Stop order: What is a stop order, and how is it used?

 Here is the article. 

What is a stop order, and how is it used?

A stop order is an order to buy or sell a stock at the market price once the stock has traded at or through a specified price (the “stop price”). If the stock reaches the stop price, the order becomes a market order and is filled at the next available market price. If the stock fails to reach the stop price, the order is not executed.

A stop order may be appropriate in these scenarios:

• When a stock you own has risen and you want to attempt to protect your gain should it begin to fall
• When you want to buy a stock as it breaks out above a certain level, believing that it will continue to rise

A sell stop order is sometimes referred to as a “stop-loss” order because it can be used to help protect an unrealized gain or seek to minimize a loss. A sell stop order is entered at a stop price below the current market price; if the stock drops to the stop price (or trades below it), the stop order to sell is triggered and becomes a market order to be executed at the market’s current price. This sell stop order is not guaranteed to execute near your stop price. 

A stop order may also be used to buy. A buy stop order is entered at a stop price above the current market price (in essence “stopping” the stock from getting away from you as it rises).

Let’s revisit our previous example, but look at the potential impacts of using a stop order to buy and a stop order to sell—with the stop prices the same as the limit prices previously used.

While the two graphs may look similar, note that the position of the red and green arrows is reversed: the stop order to sell would trigger when the stock price hits $133 (or below), and be executed as a market order at the current price. So if the stock were to fall further after hitting the stop price, it’s possible that the order could be executed at a price that’s lower than the stop price. Conversely, for the stop order to buy, once the stop price of $142 is reached, the order could be executed at a higher price. 

Actionable Items

Every time I like to make a purchase, I also should set stop loss order in case there is market corrections. So I can protect myself with a big loss. I purchased Intc stock 200 shares at price of $52.50, and then the price went down at $50.00 dollars. It is better for me to set stop price at $51.90 dollars.

Stop Loss Strategy Secrets: The Truth About Stop Loss Nobody Tells You

 Here is the link. 

For Traders, all your trades should end in one of four ways: 1. A small win 2. A big win 3. A small loss 4. Break even You should never experience a big loss. If you can get rid of big losses, you have a great chance of being profitable for years to come.

My Favorite Trading Method of the Last 10 Years | Barry Burns

 Here is the link. 

My Favorite Trading Method of the Last 10 Years - Learn how to see the reality of which way the market is moving. - Analyze 5 objectively measurable "energies" in market. - Use the Scoreboard Format to identify when the "energies" aligns to create an edge in the market.

Determining probability scenarios

- Take each trade to court- Need 5 independent witnesses to establish a prepondence of the evidence

Day Trading Basics, Part 2

 Here is the link. 

Stock learning: Stock Market Cycles - How to Time Your Entries with Precision

 Sept. 5, 2020

Introduction

It is so interesting to find good learning material so that I can learn how to invest while I am working on stock portfolio. I am a beginner and then work on Canada oil stock portfolio and Intc stock investment with 50% of Ameritrade.com near $10,000 dollars. I like to learn and watch some videos. 

Stock market cycles

Here is the link. 

Everyone uses the price axis in their trading, yet very few people know how to use the time axis (at the bottom of the chart) to measure cycles in timing their entries and exits. This video provides an introduction.

Day Trading For A Living - How To Avoid Losing All Your Money

 Here is the link. 

Money management - how to protect stop for every trade? How to protect stop for every day, month or every year? 

Do not put a risk more than 2% of any given trade? 5% of any day? Keep those numbers smaller, the better. 

10% for a month 

20% for quarter

30% for a year 

If you have those losses, then you are done. 

Worst of the day. 

Have a percentage stop for each:

Trade, Day, Week, Month, Quarter, Year

Preserving money - trading account. 

Consistent wrong - problems 

Make more careful when you take a trade. Psychology benefits - more selective, stop overtrading ......

more conservation, take a few better trades, believe that you will be happier. 

Forex Trading Classes

 Here is the link. 

I like to learn how to explain a graph using words from topdogtrading. It is such great English lesson for me to go through. 

Enjoy my learning. That is something I like to learn from, good teaching. 

 

How Can I Be Disciplined in Trading?

 Here is the link. 

