Author Archives: Scalper1

5 Simple Trading Lessons From Hell’s Kitchen

By John Benjamin Hell’s Kitchen, one of Chef Gordon Ramsay’s many reality TV shows is quite an entertaining show to watch. Chefs face off to win a grand prize of running their own restaurants at the end. However, the path to success isn’t easy as the contestants are truly put to hell. From having to deal with their peers to putting their differences aside and working as a team, Hell’s Kitchen simply draws the viewer into it. However, this article isn’t a review about Hell’s Kitchen, but rather the lessons a viewer can take away from it. From a trading perspective, there are quite some interesting nuggets of wisdom that can truly help you to become a better a trader. Here are the five biggest lessons that stand out however. 1. Never lose focus Starting from the first episode to the end, a common recurring theme in Hell’s Kitchen is the fact that contents that are the most focused and have their eyes fixed on the prize are the ones who often end up on the tops. There is a bit of luck involved too. But isn’t that the case anywhere? For traders, staying focused on their goals is what determines the best from the rest. There are ups and downs, but that doesn’t mean you have to give up because you hit a losing streak. In Hell’s Kitchen, some of the top chefs hit rock bottom, often coming close to being eliminated. However, some of them manage to bounce back simply through sheer determination and focus to come out on the tops. Never lose focus 2. Preparation is important The main event in every episode of Hell’s Kitchen is the grand service that is put out. This is often a time of high pressure and shows Gordon Ramsay at his very best, swearing at the contestants and going nuts. It is a recurring theme to find contestants either running out of ingredients or failing to have a backup plan. It does sound a bit familiar in the trading world doesn’t it? In the heat of trading, the stress a trader goes through is no different. However, the preparation that one needs to do ahead of trading is very important. Do you take time out to analyze the charts or understand the main driving themes for the day? Do you really have a plan of attack? Always prepare yourself before you start trading. Get to know the markets and what’s driving them 3. Constant learning Another impressive feat from the Hell’s Kitchen winners is the fact that it is not your education or your experience that matters. There have been winners on the show who were not even professional chefs to begin with. What they lack as experience or education is made up by the zeal to learn and improve on their weaknesses. For traders, this is a very important lesson. Learning doesn’t necessarily mean having to buy tons of books and read through them all. Lessons can be found anywhere. From a losing trade to a winning trade, you only need to know where to look. Some of the most successful traders often ensure that they always learn something from a losing trade and most importantly, ensure that they don’t repeat it again. The constant loop of feedback and learning ensures that you overcome your weakness over time. 4. Strategize Every episode of Hell’s Kitchen concludes with a best performer of the evening having to put up two contestants on the hot seat for elimination. Quite often you will come across contestants being put up for elimination in a strategic way. Eliminating the biggest competitor and moving one step closer to the goal. While this works, there are also instances where the strategy backfires, such as the competition being put up for elimination quite early on. An important lesson for traders is strategy and timing. You can have a great strategy, but if you miss out on the timing it can backfire. A great example is where you find a nice reversal candlestick pattern on the charts and you execute it. However, pullbacks can be frustrating. Without correct timing to execute your strategy you could end up under water for quite a while. While strategy is important, timing also plays a crucial role when it comes to your trading plan 5. Consistency is key! Finally, a recurring theme among the winners of Hell’s Kitchen is their consistency to keep up their performance and standards. There are many contestants on Hell’s Kitchen who start with a bang but soon fizzle out under pressure. Likewise, there are contestants who start off weak but manage to rise to the challenge only to peak out and get eliminated. Staying consistent is one of the key aspects for trading as well. Almost any trader at some point has had a winning trade, but if you are not consistent in your trading chances are that you will simply peak out at some point. Consistency is not about having a winning streak; it is all about how well you can trade according to your plan. For traders, consistency plays a big role in the longer term success of your trading. The better you are at consistently churning out winners, the more the chances of you staying in the trading game for the long term. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Market Lab Report – Premarket Pulse 4/13/16

Major averages rose on higher volume closing near the top of their trading ranges. The S&P 500 and NASDAQ Composite both bounced off their respective 20-day moving averages. The NASDAQ’s upside reversal on higher volume sent it back above its 200-day moving average once again. We also noticed a number of leading stocks bounce off of key moving averages, including names like AVGO, SIMO, NVDA, and FB. Helping the rally was oil which topped $42/barrel as Saudi Arabia and Russia will freeze oil production at current levels even if Iran does not take part. Futures are up over half a percent as global markets rally despite lower global growth expectations issued by the IMF, and Germany’s leading economic institutes lowering its 2016 GDP forecast to 1.6% from 1.8%. Further, China’s March trade surplus came in slightly under expectations, but both exports and imports surprised to the upside.

Why You Should Be Paying Attention To Netflix’s Stock Chart

Loading the player… Get ready to grab your popcorn — we’re now less than a week away from Netflix ’s ( NFLX ) Q1 earnings report next Monday, April 18. In Tuesday’s session, the stock was able to retake a critical level — the 200-day line — that it has been struggling to recapture. Can it hold above that level Wednesday? Global Rollout Impacts Financials The video-streaming powerhouse’s bottom line is projected to drop 73% to three cents a share as amid rising costs for its global rollout. Netflix hasn’t seen that large an earnings decline since Q4 2012. Analysts expect revenue for the quarter to jump 25% to $1.97 billion, which would be Netflix’s fastest growth in the last four quarters. All Eyes On Subscriber Growth And maybe even more so than those figures, Wall Street will be looking closely at subscriber growth — a key metric for Netflix. In Q4, Netflix’s earnings and revenue beat estimates. So did its overall subscriber additions of 5.6 million, boosted by international markets. But its U.S. subscriber additions of 1.56 million missed expectations for 1.65 million new subscribers. The miss represented a slowdown in U.S. growth and sent shares tumbling over the next several weeks. Netflix may be able to redeem itself. A Baird survey out late last month points to “solid” U.S. additions in Q1, fueled by the recent launches of new seasons of original shows like “House of Cards” and “Daredevil.” Netflix itself has projected 6.1 million net additions for Q1 vs. 4.9 million a year earlier. Stock Retakes Key 200-Day Line Look for positive results to be a catalyst for the stock, which is currently trading 20% below its all-time high, reached in early December. Netflix has struggled to retake the 200-day line but finally climbed above that level Tuesday as it rallied 4.2%. Shares have risen more than 30% from their February low, hit in the wake of Netflix’s last quarterly report. Netflix Originals Seen As No. 1 In May, “grandfathered-in” subscribers will see a $2 price increase to $9.99 a month. One analyst sees the price increase creating a churn of just 3% to 4%, which is relatively low. One big reason why cord cutters may be unlikely to cut their Netflix subscriptions is the content. Morgan Stanley says that Netflix’s original content is now No. 1, putting it above Time Warner ( TWX )-owned HBO for the first time in the six years that Morgan Stanley has been tracking the video services. Still, the company faces stiff competition from a growing list of competitors besides HBO, including Hulu — co-owned by Walt Disney ( DIS ), 21st Century Fox ( FOXA ) and Comcast ( CMCSA ) — and Amazon ( AMZN ) Video. Will Disney Acquire Netflix? Netflix’s leadership in video streaming could make it a good acquisition target for Disney — or so said BTIG analyst Rich Greenfield in a report last week. He says that the buy would help the House of Mouse with succession planning and the erosion of its ABC and ESPN broadcast businesses. But whether or not Disney is actually interested in the move remains to be seen. Image provided by Shutterstock .