Day trading is a high-stakes game where traders seek to capitalize on the volatile movements of stocks, commodities, or other financial instruments within a single trading day. It's a strategy that demands quick thinking, keen analysis, and a deep understanding of market dynamics. One aspect of day trading that can catch traders off guard is the phenomenon known as a "Short Squeeze." A Short Squeeze is a market event that has the potential to significantly impact a trader's positions, and understanding how to avoid or navigate these squeezes is crucial for day traders.
In the vast and ever-evolving landscape of financial markets, the ebb and flow of bullish and bearish trends play a pivotal role in shaping investment landscapes worldwide. While both conditions offer unique opportunities and challenges, it is during bull markets that the optimism and exuberance of investors seem boundless. Characterized by rising asset prices, soaring confidence, and an air of optimism, bull markets can present traders and investors with potentially lucrative prospects.
To make forex trading as productive as possible and to make trades more accurate, it is recommended to use technical tools, such as indicators. The choice of indicators directly depends on a trading strategy chosen by a trader. In any case, a trader needs to understand what kind of moods are prevailing in the market at a given moment. The two indicators - Bulls Power and Bears Power, which characterize the number of buyers and sellers in the market for a particular trading asset, do this best.
Key events: UK – Retail Sales (MoM) (Oct) Eurozone – ECB President Lagarde Speaks USA – Existing Home Sales (Oct) The sentimental background on Friday morning can be called moderately positive. Oil prices are rising after falling the day before, and the mood on global stock exchanges has slightly improved. The markets can look forward to a fairly calm end to the week after the volatility of the previous sessions.
Key events: UK – Manufacturing PMI (Oct) USA – ISM Manufacturing PMI (Oct) USA – JOLTs Job Openings (Sep) New Zealand – Employment Change (QoQ) (Q3) Despite the complete absence of any fundamental reasons for the rapid growth, the markets are behaving very positively. The level of negativity in the market sentiment, lately, is so great that it takes just a little bit to accelerate upwards - everyone is hungry for growth. All key indices demonstrated an uptrend of 4% to 8% last week.
Key events: UK - Composite PMI (Sep) UK - Services PMI (Sep) USA - ADP Nonfarm Employment Change (Sep) USA - ISM Non-Manufacturing PMI (Sep) USA - Crude Oil Inventories The bad news now means the possibility of good news from the Federal Reserve. "Bulls" in the gold market seem to be expecting a significant deterioration in the U.S. (not in terms of inflation, but in terms of economic growth), which would discourage the central bank from aggressively raising interest rates, thereby undermining markets.