We also trade our own mental and emotional patterns - 

Human natural - counter-intuitive - 90% of people losing - depending on your trading ......

Nerve system - how to work better with my nerve system 

Break rules - what are my rules? 

Trading is not always logic - looks good - 

Tick Charts Give You A Winning Edge In Day Trading

 Here is the link. 

233 tick chart trading the 535 EMA

 Here is the link. 

Yahoo finance chart: Sept 4 2020 9:00 - 10:00 AM sell of comparison - MSFT vs APPL

 Sept. 5, 2020

Introduction

It is important for me to learn from MSFT and APPL sell off on Sept. 4, 2020. I like to work on a short case study, and then talk about investment opportunity for short term, one hour. Bet on quick return and catch a 5 to 7% return in less than one hour. 

Case study

Here is Yahoo -> Finance -> Chart comparison. I like to take down those data and write down in the following:

Let me write the story. 

From 9:00AM to 10:00 AM on Sept. 4, 2020, MSFT went down more than 5% to 205.30, APPL went down 111.19, 10%, and there was rebound over 4% before 10:00 AM both from APPL stock and MSFT stock. 

I need to look into this rebound and see if it is good time to purchase those stock and make quick return in less than one hour. 

Actionable Items

Follow up Sept. 5, 2020 4:53 PM

Look at Nasdaq 100 index or QQQ ETF chart. 

TRADING FOR A LIVING (BY DR ALEXANDER ELDER)

 Here is the link. 

1. 3 pillars of trading: Psychology, market analysis and tiding systems and money management. 2. Keep emotions under check: Be realistic, Keep a diary of trades. Stop trading if results consistently poor. Don't focus ob profit, focus on process. practice sound money management. 3. Use indicators of different kinds in conjunctions. Use Man ( Long term indicator: such as MA/OBV and Dog (oscillators such as Stochastics ). Exponentials are better than simple averages. Need a bigger fishing rod to Catch a big fish 4. Triple screen trading system: Slope of weekly MACD histogram, Intraday breakout (trailing day stop). 5. Money management: Most important Survival followed by steady returns followed by high returns. Survival is Key.. Never risk more than 2% of equity in any trade. Use trailing stops on upside for longs.Never lower your stops, only move it in upward direction of trades.

One hour learning: Yahoo -> Finance -> Stock -> chart

 Sept. 5, 2020

Introduction

I like to take one hour study to help me control anxiety of holding over $71,000 dollars Canada oil stocks with $1087 dollars loss from August 31 to Sept. 5, 2020. I like to write down all keywords and try to memorize them. 

Chart I like to learn

I put all my stocks and make it so messy and explore the features of chart first. 

Settings

Extended hours

Gray background strips - how to read those strips?

Price details

Y-axis scale

  Linear

  Logarithmic

  Percentage

Line, area, candle, Hollow candle, bar, colored bar

2 minute interval 

I like to learn from the interval diagram, this is the first time I learn from the chart. 

Interval: 1 min, 2 mins, 5 mins, 15 mins, 30 mins, 1 hour, 4 hours, 1 day, 1 week, 1 month, 1 year. 

20 Habits of Wealthy Traders

 Here is the link. 

1.Wealthy traders are patient with winning trades and are enormously impatient with losing trades 2.They realize that making money is more important that being right 3.They look at charts as a picture of where traders are lining up to buy or sell 4.Before they enter any trade they know exactly where they will exit for either a gain or a loss 5.They approach trade number 5 with the same mindset they did on the trade 4 previous losing trades 6.They use "naked" charts and focus on zones 7.They realized a long time ago that being uncomfortable trading is OK 8.The markets are their workplace. They are a participant, not an on-looker. 9.They stopped trying to pick tops and bottoms. 10.They stopped thinking about the market being "cheap" or "expensive" 11.They are willing to change sides if the market tells them to do so 12.They trade aggressively when trading well and modestly when they are not 13.They realize the market will be open again tomorrow 14.They never add to a losing trade... EVER 15.Cash is the goal, but never the measure of success 16.They read about mobs and riots 17.They provide liquidity to the markets while watching price and volume 18.They have a way to gauge fear, greed and speed of the markets: Tick charts 233, 612 19.They practice reading the right side of the chart, not the left 20.Every wealthy trader has an "edge" they can explain to their mothers 21.Their position size is calculated exactly on risk tolerance 22.Profit targets are based on average range or something objective 23.One or two trades a month make their month 24.Confident decision makers in the face of incomplete information 25.A losing trade does not mean they are a loser 26.They buy higher highs and sell lower lows 27.Their business isn't trading, it's finding the right trades 28.They write down or record every trade, price, thoughts, news, attitude 29.Their conviction on an active trade remains unless something major changes 30.A winning trade does not result in taking on extra risk the next trade 31.They trade the reaction, not the news

