TRUMP PREPARES FOR BIG ATTACK OVER THE WEEKEND...
In a Nutshell
Markets opened with heavy selling led by semiconductors but recovered, while Trump’s planned escalation with Israel against Iran drove oil prices to $88. Retail traders using leverage suffered mass liquidations, underscoring the need for small, unlevered positions to learn market behavior. Traders must decide before the weekend whether to hold positions or stay in cash amid rising geopolitical risk.
These notes were generated by AI and may contain inaccuracies.
Happy Friday. Markets experienced a roller coaster session with an initial wipeout of over 800 billion dollars from the US market as soon as trading opened. The semiconductor and memory chip sectors led the selling pressure, fueled by uncertainty from Asian markets. The market quickly recovered later in the session.
1.2 million retail traders in South Korea received margin calls this week, representing approximately 3.4% of the country's entire adult population. This statistic highlights the dangers of using leverage as a beginner. Many new traders go all-in with borrowed funds without first testing the market, leading to liquidation when prices move against them. This ruins their perspective on investing, often causing them to label the market as rigged after suffering losses.
Instead of using leverage, beginners should start by purchasing just one share of a stock to test the market. If the position drops 30-40-50%, the loss is minimal and the lesson is valuable. If the stock recovers, such as a 37% gain from previous lows, the experience builds confidence without catastrophic risk. This approach allows traders to understand market volatility firsthand. A single share position can demonstrate what a 5-10% daily drop would feel like at larger sizes like 10,000, 20,000, or 50,000 dollars.
Buying one share exposes beginners to market movements and helps them determine their personal risk tolerance. The goal is not to become a millionaire from a single trade but to gain experience and exposure. Once comfortable with one share, traders can scale up to 10 shares or more in future opportunities while keeping position sizes tasteful and manageable. Over-leveraging during uncertain periods where corrections of 25-35% can occur rapidly leads to liquidation.
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