Happy Friday, Evolvers!
Today, we’ll talk about how you can maximize your productivity over the long weekend and I’ll answer a question about my “portfolio”…
But first, let’s discuss some of the most important recent moves in the overall market…
This week, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) chopped around between $404 and $411, closing the week +0.98%.
Meanwhile, volume was relatively low on Thursday as traders positioned into the long weekend and digested data from the recent jobs report.
And for observant big-tech traders, all eyes have been on Nvidia Corporation (NASDAQ: NVDA)…
The most overbought stock in the entire market — up 123%+ in the past six months — finally started to show signs of slowing down this week.
Spoiler alert: I traded puts on NVDA after seeing certain topping signals (but more on that next week)…
But for now, it’s time for our Friday Q&A. Sit back, relax, and I’ll answer your questions…
“How can I take advantage of the long weekend? How do you study with an extra day off?”
Most importantly, enjoy it! Take some time to relax and spend time with your family.
After all, that’s the whole reason the market’s closed on holidays…
Traders like you and me get a well-deserved break — especially from this insanely volatile market!
But don’t confuse taking a short mental vacation with losing focus entirely.
Should you have some fun and get your mind off the stock market for a bit? Definitely.
But you should also take the extra time you have this weekend to get some studying in. It’ll help you prepare to trade your very best come Monday.
One thing I’ve learned throughout my 10+ years of trading is that the market’s volume and volatility are often elevated coming out of a three-day weekend.
That means you should be preparing even more diligently for the price action ahead…
WARNING: Don’t sit on the couch and eat potato chips all weekend!
I think one of the worst things a trader can do is take too long of a break without doing any sort of studying or preparation.
I’ll be marking up my charts and going through setups this weekend, looking for promising opportunities…
But whether you watch a video lesson, take notes, review your trades, or even make a watchlist — be sure you use your time wisely.
“Do you own any long-term stock investments?”
No, I don’t hold any sort of long-term stock portfolio.
I’m not an investor … I’m a trader.
And in the current market conditions, I think it’s preferable to be trading. Let me explain…
As a trader, I don’t fear broad market volatility … I embrace it!
The swings that send long-term investors running for cover can give me incredible opportunities to profit.
In fact, negative market sentiment can be an options trader’s best friend. It’s all about your mindset during periods of intense market fluctuations.
Swift execution, quick profit booking, and immediate loss-cutting are the keys to consistently successful options trading.
Now, imagine being a long-term investor in 2022…
You’re holding a huge basket of stocks, powerless to do anything but watch them tumble lower week after week, month after month…
That sounds terrible to me, especially when there’s such a better alternative — short-term trading.
When you engage in short-term trading, there’s no need to sweat small % moves in the overall market or major indexes.
As a trader, you control your destiny through the power of your near-term decision-making. Even better, you can potentially profit in both up and down markets.
Meanwhile, investors can only profit when stocks are going up. They’re screwed in a bear market with no choice but to hedge their long positions.
This is why, in the debate between trading vs. investing, I stand firmly on the side of trading.
Have a great long weekend, Evolvers!
And make sure you take advantage of your extra time off…
Study your charts, perfect your watchlist, and get your game plan together for next week!