STAY AWAY FROM SPX 16 jan 2025Charts have been already showing that it needs to go down but now even indicators are showing downside.
Don't be a bull right right now. It is showing short trade now but I wont short
US500 trade ideas
Earnings Season Cranks Up for Gainless S&P 500. What to Expect?The S&P 500 SPX is now showing nearly zero growth since Election Day, November 5. Markets were euphoric to see Donald Trump win the White House for another four years and pushed the S&P 500 to the rarefied air of 6,000 points and above. But that’s not the case anymore.
A flurry of data has poured cold water on that breakneck rally, including the latest nonfarm payrolls, which showed employers tapped a whopping 256,000 workers in December, far outpacing expectations of 156,000. The news fanned fears that the Federal Reserve might take its time in cutting interest rates — every investor’s biggest concern right now.
It’s up to the earnings season to rejuvenate a falling stock market. To many, the fourth-quarter earnings updates will be the most consequential event as it will also mark President Joe Biden’s departure and the arrival of the main character, Donald Trump.
First through the door, as is tradition, are the heavyweight players on Wall Street. This week traders will get to see the earnings results from big banks including JPMorgan JPM , Wells Fargo WFC and Goldman Sachs GS . In addition, the world’s largest asset manager BlackRock BLK will also post its performance.
The banks’ updates will provide a glimpse into investor appetite for big-shot dealmaking, business sentiment and also how daring and bold consumers were in their spending activity. Things like net interest income — how much the bank earned on interest after paying out deposits — will be a key gauge for the banking system’s health.
Here’s what’s coming from Wall Street’s household names (and some extra).
➡️ Wednesday, January 15, before the bell:
Citi C
Goldman Sachs GS
JPMorgan JPM
Wells Fargo WFC
BlackRock BLK
Bank of New York Mellon BK
➡️ Thursday, January 16, before the open:
Bank of America BAC
Morgan Stanley MS
U.S. Bancorp USB
Other earnings include UnitedHealth UNH .
Once markets digest the updates from the lending giants, the focus will shift to the next big thing — the Magnificent Seven . It’s a high bar once again for America’s most powerful corporate juggernauts.
Investors expect Mag 7 earnings to be up 22% from the same period last year while revenue is eyeballed to have grown 12.3%. The consensus views follow the elite club’s 32.9% earnings jump in the third quarter on revenue increase of 15.4%.
Fun fact: the Mag 7 members accounted for 23.1% of all profits in the S&P 500 for the quarter ending September. For the three months to December, they are expected to consume about a quarter of the earnings pie.
And for 2025, their market cap is projected to devour more than one-third of the S&P 500’s value, which is around $50 trillion. For the tech geeks, here’s the Mag 7 earnings slate:
➡️ Wednesday, January 29, after the closing bell:
Microsoft MSFT
Facebook parent Meta META
Tesla TSLA
➡️ Thursday, January 30, after the closing bell:
Apple AAPL
Amazon AMZN
➡️ Tuesday, February 4, after the closing bell:
Google parent Alphabet GOOGL
➡️ Wednesday, February 19 (tentative), after the closing bell:
Nvidia NVDA
Overall, the foresighted market gurus (i.e. the analysts) expect all companies in the S&P 500 to report a roughly 12% advance in quarterly profits compared to the year-ago quarter. For 2025, the consensus call is a 15% increase in corporate profits from last year.
There are, of course, the permabears among us who spell doom and gloom. They say that Donald Trump’s proposed tariffs could hinder corporate growth by raising prices for US companies that rely on overseas products. And if those companies decide to pass these costs to customers, then inflation might rear back up, throwing the markets into another painful cycle of higher interest rates.
What’s your take? Are you optimistic about the corporate earnings season? And are you excited to see more growth in 2025? Share your thoughts in the comments and let’s spin up the discussion.
How to swing long the SP500?CAPITALCOM:US500 / 1D
Hello Traders, welcome back to another market breakdown.
SP:SPX is showing strong bullish momentum, breaking through key resistance levels and signaling a potential continuation to the upside. However, instead of jumping in at current levels, I recommend waiting for a pull-back to the previous daily range for a strategic approache.
If the pullback holds and buying confirms, the next leg higher could target:
First Resistance: Immediate levels formed during prior consolidation.
Last swing high.
