Your trading decisions should be based on research and an informed assumption. If you find yourself relying on hope, then you probably haven’t made a good decision. In episode 11, Brandon and Christine will be discussing why you should keep hope out of your trading.
- All the indices were up at least 1% today, with the NASDAQ up over 2%.
- Despite that, volatility at the time of broadcasting was only down mildly for the day.
- July and August tend to be a time of higher volatility.
06:33 – Weekly Stock Picks
- I sold Smith & Wesson Brands Inc (SWBI) today, at an over 30% profit.
- SPY touched our short strike today at $317, but as we discussed last week, that’s not necessarily a bad sign.
- My option pick for the day was XLU, the utilities ETf, specifically a call credit spread expiring 8/21 with 59/61 strikes. I was able to get a fill at $0.54.
- My earnings pick was Preferred Bank (Los Angeles, CA) (PFBC). They are expected to report $0.79 per share earnings on July 15, but may beat by 26%. Last quarter they had a 5.88% surprise on earnings.
18:16 – There’s No Room for Hope in the Market
- You can’t just jump on some hyped up stock and hope to make money.
- If it works, it’s pure luck, akin to gambling.
- If someone else recommends a stock to you, even if it’s a reputable service, you need to do your own due diligence.
- Otherwise, if things go against you, you’ll be clinging to hope and not much more; whereas if you do your own research, you’ll have good reasons for thinking it will move in your favor.
- When you have nothing but hope to hold onto, you’re much more likely to panic sell. But if you have a well-founded assumption, you’ll be more likely to hold on as long as that assumption remains valid.
- You have to also know when to cut your losses and realize when a trade is extremely unlikely to turn around.
- If you don’t want to spend the time doing your own research, then you can buy into index ETFs (VOO, VTI), or specific sector ETFs (XLK, QQQ).
- Or if you have a large portfolio, you can pay for someone to manage it for you, which is often a good middle-of-the-road approach.
- With anything, you’ll get out of it what you put in. The more time and energy you put in, the more potential profits you can get out.
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