Online Trading Academy - October 2019

Trading

TODAY

October 2019

PIVOTING PROFITS HOW THEY CAN HELP YOU IN TRADING T rading was an exclusive and elusive club before the time of easily accessible markets and charts. To actively have traded stock, you had to have an exchange membership or know Since these platforms are showing you the historical pivot points, they’re relatively useless when determining the

H + L + C 3

someone that did. To keep up with the latest trends of your stock, you typically had to order a book with the prices of those stocks from the previous week or month and chart everything out by hand. To make the most of the information available, traders would develop an estimate for support and resistance for the next day or week.

future pivot points. While these are used primarily for determining the value of tomorrow’s stock price, you can enter the weekly high, low, and close to determine future support

and resistance levels for position and swing trading.

While not as powerful as actual supply-and-demand zones, the pivot points

This is a technique that institutional traders utilized to make the most of the information available in years past; but, they still utilize it when trading electronically today. When institutional traders use these values to make their own trading decisions, they will typically carry enough power to change stock prices. These pivot points tend to work best on the indexes and commodities since they generally are used in the futures pits.

“When institutional traders use these values to make their own trading decisions, they will typically carry enough power to change stock prices.”

developed by floor traders can offer an insight as to the direction stock prices will move in. To determine your pivot point, take the previous day’s high, add the previous day’s low plus the previous day’s close, then take that sum and divide it by three.

Since this technique has risen in popularity, it canwork on individual stocks and support what you’re findingwith your supply-and-demand zones.

While these pivot points aren’t a replacement to the core strategy by any means, they can assist traders in making informed decisions as to where to buy and sell their securities. Regardless of the tool you use, make sure they are a part of a written trading plan that allows you to analyze the markets and consistently make decisions objectively. The consistency and objectivity you instill in your trading are crucial to being successful in any market. Our core strategy is a great way to maintain this. To learn more or if you have any questions, visit us anytime at tradingacademy.com or call us at 425-307-6610.

This pivot point can act as a support or resistance level for the stock price and is also applicable to Forex and futures charts. Since the futures and Forex markets trade 24 hours a day, there is no official daily close. To calculate your pivot point in these situations, the closing value is considered to be the trade price at 5 p.m. Eastern Standard Time.

–Bill Geist

Most online trading platforms will automatically point out pivot points on the graphs of your stock.

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3 TIPS FOR EVERY BUSINESS LEADER Execute Strategy and Kill Stagnancy

The Growth Mindset

THE BEST PERSPECTIVE FOR TRADING

“Tome, ideas areworth nothing unless executed ... Execution is worthmillions.”

–Steve Jobs

Misconceptions of intelligence have run rampant for centuries, from the idea that brain size determines your level of intelligence to the notion that you have a fixed amount of intelligence from birth. Another misconception is that the older you get, the less likely you are to learn or adapt your thinking. New research from Stanford highlights just how wrong these misconceptions are with the growth mindset.

Anyone can take this advice to heart, whether you’re a stay-at-home parent or the CEO of a Fortune 500 company. Ideas are easy, but no one becomes successful because they had a great idea. Success comes from putting that idea into action. Being able to

execute a plan is a skill every business leader needs. Here are three steps to help you improve your execution.

According to Stanford psychologist Carol Dweck, the growth mindset is where:

“People believe that their most basic abilities can be developed through dedication and hard work, and brains and talent are just the starting point.”

1. Ditch Perfection

The research presented by Dweck shows how a growth mindset can develop when two conditions are present.

Have you ever watched a behind-the-scenes

featurette of your favorite movie? Some of the most successful films were all but unrecognizable in their early phases. In fact, a lot of early concepts are terrible. Look up the original designs for Woody in “Toy

1) A person makes a purposeful and meaningful effort. 2) A person understands that this effort makes you smarter.

This was showcased in Dr. Dweck’s work when set in place in a fourth grade classroom, where teachers rewarded effort, strategy, and progress rather than who got the correct answers. The result took a fourth grade class that was behind the curve to being one of the top classes in math test scores. This mindset is applicable to your everyday trading practices and can benefit them in a number of ways. Having a growth mindset can help alleviate any immediate panic or deterrence in your trading. Panicking is the worst thing you can do when you see a change in the value of your stock. Panic was one of the factors that led to the Great Depression, and if left unchecked, it can be detrimental to your trading.

Story” to see for yourself. Fortunately, rather than wait for the perfect script, creators executed their visions and make changes as needed.

Putting off action in favor of creating the perfect plan or strategy leads to stagnant business. Successful people know that plans take many shapes before they reach their final form. Don’t jump into something without a clear plan, but don’t be afraid to define your strategy as you go.

2. Be Methodical

With every stock you trade, you can learn something new and adjust your technique. This mindset will ensure that you’re making clear and educated choices on your stock. A growth mindset ensures you retain a clear picture of how the end result will affect your bottom line in the long run, not necessarily just tomorrow.

While you shouldn’t wait for the perfect plan, you shouldn’t be flying blind, either. You can be too energetic about execution. Make sure everyone involved in a plan knows their responsibilities. Confusion will torpedo any strategy faster than you can say, “Who was in charge of this?” The Harvard Business Review states, “Having the discipline to organize people, assemble resources, and then generate a plan that others can commit to will collectively improve execution.” We’re not saying you should micromanage, but you do need to be checking in on a regular basis to evaluate progress on your plan. Schedule monthly or quarterly evaluations to go over the strategy. This is where you look for any changes that need to be made and refine the strategy. A smart strategy feels reassuring, but learning to execute a plan is the only way to make progress. The best business plan in the world is worthless if you never follow through. 3. Evaluate, Evaluate, Evaluate

The primary aspect that the growth mindset emphasizes is that you’re continually learning. With those two conditions, anyone can learn, which is something that the Online Trading Academy embraces. To learn more about how we utilize this mindset in our curriculum, visit us anytime at TradingAcademy.com or call us at 425-307-6610.

