How I’m Trading in This Wild Market.
Dear Penny Stock Millionaire,
The market might be crashing left and right… but coronavirus stocks and sectors are on FIRE.
My top students and I are making record profits thanks to the crazy volatility in the market … It’s not because we’re smarter or have some secret market trick.
It’s because we know how to adapt to the market.
You’ve gotta be nimble and react to what the market’s giving you right now. Don’t try to anticipate what could happen. Don’t try to guess when the market’s gonna bottom out.
No one knows.
So many idiot traders and newbies are getting decimated in the wake of this market crash. They just don’t know what they’re doing. But as I’ve been teaching my students for years, it’s possible to profit in any type of market condition. It’s all about being prepared and having the right strategy.
The Current State of the Market
The financial news has been fast and furious for the last week or so. Some highlights?
- We recently officially entered bear market territory after a bull market that lasted over 10 years.
- The Sunday before last, the Fed decided to cut rates… but the market didn’t react well.
- According to CNN Business, March 16 was the U.S. stock market’s worst day since 1987’s Black Monday — and there’s no relief in sight.
For some traders, the answer is to short everything. But the market’s already down 30% off its highs. Shorting isn’t the smartest or safest play right now. It’s downright scary. Be smarter than the over-aggressive idiot shorts.
Coronavirus Stocks and Sectors
How are my students and I finding these huge opportunities? By using a scanner.
For the record, I use StocksToTrade to scan for stocks. I’ve used it for years. People ask me how I find hot stocks… this is the tool I use, but any stock scanner that can sift through stocks and help you find the biggest percent gainers with enough volume to be easily traded (around 2 million shares) will work to get you started.
Once I run my scans, I follow what’s hot. And yeah, these days that’s coronavirus stocks.
Look at Past Health Scares
I say this a lot: History repeats itself.
True, the coronavirus is unlike any other health scare we’ve had in the past. But certain patterns are repeating themselves fairly predictably. Some of the same stocks and sectors that spiked during Ebola and SARS scares are spiking again now.
Look at the past. You can learn a lot about the types of stocks that might spike in the face of the current coronavirus crisis. You can also learn a lot about past epidemics and their impact on the market.
Don’t assume the market will quickly bounce back. There are just too many factors we don’t know yet.
Remember: fear makes the market fickle and volatile. You can’t expect stocks to move in rational ways.
Just because a stock is in the coronavirus sector or a peripheral sector doesn’t mean it’ll spike. And if it does spike, it won’t last forever. So don’t chase. Wait for the right opportunities.
Look for Sympathy Plays
Sympathy plays happen when companies spike due to an indirect catalyst. For example, if a company like Blue Apron is spiking, that could cause other meal-prep delivery services to spike, simply by association.
So look for related companies that could benefit from spikes or good news around a sector leader.
Finding opportunities in the market is all about your ability to adapt, your mindset, and how prepared you are.
The Bottom Line
We’re living in uncertain times. The coronavirus has turned life as we know it upside down. The longest bull market ever is over — and the market is 30% off its highs.
But I want you to deprogram yourself from the traditional way of thinking about making money in the market. Nothing is what we’d expect. Gold, oil, ETFs, bonds, blue-chip stocks… everything’s down.
But you can learn to trade through any market.
There will always be sectors and stocks that spike, even when the markets are down.
Right now, those trending sectors and stocks are all related to the coronavirus, either directly or indirectly. Are you prepared to find them and take advantage of them while they’re in play?
Be meticulous. Research and study the past. Always be on the lookout for what’s happening in the market right now — forget about what you think or hope will happen. React to what the market gives you … Don’t try to predict the future.
Tomorrow I’ll go over some of the biggest coronavirus and quarantine related stocks in the market right now.
Be safe during the coronavirus crisis and be safe in this crazy market. Study up!
Editor, Penny Stock Millionaires