Have the Regulators Cooled off the Tech Rally?

Not much has changed since the month of February; as far as the markets go, all three major indexes have been making new highs, but each new high seems to be shallower than the last, which is usually a sign that the trend is maturing.

What’s New with the Fed?

This month, the Federal Reserve came out yet again keeping interest rates stable and indicated that potentially there may be as many as three rate cuts later in the year. This dovish sentiment helped to send gold to all-time highs as the inverse to a weak US Dollar.

Tech Rally or Bust

This latest tech rally is showing technical signs of running out of steam, just as new regulations are threatening future profits of technology companies. The European Union became the first governmental organization to regulate AI, artificial intelligence, which will affect stocks like $NVDA, $GOOG, and $MSFT. They are also opening up investigations into unfair trade practices by all of the tech giants previously mentioned above. The US Department of Justice also opened up a federal antitrust case against Apple ($AAPL), and maybe others. This risk, regulation, and lawsuits might be the catalyst that finally cools off the bull market which has been raging since last November.

Important Tips on How Everyone can be a Winner in the #1 Best Trader Competition

As we complete the Winter 2024 #1 Best Trader Competition sponsored by Cobra Trading, it’s important to note that everybody that took place is a winner. The important lessons learned by partaking in the competition will only help to strengthen the traders. In trading, being consistent is critical, and we saw that in this competition. Being able to make money is one thing, but being able to do it day in and day out is another. During the competition, we saw traders come in and follow their trading plan day in and day out, staying ahead of all other competitors by following their plan and staying disciplined to a particular trading strategy.

5 Tips to Becoming Successful in Trading

Whether you are partaking in a trading competition, just getting started as a novice a trader, or you’re a professional trader that is trading a live account, there are some important pieces to maintain consistency in trading.

  1. Have a trading plan.
  2. Know your trading style as defined by your trading plan.
  3. Once you achieve some profitable results, be sure to lock in that profit.
  4. Make sure you have a risk management plan in the event things do not go your way, you won’t risk too much of your profit.
  5. With discipline, consistency is achievable, so repeat the above steps continuously.

Be smart and keep the 5 Tips to Becoming Successful in Trading in mind!

Written by Michael DiGioia, Director of Education
Mike is available for One-on-One Coaching. Learn More