Sergey Savastiouk's Avatar
published in Blogs
Oct 18, 2021

8 Major Mistakes Day Traders Make

Trading effectively is a learned skill, and it takes practice. Every trader makes mistakes somewhere along the way, but that doesn’t mean these mistakes are inevitable. In fact, many are easy mistakes to avoid, as long as investors know what they are and can exercise some discipline. Here are eight mistakes to avoid.

1. Using ‘Gut Feelings’ to Time the Market

Markets are unpredictable. There are time-honored methods you can use to analyze market patterns and behavior, but no one can predict it with 100% certainty. But one of the biggest mistakes a trader can make is trying to time the market using just “gut feelings” – instead of hard data. Instead of playing the guessing game to make trades, traders should rely on fundamental and technical analysis to make smart trades. Tickeron’s Trend Prediction Engine is a good place to start – it uses A.I. to analyze historic trends and offers Prediction Confidence Levels to help you make trades based on real data and not your gut.

2. Not Knowing Your Odds of Success Before You Trade

If you’re making a trade based on a technical trading pattern or an indicator, have you back-tested it to see how often the security reaches actually reached its target price, historically? Using charts to find patterns can be thrilling, especially when you think you find a trade that fits perfectly. But if you don’t go a step further and get supporting data that can tell you the probability that the security will reach its target price, you’re leaving keying information on the table. Tickeron has algorithmically-powered day trading tools that scan thousands of stocks and ETFs for patterns, breakouts, and target prices, the A.I. goes a step further to determine confidence levels and the odds of a success of every trade.

3. A Good Story Doesn’t Mean a Good Investment

Everyone loves a great story, but good press coverage doesn’t always correlate to smart investments. Knowledge is power – successful investors look beyond media hype and gather insights from data to better determine the potential of an asset. A.I. makes it possible to analyze data at a scale and accuracy level far exceeding human ability, showing you the underlying trends (and not the fluff) that make for profitable trading.

4. Panicking in Volatile Markets

Markets are volatile – it can be tempting to make instinctive, emotional decisions when a market is performing poorly. That’s where Tickeron A.I. comes in. Pattern analysis, trend predictions, and more remove emotion from the equation and give the knowledge you need to be confident and stay the course or exit.

5. Being Afraid to Sell

No one like to take a loss, but experienced traders know sometimes it’s best to say goodbye to underperforming assets. Tools like the Pattern Search Engine comb price charts for bullish and bearish patterns and price trends that can alert you of potential swings or expected changes in price.

6. Playing the Waiting Game

‘Buy low, sell high’ is the guiding principle of any investor, but that doesn’t mean that traders should wait for a stock to dip and purchase every stock amid a downtrend. The Pattern Search Engine uses Tickeron’s A.I.dvisor to scan the market to locate patterns of your choice, then provides you with breakout prices, predicted target prices, confidence levels, and other statistics to make trades at the most advantageous times.

7. Overweighting Assets

At any given time, certain sectors will outperform others (as will individual assets within each sector). Putting all your eggs in one basket, however, means potentially overweighting asset classes and risking heavy losses. Smart investors diversify and rebalance their portfolios even if an asset class is performing well. Tickeron’s Asset Allocator and Diversification Score use A.I. to comb through data and deliver the insights you need to do build an effective portfolio.

8. Following the Pack

Novice traders can be guilty of following the pack a bit too closely. This can mean overpaying in uptrends and thinking short when an asset is on the verge of a turnaround. A.I. backed Decision Confidence Levels offer analysis and statistics to set you apart from the rest of the field – and position you to capitalize when others might be content to stick with the herd.

Looking for Fresh Investment Ideas? See How Algorithms and A.I. Can Help

Want to invest and/or diversify your portfolio but unsure where to start? Artificial Intelligence can help! Tickeron has developed user friendly Artificial Intelligence tools to help new and experienced investors generate investment ideas. Tickeron’s A.I. is capable of evaluating a portfolio and providing a “Diversification Score,” to tell the user how well-diversified their portfolio is. It can also generate investment ideas for a user’s 401(k) plan – even if you’re just getting started! The A.I. will give you ideas based on your risk tolerance, investment objectives, and the investment options available.

Tickeron’s new financial website is available to beginners, intermediate investors, and even experts and advisors. Explore tickeron.com today.

Related Ticker: SPY

SPY's MACD Histogram crosses above signal line

The Moving Average Convergence Divergence (MACD) for SPY turned positive on May 26, 2023. Looking at past instances where SPY's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on May 25, 2023. You may want to consider a long position or call options on SPY as a result. In of 67 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SPY advanced for three days, in of 361 cases, the price rose further within the following month. The odds of a continued upward trend are .

The Aroon Indicator entered an Uptrend today. In of 425 cases where SPY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 64 cases where SPY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .

Following a 3-day decline, the stock is projected to fall further. Considering past instances where SPY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

SPY broke above its upper Bollinger Band on May 18, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

Fear & Greed

Notable companies

The most notable companies in this group are Apple (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN), NVIDIA Corp (NASDAQ:NVDA), Meta Platforms (NASDAQ:META), Tesla (NASDAQ:TSLA), VISA (NYSE:V), Unitedhealth Group (NYSE:UNH).

Industry description

The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the S&P 500® Index. The Trust seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the index (the “Portfolio”), with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the index.

Market Cap

The average market capitalization across the SPDR® S&P 500 ETF Trust ETF is 94.17B. The market cap for tickers in the group ranges from 3.55B to 2.76T. AAPL holds the highest valuation in this group at 2.76T. The lowest valued company is DISH at 3.55B.

High and low price notable news

The average weekly price growth across all stocks in the SPDR® S&P 500 ETF Trust ETF was 0%. For the same ETF, the average monthly price growth was 4%, and the average quarterly price growth was 5%. NVDA experienced the highest price growth at 25%, while ULTA experienced the biggest fall at -14%.

Volume

The average weekly volume growth across all stocks in the SPDR® S&P 500 ETF Trust ETF was 14%. For the same stocks of the ETF, the average monthly volume growth was 4% and the average quarterly volume growth was 185%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 55
P/E Growth Rating: 50
Price Growth Rating: 50
SMR Rating: 50
Profit Risk Rating: 48
Seasonality Score: 12 (-100 ... +100)
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