Stay disciplined, wait for the market to come to you, and trade with confidence!
Trade safely,
Trader Leo
Understanding Risk Asymmetry in a Table▮ Introduction
With TradingView's new table creation feature , you can easily create and customize tables to enhance your trading analysis and presentations.
In this article I'll use it to explain Risk Asymmetry .
Trading involves a constant evaluation of risk and reward .
One of the critical concepts that traders need to understand is risk asymmetry .
This concept highlights how losses and gains are not symmetrical.
In other words, the percentage gain required to recover from a loss is greater than the percentage loss itself.
This article explores risk asymmetry and illustrates it with a practical example.
▮ What is Risk Asymmetry?
Risk asymmetry refers to the disproportionate relationship between losses and the gains required to recover from those losses.
For instance, if you lose 10% of your investment, you need to gain more than 10% to get back to your original amount.
This is because the base amount has decreased after the loss.
Understanding risk asymmetry is crucial for traders because it affects their risk management strategies.
Knowing that larger losses require exponentially larger gains to recover can help traders make more informed decisions about their trades and risk exposure.
▮ Illustrating Risk Asymmetry
To illustrate risk asymmetry, let's consider an initial investment of $1000.
The table below shows the required gain to recover from various percentage losses:
Explanation:
- Loss (%): The percentage loss from the initial amount.
- Value Lost ($): The lost monetary value from the initial amount.
- Amount After Loss ($): The remaining amount after the loss.
- Required Gain for Recovery (%): The percentage gain required to recover to the initial amount.
This table highlights the asymmetry in trading losses and gains.
As the loss percentage increases, the required gain to recover the initial amount increases disproportionately.
For example, if you lose 50% of your initial amount ( $500 ), it is not enough for you to gain 50% , because the amount left after the loss is $500 , and a 50% gain on the amount of $500 is $250 , which would result in a total amount of $750 with a remaining loss of $250 !
So, the most important question is not how much can I win , but how much can I lose .
Curiosity:
Why 100% is not applicable (-) in this table?
When you lose 100% of your investment, you have lost all your capital. Therefore, there is no remaining amount to recover from, and it is impossible to gain back to the initial amount from zero. This is why the required gain are marked as not applicable.
▮ Conclusion
Understanding risk asymmetry can help traders in several ways:
1. Risk Management:
traders can set stop-loss levels to limit their losses and avoid the need for large gains to recover.
2. Position Sizing:
by understanding the potential impact of losses, traders can size their positions more conservatively.
3. Psychological Preparedness:
knowing the challenges of recovering from significant losses can help traders maintain discipline and avoid emotional decision-making.
It is one thing to lose 100% of a dollar on a casino bet; it is quite another to lose 100% of a lifetime's worth of capital.
Therefore, the larger the capital at stake, the smaller the amount of money that should ideally be risked.
S&P 500 Outlook: CPI Data and Earnings to Shape Market DirectionS&P 500 Analysis: Pre-Bell Outlook
Earnings, CPI Expectations Lift Wall Street Futures; Asia Mixed, Europe Gains
Wall Street futures edged moderately higher in pre-market trading on Wednesday as investors positioned themselves ahead of the release of the December Consumer Price Index (CPI) report from Washington and the kickoff of the fourth-quarter earnings season.
The CPI report, set to be released today, could provide critical insights into the Federal Reserve's monetary policy outlook.
Technical Outlook
The S&P 500 is likely to remain under pressure as long as the price trades below 5863. In such a scenario, a decline toward 5829 and 5781 is anticipated, especially if the CPI data comes in at 2.9% or higher.
Conversely, if the CPI data is below 2.8%, it could support a bullish momentum, with the index potentially rising toward 5937.
Key Levels
Pivot Point: 5863
Resistance Levels: 5888, 5937, 5969
Support Levels: 5830, 5802, 5781
Trend Outlook
Bearish trend while trading below 5863.
SPX500USD DOWNSPX500USD CHoCh was formed and the index broke down the uptrend line and the retest was made and breakdown confirmed .
Good LUck
S&P500 This is why 2025 will be Bullish.The S&P500 index (SPX) just hit its 1W MA25 (red trend-line) for the first time since the August 05 2024 Low (5 months ago). This is a major long-term Support trend-line, the first one out of a total three.
