The Weekly Blog Post
Disclaimer: All information found here is just opinion and is to not be taken as financial advice. The following information is provided for educational purposes only.
Stay up to date with news that has been going on in the market and the team by checking out our weekly newsletter. Hope you're all having a great weekend! Here's a quick rundown and a few trading lessons to reassure some of you newer traders about the recent market action.
This Corona Virus is spreading fairly quickly, there's a lot of fear in the market. Friday the huge sell off happened, one of the bigger red candles we've seen in the SPY in this entire bull run up. Do we start shorting the stock market? Zack Hoski said it perfectly in a conversation the other day, "I play both sides as I see it." Zack is an experienced, consistently profitable trader, he has a watch list, a game plan, and he knows exactly which stocks he is both bullish and bearish on and could quickly tell you why in a conversation.
Newer traders tend not to have a watch-list, they instead watch news headlines and make predictions based on the fear in the market. Whilst Zack is actually fairly excited about the potential for buy-back opportunities this market will present, some newer traders in our chat room wanted to short SPY at the close on Friday because they believed this could potentially be the first day in a big market crash.
How we're looking for Stock Picks in this environment
Nothing really changes, we still look for strong stocks that are showing relative strength, huge bull flag breakouts. The difference is that these setups tend to disappear into an ocean of stocks beaten with big red candles, so finding them is the really tricky part, but they are out there. We also tend to focus more on stocks with tighter risk, buying as they come up off support or sneak back onto people's radars - Sometimes stocks flush through their support levels, then immediately breakout straight back through them, this is what we know as buy-back opportunity. We tend to focus more on our support buys along with our buy-back opportunities in these volatile times, but we just trade what we see out there, we trade the best setups that come by our way. We also trend to tread lighter, if your usual risk is 2% of your account, you may just lower your risk tolerance down to 1% until we're back in that risk on environment.
Keep in mind some of the tickers that will be affected by this Coronavirus news recently
- $LAKE $NVAX $NNVC