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Trader's Diary

Economic calendar

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Definición de términos:
Ganancias

Earnings

refer to the profits or net income generated by a company during a specific period.

  • Earnings are a measure of a company's financial performance and are often reported on a quarterly or annual basis.

  • Positive earnings indicate that a company has made a profit, while negative earnings indicate a loss.

  • Earnings can be influenced by various factors, such as revenue, expenses, taxes, and other financial activities.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Actual

Actual refers to the real or current value or result of something. In the context of IPOs, actual can refer to the actual price or number of shares sold in the IPO, as opposed to the estimated price or number of shares.

Estimate

Estimate refers to a prediction or approximation of something, such as the expected price or number of shares in an IPO. Estimates are often made by investment banks and analysts based on market demand and other factors.

Difference

Difference refers to the numerical or percentage variance between two values. In the context of IPOs, difference can refer to the variance between the estimated and actual price or number of shares sold in the IPO.

Percent

Percent refers to a fraction of 100, often used to express a proportion or rate. In the context of IPOs, percent can be used to express the difference between the estimated and actual price or number of shares sold as a percentage of the estimated value.

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OPV

IPOs (Initial Public Offerings):

An IPO occurs when a private company sells its stock to the public for the first time to raise capital or money.

The money raised from an IPO can be used for various purposes, such as paying down debt, investing in the company's long-term health, research and development, expanding into new product lines, or purchasing fixed assets.

During the IPO process, the equity shares of private investors

convert into publicly owned shares of the new entity, and early investors may sell their stock once the company's shares begin trading.

The chief benefit of an IPO is to help the company raise money and gain access to the capital markets, allowing for expansion and increasing credibility.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Name

The name is the official name of the company whose shares are being offered in the IPO.

Exchange

The exchange is the stock exchange where the company's shares are listed and traded. Examples of stock exchanges include the New York Stock Exchange (NYSE) and the Nasdaq.

Currency

The currency is the type of currency in which the company's shares are priced and traded. This can vary depending on the country and stock exchange where the company is listed.

Start date

The start date is the date on which the company's shares begin trading on the stock exchange after the IPO.

Offer price

The offer price is the price at which the company's shares are initially offered to the public in the IPO. This price is set by the company and its underwriters based on market demand and other factors.

Shares

Shares refer to the units of ownership in the company that are being offered to the public in the IPO. These shares can be bought and sold on the stock exchange after the IPO.

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Splits

Splits (Stock Splits):

A stock split occurs when a company increases the number of its outstanding shares of stock to boost the stock's liquidity.

In a stock split, the number of shares outstanding increases by a specific multiple, but the total dollar value of all shares remains the same.

Companies often choose to split their stock to lower its trading price to a more comfortable range for most investors and increase the liquidity of trading in its shares.

For example, if a company decides to split its stock 2-for-1, the number of shares outstanding would double, while the share price would be halved.

Code

The code is a unique identifier assigned to a company's stock by the stock exchange where it is listed. It is used to identify the stock in trading and other financial transactions.

Split date

The split date refers to the date on which the stock split takes effect. It is the date when the new shares resulting from the split are distributed to existing shareholders. Optionable

Optionable refers to whether the stock is eligible to be used as an underlying asset for options contracts. If a stock is optionable, it means that options can be traded on that stock.

Old shares

Old shares refer to the existing shares of a company before a stock split takes place. These are the shares that will be exchanged for the new shares resulting from the split.

New shares

New shares are the additional shares that are issued to existing shareholders as a result of a stock split. The number of new shares is determined by the split ratio, such as 2-for-1 or 3-for-2, where shareholders receive a certain number of new shares for each old share they own.

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CPI, scarecrow, or helper?

Fecha: 14.2.2024

Yesterday's trading day carried with it the announcement of an important macroeconomic indicator in the U.S. namely the Consumer Price Index (CPI). Even before the announcement, during the morning's analysis of the U.S. stock indices, I concluded that the price had the potential to fall. One fundamental fact led me to this decision. But let's go through the whole thing together from the beginning.

Analysis before the announcement

 

Unless there is some random manual intervention in the market, price moves based on regular algorithmic patterns, targeting two basic things. Liquidity and Market Imbalance. Therefore, before CPI, I focused on these two aspects and assessed that the price had been rising sharply for quite some time, thereby creating Imbalance zones, and leaving behind zones of relatively equal lows below which liquidity was accumulating. Based on this, I was expecting a sharp decline. Since I don't trade on days like this until the announcement due to the increased risk, I was waiting to see what would happen.

 

1

Imbalance zones on daily and 4h time frame

 

2

Relative Equal Lows on 1h time frame

 

CPI statement and figures

 

As far as the numbers are concerned, inflation in the US fell from the initial level of 3.4 to 3.1. Such a decline represents a positive factor for the US dollar and an opportunity for the Fed to reassess its view on monetary policy. Given that inflation is falling, there is unlikely to be a need to raise interest rates further. This could have a positive impact on US stocks going forward.

 

As I have already mentioned, the US dollar sees this decline as positive, and this has also contributed to the fact that stock indices have finally fallen as expected.

 

Trade of the day

 

After the price drop on the US100 index, I had a buy trade lined up as the longer-term trend is bullish, and such a short-term spike is purely to collect liquidity from traders and investors who bought early. *

 

The announcement occurred at 2:30 pm, so I waited until the situation calmed down and I could enter with less risk. Any trade must be done within the price model of the trader in question, but time should not be forgotten. 15:50 to 16:10 is the time when the orders of the big players are accumulating in the market while the technical parameters that make up my trading model have been found, and so I enter a buy position. In this trade, I ended up with a profit of 5R (Risk Reward Ratio).

 

3

Trade on US100, one-minute time frame

 

* Past performance is no guarantee of future results.

Advertencia de riesgo: Los CFD son instrumentos complejos y conllevan un riesgo elevado de perder dinero rápidamente debido al apalancamiento. El 92.59% % de las cuentas de inversores minoristas pierden dinero en la negociación de CFD con este proveedor Debe considerar si comprende el funcionamiento de los CFD y si puede permitirse asumir un riesgo elevado de perder su dinero.