As you can see on this chart, the index has been trading within a Channel Up on the log scale ever since the bottom of the 2008/09 Housing Crisis. During this pattern, it has gone through phases of strong and extended Bull where the 1W MA25 and 1W MA50 (blue trend-line) offers the Support Zone and every test is a buy opportunity and when those break, the Bear phase starts, which finds Support on the 1W MA200 (orange trend-line), with the exception being of course the non-technical, once in 100 years event of the March 2020 COVID flash crash.
It is now the 1W MA25 that comes as the first major Support level and with the 1W RSI forming the same kind of Channel Down divergence as early 2014, we expect further extension of the current Bull Phase into 2025.
In fact, every Bull Cycle has either increased by roughly +100% or +62% and since the current one is way over +62%, it is fair to expect that it will pursue the +100% mark. That is currently exactly at 7000 and could be achieved by the end of 2025 as every previous Cycle Top was priced towards the end its year with a frequency of either 3 or 4 years.
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S&P 500 on textbook falling wedgeS&P 500 is about to break a falling wedge on the daily.
RSI is almost capped and doesn't have strength in its current bullish movement.
Most likely we are back to the base before breaking it.
S&P500: Every January same rally starting. Target = 6,950.S&P500 is neutral on its 1D technical outlook (RSI = 48.738, MACD = -35.090, ADX = 24.753) but just turned marginally bullish on 1W (RSI = 55.182) today. This technically signifies the market's enormous upside potential on the long term. The 2 year pattern is a Channel Up after all and every January since 2023, a new rally starts which exceeds +20% in gains. As long as the 1W MA50 supports, the bullish trend will be dominant. We are aiming for another +21% rise like the previous Jan 2024 rally (TP = 6,950).
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S&P500 - Preparing For The Final Bullrun!S&P500 ( TVC:SPX ) is still heading higher:
Click chart above to see the detailed analysis👆🏻
Although the S&P500 has been creating new all time highs for the past couple of months, charts are clearly telling us that this bullrun is not over yet. We already saw two textbook cycles of +90% each and during 2025, we will see the completion of the third and final bullrun.
Levels to watch: $7.000
Keep your long term vision,
Philip (BasicTrading)
Market Snapshotwww.elliottwavetrader.net
Another great write-up by Avi Gilburt and team on the current state of things at a Macro level
Not affiliated with them and not pushing any of their services of course..
Do I agree with everything they say? Nope
The below snippet from the article hints at the TRUE reason why things are going to get desperate in this economy over the next decade:
"QE is merely a machination through which more debt is made available in the system, which is an indirect manner to increase the money supply. It is not actual printing of dollar bills, which would directly increase the money supply. Therefore, if more debt is made available, the only way you will get inflation is if there is public demand for that additional supply of debt. Without the matching demand for the additional debt supply, QE becomes a failure."
S&P 500 Index Rises to Psychological LevelS&P 500 Index Rises to Psychological Level
The US stock market experienced an upswing following the release of inflation data yesterday. According to ForexFactory:
→ The annual Consumer Price Index (CPI) matched expectations at 2.9%.
→ The monthly Core CPI came in at 0.2%, below analysts' forecast of 0.3%.
Market participants interpreted this as a positive signal, leading to the S&P 500 index (US SPX 500 mini on FXOpen) gaining over 1% in the first 30 minutes after the data release.
As reported by Reuters:
→ Concerns about inflation eased, reviving hopes for a potential Federal Reserve rate cut, buoyed by a strong start to the earnings season (which we will cover in more detail later);
→ However, the rally may be short-lived, as inflation in the US remains uncomfortably high and could increase further due to aggressive tariff and tax policies under the new Trump administration;
→ Analysts caution that the Federal Reserve's rate is likely to remain unchanged for some time.
Technical analysis of the S&P 500 index chart (US SPX 500 mini on FXOpen) shows that since early August—when the Japanese stock market crash triggered concerns of a global recession, dragging US equities lower—the price has been in an upward trend, marked by a blue channel. The January mid-month low has provided a more precise point to define the lower boundary of this channel.
From this perspective, traders should note that the current S&P 500 price has reached a resistance zone, which consists of:
→ The median line of the blue channel;
→ The psychological level of 6,000 points;
→ The upper red line, drawn through the local highs of December 2024 and January 2025, suggesting that the decline beginning on 18th December could be viewed as an intermediate correction within the blue ascending channel.