My learning and my notes:  9:20 AM - 10:00 AM

Lose trade, lose trade, lose trade, and winning trade - impatient with losers

Make good decisions - Lock in thinking

bias in one way - market tells them what to do

Make money is more important than right

Technical analysis: zone, moving average, K chart

Tick charts 233, 612 - Google it.

Gauge fear, greed and speed of the markets: Tick charts 233, 612

Lessons I learned from Intel stock

 Sept. 5, 2020

Introduction

I only had less than two days with Intel stock break even with 170 shares, and then I sold and bought back with $0.50 / share more, and then Intc stock went down from $52.50 to $49 and swings. My psychology is changed since I read about Intel buys back 20 billion shares. I should trust myself, not Intc stock, try to buy into weakness. Do not chase the high price. 

Lessons I should learn

When Intel stock price goes  up $52.00 dollars, I should sell. I should keep cash instead. And let those cash stay in the account. 

Study one more time - buy into weakness

WHY 90% OF TRADERS LOSE MONEY

 Here is the link. 

There are 4 big mistakes almost every trader makes. Luckily, they can be easily fixed. These mistakes I highlight in this video are probably things you haven't heard before. Luckily we can flip these points around and come up with a very powerful trading strategy. Charlie Munger once said, "problems frequently become easier to solve if you turn them around in reverse... unless you're more gifted than Einstein, inversion will help you solve problems". This is what I did in this video. I use inversion to show you exactly why 90% of traders lose money, and how you can capitalize on their mistakes. Adam Thomas www.skyviewtrading.com cut losses option profits trading strategy strategy trader trading mistakes biggest mistakes traders make how to best trading strategy option strategy option trading options

My notes:

What 90% of traders do:

1. Buy breakouts and sell breakdowns

2. Cut losses short. Let winners run - cool theory but it doesnt work

3. Big position sizes

4. Never cap your profit potential - Higher success rate, smaller profits

Human psychology -

Inversion - your new trade strategy

1. Buy into weakness, sell into strength

2. Book profits, patient with losing trades - winner some point, in the future

3. Small positions - make decision on logic, not emotions

4. Reduce your costs by defined

Actionable Items

I do like to learn step by step to take inversion of 90% of trader doing, buy into weakness, sell into strength.

2.5 hours: Morning trading work - a beginner and a thinker

 Sept. 4, 2020

Introduction

It is a beginner and I have to push myself to think and learn, and also take some risk to learn the lessons as an investor. In the same time, I like to write down my thoughts so that I can be better educated by myself. 

2.5 hours work

One hour rebound: Apple stock from 7:45 AM - 8:45 AM, Sept 4 2020 - one hour work

 Sept. 4, 2020

Introduction

It is hard for me to measure the risk to purchase Apple stock when the price goes down. But in reality it is best time to train me to learn the market, I should sell Intc stock and WDC stock, and then purchase Apple stock at 7:45 AM. 

One hour rebound

When I watched the drop of Intel stock and MSFT stock this morning, I like to take some risk to bet on rebound, so most risk of stock is APPLE, since it gains 20% in one month of August. It is insane. 

I like to learn the lesson of crazy market, and learn how to take some bet in one hour to help me make some profit. 

Because there are so many institutional buyers, it is hard not to form a trend in such short time period. It is hard for a beginner to take advantage of it. But I will try next time. 

It is better to purchase Apple stock, MSFT stock and avoid TLSA stock. But in reality, the one hour time period is quick and fast, in theory it should be safe as well. 

Institutional buyers are all acting on same principles. 

