Rishabh Tyagi

They released their earning results for the six months ending October 31, 2023, ahead of their interim results release on January 31, 2024. The company generated revenues worth £7.5 million for the first half of its financial year. 

1. Use of Leverage: Leverage is easily available in day trading, which can widen your losses. If you are highly leveraged, you can end up losing even 50% of your account.
2. Volatility: On higher time frames and in the long term, high trading volume stocks moving 10-15% is not usual, but in day trading, we can see such volatility.
3. Predicting the Price: No matter what strategy you use, there is 30-40% of the stock market that is very difficult to predict. At a given time, there can be multiple reasons behind the demand and supply. There could be a big investor booking profits, some funds building up positions on the news, or even instances of insider trading.
That's why having a solid risk management plan is as important as the strategy.
4. Psychological Pressure: The fast-paced and intense nature of day trading can subject traders to psychological pressure, potentially leading to emotional decision-making rather than rational analysis. Emotional involvement in trading may result in poor judgments and heightened vulnerability to market fluctuations.
5. Cost of Transactions: The frequent buying and selling of assets can result in significant transaction costs, including brokerage fees and commissions. These costs have the potential to diminish potential profits.
6. Information Overwhelm: Day traders must swiftly process large volumes of information to make well-informed decisions. However, this information overload may lead to decision fatigue and the possibility of making errors.
7. Unpredictable Occurrences: Day traders face the risk of encountering unforeseen events, such as geopolitical incidents, economic indicators, or natural disasters. These occurrences have the potential to cause sudden and substantial market movements, catching day traders by surprise.
 
You might find these helpful;
"Trading Rules" - https://www.asktraders.com/learn-to-trade/risk-management/trading-rules/
"Practical Risk Management" -  https://www.asktraders.com/learn-to-trade/risk-management/practical-risk-management/
"Basics of Risk Management" - https://www.asktraders.com/learn-to-trade/risk-management/basics-of-risk-management/
 

The bid ask-spread is the difference between the highest price a buyer is willing to pay (bid price) for a particular asset and the lowest price a seller is willing to accept (ask price) for the same asset at a given point in time.  
1. Bid Price: This represents the utmost price a prospective buyer is eager to offer for an asset. It signifies the level of demand for the asset in the market.
2. Ask Price: Conversely, the ask price, often termed the "offer price" or "selling price," signifies the minimum price at which a potential seller is prepared to part with the asset. This reflects the extent of supply in the market.
3. Bid-Ask Spread: By calculating the difference between the ask price and the bid price, we arrive at the bid-ask spread. It serves as a vital metric of market liquidity and efficiency. A narrower spread is indicative of heightened liquidity and a strong correlation between supply and demand, while a wider spread may indicate a less liquid market or less frequent trading activity.
Imagine Company XYZ is a publicly traded stock, and currently, the bid price for XYZ shares is $30, while the ask price is $32. In this scenario, the bid-ask spread for Company XYZ would be $2 ($32 - $30).

#Weekend Analysis | 23 Jul Sun
- Money has started to move from overbought sectors to oversold ones.
- Tech stocks may see some correction.
- Pharmaceutical stocks are looking positive (e.g., PFE).
- The market can be jittery on Monday.
- CSCO has broken out of the swing trading range. The support is at $52.
- DASH is trading near the selling zone. Avoid buying and look for shorting setups.
- The sudden selling in airline stocks after a strong rally could provide buying opportunities.

Day is relatively demanding in time and energy spent over chart analysis. 
This is what I would do today to become a day trader:
- Start with basic price action (support, resistance, range, and trend lines).
- Pick 5 stocks with high trading volume and start observing the momentum in their charts.
- Now, you can read about indicators. Most traders, if I had made the mistake of introducing indicators at the beginning, would have been limited in learning more about the charts. Once you are comfortable with reading charts, you can make better decisions with indicators.
- Learn about risk management.
- Now, it's time to come up with a trading strategy with a risk management plan. Backtest it. I prefer doing it manually on the stocks I would be trading.
- Start with a small number of shares and refine your strategy until it starts giving desired profitable trades. Gradually increase your shares.
To start learning you can check this post. 
 