This resistance area may serve as a key test of the bulls' determination to complete the correction and resume the upward trend.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
S&P 500: Bearish Momentum BuildsAs we move further into 2025, the S&P 500 continues to show signs of weakness, intensifying the bearish outlook from my last post. The Rising Channel breakdown and Head and Shoulders (H&S) pattern remain dominant, with the price now trading firmly below the 50 EMA.
Attempts to reclaim the Rising Channel have failed, confirming that the long-term bullish structure is no longer in play. The neckline of the H&S pattern, previously broken, has become a strong resistance zone, reinforcing the bearish momentum. The 50 EMA has flipped to resistance, making it even harder for bulls to regain control.
Currently, the 200 EMA is providing critical support. If this level fails, the downside momentum could accelerate significantly, leading to much lower targets. Key levels to watch include 5,687.33, 5,600.45, and the channel projection target of 5,119.26.
Bulls will need to defend the 200 EMA and push the price back above the 50 EMA to have a chance at reversing this trend. Otherwise, the market seems poised for further downside. Let me know how you’re approaching this setup shorting, waiting for a bounce, or something else? Stay sharp and trade carefully! 🚀
S&P 500 SELL AT SUPPLY ZONE SMART MONEY CONCEPTHere on S&P 500 price has from a supply zone around level of 5958.26 and is likely to go down more so trader should go for short and expect profit target of 5875.26 with stoploss of 5986.41. Use money management
S&P500 Next Level, 80% probabilityIn the weekly chart, current market shows market breaking down the weekly trend (which touches the 2022 and 2023 lows) so the following resistance level should be around 5,400.
If broken we would move to the next resistance towards 5,000.
SPY Top: US Federal Reserve Emergency Rate Coming SoonI think it’s pretty clear we have avoided a recession (Jerome, Powell, 12/18/24).
One last final high on the stock market before the recession is coming in my opinion.
Marz: Williams Forecast, Williams %R, Lead-Lag- Overlay Larry Williams annual forecast (dots on forecast are month markers aligned with chart)
- Williams %R: When above 80, market is strong, if goes below 80 sell
- Williams %R: When below 20, market is week, if goes above 20 buy
- Williams %R: Between 80 & 20, buy/sell reversals
- Use Michael Gayed weekly Lead-Lag Risk-On/Risk-Off as confirmation
- Use 200 day moving average as confirmation (orange line)
- Monthly Heiken-Ashi bars for longer-term trends, Weekly bars for shorter-term trends
What Is the January Effect on Stock Markets and What Traders Do?What Is the January Effect on Stock Markets and What Traders Do?
The January effect has long fascinated traders, highlighting a seasonal pattern where stock prices, especially smaller ones, tend to rise at the start of the year. But what drives this phenomenon, and how do traders respond? This article dives into the factors behind the January effect, its historical performance, and its relevance in today’s markets.
What Is the January Effect?
The January effect is a term used to describe a seasonal pattern where stock prices, particularly those of smaller companies, tend to rise during January. This phenomenon was first identified in the mid-20th century by Sidney B. Wachtel and has been widely discussed by traders and analysts ever since as one of the best months to buy stocks.
The effect is most noticeable in small-cap stocks, as these tend to show stronger gains compared to larger, more established companies. Historically, this uptick in January has been observed across various stock markets, though its consistency has diminished in recent years.
At its core, the January effect reflects a combination of behavioural, tax-related, and institutional factors. Broadly speaking, the phenomenon is linked to a surge in buying activity at the start of the year. After December, which often sees tax-loss selling as traders offload poorly performing stocks to reduce taxable gains, January brings renewed buying pressure as these funds are reinvested. Additionally, optimism about the new year and fresh portfolio allocations can amplify this trend.
While the January effect was more pronounced in earlier decades, changes in trading patterns and technology have made it less consistent. Yet, it still draws attention, particularly from traders looking for seasonal trends in the market.
Historical Performance and Data
Studies have provided empirical support for the stock market’s January effect. For instance, research by Rozeff and Kinney in a 1976 study analysed data from 1904 to 1974 and found that average stock returns in January were significantly higher than in other months. Additionally, a study by Salomon Smith Barney observed that from 1972 to 2002, small-cap stocks outperformed large-cap stocks in January stock market history by an average of 0.82%.
