Right now, we’re experiencing an unprecedented stock market catalyst and global event with the coronavirus.
Generally, there are a few mega-stock sectors that present themselves every year. But…
… we’ve never experienced anything like this. So should you pack your bags and walk away from the stock market?
No! It means you need to adjust your strategy and take proactive steps to stay safe.
There are some crazy opportunities right now in the market. In this episode, you get the entire team — Tim Bohen, Stephen Johnson, and Kim Ann Curtin. They’re talking about the “recipe” for coronavirus plays and how to make the most of the hotter-than-hot sector that nobody saw coming.
History Rhymes
As Tim’s fond of saying, history doesn’t repeat exactly, but it rhymes. The coronavirus phenomenon has been a totally crazy ride. And it’s following the pattern of previous health scares and outbreaks like Ebola and SARS.
Stocks went wild then, too — actually, some of the same tickers we’re seeing move now. The coronavirus may be bigger and badder, but the patterns are playing out in similar ways.
End of Days?
No doubt, the market’s crashing. But as Stephen points out, knowledgeable stock traders can actually profit even as prices decline overall.
Tune in to hear him explain why day traders are the “big winners” right now. And he talks about why casual investors and people who don’t understand the market are most likely to lose right now.
Oil War vs. Coronavirus
Kim’s curious about the effects of the oil war versus the coronavirus. What’s really moving the market?
The team discusses how these two events are connected, as well as the effects on the market. Learn about the connection between coronavirus, oil prices, and the supply chain … The effects on the global economy could last long after the virus is gone.
They also talk about how some sort of a shift in the market has been inevitable for quite some time. Remember … the recent bull market lasted over a decade.
Reacting vs. Predicting
In market conditions like these, it’s important for traders to know the difference between reacting and predicting.
Is it better to react to what the market throws your way? Or should you try to anticipate what might happen next?
The team talks about the advantages and disadvantages of both, and why uncertain times call for increased safety measures for traders.
Tim talks through how to use a screener like StocksToTrade to find opportunities. What do you do once you identify a potential play? Listen in for Tim’s tips.
Stephen shares his specific criteria for finding potential virus stocks, including checking indicators like volume and float. But it’s not just about the technicals. He cautions that for low-priced stock traders, solid trades are a matter of “who can manage their emotions best.”
Changing Strategies
To find consistency as a trader, you’ve got to be able to adapt. Think about it … Consistency is a matter of being meticulous, not counting on the market to always stay the same.
For example, Stephen’s bread-and-butter play is shorting biotechs that are not hot. So right now … well, he’s not trading that much!
The crew talks about the dangers of shorting in a hot sector, even if the general market is declining.
Stephen’s strategy has turned upside down because every company working on a coronavirus cure is a biotech. How is he approaching plays right now? And how the rules are changing due to the coronavirus? Tune in to find out.
How Will It All Play Out?
We can’t know how long the coronavirus will last. What we do know is that certain patterns tend to play out the same way over and over.
In the episode, Tim and Stephen share with newbie trader Kim how hot sectors like this run in phases. Learn more about the wild volatility as well as the dilutions, offerings, and cooling down that can follow.
It’s impossible to know the top or bottom on these plays, but there are certain tried and true approaches to trades that you can learn!
Tips for New Traders
As a new trader, Kim’s curious about something…
Is this really a good time to work on developing and honing a strategy?
Tim and Stephen offer tips on how she can apply her new trading knowledge to the crazy market. New traders won’t want to miss these tips.
Hey, Got Something to Say?
What do you have to say about the coronavirus and its impact on the market?
If you have questions or comments, please send a line. Remember: If your question is chosen as an on-air topic, you could win a SteadyTrade mystery gift box. Drop a comment below or hit us up on YouTube.
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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