In penny stocks, there are seasons and there are trends. Last year it was cryptomania. This year, the marijuana sector is blazing hot. As a trader, how can you identify and take advantage of these hot sectors? What are the best strategies, and how can you approach trades with a small account?  

In this week’s episode, hosts Tim Bohen and Stephen Johnson address these hot topics regarding hot sectors. As a bonus, they’re broadcasting with a live audience, so there are plenty of hijinks and an informative Q&A session following their discussion.

Up for a Drinking Game?

If you’re a regular SteadyTrade listener, then you know that host Tim is prone to overusing certain words and phrases. We call them “Bohenisms.” In this episode, Stephen is challenged to take a drink every time Tim uses one.

Hilarity ensues as the episode goes on. Spoiler alert: You’ll also be treated to the best monologue of the entire history of the podcast when Stephen is about six beers deep.

Identifying Hot Sectors

As Stephen gets increasingly plastered throughout the episode, he and Tim discuss all things hot sector related.

Identifying hot sectors usually isn’t hard — it’s about following the news and noticing trends. If you’re out there, you’ll notice.  

What’s trickier is how to take advantage of this sector momentum and find the right stocks to play.

Tim imparts wisdom on “building a case” for a given stock. You’ll gain tips on how to narrow down your choices by looking at who is finishing strongest for the day, what kind of catalysts to look for, and more.

You’ll also learn about what type of fundamental and technical analysis to employ to figure out the best ways to take advantage of the sector, no matter how big a position you intend to take.

Finding hot sectors could be even simpler- with the right trading tools! With StocksToTrade, you have access to Oracle (our most powerful scanner), along with filterable news, and scanners that Tim and Stephen both use on the daily. You can try it out for $7 here. Stop wasting time piecing together information from multiple websites… it’s time to simplify the way you trade.

What to Do When a Hot Sector Hits

It’s a common misconception among traders that to be active, you need to be trading every day. This couldn’t be further from the truth. Even master traders like Roland Wolf might only make three trades a week, and he’s a pro!

Never trade because you’re bored, and never trade because you think you should. Instead, follow the market. Be willing to have restraint and improve your knowledge base when the market is slow.

But when there’s a hot sector in play, be ready to take action! This is when you can put all your hard-earned knowledge and strategies to work.

The Power of Adaptability

No matter how hot a sector is, remember, this too shall pass. The market will change, and you need to be ready to adapt when it does.

If you’re unwilling or unable to adapt, eventually your techniques won’t work anymore. Listen to Stephen’s advice here: his inability to adapt led to two back-to-back $5k losses not too long ago!


Since this episode is recorded live, it also includes a Q&A session with the audience. Throughout the thought-provoking questions and commentary, you’ll hear all about:

  • Stephen rehashing the emotions of his biggest losses, and offering tips on how to recover and get back on track if you notice that you’re on a losing streak.
  • Finding your edge. You can look at other traders for ideas and inspiration, but you need to find your own style.
  • The importance of discipline: Why you need to focus on building your knowledge base and your account incrementally rather than focusing on getting rich.
  • What makes you a great trader? Tim and Stephen weigh in on what’s important and how to get into the right mentality to help make it happen.
  • Motivation, or lack thereof. Tim and Stephen talk about the right mindset for trading, and how you should never, ever trade bored.
Curious About Something?

Do you have a question for Tim and Stephen? Visit the “submit your audio” portion of the website to ask us anything.

Thanks for tuning in to the SteadyTrade Podcast. Stay tuned for weekly episodes featuring the hottest topics for traders of all levels.

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