Is the call-out culture out of control?
Call-out culture, also referred to as outrage culture, refers to a sort of public shaming. It’s where people put a spotlight on the offenses others commit.
You’ve probably noticed this phenomenon has been ramping up in recent years … But what you might not have noticed is that it affects not just society, but the stock market too.
And as SteadyTrade co-host Tim Bohen shares, he’s taken advantage of several recent trading opportunities triggered by outrage culture.
Listen in to hear about these trades … and catch a fascinating conversation with co-host Kim Ann Curtin about the connections between cultural events and movements. And learn how those connections can create opportunities for traders.
A Trader’s Secret Weapon
The world of penny stocks is chock full of informational inefficiencies. This means that the easy entry into trades and constant access to information can create tons of volatility for low-priced stocks.
In short: even the slightest whisper of news can create huge spikes in stock prices.
That’s part of what makes penny stocks kinda scary … But it’s also what gives traders the potential to profit big in trading. Unfortunately, it’s also part of why so many traders lose big.
So how can you use informational inefficiencies to your advantage? Learn to think for yourself.
Don’t Be a Follower
According to Tim, one of the first steps to taking advantage of these opportunities is to calm down and be curious.
Instead of getting involved in the next Twitter war, why not sit back and watch how it affects the market? This could clue you in on potential trades.
Sometimes, the very news stories that create outrage can drive stock prices up or down. But that doesn’t necessarily mean you should follow the pack.
There’s more to it than that … smart traders always think a few steps ahead.
News That Moves Stocks
As Andy Warhol said, “Don’t pay any attention to what they write about you. Just measure it in inches.”
In other words, any publicity can be a good thing. Let’s look at a recent example. Home-fitness startup Peloton had a recent commercial controversy. (Haven’t heard about it? Read more here.)
The company’s recent ad caused a huge debate: is it offensive or not? That’s a pretty big can of worms … and Tim and Kim both have plenty to say!
But regardless of your personal thoughts on the issue, one thing is beyond debate: the commercial acted as a huge, price-moving catalyst for Peloton stock.
In this case, the fact that Peloton is in the media gives it a bigger audience. That alone is moving the stock without any real changes to the company’s business model or product.
So how can you as a trader take a longer view? How can you stand back from the crowd and make smart, thoughtful trading decisions based on catalysts like this?
The Need For Weed
Tim and Kim also discuss another recent news debacle that had a huge effect on a stock’s price: when Elon Musk smoked pot on “The Joe Rogan Experience” podcast.
When they lit that joint, everyone exploded … and the Tesla stock took a huge nosedive. A lot of followers believed the stock was ruined and jumped ship.
But those who didn’t play into the mob mentality made out great. Not long after that, the stock recovered and reached all-time highs.
Don’t miss the fascinating conversation about separating yourself from the mob…
… and how amazing things can happen for traders who learn to think for themselves.
Some of the top traders in the world who were profiled in Kim’s book are independent thinkers. Learn how you can adopt some of their best practices and apply them to informational inefficiencies!
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Hey … What Do You Think?
Did you find this conversation thought-provoking? Do you think you can profit from an outrage? Leave us a comment and tell us what you think!
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