In the Current Market: Will You Stop Loss, Wait for the Dips or Go Short?
Nasdaq-100 Enters Bear Market
It was a brutal day for the tech market. The $NASDAQ(.IXIC)$ lost a whopping 2.04%. The $S&P 500(.SPX)$ dipped 0.74%. The Nasdaq-100 is officially in bear-mode. Nasdaq-100 is now in a bear market for the first time since March 2020. A bear market is formally defined as a “condition in which securities prices fall-20% or more from recent highs.”
The S&P 500 and Dow Jones are a little better off than the other two, but they’re not necessarily safe from bear conditions — the S&P is down -13% from January highs and the DJIA is down -10%.
S&P 500 Falls into a Death Cross
The S&P 500 Index entered a “death cross” technical pattern on Monday for the first time since March 2020, becoming the last major U.S. stock-market index to fall into the bearish formation this year.
A death cross appears when the 50-day moving average crosses below the 200-day moving average, an event that many chart watchers view as marking the spot a shorter-term correction morphs into a longer-term downtrend.It occurred in November 1999 during the peak of the dot-com era, in October 2000 after that bubble burst and again in December 2007 ahead of the global financial crisis.
Chinese Stocks Suffer in Biggest Plunge Since 2008
Under the multiple blows, how is your portfolio?
Some netizens comments:
Viewing my account today
Why only Russian stock market closed?
SHARE YOUR THOUGHTS
In the current market, will you stop loss in time, wait for the dips or go short?
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万岁！美国股市指数今天收高，此前油价回落，缓解了投资者对通胀的担忧，以及美联储不会过于激进地加息的前景。
然而，我们还没有脱离险境，因为乌克兰战争仍在进行。因此，如果市场下跌，我会部署我的武器，寻找我最喜欢的股票，如苹果和微软，因为我的时间跨度很长。我想现在种下我的幼苗，这样我就可以在将来享受来自我的苹果树的阴凉了。
@MillionaireTiger 你会止损吗
@TigerStars
Be aware of the market data, but not so aware that you're reacting to every gain and loss," says Alexander, Breazeale Professor of Finance at Clemson University in South Carolina. "When you do that, you have a tendency to make hasty decisions. Instead, leave the house, get up from your desk, go out for lunch, don't look at the TV first thing in the morning or last thing at night. Distance will give you perspective."
Current market is still very volatile with massive price swings. In not even 4 months, $S&P 500(.SPX)$ moved up and down within a large range of ~704 points or 14.6%. For long term holdings of years, mainly in $SPDR S&P 500 ETF Trust(SPY)$ and $SPDR Portfolio S&P 500 ETF(SPLG)$ , buying the dips is the default, and I don’t mind tolerating drawdowns of 30~40% for longer term gains
For swing trades of days and weeks, I have stoploss in place and exit if my initial trade did not go as plan, whether going long or short. For example, I was stopped out of my $Tesla Motors(TSLA)$ long swing trade recently. But, I am fine to take the loss as it is within the amount of capital I am risking for a trade, and can recycle my capital for future trades, rather than unwittingly change from trader to "long term investor" of stock [捂脸]
Markets were having wild swings of more than 1% almost daily and sometimes during the same session for past few weeks. It was ‘heart in your mouth’ trading sometimes, especially for short term trades. In such situations, I’ve set both take profit and stop loss target order at same time, and if one order executes, the other is cancelled, or One-Cancels-Other (OCO) order (in another broker app). This helps remove manual intervention and emotions, as I might fiddle with profit target price or reluctant to cut loss. Those’ve led to more reduced profits and larger losses, than initial trade plan in my experience.
Tiger App seems to have similar features, reading the Help guide, with “Attached order” and “One-Cancels-All (OCA) order”.
For disclosure, I’ve not used these order types in Tiger App. Any of you have experience using them? Would you be able to share if they executed as planned, and if there were slippages?
i prefer to see it as an opportunity in a crisis, and will buy, hopefully the correct stock, when i deem fit.
anyways. jiayou!!
I'll buy the dip for those I need to add to average down so that when market recovers, I'll breakeven earlier [Happy]
安全第一，除非你有很深的口袋放刀。
交易在你自己的舒适水平和安培；风险评估。