However, the prominence of the January effect has diminished in recent decades. Some studies indicate that while January has occasionally shown strong performance, it is not consistently the well-performing month. This decline may be attributed to increased market efficiency and the widespread awareness of the effect, leading investors to adjust their strategies accordingly.
Some believe that “as January, so goes the year.” However, Fidelity analysis of the FTSE 100 index from its inception in 1984 reveals mixed results. Out of 22 years when the index rose in January, it continued to produce positive returns for the remainder of the year on 16 occasions. Conversely, in the 18 years when January returns were negative, the index still gained in 11 of those years.
Check how small-cap stocks behave compared to market leaders.
Factors Driving the January Effect on Stocks
The January effect is often attributed to a mix of behavioural, institutional, and tax-related factors that create a unique environment for stock market activity at the start of the year. Here’s a breakdown of the key drivers behind this phenomenon:
Tax-Loss Selling
At the end of the calendar year, many traders sell underperforming stocks to offset gains for tax purposes. This creates selling pressure in December, especially on smaller, less liquid stocks. When January arrives, these same stocks often experience renewed buying as traders reinvest their capital, pushing prices higher.
Window Dressing by Institutions
Institutional investors, such as fund managers, often adjust portfolios before year-end to make them look more attractive to clients, a practice called "window dressing." In January, they may rebalance portfolios by purchasing undervalued or smaller-cap stocks, contributing to price increases.
New Year Optimism
Behavioural psychology plays a role too. January marks a fresh start, and traders often approach the market with renewed confidence and optimism. This sentiment can lead to increased buying activity, particularly in assets perceived as undervalued.
Seasonal Cash Inflows
January is typically a time for inflows into investment accounts, as individuals allocate year-end bonuses or begin new savings plans. These funds often flow into the stock market, adding liquidity and supporting upward price momentum.
Market Inefficiencies in Small-Caps
Smaller companies often experience less analyst coverage and institutional attention, leading to so-called inefficiencies. These inefficiencies can be magnified during the January effect, as increased demand for these stocks creates sharper price movements.
Why the January Effect Might Be Less Relevant
The January effect, while historically significant, has become less prominent in modern markets. A key reason for this is the rise of market efficiency. As markets have become more transparent and accessible, traders and institutional investors have identified and acted on seasonal trends like the January effect, reducing their impact. In financial markets, the more a pattern is exploited, the less reliable it becomes over time.
Algorithmic trading is another factor. Advanced algorithms can analyse seasonal trends in real-time and execute trades far more efficiently than human traders. This means the potential price movements associated with the January effect are often priced in before they have a chance to fully develop, leaving little room for manual traders to capitalise on them.
Regulatory changes have also played a role. For instance, tax reforms in some countries have altered the incentives around year-end tax-loss harvesting, one of the primary drivers of the January effect. Without significant December selling, the reinvestment-driven rally in January may lose its momentum.
Finally, globalisation has diluted the January effect. With global markets interconnected, price trends are no longer driven by isolated local factors. International flows and round-the-clock trading contribute to a more balanced market environment, reducing the impact of seasonal trends.
How Traders Respond to the January Effect in the Stock Market
Traders often pay close attention to seasonal trends like the January effect, using them as one of many tools in their market analysis. While it’s not a guarantee, the potential for small-cap stocks to rise in January offers insights into how some market participants adjust their strategies. Here are ways traders typically respond to this phenomenon:
1. Focusing on Small-Cap Stocks
The January effect has historically been more pronounced in small-cap stocks. Traders analysing this trend often look for undervalued or overlooked small-cap companies with strong fundamentals. These stocks tend to experience sharper price movements due to their lower liquidity and higher susceptibility to seasonal buying pressure.
2. Positioning Ahead of January
Some traders aim to capitalise on the January effect by opening a long position on small-cap stocks in late December, possibly during a Santa Claus rally, anticipating that reinvestment activity and optimism in January will drive prices up. This approach is not without risks, as not all stocks or markets exhibit the effect consistently.
3. Sector and Industry Analysis
Certain sectors, such as technology or emerging industries, may show stronger seasonal performance in January. Traders often research historical data to identify which sectors have benefited most and align their trades accordingly.