BCI Investment Management Victoria, British Columbia

 Here is the link. 

Overview

BCI offers an exceptional opportunity to work at a world-class organization while living in a west coast setting. We are a significant institutional investor whose investments span the world. With $171.3 billion of managed assets, British Columbia Investment Management Corporation (BCI) is a leading provider of investment management services within Canada. Our major clients are pension plans, and the work that we do helps to secure the livelihoods of hundreds of thousands of people in their retirement. Our success depends on our high-performing employees. The people who work at BCI are committed, passionate, and approachable. They aim for continuous improvement and share BCI’s core values of clients and BCI first, performance focused, world class, accountability, transparency, and integrity. We are currently expanding our team and our skill base to equip BCI for the future.

Website

https://www.bci.ca/

Industry

Investment Management

Company size

501-1,000 employees

2,033 on LinkedIn

Lesson for a beginner: Stop loss on my position

 Sept. 3, 2020

Introduction

I spent two hours in the morning to watch the market, but I do not learn that I should set up stop loss for my Intc stock 200 shares. So the loss is $500 dollars. I should learn from today that I should set stop loss as a beginner. It is easy for me to set up stop loss, and it will save me hundreds of dollars loss, and it saves my time to make those money in the market as well. 

Sept 3 2020 - INTC over 5% loss

Stock investor: My mistakes as a beginner

 Sept. 3, 2020

Introduction

It is the day the market has a big correction. MSFT stock has 6.2% loss, intc stock has over 5% loss. I did not learn how to stop loss this morning, I chose to purchase 100 shares of WDC and 7 shares of MSFT. I should stop loss at price of $51.9 with MSFT stock. So I like to look into mistakes a beginner makes and lessons I should learn from. 

Stop loss

Lessons I should learn

I should set stop loss on my 200 shares of INTC position. If there is more than 3% loss, then the loss is $300 dollars. I should sell the positions to cover the risk of big loss. 

Stock correction: MSFT over 6% losses - Sept. 3, 2020

 科技股跌势惨重，苹果股价跌7.1%。美联社

美股三大指数4日盘中跌势加剧，均跌逾2%，那斯达克综合指数更跌约4.8%，可能写下6月来最差的单日表现，主因是投资人持续抛受科技股，同时经济数据又引发投资人忧心这波经济复苏将漫长而颠簸。

道琼工业指数盘中跌2.5%（721点）至28,379.37点，标普500指数跌2.9%或105点至3,475.54点，那斯达克综合指数暴跌4.8%（574点），报11,482.22点，费城半导体指数跌5.6%至2,237.46点。

科技股跌势惨重，苹果股价跌7.1%，特斯拉跌8.4%，亚马逊跌5%，台积电ADR跌3.7%，脸书、Netflix、Google母公司字母都跌4.6%-6.2%。

分析师认为，这波跌势的部分原因可能为投资人获利了结。嘉信理财（Charles Schwab）交易与衍生性商品部门副总裁Randy Frederick指出，一些股票已太贵了，虽然这波抛售卖压的肇因还很难说，但偏重科技类股的那指表现已经领先很长一段时间，人们可能把此视为获利了结的机会。

美国上周首次申请失业救济金人数虽减少，但还是比正常时期还多，市场将密切关注周五出炉的8月就业报告。

Actionable Items

I should set stop loss on my Ameritrade.com account. I have 200 shares of Intel stock, and this morning I did stop loss at $21.90, and instead I chose to purchase 7 share of MSFT and 100 shares of WDC. 

I need to learn to take profit, and hold cash. 

TRP stock: I have 200 shares purchased on August 31, 2020

 

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is the new name for TransCanada. The board made the change to better reflect the overall operations. TC Energy is best known for its natural gas distribution networks across Canada and the United States. The company also has vast gas storage capacity and power generation facilities.

Growth stems from a combination of acquisitions and organic projects. The existing secured development portfolio includes roughly $30 billion in capital investments. As the new assets go into service, TC Energy expects revenue and cash flow to expand enough to maintain steady dividend growth.

In fact, investors should see a dividend increase of 8-10% in 2021 and 5-7% per year afterwars over the medium term.