You can start by learning about existing chart patterns and basic price action. Begin by observing charts and their behaviors.
- Not every move has significant meaning.
- Our aim is to catch momentum. You can start by observing charts when a stock had moved in a trend and look for repeating patterns.
You can also read this related topic.

That depends on your trading time frame. If you are investing in a stock for at least a year, getting a macroeconomic perspective could be helpful.
I use it in my top-to-bottom economic analysis, starting from macro to microeconomic factors. It helped me get an overall picture of the financial health of the industry and overall markets.
In the hedge fund where I was working, it was one of the key methods to check off when analyzing a segment for investment.
Let me share some key points:
- It was never used to get a direct investment signal but rather as a confirmation tool along with other methods.
- The main aim was to learn about the trend of factors larger than the stock's earnings, such as the economy and commodity prices (if relevant), and more; which can affect either the demand for the product or the company's cost of producing the product.
- The goal is to obtain an idea of the demand and supply for the overall industry, not for a specific company. Once you have a growth picture for an industry, you can then research the best-performing companies within that segment.
 
If you wish to know more, let me know :). Hope this helps!
 

The CCI (Commodity Channel Index) is used to identify overbought or oversold conditions in the market, as well as potential trend reversals. It was the key indicator in my set-up. I found it when I was exploring all the indicators in my trading platform, it was not well know at that time. 
How it works
The CCI indicator measures the current price level relative to its average price over a specified period of time. It oscillates above and below a zero line, indicating whether the market is overbought (above 100) or oversold (below -100). The CCI values outside of these extreme levels suggest potential trend reversals.
How to use
1. Choose the timeframe that suits your trading preferences.
2. Determine the number of periods you wish to consider when calculating the CCI. While the default period is typically 14, you have the flexibility to adjust it based on your specific trading strategy and the market you are analyzing.
3. As mentioned before, when the CCI value surpasses 100, it indicates an overbought state, implying a potential downward price correction. Conversely, when the CCI value falls below -100, it signifies an oversold condition, suggesting a possible upward price correction.
4. Observe any divergences that occur between the price and the CCI. If the price reaches higher highs while the CCI shows lower highs, this could indicate a weakening trend and a potential reversal. On the other hand, if the price registers lower lows while the CCI exhibits higher lows, it might signify a bullish reversal.
5. Confirm with other indicators to increase the probability of your trade signals. 
To learn more about CCI and its advantages and disadvantages, you can check this short short guide by Nigel: https://www.asktraders.com/learn-to-trade/technical-analysis/commodity-channel-index/
META on 5 min frame. 

 

Yes, there should be a planned strategy for managing positions once the trade is live. Breakeven stops is a good one.
Execution
If your setup indicates that the stock could move further in favor of your position, and you wish to hold, then you should adjust the stops not based on the profit/loss but according to your strategy. Identify strategic stops and move them accordingly.
In the case where your strategy does not indicate a clear favorable move, and you still wish to hold, moving your stop to breakeven level puts you at no risk and a potential rewards setup.
 

I assume you have a strategy indicating a bullish market ahead, and you would like to hold your positions over the weekend.
You should consider analyzing these factors for holding a position over the weekend:
- Ensure that there are no scheduled news events related to the economy or anything else that could affect the markets. Simply search for an economic calendar online, and you'll find many websites.
- Check whether the stock or industry have any earnings or scheduled events that could go against your position.
- Make sure that the markets are stable, meaning there are no major ongoing events. Markets are difficult to predict during unexpected news events.
 
The Risks   
- Markets opening with a significant gap against your position. In such cases, your stop-loss order could also fail to execute.
- A substantial selling/buying activity against your position, leaving less time to exit or resulting in orders failing to execute at the desired price due to rapid price changes.
- Forgetting you have an open position . Yes, this is a real problem.