4. Potential Opportunities
Active traders might view the January effect as an opportunity for shorter-term trades. The focus is often on timing price movements during the month, using technical analysis to identify entry and exit points based on volume trends or momentum shifts.
5. Risk Management Adjustments
While responding to the January effect, traders emphasise potential risk management measures. Seasonal trends can be unreliable, so diversification and smaller position sizes are often used to potentially limit exposure to downside risks.
6. Incorporating It Into Broader Strategies
For many, the January effect is not a standalone signal but part of a larger seasonal analysis. It’s often combined with other factors like earnings reports, economic data, or geopolitical developments to form a more comprehensive approach.
The Bottom Line
The January effect remains an intriguing market trend, offering insights into seasonal stock movements and trader behaviour. While its relevance may have shifted over time, understanding it can add value to market analysis. For those looking to trade stock CFDs and explore potential seasonal trading opportunities, open an FXOpen account to access a broker with more than 700 markets, low costs, and fast execution speeds.
FAQ
What Is the Stock Market January Effect?
The January effect refers to a historical pattern where stock prices, particularly small-cap stocks, tend to rise in January. This trend is often linked to tax-loss selling in December, portfolio rebalancing, and renewed investor optimism at the start of the year.
What Happens to Stock Prices in January?
In January, stock prices, especially for smaller companies, may experience an uptick due to increased buying activity, caused by a mix of factors, including tax-loss selling, “window dressing”, seasonal cash inflow, new year optimism, and market inefficiencies in small caps. However, this isn’t guaranteed and depends on various contextual factors.
Is December a Good Month for Stocks?
December is often positive for stocks, driven by the “Santa Claus rally,” where prices rise in the final weeks of the year. However, tax-loss selling, overall market sentiment and geopolitical and economic shifts can create mixed outcomes for the stock market, especially for small-cap stocks.
Is New Year's Eve a Stock Market Holiday?
No, the stock market is typically open for a shortened trading session on New Year's Eve. Normal trading hours resume after the New Year holiday.
Which Months Could Be the Best for Stocks?
According to theory, November through April, including January, have been months when stocks performed well. This trend is often attributed to seasonal factors and increased investor activity. However, trends change over time due to increasing market transparency and accessibility. Therefore, traders shouldn’t rely on statistics and should conduct comprehensive research.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
S&P500 bottomed on its Falling Wedge. Strong short term upside. S&P500 / SPX is trading inside a Falling Wedge since the November 19th low and today hit the pattern's bottom.
This has coincided with the 4hour RSI hitting the 30.00 oversold limit.
Every time this has take place, the price rebounded to at least its 0.786 Fibonacci and the 4hour MA200.
This time the 0.786 Fib is very close to the top of the Falling Wedge but we can technically target the 4hour MA200 a little lower at 5950.
Follow us, like the idea and leave a comment below!!
Hellena | SPX500 (4H): Short to support area 5718 (Wave C).Dear colleagues, I believe that the downward movement will continue within the correction (A B C). I expect wave “C” to start moving very soon.
I think that the nearest target is the area of 5718 level, because there is a strong support area.
Manage your capital correctly and competently! Only enter trades based on reliable patterns!
$SPX Bounce to $6,050SPX will retrace to the $6,000 area following a massive move lower I will update soon.
US500 in a Possible Bullish ABC WaveUS500 in a Possible Bullish ABC Wave
Since January 6th, the price has decreased by nearly 2.45%, from 6018 to 5871. This decline formed a 5-wave movement. It appears the bottom was completed at 5871, and the price may now start forming the C wave of the ABC pattern.
If everything proceeds as expected, US500 should develop as shown in the chart, with resistance areas found near 5927, 5962, and 5994.
You may find more details in the chart!
Thank you and Good Luck!
❤️PS: Please support with a like or comment if you find this analysis useful for your trading day❤️
SPX JAN 7 2025| READ DESCRIPTION |Here we need to understand the power of money & risk management.If it goes to 6200 from here then our RR is just 1: 1.08 .
The RR is the heart & soul of a trade. One should be discplined enought to understand this & if you are not getting minimum 1:2 & I have used the word minimum, then there is no point taking that particular trade.
You need to think what if a trade goes against me?
Always be open to both sides understanding the RR
If you are not following RR & rules then this business will eat all your wealth
You mind is actually the most powerful thing in the world.
