S&P500 day trading course, you might have picked up on the news that there is the oncoming confirmation of a Hindenburg Omen.

hindenburg omen poster

A Hindenburg Omen is an indicator that is a technical analysis pattern that supposedly shows up prior (just) to a stock market crash based on the NYSE.  New York Stock Exchange.    It is based on a large number of stocks hitting annual highs as a large number of stocks hit annual lows.  The Hindenburg omen basically shows new lows and downside risk.

Here is the scoop:  The probability of a downside move over 5% is 77%.  Pretty nice odds.

Zero hedge has a break down and some information

How To use the simulator before trading live.

S&P500 day trading course simulator

I would like to mention to you about the playing phase on the simulator and the business phase of using the simulator.

The playing phase on the simulator is the first few days of getting used to the buttons and seeing interesting things on the simulator. Seeing something, “trying something” or just trading on a gut feeling.  During the germination phase of trading this is when we are experimenting with out a purpose.  My recommendation to you is to limit this period to 2 to maybe 3 days.

The Business part of the simulator is when you decide that you are going to make the move to trade and stop playing around. Remember Trading is a high risk business, and being your own boss, set your standard for how you show up to work. If you have to, fire yourself. Take trades on the simulator as if you are trading cash. Other wise there is no meaning. “I would not do that if it was for cash” , is an irresponsible way to trade. Stop taking those types of trades immediately. Always practice with purpose, be intent on learning more and more from your trades about how you can make money.

Trading on the simulator is for you to refine your entries, see more and more nuances to get the competency of Mastery. It is your choice but I recommend to you to play with something else, not the simulator. If you are looking for fun it might be better to get an x-box.

I will mention to you again,

do your business plans.

Quantify your trading.

Always manage your risk

Save your trades to review.

ASK for direction when you feel lost.

Be patient with your self.

Remember that this is a high risk business and your first steps are to train your self to take the money when you see it and survive to make more trades.

S&P500 day trading course Daily chart with the “capitulatory sell off”?

S&P500 day trading course daily chart not capitulation

Capitulation normally occurs in a trend and would be in the over sold condition not in the over bought condition.

Capitulation means to surrender or give up normally after a loosing battle. In financial circles, this term is used to indicate the point in time when investors have decided to give up on trying to recapture lost gains as a result of falling market that has not retraced.

In other words, the investor has held as long as they can hold in a decreasing market.  They are at the point that if it goes any further they would “loose it all” so they throw in the towel.

This did have the high volume which is key to capitulation, but is not in the proper condition.

There are two conditions in the market, Over Bought and Over Sold.  In over bought the price is too high, when over sold the price is to low.

In order to capitulate, we must be in an oversold condition in a down trending market.  The market was clearly in an uptrend and therefore what we saw was not a capitulation but a correction.