Sure! here are sorted 40 forex related short and precise articles. You'll find tips, explanations, strategies, and examples. 
https://www.asktraders.com/learn-to-trade/forex-trading/ 

All depends on you entry and exit strategy. If it is based on no logic or tested or proven strategy then it falls under gambling. However, if your strategy yields a net positive result for your bottom line, then it cannot be considered as gambling.

In the article Nigel explains Trading vs Investing by a real example, it might help you; https://www.asktraders.com/learn-to-trade/trading-guide/trading-vs-investing/
You must be familiar with the pros and cons, lets me list some basic requirements to make some meaningful returns from both:
Trading
- It requires time and effort. You need to spend time in front of the screen and conduct pre-market research to identify opportunities.
- You have to develop and test a strategy that, when consistently executed, will result in a net profit. This requires a basic understanding of charts, reading price action, and working with probability.
Investing
- You need a larger capital to generate meaningful returns. The capital becomes somewhat locked-in for the expected duration of your investment.
- Instant results are uncommon, at least most of the time. This means that the success of your investment or strategy may take time to become evident.
 

As already mentioned in the previous answer, momentum in the stock market, if put simply, refers to the price direction.
By observing the timeframe and percentage of change, you can conclude the strength and direction of the stock's momentum.
 
Every strategy aims to predict the momentum of the stock. The goal is to know these 2 things about the security:
1. The strength of the momentum relative to time. The change in price of the stock in a give time. For example, if a stock moves up 20% in 3 days accompanied by strong volumes, that indicates strong momentum.
2. The direction of momentum. Is stock moving randomly, or it has some clear trend. It could many variations. 
 
There are various strategies used to anticipate the momentum of a trading stock or any other security:
Technical Analysis: You use price action and indicators to determine the strength of the momentum.
Fundamental Analysis: Here, you use the company's fundamentals to anticipate its momentum. By examining factors such as financial statements, earnings reports, and market trends, you can assess the potential future performance of the stock.
News Analysis: News related to the stock is used to gain some insight into the momentum. Market-moving news, such as product launches, acquisitions, or regulatory changes, can have a significant impact on a stock's momentum.
Investor Sentiment Analysis: This approach involves analyzing market sentiment and investor behavior to gauge the momentum of a stock. By studying indicators such as investor sentiment surveys, social media sentiment analysis, and options trading activity, you can gain valuable insights into the market's perception of a stock's momentum.
 
It's important to note that predicting momentum is not an exact science, and different strategies may yield varying results. Combining multiple approaches and staying updated with market news can provide a more comprehensive understanding of a stock's momentum.
 

Market liquidity refers to how easily assets or securities can be bought or sold without affecting their value. 
In a highly liquid market, there are many buyers and sellers, allowing for quick trades with minimal price impact. Investors and  traders consider market liquidity when making investment decisions as it affects trade execution ease, asset prices, and market risk and stability.
A market with low liquidity has fewer participants and lower trading volumes, making it harder to trade without affecting prices.
Factors affecting market liquidity include;
- the number of participants.
- trading volume,
- bid-ask spread,
- transaction costs,
- market depth, and
- overall market conditions.

High liquidity is desirable for investors as it allows for easy entry and exit, reduces price manipulation risk, and promotes market efficiency.

Low liquidity leads to higher transaction costs, wider bid-ask spreads, price volatility, and potential difficulties in finding buyers or sellers.

