To The Moon

• Key indices set records as market shifts focus to Fed.

• Crypto gains under Trump 2.0. Master the trend by carefully examining the float.

• Boost purchasing power and trading ideas with CashBoost!

Market recap

The Fed cut its benchmark rate by a quarter percentage point, bringing it down to a range of 4.5% to 4.75%, sending $.SPX(.SPX)$ and the $.IXIC(.IXIC)$ to all-time high. This could lead to lower interest rates on loans and credit cards, making borrowing cheaper. However, mortgage rates might remain high due to market uncertainties. On the other hand, Trump's policies are expected to boost inflation, which could lead to higher yields on Treasury bonds, and higher inflation can erode the value of fixed-income investments.

Problem is, how sustainable is this upward momentum? Look, the spotlight has been on the US elections since the start of this week. The surge in enthusiasm and rapid victories (which the market probably has not enough time to digest) combined with the anticipated rate cuts have created a perfect storm for this bullish trend. However, it’s important to note that some sectors—like diversified banks, energy, and industrials—have already begun to price in the election outcomes. If fresh trading narratives fail to emerge in the near future, a short-term pullback could be looming on the horizon. Staying alert and watchful is advisable as the market navigates these evolving dynamics.

Take a look back on the policy maker and its impact. With a focus on deregulation, Trump's administration might encourage more innovation within the crypto space. Also, the crypto market has reacted positively to Trump's win, with expectations of a more crypto-friendly administration. There are discussions about the possibility of the US establishing a strategic Bitcoin reserve. This move could position the US as a leader in the global crypto market and further legitimize Bitcoin as a significant financial asset.

Playing Russian Roulette (And How to Avoid it)

The profit & loss of beginners vary dramatically, largely due to the types of stocks they engage with, which can lead to wildly different outcomes.

When it comes to low liquidity stocks, one might as well be playing Russian roulette; one minute you're riding high, and the next, you could be staring down the barrel of unexpected, steep losses. Picture this: after snagging a modest profit in mid-cap stocks, you decide to venture back into the wild world of low liquidity stocks, only to find yourself cashing in big. It's a rollercoaster ride that can leave your portfolio doing somersaults!

But beware! This kind of trading behavior absolutely can cause a erosion of our capital. In some cases, you might even experience a rapid downturn that feels like you’ve just stepped on a banana peel. Unexpected losses from low liquidity stocks are the leading cause of margin calls for many beginners, and trust me, you don't want to go broke in some minutes.

If you're just dipping your toes into the market or still gathering your trading wisdom (however you define that), it’s best to steer clear of low liquidity stocks for now. Instead, focus on honing your skills with more liquid stocks. It’s like training for a marathon: you wouldn’t start with a sprint, right? Build your experience and confidence gradually. Mastering the basics before you charge headfirst into the high-stakes arena will help you avoid getting caught in those sticky situations. So, approach the market with a well-prepared mind and a solid plan, and you’ll be well on your way to trading success.

GOAT with the Float

A stock float is the total number of shares that are available for public investors to buy and sell, different from its marketcap. By reading float of a stock, we can figure out is it a mid-cap, large-cap, or small-cap stock, thus what should be the best trading strategy.

$MicroStrategy(MSTR)$ - Mid-cap

Mid-cap stocks: They typically have a trading volume ranging from 20 million to 500 million shares. These stocks usually trade at prices between $10 and $100. Take MicroStrategy, for example. As a provider of business intelligence software, it’s notorious for its “distractions,” particularly its aggressive Bitcoin investment strategy that intertwines the company’s fate with that of Bitcoin. In a recent earnings call, MicroStrategy unveiled an audacious plan to raise $42 billion over the next three years to acquire even more Bitcoin （the company's so-called "21/21 Plan"）.

$Coinbase Global, Inc.(COIN)$ - Large-cap

Large-cap: They are propelled by solid fundamentals driving price appreciation. Companies like Nvidia, Apple, and Tesla fall into this category; they are established giants and industry leaders with a float of over 500 million shares, often trading millions of shares daily. The price movements of large-cap stocks are primarily driven by the actions of institutional traders, investment banks, and hedge funds, who buy or sell substantial positions. Investing in these stocks often requires a catalyst, such as strong earnings (take Tesla’s Q3 performance), significant technological breakthroughs (say AI advancements), or substantial improvements in cash flow and return on equity (ROE).

$Bakkt Holdings, Inc.(BKKT)$ - Small-cap

Small-cap: Extreme/Hard Mode of trading, aka low liquidity stocks to keep away from, which are often as unstable as a tightrope walker in a windstorm. Their low prices lead to rapid fluctuations, magnifying the volatility of your positions. With extremely low trading volumes, these stocks are highly susceptible to manipulation, making it challenging to predict their future price movements and manage associated risks. If things go awry, losses can quickly wipe out many of your gains, leaving you in a precarious situation.

CashBoost Account is a flexible approach to capital deployment in response to evolving market volatility. By combining elements of both debt and equity, the tool aims to offer tailored solutions that address real-time financing challenges for companies while providing significant upside potential for investors.

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