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Stock market, moving out - Coggle Diagram

- - - - especially expiration Fridays
    - - allow winners to have "infinite" potential
      - keep loses small
  - - - optimist?
        
        it will come back
        
        even when the market's headed down, just hold on
      - overwhelmed?
      - lazy?
    - - fear that I'll be Enron'd
      - buy a bunch of stuff so that no one thing can kill me
    - - investing is too hard
      - team of experts must be able to do this better than me
      - history shows that indexes do better
  - - - I absolutely can't determine if my picks are correct until the market tells me
  - - - high volume matches direction you are trading
        
        i.e. in a bull scenario higher price on higher volume & vice versa
      - how many shares are available?
      - what is high volume?
    - - Federal Reserve's funds rate
        
        somewhat reverse correlation, but indirect
        
        rate goes up, it costs more to borrow money
      - is it more difficult to find "mega" winners
        the more advanced the trend?
        
        too many to chose from
        
        more novice investors
      - A decided reversal in the market should be ascertained by the degree of the change: if multiple indexes have changed by at least 15-20%, investors can be quite certain the market has taken a different direction
    - - never < 1 year old
    - - smiley / tea cup
      - what patterns indicate changes in direction?
      - candlesticks
    - - never < $20
    - - overbought
      - oversold
  - - - Government restrictions severely limit shorting strategies
      - Inverse ETF
        
        Inverse S&P 500?
        
        SPXU = 3x very dangerous rebalanced daily
        
        SH = 1x
        
        SDS = 2x very dangerous rebalanced daily
        
        why does "rebalancing on a daily basis" matter
      - options?
        
        long term?
        
        risk may need to consider complete loss of investment
        
        short term capital gains
        
        out of money?
        
        profit limited?
      - brokerages hold all of the cards
        
        can change the requirements on the fly
  - - - winners
      - losers
    - - write down thoughts going into trade
      - keep log
    - - realize that often even given nearly perfect information we don't know how to take advantage of it
    - - track it!
  - - - are you disciplined to be your own stop loss enforcer?
    - - if it seems like a sure thing, you've definitely done it wrong
      - always dangerous
- - - - Cross
        
        GBPJPY
        
        EURGBP
        
        NZDJPY
        
        EURCHF
        
        EURJPY
        
        AUDJPY
      - Exotics
        
        GBPNZD
        
        pound kiwi
      - Majer
        
        AUDUSD
        
        AUSSIE
        
        USDCHF
        
        SWISSY
        
        JBPUSD
        
        CABLE
        
        USDCAD
        
        LOONIE
        
        USDJPY
        
        YEN
        
        NZDUSD
        
        KIWI
        
        EURUSD
        
        EURO
  - - - NASDAQ
        
        National Association of Securities Dealers Automated Quotations
        
        Financial Industry Regulatory Authority (FINRA)
      - NewYork Stock Market (NYSE)
      - equity indices
        
        S&P
        
        500
        
        have a direct relation with AUSSIE
        
        1500
        
        Global 1200
        
        100
        
        NASDAQ 500
        
        Dow Jones
        
        Dow Jones Industrial Average (DJIA) 30
        
        Have a direct relation on US Dollar
        
        us stock market get stronger => us dollar get weaker
        but dow jones is different and have a direct effect not opposite
        
        Dow Jones Transportation Average
      - cboe
        
        Chicago Board Options Exchange
        
        exchange operator BATS Global Markets
  - - - Value shares
      - Newcomers
      - Income shares
      - Blue chips
      - Growth shares
      - Defensive shares