 

I think  @Steve Walters has answered most of it. I would add few quick points;
-  Use stop-loss.  Once the trade is in positive, you can gradually trail it. 
-  Know you strategy. If you take 10 trades, you should know how many time your strategy gets you winning trades. 
- Know your risk to reward ratio. This should help in you calculate how muck capital/ leverage/risk you should take on your trades. 
- Follow your strategy. 
- The number of shares to be traded should depend on the capital, risk, and trade setup. 
If you looking to get more insights, you should check these articles; 
1. Trailing Stop-Loss Strategy: https://www.asktraders.com/learn-to-trade/trading-guide/best-trailing-stop-loss-strategies/
2. GUARANTEED STOP LOSSES: https://www.asktraders.com/learn-to-trade/trading-guide/guaranteed-stop-loss/
3. Articles on Risk Management: https://www.asktraders.com/learn-to-trade/risk-management/
4. All about Risk: https://www.asktraders.com/learn-to-trade/risk-management/risk-p-l-management/
 

It is used to get confirmation for a bullish trend continuation. 
- The bull flag pattern happens after a big increase in price. Think of it as a strong upward movement in the value of something.
- After the big increase, the price takes a break and moves sideways for a while. It's like the price is catching its breath and not going up or down much.
- During the consolidation phase, the price moves in a way that creates a pattern that looks like a flag. The highs are not as high as before, and the lows are higher, making parallel lines that come closer together.
- Watch for the price to break out above the upper line of the flag pattern. When this happens, it suggests that the price will continue going up.
- To be more confident in the breakout, it's a good idea to wait for the price to break out convincingly and for the trading volume (the number of shares or contracts traded) to increase. This helps confirm that the breakout is strong and reliable.
This rally is in AAPL with multiple bullish flag patterns. 

 

Golden crossover is an bullish indication, it uses a short-term moving average and and a long-term moving average.
It occurs when a short-term moving average crosses above a long-term moving average on a price chart.
The short-term moving average is typically calculated over a shorter time frame, such as 50 days, while the long-term moving average is calculated over a longer time frame, such as 200 days.
How to trade? If you are using 50 and 200 days combination. For investing you can it get as your main indicator. For day and swing trading, you can get an idea for overall momentum, to help take better trading with you indicator setup. 
9 and 21 days works best for swing trading. 
50 and 200 days Golden crossover on day frame

9 and 21 days Golden crossover on day frame

Scalping needs a tested, profitable, and a good broker with cheap trading charges. Following steps should help; 
1. Familiarize yourself with the scalping strategy: Understand that scalping involves making quick trades to profit from small price movements in liquid markets.
2. Choose highly liquid markets: Focus on trading in markets with high volume and tight spreads, such as forex or major stock indices.
3. Use real-time data and tools: Access reliable trading platforms or software that provide accurate and up-to-date information, including charts and technical indicators.
4. Establish clear entry and exit criteria: Develop specific rules based on technical analysis indicators to identify favorable trade setups.
5. Prioritize risk management: Determine appropriate position sizes and set tight stop-loss orders to limit potential losses per trade.
6. Practice precise timing and execution: Place orders swiftly and accurately, considering the use of limit or market orders based on market conditions.
7. Backtest and refine your strategy: Test your scalping strategy using historical data to assess performance, identify weaknesses, and make improvements.
8. Monitor and adapt to market conditions: Stay actively involved, keep track of relevant news and events, and adjust your approach accordingly.
 
To learn more on scalping strategies, and in sights, you can check this article by Richard; https://www.asktraders.com/learn-to-trade/trading-strategies/scalping/

Ascending Wedge
Shape: An ascending wedge is characterized by two trendlines that converge in an upward direction, with the upper trendline sloping at a steeper angle than the lower trendline.
Interpretation: Ascending wedges typically form during a price uptrend and are considered bearish reversal patterns. They indicate a weakening bullish momentum, with buyers becoming less aggressive while sellers gain strength. Traders often interpret an ascending wedge as a sign of an impending downward price movement.
Breakout Direction: The breakout from an ascending wedge pattern is typically to the downside. Once the price breaks below the lower trendline, it suggests a potential trend reversal or a continuation of the previous downtrend.
 
