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Patience is a Virtue
Throughout the ages, great teachers have extolled the virtue of patience and this has proven to be true in the minefield of stock investments. Arguably the most well-known student of Benjamin Graham (the father of value investing), Warren Buffet gave two valuable pieces of advice:
1) “Price is what you pay. Value is what you get”.
2) “For the investor, a too-high purchase price for the stock of an...
Throughout the ages, great teachers have extolled the virtue of patience and this has proven to be true in the minefield of stock investments. Arguably the most well-known student of Benjamin Graham (the father of value investing), Warren Buffet gave two valuable pieces of advice:
1) “Price is what you pay. Value is what you get”.
2) “For the investor, a too-high purchase price for the stock of an...
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I’m a long term investor so these are just some of the lessons I’ve learnt from my limited experience with day trading. I will also give a brief overview of the VWAP indicator which is often used by day traders.
Lessons Learnt
1) Trade when the mind is clear and alert
Do not trade when you’re feeling sleepy, tired, unwell or troubled. This is especially true when trading in a foreign market with time zone differences. Day trading requires snap decisions and you can’t make those decisions if you are feeling poorly.
2) Play small
Limit the amount invested to a small percentage of your capital so it wouldn’t hurt if it is lost entirely. This is important as there is no such thing as a hundred percent success rate.
3) Plan your entry and exit
Set target profit and stop loss when entering a trade. This helps you to know when to exit. Do not hesitate or second guess yourself. Capital preservation is important.
4) A good knowledge of technical indicators is required
This enables one to spot and interpret the signals. Using a number of technical indicators helps to confirm the signal and improve the probability of wins.
VWAP Indicator
VWAP stands for volume-weighted average price. It is basically the average trading price of a stock after taking into account the volume. The formula is VWAP = number of shares x typical price divided by the total number of shares. Since VWAP is calculated from previous prices, there will be a lag which becomes bigger throughout the day. VWAP is reset each day.
How to view VWAP in Moomoo:
In Detailed Quotes, click on Chart Settings > Indicators > VWAP.
Make sure VWAP is checked. You can modify the colour if you wish.
Once this is done, return to the chart. You can click VWAP at the bottom of the chart (portrait mode) or on the right hand side of the chart (landscape mode). In the pictures below, VWAP is the yellow line.
How To Use VWAP Indicator
A rising VWAP shows that buyers have more control, a declining VWAP shows that sellers have more control and a flat VWAP means the stock is trading within a range. When the price is above VWAP, it is in the overbought zone and when the price is below VWAP, it is in the oversold zone.
VWAP can be used to establish support and resistance price levels. In general, traders try to trade close to VWAP in anticipation of a bounce off (long) or a decline (short). Institutional investors use VWAP as a benchmark when planning their entries and exits to minimise their effect on the market price. So do companies when they do share buybacks e.g. $Apple (AAPL.US)$ .
It is a good idea to use VWAP in conjunction with other technical indicators such as MACD, RSI and Stochastic to confirm the signal before executing a trade. Use a paper account to practise and test out your strategies before risking any real money.
$Tesla (TSLA.US)$ $Lucid Group (LCID.US)$ $Rivian Automotive (RIVN.US)$ $SNDL Inc (SNDL.US)$ $Marin Software (MRIN.US)$ $ContextLogic (WISH.US)$ $Astra Space (ASTR.US)$ $American Airlines (AAL.US)$ $Netflix (NFLX.US)$ $NVIDIA (NVDA.US)$ $Pfizer (PFE.US)$ $Moderna (MRNA.US)$ $Alibaba (BABA.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Digital World Acquisition Corp (DWAC.US)$ $Phunware (PHUN.US)$ $AMC Entertainment (AMC.US)$ $GameStop (GME.US)$ $Sea (SE.US)$
Disclaimer: The above is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor before making any investment decision.
Check out Long Term Investment - A Strategy For Growing Returns Without Sleepless Nights https://www.moomoo.com/community/feed/107495017873414?lang_code=2
Lessons Learnt
1) Trade when the mind is clear and alert
Do not trade when you’re feeling sleepy, tired, unwell or troubled. This is especially true when trading in a foreign market with time zone differences. Day trading requires snap decisions and you can’t make those decisions if you are feeling poorly.
2) Play small
Limit the amount invested to a small percentage of your capital so it wouldn’t hurt if it is lost entirely. This is important as there is no such thing as a hundred percent success rate.
3) Plan your entry and exit
Set target profit and stop loss when entering a trade. This helps you to know when to exit. Do not hesitate or second guess yourself. Capital preservation is important.
4) A good knowledge of technical indicators is required
This enables one to spot and interpret the signals. Using a number of technical indicators helps to confirm the signal and improve the probability of wins.
VWAP Indicator
VWAP stands for volume-weighted average price. It is basically the average trading price of a stock after taking into account the volume. The formula is VWAP = number of shares x typical price divided by the total number of shares. Since VWAP is calculated from previous prices, there will be a lag which becomes bigger throughout the day. VWAP is reset each day.
How to view VWAP in Moomoo:
In Detailed Quotes, click on Chart Settings > Indicators > VWAP.
Make sure VWAP is checked. You can modify the colour if you wish.
Once this is done, return to the chart. You can click VWAP at the bottom of the chart (portrait mode) or on the right hand side of the chart (landscape mode). In the pictures below, VWAP is the yellow line.
How To Use VWAP Indicator
A rising VWAP shows that buyers have more control, a declining VWAP shows that sellers have more control and a flat VWAP means the stock is trading within a range. When the price is above VWAP, it is in the overbought zone and when the price is below VWAP, it is in the oversold zone.
