to assume that they have amassed a significant amount of capital while waiting on the sidelines. It would also be reasonable to think that they are furious at having missed out on so much of the rally and believe that they are entitled to recover all of their lost profits in record time.

Given this scenario, the new contrarian would wait for a pullback before loading up and riding the wave to greater heights. The sentiment must reach a boiling point; everyone must be foaming at the mouth before the market puts in a long-term top.

Based on our analysis of current market trends and the psychology of market participants, it is becoming increasingly apparent that the markets may soon test the lows witnessed back in 2022. There is even the possibility of at least one index trading to new lows. In such a scenario, it would be prudent to exercise caution and remain primarily in cash while waiting for a more opportune moment to open long positions.

While jumping into the market during a downturn may be tempting, the current situation requires a more calculated approach. Considering the bigger picture and the potential risks associated with the market’s volatile nature is essential. By staying patient and strategically waiting for the right moment, investors can position themselves to take advantage of the market’s eventual upswing while minimizing potential losses.

 

 

Basics Of Stock Market Analysis. Never Trust The Fed

The Federal Reserve pulled a Houdini act with its relentless quantitative easing program, particularly during its psychotic helicopter money phase during the COVID crisis. To make matters worse, jackass Powell even had the audacity to declare that a bit of inflation was good. Now that his wish has come true, he wants to battle the monster he created. To label him as an idiot would be too kind. Needless to say, he is going to push the pedal to the metal, and it remains to be seen how much in interest rate increases this market can tolerate before collapsing.

In 2020, after a brief crash, the markets rallied and propelled the Dow and SPX to new highs. Feeling confident about the state of things, the masses threw caution to the wind and went all in, only to suffer significant losses and depleted bank accounts. Currently, the markets are establishing lower highs, and we suspect they are biding their time before the next leg takes hold. There is a decent chance that the lows of 2022 could be surpassed before the markets put in a multi-month bottom.

 

Basics Of Stock Market 101: Never Follow the Crowd

As the Chairman of the Federal Reserve, Jerome Powell’s job is to maintain economic stability and balance in the United States. However, his recent actions have made it clear that he is far from competent in this role. After the COVID-19 crisis hit and caused a market crash, Powell went all in with the Fed’s quantitative easing program, essentially flooding the system with money. This led to a boom phase that saw the Dow and S&P 500 reach new highs.

Fast forward to the present day, and Powell is now backtracking on his previous statements about inflation. He is now trying to destroy inflation after creating it, potentially leading to a recession. Companies continue to fire people due to the inflation that Powell brought about, and it’s clear he has no idea what he’s doing.

Powell: The Jackass that Never stops giving

Powell’s actions are a textbook example of why you should never let someone with no experience run the Fed. His complete lack of understanding of basic economic principles is astounding. He seems to have no idea how inflation works or how it impacts the economy, and his erratic behaviour is making things worse for everyone.

The fact that Powell is still in his position, although his incompetence, is a damning indictment of the entire political system. He has no idea what he’s doing, yet he’s still in charge of the most important financial institution in the world. It’s time for him to step down and make way for someone who actually knows what they’re doing.

Jerome Powell is a jackass for pushing so much money into the system after the COVID crash and then trying to destroy inflation after creating it. His actions are causing companies to fire people and could potentially lead to a recession. It’s time for him to step down and make way for someone who actually knows what they’re doing.

Research

Here are  Five research references to support the content of the article:

  1. “The Fed’s Inflation Target: What It Is and Why It Matters.” Federal Reserve Bank of New York, 2021, https://www.newyorkfed.org/aboutthefed/fedpoint/fed49.html.
  2. “How the Pandemic Has Affected the U.S. Economy.” Investopedia, 2022, https://www.investopedia.com/how-the-pandemic-has-affected-the-u-s-economy-5084296.
  3. Kahneman, Daniel. Thinking, Fast and Slow. Farrar, Straus and Giroux, 2011.
  4. Fisher, Kenneth L., and Meir Statman. “The Contrarian Investment Strategy.” The Journal of Portfolio Management, vol. 22, no. 4, 1996, pp. 23–32.
  5. Dreman, David N. Contrarian Investment Strategies: The Next Generation. Simon & Schuster, 1998.

