Market Performance: April 24, 2024.

Stocks fell on Thursday after a sharply lower-than-expected reading on US GDP for the first quarter ratcheted up questions about the health of the US economy. The Nasdaq Composite (^IXIC) fell about 0.6%. The S&P 500 (^GSPC) lost around 0.5%, while the Dow Jones Industrial Average (^DJI) slipped about 1%, or nearly 400 points. The indexes did recover from steeper losses earlier in the session.

US GDP growth came in at a 1.6% annualized pace in the first quarter, a government report said, falling well short of expectations of 2.5%. Meanwhile, an underlying measure of inflation grew by 3.7% in the first quarter, the report showed, above estimates and significantly higher than a 2% gain in the prior quarter.

Meanwhile, Meta (META) shares sank more than 10% as the market balked at rising costs at the Facebook and Instagram owner, which plans to spend up to $10 billion on AI infrastructure investments. Results from other Big Tech companies after the bell on Thursday appeared to calm any concern that Meta's disappointment will be a theme throughout the sector.

5 Trading Strategies

The online brokers on our list, Interactive Brokers and Webull, have professional or advanced versions of their platforms with real-time streaming quotes, charting tools, and the ability to enter and modify complex orders in quick succession. Below, we'll take a look at 10 day trading strategies for beginners.

Knowledge Is Power

In addition to knowledge of procedures, day traders need to keep up with the latest stock market news and events that affect stocks. This included the Federal Reserve System's interest rate plans, leading indicator announcements, and other economic, business, and financial news. So, do your homework. Make a wish list of stocks you'd like to trade. Be informed about the selected companies, their stocks, and general markets. Scan business news and bookmark reliable online news outlets.

Set Aside Funds

Assess and commit to the amount of capital you're willing to risk on each trade. Many successful day traders risk less than 1% to 2% of their accounts per trade. If you have a $40,000 trading account and are willing to risk 0.5% of your capital on each trade, your maximum loss per trade is $200 (0.5% x $40,000). Moreover, only trade with suitable online brokers and trading platforms.

Set Aside Time

Day trading requires your time and attention. In fact, you'll need to give up most of your day. Don’t consider it if you have limited time to spare. Day trading requires a trader to track the markets and spot opportunities that can arise at any time during trading hours. Being aware and moving quickly are key.

Start Small

As a beginner, focus on a maximum of one to two stocks during a session. Tracking and finding prospects is easier with just a few stocks. It's now common to trade fractional shares. That lets you specify smaller dollar amounts that you wish to invest.

Time Those Trades

Many orders placed by investors and traders begin to execute as soon as the markets open in the morning, contributing to price volatility. A seasoned player may be able to recognize patterns at the open and time orders to make profits. For beginners, it may be better to read the market without making any moves for the first 15 to 20 minutes. The middle hours are usually less volatile. Then, the movement begins to pick up again toward the closing bell. Though rush hours offer opportunities, it’s safer for beginners to avoid them at first.

Advisors Discuss the '4% Rule' and Top Retirement Tips

Despite the long-standing, yet debated, 4% rule -- which suggests individuals should cap their annual withdrawal to 4% of their nest egg in their first year of retirement to ensure their money will stretch the length of their retirement years -- Clarke said he prefers to err on the side of caution.

“Three and a half percent is a better withdrawal target to preserve principal balances. But since rates have adjusted up, 4% has been reestablished as the norm. [However,] I prefer conservative estimates, personally,” he said. “It’s important to understand historically where the 4% came from. That was established when interest rates were much higher than they’ve been for the past several years,” Clarke added.

Kenneth Chavis IV, a senior wealth counselor at Versant Capital Management, said he generally believes that the 4% rule can still work. However, he added that it’s important to note that the rule (introduced in the 1990s by financial advisor Bill Bengen) was based on a traditional 60/40 stock and bond portfolio.

Making Your Assets Last in Retirement

“If someone is retiring relatively young, say in their 40s and 50s today, there is a debate in the financial planning industry of how much of that Social Security benefit will be there in the future,” Chavis said of other factors impacting their withdrawal assumptions. “I would say for folks to model something conservatively. It’s better to assume you may be getting a little less than you’ll actually be getting, which is a general rule,” he added.

A Gallup poll released in December found that Americans were more optimistic than in past years about the Social Security benefits they’d receive upon retirement. Among nonretirees in the U.S., 50% said they expected to get Social Security benefits. That's a higher percentage than in similar surveys done in 2005, 2010, and 2015.

When to Tap the Emergency Fund 

Should a big-ticket, unexpected expense arise, Chavis said that retirees should be tapping their emergency funds. This is a better option than relying on assets in tax-deferred accounts. “You still want to make sure you have an emergency account that is liquid. That may be a high-yield savings account or a money market account that is set aside with at least six months of living expenses.

To me, that still applies to retirement life. For unexpected expenses, that would be a good place to draw from,” Chavis said. The biggest piece of advice he has for anyone retiring is to make sure they continue to update their long-term, comprehensive financial plan with a qualified advisor or certified financial planner. Individuals should aim to review their financial plan at least once a year, barring any significant life changes

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