VWAP can be used to establish support and resistance price levels. In general, traders try to trade close to VWAP in anticipation of a bounce off (long) or a decline (short). Institutional investors use VWAP as a benchmark when planning their entries and exits to minimise their effect on the market price. So do companies when they do share buybacks e.g. $Apple (AAPL.US)$ .
It is a good idea to use VWAP in conjunction with other technical indicators such as MACD, RSI and Stochastic to confirm the signal before executing a trade. Use a paper account to practise and test out your strategies before risking any real money.
$Tesla (TSLA.US)$ $Lucid Group (LCID.US)$ $Rivian Automotive (RIVN.US)$ $SNDL Inc (SNDL.US)$ $Marin Software (MRIN.US)$ $ContextLogic (WISH.US)$ $Astra Space (ASTR.US)$ $American Airlines (AAL.US)$ $Netflix (NFLX.US)$ $NVIDIA (NVDA.US)$ $Pfizer (PFE.US)$ $Moderna (MRNA.US)$ $Alibaba (BABA.US)$ $SPDR S&P 500 ETF (SPY.US)$ $Digital World Acquisition Corp (DWAC.US)$ $Phunware (PHUN.US)$ $AMC Entertainment (AMC.US)$ $GameStop (GME.US)$ $Sea (SE.US)$
Disclaimer: The above is my personal opinion. It is not financial advice or a recommendation to invest. Please consult a financial advisor before making any investment decision.
Check out Long Term Investment - A Strategy For Growing Returns Without Sleepless Nights https://www.moomoo.com/community/feed/107495017873414?lang_code=2
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Columns STI Movers for Tuesday (6/7)
$Jardine C&C (C07.SG)$ $YZJ Shipbldg SGD (BS6.SG)$ $ST Engineering (S63.SG)$
How to find the above information in moomoo app:
1. Open moomoo app
2. Search for and tap on "STI"
3. Roll down to see "Constituent Stocks"
4. You can filter the list based on "%Chg"
How to find the above information in moomoo app:
1. Open moomoo app
2. Search for and tap on "STI"
3. Roll down to see "Constituent Stocks"
4. You can filter the list based on "%Chg"
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Hey moo-ers,
Something BIG, PURPLE and ADORABLE is coming to you on Rewards Club! Meet moomoo’s best bud, Rich. Isn’t he just the cutest?
Look out for the launch of our Money Plus-hie on 1 April 2022 (Friday) at 10:00 SGT. Limitied quantities available. Be sure to grab it while stocks last!
Something BIG, PURPLE and ADORABLE is coming to you on Rewards Club! Meet moomoo’s best bud, Rich. Isn’t he just the cutest?
Look out for the launch of our Money Plus-hie on 1 April 2022 (Friday) at 10:00 SGT. Limitied quantities available. Be sure to grab it while stocks last!
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$Brickell Biotech (BBI.US)$ Well it’s in the lean back position now. Needs to stay above .2351 tomorrow. Resistance is .2583.
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Spoiler: Join the discussion #Comparison forms cognition: What can Stock Compare bring us? and share your findings of the Stock Compare feature to win the adorable moomoo merchandise and rewarding points!
When you step into a mall to buy something, you may hear conflicting recommendations. You know what you need, but you haven't decided what to buy yet. Take buying clothes as an example. How do you know which one best suits you? Salesm...
When you step into a mall to buy something, you may hear conflicting recommendations. You know what you need, but you haven't decided what to buy yet. Take buying clothes as an example. How do you know which one best suits you? Salesm...
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$Microsoft (MSFT.US)$ on Friday finally confirmed that it will allow popular game Call of Duty (CoD) to stay on $Sony (SONY.US)$ PlayStation, after the US tech giant gobbled up CoD maker $Activision Blizzard (ATVI.US)$ for $69 billion.
In a tweet, head of Xbox, Microsoft Gaming CEO Phil Spencer, said that CoD does have a future on Sony platforms.
Had good calls this week with leaders at Sony. I confirmed our intent to honour all existing agreements ...
In a tweet, head of Xbox, Microsoft Gaming CEO Phil Spencer, said that CoD does have a future on Sony platforms.
Had good calls this week with leaders at Sony. I confirmed our intent to honour all existing agreements ...
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Hi, mooers
Welcome back to Mooers' Stories! Last month, many of you shared your stories about the biggest mistake you've made while trading. In this session, we would like to know: How did you deal with losses in the stock market?
There is an old saying, "Our greatest glory is not in never falling, but in rising every time we fall." This also applies to stock market trading. No one wants to lose, but losing money is part of the game. It ca...
Welcome back to Mooers' Stories! Last month, many of you shared your stories about the biggest mistake you've made while trading. In this session, we would like to know: How did you deal with losses in the stock market?
There is an old saying, "Our greatest glory is not in never falling, but in rising every time we fall." This also applies to stock market trading. No one wants to lose, but losing money is part of the game. It ca...
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$Fidelity Stocks For Inflation Etf (FCPI.US)$ $HORIZON KINETICS INFLATION BENEFICIARIES ETF (INFL.US)$ $Vaneck Vectors Real Asset Allocation Etf (RAAX.US)$ $ProShares Inflation Expectations ETF (RINF.US)$ $Ishares Inflation Hedged Corporate Bond Etf (LQDI.US)$ $Ishares 0-5 Year Tips Bond Etf (STIP.US)$ $Invesco Purebeta 0-5 Yr Us Tips Etf (PBTP.US)$ $Vanguard Short-Term Inflation-Protected Securities ETF (VTIP.US)$ $SPDR Bloomberg Barclays 1-10 Year TIPS (TIPX.US)$ $Schwab Strategic Tr Us Tips Etf (SCHP.US)$