Descending Wedge
Shape: A descending wedge, on the other hand, consists of two converging trendlines, but in a downward direction. The upper trendline has a shallower slope compared to the lower trendline.
Interpretation: Descending wedges typically occur during a price downtrend and are considered bullish reversal patterns. They signify a weakening bearish momentum, with sellers becoming less aggressive while buyers gain strength. Traders often interpret a descending wedge as a signal for an upcoming upward price movement.
Breakout Direction: The breakout from a descending wedge pattern is usually to the upside. When the price breaks above the upper trendline, it suggests a potential trend reversal or a continuation of the previous uptrend.

 
To learn more, you can check out these guides with examples; 
Rising Wedge: https://www.asktraders.com/learn-to-trade/technical-analysis/rising-wedge/
Falling Wedge: https://www.asktraders.com/learn-to-trade/technical-analysis/falling-wedge/

Absolute valution
- Focuse on finding the real or intrinsic value of the stock. It mainly consideres fundamental factors.
- The aim is to derive the actula worth of the compny in present, and estimate the future cash flow of the company. 
There are several methods; 
Discounted Cash Flow (DCF) - involves estimating the future cash flows generated by the company and discounting them back to their present value. Dividend Discount Model (DDM) - estimates the value of a stock by summing up the present value of its expected future dividends. Earnings-Based Models - uses multiple ratios to determine the stock's value relative to its earnings or other financial metrics like Price-to-Earnings (P/E) ratio, Price-to-Sales (P/S) ratio, or Price-to-Book (P/B) ratio. Relative Valuation
- This menthod comapnre the stocks with other simal stocks or industry or becnhmanrks. It is focused around how the stocks if placed relative tp other similar stocks. 
- Some common methods include; 
Price-to-Earnings (P/E) Ratio - it helps in evalutoing the valution of the stock, whether it is overvalued or undervalued. It compares a company's stock price to its earnings per share (EPS). Price-to-Book (P/B) Ratio - compares a company's stock price to its book value per share.  EV/EBITDA Ratio - compares a company's enterprise value (EV) to its earnings before interest, taxes, depreciation, and amortization (EBITDA).

They are different stages in financial markets for any security to be sold or bought. 
Primary markets
- Securities are issued for the first time mainly through an initial public offering (IPO). 
- This process involves issuing new shares of stock or issuing debt securities, such as bonds.
- The primary market facilitates the direct flow of funds from investors to the issuing company.  
Secondary markets 
- It is the stock market or stock exchange where previously issued securities are bought and sold among investors. 
- Here the issuing company does not directly participate or receive any funds from these transactions. 
- It provide liquidity to investors to trade shares. 

These are ways to find judge value of a company.
Intrinsic value is based on the company's fundamental characteristics and future cash flows.
It does not consider the stock's price and gives an idea of what the company is truly worth. There are multiple ways to calculate it. 
Market value is the total value of a company's outstanding shares in the stock market.
It is calculated by multiplying the current price of a share by the total number of outstanding shares of the company. It represents the collective opinion of the market for the company. 

- It depends on your investments and the severity of the fall.
A declining market is a matter of time. If you have invested in value stocks that can survive the recession, they can eventually start performing well again once the economy is back on track.
- Consider your financial situation and expectations.
If you had planned to exit with some returns but find yourself lacking funds, you can make an exit.
- If you have surplus funds, you can also consider looking for value stocks at cheaper valuations.
- Its always a profitable to get out of bad stocks, whether in a bull market or a falling one. 
 

That depends on four things:
- Your investment capital: How much money do you have?
- What are your profit expectations? That would help you judge your capital, whether it's sufficient or not.
- How big is the opportunity?
If your capital is small and the opportunity is not that huge, you should either wait for a better trade or not invest more than 20-30% of your capital.
If you are getting an industry leader value stock at a very cheap valuation, you should go in with 60-70% of your capital.
- Timing the stock
Wall Street is very clear on this: 'Never time the markets.' However, we should have some idea by analyzing the news, other stocks, overall market sentiment to help get an idea on when the stock can achieve the desired returns. Once invested, your money gets blocked, which means you can miss out on better opportunities in the future.