kingdomdrewski562
commented on
Hi, mooers,![]()
Welcome back to Mooers' Stories! In this session, we are going to share the following topic: What's the biggest mistake you've made while trading?![]()
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We are all human beings, and making mistakes is human nature. When trading stocks, we are either driven by emotions, especially greed and fear, or we keep very high-profit expectations.![]()
Many stock traders enter the market at full speed, but they soon realize that it isn't that easy to keep making money. The prospects of making money lure people into this trading area, but the reality of losses may quickly bring deterrence and frustration. ![]()
Therefore, as investors, you must understand that making mistakes is not uncommon. Even professionals in the stock market have made many trading mistakes. The key to their ultimate success is to learn from them and minimize them in the future.![]()
![]()
Making mistakes is part of the learning process when it comes to trading or investing. While some trading mistakes are unavoidable, it is important that you don’t make a habit of them and learn from the unsuccessful experience. With that in mind, what's the biggest mistake you made? How much did it cost you? What lesson did you learn from it? Click to join the topic discussion now! --What's the biggest mistake you made?
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Rewards![]()
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Featured Stories:
3 mooers will get 1,888 points;
10 mooers will get 888 points.
Participation Reward:
All relevant posts with more than 30 words will get 66 points!
*Note: one can only get one reward out of the three mentioned above.
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Selection criteria![]()
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1. Content quality: authentic personal story.
2. Good typesetting with order histories, stock's trend or other helpful charts.
3. User interaction with the post.
4. Relevant tickers added.
Event Duration: Now–December 28th, 11:59 pm ET
Click here to join now! What's the biggest mistake you made?
Write your own ideas: Plagiarism or cheating is not acceptable on moomoo in any kind of community activity. Please "Report" the post if you see any. Once confirmed, the user committed shall be disqualified from the activity.
Check here “Mooers' Stories" for more stories in the previous sessions.
Welcome back to Mooers' Stories! In this session, we are going to share the following topic: What's the biggest mistake you've made while trading?
We are all human beings, and making mistakes is human nature. When trading stocks, we are either driven by emotions, especially greed and fear, or we keep very high-profit expectations.
Making mistakes is part of the learning process when it comes to trading or investing. While some trading mistakes are unavoidable, it is important that you don’t make a habit of them and learn from the unsuccessful experience. With that in mind, what's the biggest mistake you made? How much did it cost you? What lesson did you learn from it? Click to join the topic discussion now! --What's the biggest mistake you made?
Featured Stories:
3 mooers will get 1,888 points;
10 mooers will get 888 points.
Participation Reward:
All relevant posts with more than 30 words will get 66 points!
*Note: one can only get one reward out of the three mentioned above.
1. Content quality: authentic personal story.
2. Good typesetting with order histories, stock's trend or other helpful charts.
3. User interaction with the post.
4. Relevant tickers added.
Event Duration: Now–December 28th, 11:59 pm ET
Click here to join now! What's the biggest mistake you made?
Write your own ideas: Plagiarism or cheating is not acceptable on moomoo in any kind of community activity. Please "Report" the post if you see any. Once confirmed, the user committed shall be disqualified from the activity.
Check here “Mooers' Stories" for more stories in the previous sessions.
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kingdomdrewski562
reacted to
Columns Sector Rotation?
What happened after FED's meeting?
We are currently having a sector rotation from tech growth stocks into value stocks after Wednesday's Fed policy of 3 rate hikes in 2022 instead of 2 and also speed up tapering and ending it a few months earlier than expected.
The initial taper plan was $10B for treasury securities and $5B for MBS (Mortgage Backed Securities) but now it has doubled the speed of tapering to $20B for treasury securities and $10B for MBS and tapering to end by March 2022. Which shortly after, rate hikes should come in progressively.
The reason for the fed turning hawkish and a quick shift to taper at a quicker pace and more rate hikes was due to inflation at a 40 year high. They also did not expect inflation to rise above 2% in 2021 and kept mentioning about higher inflation rate being transitory. Current inflation is at 6.8% based on the YOY report.
