After any sustained period of gains in markets, talk often cycles towards market tops and potentially, the “C” word. From 2022 lows to its highs in March 2024, the S&P gained over 50% - a considerable gain for any index over a relatively short period. Given that, what can we look forward to in the months ahead? The first thing I wanted to look at was the level of ‘chatter’ around the term “Market Crash” in search engine results. Searches like these are often counterintuitive, when everyone thinks markets are crashing, the worst is often behind it. For example, when we look at the Google search results for “Market Crash” over the last five years, there was a big spike for the search term in March 2020, but since then, very little. And what happened to the market when the spike occurred? No surprise to know it appeared in the month when markets marked a bottom. And we haven’t looked back since. So, while there may be an inclination towards a marke...
I have been trading with eToro for the last 3 years and have found eToro to be great way to scratch the trading itch without having to risk large amounts of capital - thanks to its finely-tuned trade ticket. Details on how best to get the most out of eToro trade ticket I have outlined below. At the end of this article I have included a list of (low-key) performers on eToro you should consider following or copying. You can start by registering with eToro. I recommend starting with the minimum deposit of $200 and using the 1% risk rule of available capital; this means if your starting capital is $200, then your first trade will risk $2. So in risking $2, what is the initial position size to use? The eToro Trade ticket will default to a standard $25 lot, with a 50%(!) stop, usually on x100 leverage. You will not want to enter your first trade this way . First thing will be to change the leverage to x1, then change your stop loss to $1 just to avoid any errors. The ...
General Investment: Start with “Reminiscences of a Stock Operator”; paperback runs under $20 but the Kindle edition is selling for less than $2! It was first published in 1923 but it’s a good introduction to market psychology https://amzn.to/2FN1IAT Investors.com has a good newspaper for stock ideas (excluding the Editorials) which is supported by two books, “How to Make Money in Stocks” and “Become a Successful Investor”. The books run for under $20 on Kindle and are available here: https://amzn.to/2U6n2KE . If you want hard copies, then “Become a Successful Investor” should be bought first: https://amzn.to/2HOBujJ , then “How to Make Money in Stocks”: https://amzn.to/2UnN6Ab . These books give a good introduction to the CANSLIM method, mixing fundamental and technical ideas and each book can be found for around $15 each, so they won’t break the bank. Technical Analysis I’m a big fan of John Murphy’s clear and concise writing. His book, “Technical Analysis of ...