Breaking New Records But How To Trade The Market Now? π§
WALL ST. FEBRUARY PERFORMANCE:
π’ DOW ENDS UP +2.2%
π’ S&P 500 ENDS UP +5.1%
π’ NASDAQ ENDS UP +6.1%
π’ RUSSELL 2000 ENDS UP +5.5%
π΄ VIX ENDS DOWN -6.6%
π’ BITCOIN ENDS UP +43.6%
S&P 500 has now traded green in both January and February. When that has occurred (data going back to 1950), the $SPX finished the rest of the year higher 27/28 times with the final 10 months being higher 26/28 times.
According to history, if the first 2 months of the year notches positive gains, the next 10 months will be positive with a 92.9% probability and an average gain of 12.2%.
Seems pretty good for Bulls!
The NASDAQ Just Made a New All-Time High Post a 20% Drawdown.
- Since 1977, this has happened 10 other times
- Over the next 252 trading days, average gain is +20%
- Implies we could see NASDAQ 19,000 by 2/29/2025
The above analysis analyses are based on historical data and estimations. No one can be sure of the end results so please donβt trust them 100% cos you have to trade responsibly and avoid FOMO chase.
Pullbacks are bound to occur so have enough ammo to buy the dip when it happens. At the end of the day, we have no one to blame except our own greed and fear.
If you have no time due to family commitments, busy work schedules, just invest in index funds like SPY, QQQ and ONLY top US companies using the classic dollar cost averaging method to compound for the long term.
Should you have the luxury of time, try to pick up options and futures trading. The best is to start with selling cash secured put options that offers passive income of about 2% per month cos this strategy has a higher winning probability. Watch some videos and read it up, you will never regret it.
On the other hand, buying options tend to be more risky with lower % points but higher ROI in dollar value. Letβs take TSLA for example:
- Selling weekly put options: set aside $20k to make $100 per week at current value. Thatβs about 2% per month, 24% per year!
- Buying options using $1k per trade making 10% gain is $100 per day. Letβs say to achieve $250 profit per week (win some, lose some) x 4 weeks will net us $1k, achieving 100% ROI per month, thatβs 1200% per year!
The magic about buying options is position sizing. Never ever double your sizes after a few great days and end up blowing your account due to over confidence and sheer luck. Trading is not gambling as some believe. Increase the trade sizes ONLY when you start to feel BORDED winning for more than 3 months, no longer unsure of when to enter and exit another trade and not hope or pray it will be a green day, week or month.
Start with 1 contract, 3, 5, 10 and so on. It's the same like schooling, you don't take high school exams at 7 years old. You never run before you fall over and over when started walking. It takes time to gain experience, maturity and patience. Your daily gain shall multiply like the picture above if you don't give up. The license to multiply is through 99% perseverance, no shortcuts to success.
Buying options requires at least two years of DAILY trading (2-4 hours to wait for that right setup) to accumulate patience, discipline and consistency to refine trade management such as position sizing, stop loss, how to minimise over trading and to avoid revenge trading, when to scale in and out from a winning/losing trade, etc.
Consider monitoring 2-3 tickers that suits your temperament as each one has a different personality. For instance, NVDA & META zoom like fast cars, GOOGL & AMZN ride like a bus, AAPL is on skates lately, TSLA & crypto mining counters are highly risky and speculative but offers very good returns, panic attacks sold separately.
Good to start with SPY and QQQ for beginners. Some traders I know make millions (after 5 years of day trading) just from trading these two ETFs day in, day out. Day trading is a lifeskill that can be mastered and most importantly, the hard work put into it will eventually get you out of the rat race π
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@CaptainTiger @MillionaireTiger @Daily_Discussion @Aqa @Andreana @AyKing @mster @koolgal @KylerLee @KylerLee
Modify on 2024-03-02 17:22
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- msterΒ·03-03TOPNow that we are already in March the said Feb/Mar Pullback may not be happening. While NASDAQ looks to be on the upper end of ots channel, S&P seems to have some more room to go. With S&P looks to go all the way to 5410 maybe βSell in May and Go Awayβ be where the real pull back will be.1Report
- OhnonotthisΒ·03-04TOPHopefully for everyone who bought calls.1Report
- AqaΒ·03-03TOPCongrats good profits. Liked and shared.1Report
- koolgalΒ·03-04TOPThanks for sharing your valuable insights πππ1Report
- koolgalΒ·03-04TOPCongratulations on your winning trades ππππΎπΎπΎ1Report
- Tom ChowΒ·03-04good1Report
- KSRΒ·03-04π1Report
- wintersite2661Β·03-02Solid stuff1Report