Kim’s trading education continues! This week co-hosts Tim Bohen and Kim Ann Curtin talk about how to find stocks to trade … specifically, they look at hot sectors, sympathy plays, and trends.
Most traders have limited time. So figuring out a theme or an angle can be a great way to quickly narrow down the many stock choices out there. Learn to be smarter with your time and mental energy … Learn to focus on the best trades setups!
Kim’s Trading Idea
The concept of minimalism is gaining traction in society … Marie Kondo, tiny homes, James Altucher’s books are gaining popularity. So are documentaries like “Minimalism: A Documentary About the Important Things.”
Kim came across a company called Joymode recently. The company rents all sorts of objects or equipment. It’s for people who are trying to simplify and rent versus own. It made Kim wonder … could I trade this company?
This company hasn’t gone public … yet. But can Kim find opportunities by looking for similar companies in the sector?
How Sympathy Plays Work
Once one company in the sector gets hot, other companies often follow. We saw it with pot stocks and electric cars.
In the episode, Tim breaks down how sympathy plays work. Tune in to learn how to identify these hot sectors and start looking for potential tickers.
From there, he explains how to use tools on a screener like StocksToTrade to find stocks to watch. You can create a themed watchlist to monitor the progress to see if it fits into your trading theory.
Short-Term Trading and Trends
Day traders don’t have a long-term, Warren Buffet–type mentality. You’re not hoping to make money 40 years from now … You’re trying to earn profits based on very short-term trends.
That’s why it’s key to maintain a watchlist and track hot sectors. It’s one of the best ways to ensure that you’re ready to pounce when the right opportunities come along.
Tim talks through how sympathy plays play out in terms of price action. You’ll learn how news can create a buzz around the stock … and how the ripple effect can spread in unexpected directions.
How Trends Evolve
As trends unfold, interesting things can happen in the stock market.
Tim and Kim look at how recent trends have evolved and played out in the market. For instance, how has a phenomenon like Uber affected the stock market?
Also, what lessons can you learn from companies like WeWork that don’t succeed at going public?
Trading Trends: Important Considerations
Interested in trading the trend? There are some important things you should consider first. For example…
- Trading the ticker versus the company. Tim talks about the difference between believing in a company and trading based on the price action.
- How smart traders capitalize on a trend.
- How much time should you spend trying to forecast tomorrow’s trends? And how much time should you spend looking at what’s already trending?
Join in on the Fun!
Join the challenge! Tim has homework for Kim based on her general trade idea. Wanna join?
Listen to learn what Tim suggests as Kim’s next steps toward working with the trend she identified. And how she can find potential sympathy plays.
Can you play along and find opportunities in the niche that Kim discovered? Help us create a strong watchlist!
Tell Us What You Think!
What do YOU think about trading based on trends and sympathy plays? We love hearing your thoughts!
Thanks for tuning in to the SteadyTrade podcast. Stay tuned for weekly episodes featuring the hottest topics for aspiring traders.
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