 

Other Articles Of Interest

The Spy 200 Day Moving Average

The Spy 200 day moving average

The Spy 200 Day Moving Average: Understanding its Significance in Trading May 18, 2023  Are you an aspiring trader or ...
Read More
mob mentality

Mob Mentality: Understanding Its Power and Influence

 The Power and Influence of Mob Mentality May 17, 2023 Have you ever been sucked into a collective mentality that ...
Read More
Best investment chronicle

Market Mastery: The Best Investing Books for Your Success

Investing Intelligence: The Ultimate Guide to the Best Investing Books May17, 2023 I have frequently been asked about the top ...
Read More
Psychology of investing

Psychology of investing: Don’t Follow The Crowd

Psychology Of Investing: Follow The Trend Updated May 16, 2023 Repetition is the father of all sins, stupidity is the ...
Read More
Small Dogs Of the Dow

Unleashing the Power of Small Dogs Of the Dow

Small But Mighty: Investing in Small Dow Dogs May 15, 2023 Investing in the stock market often presents a challenging ...
Read More
Aroon oscillator

The Aroon Oscillator: Unlocking the Secrets of Market Trends

A Comprehensive Guide to Trading with Aroon Oscillator May 11, 2023 Are you looking for a powerful technical indicator that ...
Read More
market psychology books

The Ultimate Guide to Market Psychology Books

May 10, 2023 Do you want to learn how the stock market works in detail? Or do you want to ...
Read More
herd mentality

Herd Mentality: Understanding the Pros and Cons of Conformity

May 8, 2023 Herd mentality, also known as mob mentality or pack mentality, refers to the tendency of individuals to ...
Read More
market cycle psychology

Cracking Market Cycle Psychology: Navigating the Ups and Downs

Understanding the Market Cycle Psychology: Navigating Market Volatility May 4, 2023 The key concept in this text is market cycle ...
Read More
yen etf

The Yen ETF: A Screaming Buy for Long-Term Investors

Importance of Yen ETF in the financial market: May 03. 2023 This post provides an in-depth analysis of the Yen ...
Read More
What is Relative Strength in Investing

What is Relative Strength in Investing? A Beginner’s Guide

What is Relative Strength? Understanding the Basics April 30, 2023 Relative strength (RS) is a widely-used technical analysis tool essential ...
Read More
the rsi macd strategy

The RSI MACD Strategy: A Comprehensive Guide to Trading

Apr 29, 2023 Are you a trader looking for a reliable trading strategy? Do you want to increase your profitability ...
Read More
The Contrarian Outlook - Unleashing Success

The Contrarian Outlook: Unleashing Success

Apr 27, 2023 Introduction In a world where conformity and groupthink are often rewarded, having a Contrarian Outlook can be ...
Read More
MACD strategy

Mastering the MACD Strategy: A Powerful Tool for Investors

I. What, indeed, is the MACD strategy? Apr 26, 2023 Venturing into the realm of stock trading may prove challenging ...
Read More
How to Invest in ChatGPT

How to Invest in ChatGPT: A Beginner’s Guide

Intro: How to invest in ChatGPT April 25, 2023 In recent years, artificial intelligence has exploded, with the demand for ...
Read More
angry mob

Mastering the Market: Rise Above The Angry Mob Mentality: Secure Your Victory

Unveiling the Angry Mob: Dynamics of Collective Behavior Updated April 27, 2022 As described by social psychology, group or mob ...
Read More
Dow Jones Global Index: A Timeless Symphony of Global Markets

Mastering the Trading Game with the Global Dow Jones Index

Dow Jones Global Index: A Timeless Symphony of Global Markets Apr 19, 2023 The Dow Jones Global Index is an ...
Read More
Financial insights

Financial insights: The Inside Scoop

Financial Insights from the Cosmos Apr 18, 2023 Embracing Fear to Forge a Steady Path One might argue that the ...
Read More
nasdaq tqqq

Nasdaq TQQQ: Amplified Returns and Double-Edged Risks

Embracing the Nasdaq TQQQ: A Reflective Look at Risks & Rewards Apr 17, 2023 As George Orwell might have contemplated ...
Read More
The Patient Investor

The Patient Investor

The Patient Investor: Harnessing Mass Psychology for Success Apr 15, 2023 Embracing the Virtues of Patience and Discipline In the ...
Read More
Why Is Inflation Bad for the Economy?

Why Is Inflation Bad for the Economy? Demystifying the Menace

Why Is Inflation Bad for the Economy? Apr 14, 2023 Inflation is a complex economic phenomenon that is often difficult ...
Read More