The stock trades near $61.50 per share compared to $76 in February. Given the steady revenue outlook TC Energy appears oversold at this level, investors who buy now can get 5.25% yield.

Warren Buffett’s Berkshire Hathaway made a US$10 billion investment in the natural gas infrastructure sector earlier this year. That could lead to further consolidation and higher stock prices for TC Energy and its peers.

The bottom line

Fortis and TC Energy are two of the best dividend stocks in the Canadian market today. Retirees and other investors seeking reliable income stocks should consider these names for their TFSA portfolios.

The post TFSA Investing: Best Canadian Dividend Stocks for Retirees appeared first on The Motley Fool Canada.

FTS stock: I like to purchase shares and learn the business

 

Fortis

Fortis (TSX:FTS)(NYSE:FTS) raised its dividend in each of the past 46 years, making the company one of the best dividend stocks in the TSX Index over the past half century. The board plans to maintain the trend through at least 2024 with anticipated dividend hikes of 6% per year over that time frame.

The solid guidance comes on the back of expected revenue and cash flow growth. Fortis continues to work through nearly $19 billion in capital projects that will significantly boost the rate base. The company has utility operations across Canada, the United States and the Caribbean.

Assets include power generation facilities, electricity transmission networks, and natural gas distribution systems. These tend to be recession-resistant and operate in regulated sectors.

Fortis trades near $53 per share at writing. The 12-month high is near $59, so there is decent upside opportunity. The stock currently provides a 3.6% dividend yield.

Microsoft: Up, Up And Away

 Here is the link. 

Chart Patterns: Cup With Handle

 Here is the link. 

30%+ prior uptrend

jump on wagon - too later 

down trend - left side - 15% to 30% 

bottom forms - institution to pick up shares - 10 to 12% handles - shake up weaker holds - weak holder sells 

More committed investor - those folks to sit tight and look for more gains from the stock. 

Can stock punch through of heavy ...? 

Look for heavy volume on breakout - 40% or 50% than normal 

5% - up to 5% above ideal buy point - 

Bases often form as general market ...

market corrections - closed above 10-week average line 

Heavy volume ...

Light volume in ...

How To Buy Stocks: Cup With Handle Chart Pattern

 Here is the link. 

The cup-with-handle base signaled the start of runs by Walmart, Apple, Nvidia and other companies. By learning to spot this pattern when it's forming, you could be prepared to get in early on the next batch of major movers. Investor’s Business Daily has been helping people invest smarter results by providing exclusive stock lists, investing data, stock market research, education and the latest financial and business news to help investors make more money in the stock market.

How To Buy Stocks: Pick The Best Stocks At the Right Time

 Here is the link. 

When you’re trying to find the best stocks and identify the right time to buy them, there are three key pieces to that investing puzzle: Overall market conditions, the company’s fundamental strength, and the chart action. The biggest gains – and the least risk – come when you have positive indicators for each of those three pieces. Investor’s Business Daily has been helping people invest smarter results by providing exclusive stock lists, investing data, stock market research, education and the latest financial and business news to help investors make more money in the stock market.

Canada oil stocks: Sept. 1 7:50 AM

 Sept 2, 2020

Introduction

It is tough for me to make decision to sell those stocks to take profit of $600 dollars. I purchased around $62,000 Canadian dollars oil stocks, next morning 7:50 AM there was over $600 gains. What should I do with those $600 gains in less than 24 hours?

Less than 24 hours

Here is the snapshot. 

I think that I should sell for those gains, and then keep monitoring those positions and see if I should make changes. There was no news to push the market to go high, so those gains went away quickly. 

West Texas Intermediate (WTI)

 Here is the article. 

Understanding West Texas Intermediate (WTI)

WTI is the main oil benchmark for North America as it is sourced from the United States, primarily from the Permian Basin. The oil comes mainly from Texas. It then travels through pipelines where it is refined in the Midwest and the Gulf of Mexico. The main delivery and price settlement point for WTI is Cushing, Oklahoma.

The Cushing delivery system consists of 24 pipelines and 15 storage terminals. The hub has 90 million barrels of storage capacity and accounts for 13% of U.S. oil storage. The inbound and outbound capacity is 6.5 million barrels a day. Cushing is known as "The Pipeline Crossroads of the World."

