Can the stock market boom its way out of this recent lull? 2020 had us glued to our screens! But it seems the year-long frenzy is already a has-been…
In this week’s episode, hosts Kim Ann Curtin, Stephen Johnson, and Tim Bohen talk about the shift in the market.
January 2021 still had us going. Stocks were riding high. Many traders thought the market boom would last forever. Then the choppiness set in.
All of a sudden, gains weren’t a sure thing. But is the market just taking a spring break? Or is the sideways action a new trend of its own?
What’s an idle trader to do after a year of intense dedication? Well, for one you can prepare now for the inevitable comeback…
Remember, markets move in cycles. Eventually, the busy days will return. This week, the team shares the best ways to spend your time while the market mania takes a hiatus.
When’s the Next Market Boom?
2020 was unlike anything any trader had ever seen. Bohen’s been in the game for more than a decade and he was blown away by all the green days.
Some traders worked hard to capture as many opportunities as possible. In a market boom like no other, every trade counted.
But that style isn’t for everyone. Some people prefer to narrow down their watchlists. Even so, having more opportunities than you need feels pretty amazing. And it can accelerate your growth.
So what do you do when things slow down? And how long will they stay slow?
Many traders wonder if it’s a matter of running out of luck…
Kim doesn’t think so. Not after what she read in Andreessen Horowitz’s blog ‘“Buy and Hold” No More: The Resurgence of Active Trading.”
Turns out, many Americans think they’re savvier than the next trader. And this overconfidence brings more active traders to the market. It might just be this self-fulfilling prophecy that creates another market boom.
And the trend has been increasing over time. Once you catch the trading bug, it’s hard to quit. So what exactly will it take to bring everyone back to their screens?
What Do You Do During a Lull?
Let’s check in with our hosts to see how they’re handling this slowdown…
Stephen says he feels disappointed with the one-and-done nature of WallStreetBets and GameStop Corp. (NYSE: GME). It seems it was a once-in-a-decade event, and he had hopes it would happen again.
So he wonders if after all the media buzz the hedge funds won after all. Are we back to the status quo?
As for Bohen, he remembers when the market shifted around 2015. He was happy shorting one-day runners until volume suddenly exploded.
“Guys left their Goldman Sachs desks to push around low-float stocks.” When you’re focused on small-cap stocks, $10 million in a trading account is more than enough.
But the market always changes, and you have to be ready for it. Bohen took advantage of the slow market to escape the grind and vacation with his family. He reports they loved every minute of it! His wife is a social butterfly. They loved chatting up strangers and seeing people smile in the Florida sun.
Kim’s looking forward to a vacation of her own in September. And she got vaccinated on a lark when she got a tip about extras at a pharmacy. She’s also celebrating the success of her own Instagram Live sessions.
Kim’s touched to see the traders in her community finding buddies and supporting each other. Whether we’re in a market boom or a market lull, it’s great to find friends who trade.
No Market Boom? Protect Your Gains
It’s not easy for everyone to take a break and enjoy the downtime. Stephen finds himself “d-gen trading” (d-gen is code for degenerate). He says he can’t help being addicted to the trading desk.
And while his latest trade didn’t go well, there was a reason for him to believe it could. Listen in to find out which stock Stephen traded and why Bohen agreed it had great potential, even though it didn’t pan out.
While it’s tempting to trade anything that looks like an opportunity in a slow market, Bohen’s learned to manage his d-gen habits and walk away.
As a recovering trade-a-holic, he says he hasn’t defeated overtrading. Instead, he manages it. And becoming a trading teacher was a big part of what helped him. Find out what inspired him to mentor other traders through their own dark times.
Kim is also a big fan of education. She believes there’s always more you can learn. Sometimes you need to stop being active in the market and start absorbing new information. Find out which topics she thinks traders would be wise to learn more about.
This episode is jam-packed with trading wisdom and personal journeys. Listen in and prepare yourself for the next market boom. Plus, Kim and Tim share why they think the lull won’t last!
What Do You Think?
Do you have patience during the lulls? Are you itching for the next boom? What keeps you busy when things are slow? We’d love to hear what you think, so drop a comment.
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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Meet Our Hosts
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Kim Ann Curtin