It’s that time again … Every now and again, the SteadyTrade team likes to answer listener questions on air. Welcome to the latest edition of Listener Mailbag!
We want to bring value to you, and listener mailbag questions are one of the best ways to connect. We always want make sure that we’re talking about the stuff you actually want to know.
Today’s topics are a bit eclectic and include the President Donald Trump tweets effect, Tim Bohen’s influence (or lack thereof) on Stephen’s trading, and dead cat bounces. Here are just a few highlights from the show…
What’s a Dead Cat Bounce?
A listener saw a recent Facebook post by Tim Bohen about dead cat bounces … what’s the deal?
Well, Tim has several cats, but happily, this pattern has nothing to do with them.
The dead cat bounce is a stock chart pattern. It’s characterized by a long-term downtrending chart of months or even years … a bleeding stock. Then, right when you think it’s bled out, it experiences unusual volume, usually based on news. And that makes the stock “bounce.”
The problem? This bounce is usually short-lived.
Tim and Stephen explain different approaches to this type of pattern. Learn why it’s one of Stephen’s favorite patterns to short, as well as his tips for entry and exit.
How Has Tim Influenced Stephen’s Trading?
One listener who’s been following Stephen ever since his first YouTube video notes he’s changed a lot since the early days. Has SteadyTrade co-host Tim Bohen’s influence been a factor?
The hosts zip back in time and discuss how Stephen’s trading has evolved in the past few years, including what’s has gone right and wrong.
The reality is that anything and everything can affect your trading. But here’s what Stephen notes as the cause of some of the biggest changes in his trading: “Seeing the same situation over and over and over again.”
In other words, he’s learning that he simply can’t keep losing in the same ways anymore.
Tim agrees, saying, “There’s no shortcut in this business.”
Is Commission-Free Trading a Good Thing?
In recent months, plenty of brokers have been going commission-free. How will this affect the market?
No huge surprise, Tim and Stephen have differing opinions … who will you agree with?
Tim argues that commission-free trading is good, especially if you’re trading with a small account. If you only have $1,000 in your account and you spend $100 a month in commissions, that can add up!
Tim also adds that for better or worse, it will likely bring more “dumb money” to the market … That could give educated traders an edge!
Stephen acknowledges some of the advantages, but he also argues that there could be negative effects. Could commission-free trading lead to less discipline and more bad decisions? Learn why weighing your trades carefully is still so necessary.
Do Donald Trump’s Tweets Move the Market?
One listener references a recent article in “Barron’s” that mentions the impact of President Trump’s tweets on the stock market. Is it possible to take advantage of this?
According to Tim, “The Trump tweet effect is real.” People are watching his tweets and trading on them. Is that philosophically good or bad? Should Trump be tweeting about corporations … is it his place?
Does any of that even matter?
After all, yes … tweets DO move the market these days. But the moves are extremely rapid. And you’re competing with algorithms and professionals who closely monitor this sort of thing. By the time you get into a trade, you could already be behind the curve.
It’s an interesting effect, but as Tim cautions, “not a tradable edge.”
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