Summer is just around the corner (for all of us trading in the Northern Hemisphere at least), and that means that market conditions are about to change considerably. In this week's Tip of the Week, TopstepTrader's founder Michael Patak explains why trading over the Summer presents its own unique set of challenges.
President Trump’s Twitter feed, which has become perhaps the best leading indicator for equities lately, sent a strong sell signal last Friday morning after the President suggested that, “there was absolutely no need to rush” trade negotiations with China. This comes after a week of saber rattling that sent markets into a volatile tailspin.
This bearish setup was confirmed when the President revealed that the administration was still in the process of implementing 25% tariffs on an additional $325-billion-worth of Chinese goods.
The stock market initially took this breaking trade news… not well.
What is the job of a trader exactly? If you can't articulate what you're supposed to be doing, then you should probably just stay out of the markets altogether. In this week's Tip of the Week, TopstepTrader's founder Michael Patak explains why it's important to "Know Your Role" as a trader.
Don't be one of those annoying traders who treats the number of contracts they have on at any given point as a reflection of their self-worth. You don't always need to be swinging for the fences. In fact, the truth is that sometimes you need to size down if you want to size up in the long run.
Most traders learn pretty quick that the release of numbers like unemployment or GDP can cause huge swings in the futures markets, but remember, it’s not just the government that can make or break your day with a few choice words. Case and point, there's a good chance you might get your own revenue projections slashed if you forget about one of the big corporate earnings releases coming out this week.
US Hog Futures prices are surging. While a swine flu outbreak tightens supplies, rising Chinese purchases of US stock are driving up demand. The trend is worth watching because, even if you’re not hogwild about trading meat futures, prices might be driven even higher by the latest developments on the US-China trade front.
Before learning how to trade with TopstepTrader, Gabriel, who’s based in Spain, was an entrepreneur who ran multiple businesses. He heard an ad detailing how trading newbies could learn the business and decided to give it a try.
Expectations are everything. Trading is so difficult because there is so much opportunity. But if you expect to take advantage of it all the time, that could be setting yourself up for a fall. In this week's Tip of the Week, TopstepTrader's founder Michael Patak talks about managing expectations.
This is coming from a guy who got started trading as many of us do — thinking he was going to make $1 million+ in year one. That didn't happen, and instead, Michael's trading floundered while he lost $90,000 over three trading accounts. Fortunately, that served as a wake-up call that led him to focus on more realistic expectations.
Here's Michael's take on managing expectations.
Crude oil is moving to its best levels in months, and an upward trend channel on the chart suggests there’s more room to run.
After falling sharply in the final few months of last year, prices hit a bottom in the Christmas Eve Massacre before a sharp move higher in the first two months of this year. The new mantra as the uptrend takes shape has been “buy the dip” and stands in stark contrast to the bearish sentiment that beset crude oil prices in late 2018.
In this week's Tip of the Week, TopstepTrader's founder Michael Patak points out something that we all must accept: setting a personal loss limit. Whether that's a daily loss limit, weekly loss limit, or overall loss limit, as traders, we don't have unlimited funds and need to realize when things are not going our way. A loss limit is the way to do that.
Instead of viewing a loss limit as something that constrains performance, we have to realize that it actually enables good performance. Losses happen in trading, but you can't let a loss get out of hand and endanger your future in this business.
Here's Michael's take on why every trader should have a personal loss limit.