Oil Stocks Crashing as Fuel Consumption Flatlines

 Here is the article. 

What I learn:

1. 1 million barrels per day - U.S. refinery production slipped - produce less than 1 million per barrells per day
2. 9 million barrels per day
3. MTDR, AR, RRC, SWN - those are too small to purchase, too volatile 

Shares of a broad array of oil stocks are falling sharply today, following the latest weekly petroleum data survey from the U.S. Energy Information Administration. According to the latest update, U.S. refinery production slipped almost 1 million barrels per day, while gasoline consumption, as measured by the amount refiners supplied to the market, remain stuck in a narrow band close to 9 million barrels per day.

As a result of the continued lag in a further recovery of transportation fuel demand, producer stocks in particular are taking it on the chin. At this writing, shares of Matador Resources (NYSE:MTDR), Antero Resources (NYSE:AR), Range Resources (NYSE:RRC), and Southwestern Energy (NYSE:SWN) are down between 5.3% and 8% (even though they are more focused on natural gas than oil).

My notes:

1. U.S. commercial crude storage is still 14% higher than the five-year average - Google, and try to make sense -
2. gasoline and distillate inventories are 13% above the year-ago level - Google, and see if I should check those numbers 

Oil recovery stuck in neutral

Each week the EIA releases a report that shows important import, commercial storage, and refinery statistics. On the good side of the report, U.S. commercial crude oil inventories fell 9.4 million barrels from the prior week, and imports fell to 4.9 million barrels per day, about 1 million less than the week before. This, on the surface, is a positive for the industry, which has been dealing with a massive glut of excess inventory that continues to weigh on oil producers and prices. 

Yet even with that move in the right direction, U.S. commercial crude storage is still 14% higher than the five-year average, while gasoline and distillate inventories are 13% above the year-ago level. 

My notes:

1. Less driving, and less air travel - demand is too low
2. 
   

The biggest thing holding the industry back right now is the lack of further recovery in oil demand. U.S. refiners supplied 8.9 million barrels per day last week, and 3.7 million barrels of distillate, down 9% and 16% respectively from last year's levels, and roughly flat for the past two months. The overhang of the coronavirus pandemic continues to weigh on the transportation sector, particularly automobiles. Millions of Americans continue to work from home, and the peak driving season is coming to an end, with a minimal boost from vacationers eschewing air travel and driving somewhere for leisure instead. 

My notes

1. peak summer driving season comes to an end
2. coronavirus pandemic continues
3. the fortune of oil hedges starts to roll off

Winter is coming

As the peak summer driving season comes to an end and the coronavirus pandemic continues to weigh on oil demand, oil traders are turning decidedly bearish on the prospects of a quick recovery. Many U.S. producers have had the fortune of oil hedges that have helped them realize much higher prices than the benchmarks, but those hedges are already starting to roll off, resulting in even more oil production that's not profitable below $40 per barrel. 

Stock portfolio: Sept 1, 2020 - Day one

 Sept. 1, 2020

Introduction

It is time for me to learn how to manage my investment portfolio. I like to do a short review of my portfolio. 

Stock portfolio

It is so exciting for me to build an investment portfolio on August 31, 2020. I almost spent all my 10 year full time savings and then I like to get some returns from this portfolio. 

Risk is hard to manage as a beginner. There is a market risk. If market crashes before US president election, or there is big down turn in September, then I will have to plan to cut losses around 7 or 8 percent. 

Otherwise I like to see if I can manage the portfolio over one month, and expect those oil stocks will have same performance from July 31 to August 31, so I can sell and make gains around $5000 to $6000 dollars. 

This is the first time I take risk to invest same day all those $62,000 dollars, and then expect to get some return. 

One thing is to expect some good news about coronavirus, the market will go up quickly to celebrate like Abott $5 dollars 15 minutes coronavirus test. 

Actionable Items

On Sept. 1, 2020, the portfolio has over $300 dollars gains. I should sell the profit and then set up purchases, so those shares can be purchased back. 

My original plan is to let the portfolio go up with more than $2,000 dollars gains, and then sell some of positions. But without good news, the stock price does not go up very much.