What Traders do during the Weekend?

By Brandon Leu, CMT

Weekend is a great time to relax, exercise and clear your mind from the markets, keeping yourself fresh for the new week ahead. However, do make some time for some "backend" activities to grow as a trader. Here is a short list of them.

Prepare for the week ahead

Read up on major events or news that shaped the market the previous week. And watch for major events in the upcoming week. This reduces surprises or allow the trader to have an understanding of the current macro environemnt. And of course, analyse the charts for the week ahead and probable trade set-up.

What's Important: Preparation and planning takes up 80% of a trader's time. Traders trade their plans. Traders do not trade on hunch or tips.

Strategy and Trades Review

Review your trades, check if you have traded according to your plans or if any part of your planning or trading process can be further improved. Also review your trading method/strategy for further improvement, e.g. entry trigger, position sizing or methodology's performance.

What's Important: Trading is a business and it is dynamic, you'll need to makes changes and re-focus if necessary.

Education

Do read or revisit Technical Analysis and trading related topics. There are free materials on the web, libraries or book stores to gain extra knowledge. Your knowledge and experience will compound as you improve regularly.

What's Important: It's not how much you read or absorb each time that matters but the consistent effort of reading on the regular basis. Regular effort helps upkeep and upgrade your knowledge like a regular car maintenance or upgrade. Regular reading routine especially helps a trader to maintain his/her focus and discipline.

Wishing all readers a wonderful week ahead.

Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week

Eventful Week: FOMC Decision and Earnings Reports Headline Upcoming Week The week ahead is shaping up to be a busy one for the markets, with the Federal Open Market Committee (FOMC) meeting and earnings season taking center stage. The FOMC is widely expected to raise interest rates by 25 basis points on Wednesday, in an effort to combat inflation. This will be the first rate hike after June's pause, and investors will be closely watching the accompanying statement for any clues about the pace of future rate hikes. Earnings season is also in full swing, with more than 100 companies in the S&P 500 scheduled to report results this week. Investors will be looking for signs of how companies are weathering the current economic and geopolitical challenges. In the meantime, China markets appear to be stabilizing, with the yuan holding steady against the dollar below 7.25 and KweiChow Moutai (600519), a vital component of the China A50 index, which displays strength by breaking out

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

Markets searching for technical support

Thoughts on Week Ahead: Week 21 Aug 2023 Markets searching for technical support US FOMC minutes have confirmed market’s fear of a hawkish US FED. This fear has triggered a continued sell-off in global equities over the past week. China economy and policy did not help too much either. China Evergrande filed for chapter 11 in US while Country Garden future remain uncertain as investors continue to keep an eye for a more aggressive policy from Beijing to support the economy and people’s confidence. From a technical perspective, markets are searching for technical support levels, where bargain hunters are willing to come in. Support levels are 4,300 for S&P 500 and 3,130 for STI. For the week ahead, market participants will be zooming in on US FED Chair Powell’s speech at the Jackson Hole meeting. We did not uncover trading (tactical) set up for the week ahead and will update once we identify any. Have a great trading week ahead. Headlines for Week Ahead: Key corp earnings (Nvidia

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