How did this affect the market on Thursday?
When tapering is sped up, liquidity will be tightened in the market. There will not be as much free cash to be pumped into the market to let prices rally like we have seen the last 2 years.
Interest rate hikes will also dampen valuation on growth stocks as growth stocks are priced in more to future earnings expectations. If rates rise, it will hurt those expectations. Investors will start to see bonds and value stocks that thrive in high-interest rate environments a better asset class thus making it more appealing against higher-risk growth stocks.
Small-cap stocks usually also suffer because they tend to loan more money to fund the growth of the company thus making them more sensitive towards the rate hikes.
Thus we saw the $NASDAQ 100 Index (.NDX.US)$ and $iShares Russell 2000 ETF (IWM.US)$ mostly small-cap and tech stocks falling much sharper than $Dow Jones Industrial Average (.DJI.US)$ yesterday which consist mainly of value stocks.
What to do now? Should I exit my growth holdings?
That being said, inflation and rate hikes over the long run still don't pose a huge threat to growth stocks. It is usually short-term when the rotation happens towards value stocks. So take this opportunity to find good entry points into the stocks which are undergoing the selloff.
As always, trade safe & invest wise!
$Apple (AAPL.US)$ $Tesla (TSLA.US)$ $Meta Platforms (FB.US)$ $Microsoft (MSFT.US)$ $Amazon (AMZN.US)$ $NVIDIA (NVDA.US)$ $Adobe (ADBE.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$
We are currently having a sector rotation from tech growth stocks into value stocks after Wednesday's Fed policy of 3 rate hikes in 2022 instead of 2 and also speed up tapering and ending it a few months earlier than expected.
The initial taper plan was $10B for treasury securities and $5B for MBS (Mortgage Backed Securities) but now it has doubled the speed of tapering to $20B for treasury securities and $10B for MBS and tapering to end by March 2022. Which shortly after, rate hikes should come in progressively.
The reason for the fed turning hawkish and a quick shift to taper at a quicker pace and more rate hikes was due to inflation at a 40 year high. They also did not expect inflation to rise above 2% in 2021 and kept mentioning about higher inflation rate being transitory. Current inflation is at 6.8% based on the YOY report.
How did this affect the market on Thursday?
When tapering is sped up, liquidity will be tightened in the market. There will not be as much free cash to be pumped into the market to let prices rally like we have seen the last 2 years.
Interest rate hikes will also dampen valuation on growth stocks as growth stocks are priced in more to future earnings expectations. If rates rise, it will hurt those expectations. Investors will start to see bonds and value stocks that thrive in high-interest rate environments a better asset class thus making it more appealing against higher-risk growth stocks.
Small-cap stocks usually also suffer because they tend to loan more money to fund the growth of the company thus making them more sensitive towards the rate hikes.
Thus we saw the $NASDAQ 100 Index (.NDX.US)$ and $iShares Russell 2000 ETF (IWM.US)$ mostly small-cap and tech stocks falling much sharper than $Dow Jones Industrial Average (.DJI.US)$ yesterday which consist mainly of value stocks.
What to do now? Should I exit my growth holdings?
That being said, inflation and rate hikes over the long run still don't pose a huge threat to growth stocks. It is usually short-term when the rotation happens towards value stocks. So take this opportunity to find good entry points into the stocks which are undergoing the selloff.
As always, trade safe & invest wise!
$Apple (AAPL.US)$ $Tesla (TSLA.US)$ $Meta Platforms (FB.US)$ $Microsoft (MSFT.US)$ $Amazon (AMZN.US)$ $NVIDIA (NVDA.US)$ $Adobe (ADBE.US)$ $Invesco QQQ Trust (QQQ.US)$ $SPDR Dow Jones Industrial Average Trust (DIA.US)$
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kingdomdrewski562 : traded too early