Friday Q&A — March 31, 2023

by | Mar 31, 2023

Happy Friday, Evolvers!

Today, I’ll explain why I think the major indexes are on the rise this week and break down the one critical factor that helped me build confidence as a trader.

Spoiler alert: If I hadn’t discovered Tim Sykes’ lessons early on, I never would’ve found the confidence I have today!

And speaking of Sykes, he’s got a VERY EXCITING event happening…

It’s not every day you get the chance to watch world-class traders scalp the markets LIVE. 

But today is different…

Tim Sykes and his all-star stock trading team are going LIVE TODAY, March 31. Don’t miss this chance to discover a completely brand-new trading tool you’ve probably never seen before … IN ACTION! 

Seats are running out FAST … Click here to reserve your spot BEFORE it’s too late!

Now that you’re signed up, it’s time for our Friday Q&A.

Keep reading and I’ll answer your questions…

“Why do you think the market is rising this week? Most of the news seems bad to me…”

Your observation isn’t wrong. The SPDR S&P 500 ETF Trust (NYSEARCA: SPY) has gained nearly 3% in five days to reach a three-week high…

I think the near-term rise in stock prices is due to one factor — the easing of uncertainty.

The market hates uncertainty more than anything … more than war, poor earnings, bank collapses, and high interest rates combined. 

Now, don’t get me wrong … there are plenty of reasons to be concerned about the current state of the market. 

But, here’s the thing … those very same negative factors are actually having a positive effect on stock prices right now.

Let me explain…

The majority of 2022 was filled with trader anxiety around what might happen on a variety of issues.

How bad will inflation get? How far will the Fed go to fight it? And how seriously will all of this affect individual companies?

While we don’t have all of the answers yet, some parts of these questions have come into view.

It seems like inflation is at a near-term peak, the market has priced in an approximate Fed funds rate, and we now have a much clearer picture of how corporate earnings are reacting to this challenging macro environment.

Sykes: “Prepare for takeoff on Monday at 9:30am”

If I were you, I would prepare myself for Monday at 9:30am.

What’s taking off?

Meanwhile, the dominating story in 2023 has been the regional banking crisis. And while we don’t know the ultimate resolution yet, it feels like the initial shock of the negative news has worn off.

In other words, there are fewer unknowns today than there were in at the beginning of the year … and that’s something the market tends to react positively to. 

So if you’re wondering why stock prices are on the rise, it all comes back to uncertainty. 

By easing some of the uncertainty, we’ve given the market a reason to breathe a little easier.

But don’t get too caught up in this momentary bullishness. In a market this volatile, the price action can flip on a dime.

Stay on your toes and trade accordingly.

“I struggle with having confidence in my trade ideas, even when they’re backed up by technical analysis. How long did it take before you felt truly confident as a trader?”

I started my journey into trading thirteen years ago, back in 2010. 

Money and finance have always been a passion of mine, so I initially pursued a career in general accounting. 

But sitting in a cubicle all day wasn’t for me. I craved personal and financial freedom.

That’s when I stumbled upon a Tim Sykes video that completely blew my mind. 

I immediately enrolled in his Pennystocking Silver service, and then later his Trading Challenge

But I knew I had a long road ahead of me…

Hours upon hours were spent transcribing Sykes’ webinars and learning the art of trading from a seasoned veteran. 

Through dedication and perseverance, I started developing a game plan — based on using put options to short overextended stocks — that worked for my personality.

When I look back on my career, I believe that creating a repeatable strategy was the most critical step toward achieving true confidence.

To answer your question more specifically, it wasn’t until I had made around $500,000 in profit that I felt like a truly confident trader. 

But it wasn’t just a matter of luck or a handful of successful trades.

I applied my strategy to hundreds of different setups, the majority of which were profitable. 

Consistency is the key. Once I had proven that, confidence came naturally. And the same can happen to you…

But you can’t rush things. Trade small, study hard, and work on finding a strategy that you can replicate over and over again.

By taking the same steps I did, your confidence can potentially blossom. 

Final Thoughts

Have a great weekend, Evolvers!

Take the weekend to study hard.

Mark up your charts and build your watchlist for next week so you can attack the markets with confidence come Monday!

Meet Mark:

Mark Croock is a former accountant who after studying under Millionaire Trader Tim Sykes turned his small account into $4.11 million in trading profits by applying Tim’s strategies to options trading.

He started Evolved Trader to pay it forward and help other traders learn how to leverage options

 

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