This year, it feels like we’ve witnessed stock market history.
“Sell in May and go away” is a common refrain in the stock market. It refers to the traditionally slower trading days of summer.
But like most things in the stock market — and the world, for that matter — things are different in 2020.
In fact, the stock market just hit all-time highs. Both the Dow Jones Industrial Average and the S&P 500 enjoyed 100-day records in recent memory…
As Tim Bohen puts it, this 100-day streak “may have been the wildest three months ever in my 15 years of trading.”
In late August and early September, things have started cooling down slightly … but it’s all relative. There are still a ton of plays in action.
In today’s episode, co-hosts Tim, Kim Ann Curtin, and Stephen Johnson talk about the market craziness as of late — and what might happen next.
Psst: be sure to catch this episode on YouTube to check out Stephen’s haircut (or lack thereof) … If you’re into drinking games, get ready to take a shot every time Tim and Stephen agree on something!
The Phases of Pandemic Trading
Looking back in stock market history to the ‘dark days of trading’ during the mid-2000s, you’d see stocks experiencing big gains, oh, a few times a week.
For the past several months, it’s been normal to see five or more runners per day.
This has been exciting for traders — but also overwhelming.
The crew talks about adjusting to this market madness and the difficulty of maintaining a watchlist. And, of course, then there’s dealing with things like unexpected platform crashes due to so many new traders in the market.
Note: Curious about why there are so many new traders all of a sudden? Check out Episode 162, “Everyone’s Day Trading Now.”
They talk about lessons learned throughout the phases of the pandemic so far. Find out why Stephen thinks that “the best way I’ve found to adjust to markets is to save every single chart you play.”
Actually, Stephen recently took an entire weekend to review his trades. Learn more in Episode 161: “Trade Analysis: Stephen Finds a New Edge.”
Stock Market History: Same Setups, Limitless Variations
The market’s been nuts. But when you get right down to it, the key patterns remain the same. They may present themselves differently and show variances, but the basics are pretty constant.
This is part of why consistency is so important. During times like this, “tracking your data and being here every day” is the best approach, says Tim.
The crew talks about the difference between day trading and swing trading during the pandemic and why day traders need to spend a lot of ‘seat time’ to keep up.
Getting the Right Trading Setup
During volatile market conditions, staying organized is incredibly important.
Tim, Kim, and Stephen talk about the importance of having a trading routine as well as having the physical right setup.
Listen in for a conversation about things that most traders don’t think about, but probably should — like ambient noise or lack thereof, how to stay sane if you’re trading with other people around, and how many monitors you really need.
Making the Most of Your Time
One thing’s clear as we’re watching stock market history being made … Time’s been a little screwy during the pandemic, hasn’t it?
The crew talks about the ‘no days off’ mentality and how it can serve you well as a trader. Even when the market’s closed, there are ways to get a little better and a little smarter every day.
For instance…
- Brush up on patterns
- Catch up with the news
- Go back and listen to the SteadyTrade archives
A commitment to bettering yourself in small ways can give you a major edge in trading.
Maintain High Standards
Is it really such a bad thing that the market’s slowing down a little?
Everyone wants action, but Tim says “you should relish these slower times because it gives you time to focus on your process.”
Stephen talks about refining your process, noticing the trends moving the market, and the joy of being more selective with your trades.
Kim wants to know how to cope with the market slowing down. Tim and Stephen talk about knowing the difference between calm and crazy, and how to deal with both.
The episode ends with each co-host offering predictions about what the market could hold this fall … You might be surprised about who’s bullish and who’s bearish!
How’s Your Summer Trading Going?
Have you been actively trading for the past three months? Are you loving the craziness, or is it overwhelming? What do you think about this insane moment in stock market history? Let’s talk about it!
Remember: if we select your question or comment as an on-air topic, you could win a SteadyTrade mystery gift box. Leave a comment below or on YouTube!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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