A friend recently asked me if I own any long-term stock positions … The answer is NO!
I’m a trader, not an investor. This is the all-important distinction I’d like to talk about today…
Considering the crazy volatility we’ve seen throughout 2022, investors have had a brutal year.
Meanwhile, amid some of the ‘worst’ price action in years, experienced traders have been raking in gains. For example, I nailed my biggest trade of all time in June.
I think it’s obvious that I’m very happy to be a trader in 2022.
You see, as traders, we have no reason to panic about a broad market selloff.
Rather, we have a reason to be excited … to take advantage of the volatility.
When it comes to negative market sentiment, an index investor’s worst nightmare can be an options trader’s best friend.
It’s all about your outlook, your mindset, and how you approach certain periods of ultra-volatile price action.
This week, many people are scared about the value of their portfolios. I don’t blame them and I sympathize with anyone who’s watching the value of their stocks fall day after day.
But this is what I’m getting at. It’s why I advocate for short-term, in-and-out trading.
I want Evolvers to execute trades swiftly, book profits quickly, and cut any losses immediately.
With that in mind, keep reading to hear my thoughts about trading vs. investing (and why I’ll always recommend the former).
Why Now Is the Time to Trade (Not Invest)
Now is one of the best times in recent history to be a trader. Let me explain…
Imagine being a long-term investor in 2022, 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 — trading.
When you engage in short-term trading, there’s no need to sweat small % moves in the overall market or major indexes.
Why Elon Musk is Probably Laughing Right Now
These days it seems like everybody wants to take their shot at Elon Musk.
And yet – Tim Bohen thinks he’s gotta be laughing his ass off right now.
Why?
Because of what he’s predicting could happen on or around October 21st.
You’ll see what he means when you watch this video.
Pay attention to them, sure, as these moves can lead to gorgeous setups in individual stocks.
But you don’t have to let the overall market control the direction of your portfolio the same way a long-term investor does.
As a trader, you control your destiny through the power of your near-term decision-making.
Is it easy? No. It took me years to become a confident trader and start making millions in the options market.
But if you work at developing a consistent strategy, the gains you can potentially make as a trader should outpace any long-term investor by leaps and bounds.
And in this market environment, where large-cap stocks are trading with penny stock volatility, you’d be a fool to avoid trading entirely.
How Day Traders are Crushing This Market
While long-term investors are pouring over their innumerable losses, day traders (like my colleagues and I) are scalping the volatility and stacking gains.
But don’t just take it from me. Let’s look at a few recent examples…
On Tuesday, my good friend (and fellow multi-millionaire Tim Sykes student) Jack Kellogg nailed an absolutely monster scalp on the long side of Bed Bath & Beyond Inc. (NASDAQ: BBBY).
Shout out to @Jackaroo_Trades for his legendary bounce play long on $BBBY yesterday//today alerted real-time in challenge chat – well done!!!
— Mark Croock (@thehonestcroock) August 30, 2022
Amazing trade, Jack!
Additionally, my top student, Jenny Smith, has been crushing the volatility in the markets by trading options…
$NVDA bottomed…? 🚀🚀🚀 pic.twitter.com/qVgswzvzV9
— Jenny Smith (@jpsmith5804) August 31, 2022
Keep it up, Jenny!
If you wanna check out the strategy that allowed Jenny to go from a stay-at-home mom to a full-fledged market crusher, click right here.
Last, but certainly not least, my longtime buddy Tim Bohen has been making INSANE calls in StocksToTrade Breaking News Chat!
Look at this incredible call he made earlier this week on Advanced Human Imaging Ltd. (NASDAQ: AHI)!
I mean, are you kidding me?! That’s a 150% gain in just a few hours!
Way to go, Bohen! (I’d like to see a long-term investor pull those gains off in a day…)
These incredible calls are the reason I use StocksToTrade’s Breaking News Chat! If you’d like to try it out for yourself, click here to start your trial.
Plus, Bohen has something VERY EXCITING coming up, a brand-new scanner that could change the game for Evolvers.
See how small-account traders like YOU could potentially scalp huge gains off of the $369 billion “EV Gold Rush” MANDATED by Congress’ Inflation Reduction Act…
Act fast, because you only have a few days left to sign up! Check out the ‘Picks and Shovels’ Stock Scanner FREE by clicking this link!
Final Thoughts
These are all prime examples of how powerful trading can be in a market full of clueless ‘investors.’
While these hold-and-hopers shake in their boots over their portfolios, traders like us can simply scalp the volatility and wait for the next five-star setup to emerge.
All you have to do is study, focus, and execute your game plan with discipline.