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The Pitfalls Traders Should Avoid

The Seven Deadly ‘Spins’

The Seven Deadly “Spins” explain the thought process of a trader veering off the beaten path of trading rules set up in our curriculum. To avoid heading down an unsuccessful trading path paved with gold, here is a breakdown of some of those “Spins” via Dr. Woody Johnson’s own interpretation. This is typically said to emphasize making a profit at all costs. As a new trader, you want to focus on the process rather than solely making a profit. This erroneous mindset will only encourage you to break those core trading rules established in our curriculum. Negating those rules will only send you into a tailspin with a trading strategy that will be difficult to manage. When you’re starting out, relying on your core strategy will be your key to staying on track. It’s okay to do this if I make a profit.

that for your first few decisions, you will lack that instinct. With only education in strategy and no experience, your hubris will guide you to failure as a trader. Relying on your core strategy is crucial, but it’s also important not to overthink things.

With onemore indicator, I’ll be profitable.

This is one of the hardest trading pitfalls to avoid. A person may reason with themselves that if three indicators are good, then five are great. Unfortunately, analysis can be paralysis. Most successful traders will tell you indicators are imperative to your trading, but within limits because most are lagging and won’t provide real- time results. The path to unsuccessful trading is paved with gold. If you want to learn the rest of the Seven Deadly “Spins,” or about the trading rules in our curriculum that you should not break, visit us anytime at TradingAcademy.com or call us at 425-307-6610.

The Core Strategy is just a guideline.

With several years of successful trading, you may be able to use your instincts to navigate how the core strategy relates to your trading. Keep in mind

Miso Caramel Apples This silky caramel recipe is spiked with miso for a complex, rich snack that won’t hurt your teeth.

Take a Break

INGREDIENTS:

DIRECTIONS:

4 Granny Smith apples

1.

Heat oven to 275 F.

1/2 cup raw pistachios

2. In a food processor, pulse pistachios and 1 1/2 tsp sugar. Add sesame seeds and 1 tbsp miso, pulsing until miso is fully broken up. Spread evenly on a rimmed baking sheet. Bake for 15–20 minutes and let cool. 3. Meanwhile, insert a Popsicle stick into the center of each apple. 4. In a saucepan, bring corn syrup, 1 cup sugar, and 2 tbsp water to a boil. Boil for 5–7 minutes, swirling infrequently, until caramel is a light amber color. 5. Add cream and salt to caramel, whisking to combine. Transfer to a large mixing bowl and quickly whisk in remaining miso. 6. To assemble, first roll apple in caramel, then in pistachio mixture, before resting on greased baking sheet. 7. Let cool 30 minutes and serve.

1 1/2 tsp plus 1 cup sugar

3 tbsp sesame seeds

2 tbsp white miso, divided

4 Popsicle sticks

2 tbsp light corn syrup

1/4 cup heavy cream

1/4 tsp kosher salt

Inspired by Bon Appétit

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1

How Pivoting Profits Can Help You in Trading

2

The Perspective a Growth Mindset Can Give You

Execution Is Greater Than Strategy

3

The Pitfalls Traders Should Avoid Miso Caramel Apples

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2019’s Hottest Wireless Earbuds

Get Untangled for the Holidays WITH 2019’S HOTTEST WIRELESS EARBUDS

For the Traveler: Cambridge Audio’s Melomania 1

With the holiday shopping season right around the corner, we want to catch you up on one of the hottest tech items of 2019: wireless earbuds. Apple’s AirPods may have been one of the first to boast the convenience of no tangled wires or bulky headbands to flatten your hairdo, but this year’s many strong competitors have stepped up to the plate. Use this guide to find the right earbuds for the music lovers in your life. Do you have a loved one who uses words like “warmth,” “range,” and “crispness” when commenting on your home entertainment system?Well, if any pair of headphones is going to live up to their discerning ears, it’s Sennheiser’s elegant first entry into the world of wireless earbuds. With a $300 price tag, they are far from cheap, but Sennheiser has put every cent to good use. Not only do these high-end buds have a sound quality to rival the most expensive wired For the Connoisseur: Sennheiser’s Momentum TrueWireless

At $130, Cambridge Audio’s Melomania 1 model is a competent contender for its price range alone. The headphones deliver the best, most detailed sound quality in their class and boast an impressively stable Bluetooth connection. But what really makes these earbuds a steal is their outrageous battery life. A full charge will give you nine hours of uninterrupted music, which can be extended an extra 36 hours thanks to the Melomania 1’s portable charging case. Thus, these are the ideal headphones for long flights, camping trips, and any other excursion away from power outlets. For those who love blasting a motivating playlist while swinging kettlebells, look no further than the SoundSport Free wireless earbuds. For $200, Bose delivers the balanced sound they’ve built their brand on while adding some sporty features every jogger or lifter will appreciate. Their design makes for a comfortable fit, and earbud- For the Gym Rat: Bose’s SoundSport Free

headphones, but they also make use of the latest Bluetooth technology to deliver tunes with imperceptible latency.

mounted controls mean users don’t have to fish their phones out of their gym shorts.

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