Many people know my trading plan, here’s how I find stocks/crypto to buy/sell.
- Listen to Bloomberg and other news sources for companies or cryptos that are suffering regulatory or other problems
- Look at their price and chart — identify the result of that news. Because once it’s priced into the market the market should recover.
- Buy at that point targeting the top of a trend or wedge. I NEVER BUY THINGS THAT ARE NOT IN TREND.
So all news affects something. The chip shortage, rising yields, the feds lackadaisical attitude to the effects of lockdown (everyone knows interest rates will rise, but I think it will be much sooner than the Feds are letting on), SEC trying to attack Ripple, Chinese governments going for companies like Alibaba, every car manufacturer becoming a competition to Tesla. This is my food for finding devices to trade and a price to trade at.
I get so tired, so very tired of my friends coming to me with some penny stock their friend bought and made 4 million in 5 minutes because it doesn’t help me. It doesn’t provide me with anything tradeable. That has already happened. Plus these things tend to rally hard then fall back to where they came from. People giving me little stock tips is not the best way to trade markets.
People are no engaging in the markets in a dangerous and risky way. Engage. I do mentoring sessions. I have taken someone with a terrible portfolio losing everything to something where all his trades are in profit. My short term portfolio maintains profit all the time even though I am mainly a shorter-term trader.
So my advice here is to listen and learn. Facebook, Twitter and other social media should not be your source, you need to be plugging into Bloomberg and other proper financial news sources so you grow to understand how everything affects everything else in the markets. Why do 75% on average lose money. Because they are not listening to the right sources, they are not using charts in the best way and often times they are investing in what everyone else is. Like now, don’t buy tech stocks. Yields are up, tech stocks are falling and it won’t get any better with the shortage of chips.
These are incredible times with incredible opportunities for trades, but often the most profitable ones are not the ones you think they are.