Around this time of year, everyone’s got goals and resolutions on the brain. The Steady Trade Podcast is no different! In Episode 22, hosts Tim Bohen and Stephen Johnson talk about taking your trading to great new heights in 2018.
Where is the market this January? How has the market changed in the few weeks since it was 2017? What’s working, and what’s not? Tim and Stephen open up about their thoughts on the financial landscape for the year ahead, discussing what they see happening in the market right now, and their personal goals for trading in 2018.
How is 2018 going so far?
The market so far in 2018 can be summed up in one succinct word: interesting. Tim observes that so far, the year has proven to be a “chaser’s market” (or, as Stephen counters, “a short seller’s nightmare”), with stocks going further than either of them could have imagined. They discuss the direction the market is going (marijuana, consumer electronics, and Chinese stocks) and evaluate some specific examples.
Stephen’s year started out well, with a $300 score on his very first trade; unfortunately, he wasn’t necessarily been able to maintain that trajectory. This leads to a conversation about how even though a specific style of trading may have worked in the past, it doesn’t always mean it will work in the future.
So does this mean he should change his approach? Will things level out? What is a trader to do when the markets are as explosive as they are now?
Follow the market.
As Tim observes based on Stephen’s frustrations so far in the new year, a losing trade is not necessarily a bad trade. If you made a plan and were not too much of a dreamer or chaser, a losing trade doesn’t necessarily mean you did anything wrong.
However, it does mean that you need to take stock of what is going on in the market right now. In spite of your personal preferences, and no matter what has successfully worked for you in the past, you have to adapt and follow the market’s lead.
For instance, if you’re used to selling and buying in a certain way but the market is taking a different trajectory, you’re bound to lose money if you just try to stubbornly stick to the same old system. Being too aggressive hasn’t worked for Stephen, so now he’s wisely choosing to adapt.
The idea that methods that worked even three weeks ago now feel obsolete can be scary and leave you feeling like a deer in headlights.
Tim offers specific suggestions for how to remain relevant, including approaching the market like a hunter. Always be aware of everything that is going on around you, and use the tools that you have at hand. Educate yourself: read the news, read Reddit, use the keyword search function on Stocks to Trade. Be proactive, not reactive!
Predictions for the year ahead
Four years ago, many people were quick to say that the market was nuts. Now, to channel This Is Spinal Tap, it’s “up to 11”.
One big prediction? The number of traders will only rise. Right now, there are more traders than ever, and that trend is unlikely to reverse anytime soon. There’s an unprecedented amount of stock participation; with low commissions, low fees, and an extremely high accessibility, any and everyone is a potential trader.
To really separate yourself from the pack and help ensure that you’ll be one of the traders who succeeds, it’s important to learn the basics of trading now, so that you can take advantage of the great tools that are at your disposal.
Tim and Stephen also discuss their thoughts on current trends, including cryptocurrencies and what else to expect in 2018. Believe it or not, Tim and Stephen agree on many predictions for the year ahead!
To close out the episode, the hosts reveal their personal goals for 2018.
Stephen enjoyed his first profitable year in 2017 and would love to continue that trend in 2018. He and Tim discuss specific actions he might take to help improve his odds of attaining success. Oh, and Stephen would also like to get a girlfriend, but maybe we’ll leave that for another episode.
Tim wants to continue to grow Stocks to Trade. His job title is Lead Trainer, and to him, that entails making as many consistently successful traders as he possibly can. Stocks to Trade is the vehicle which allows him to do that, so his focus will be on doing whatever he can to make that happen!
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Stay tuned for Episode 23!