Ep 156: Stock Trading Webinar Q+A (Oct 2017)
October 12, 2017Welcome to the session live webinar class. Thanks for joining me. It should be a good one. I appreciate you joining me and if you have questions go ahead and ask those questions in the Ask & Questions Section.
My goal for today is to answer your questions in as much detail as possible and as honestly as possible. And give it to you straight from all my trading experience and what I’ve done over the years.
I won’t be able to tell you how to manage a hedge fund, but I’ll be able to tell you how to get things started. I’ll let you know how to get the process started if you’re looking at any specific stocks. I’ll show you what to watch for as well.
Let’s take a look at some things overall in the market today, and that’ll be my goal.
If you have any very in-depth advanced questions that I may not be able to cover throughout this session, feel free to reach out to me. It’s not a problem by email, and I’ll try to even make a quick little video clip personally for you.
Disclaimer
Keep in mind that all the trades are not recommendations to buy or sell any stocks or securities. It’s for educational purposes.
Some of The Questions We’re Going To Go Through
We’ll cover these questions:
- How easy or difficult is it to earn $1,000 per month trading stocks as a newbie with two thousand dollars to invest?
- Can you explain what is back-testing and give some examples?
- You look at the chart for Nike and SNE and tell me what you think. I recently purchased a few shares in both. I guess the best route would be to wait for hire green volume before getting in more.
- Can you talk about how to rent stocks? Is there such a thing in North America?
Let’s go in detail in a few of these questions and then we’ll get back into the market overall.
Question about Renting Stocks in North America
As far as my understanding goes, I don’t know of anything regarding renting stocks. I’m not sure what you mean by renting stocks. When we talk about building a website for businesses, this is how it goes. I know that new industries built out websites and then you can rent a website. That way you change your phone number around and the leads are going to you.
As far as renting stocks I’m not sure if there’s a way to rent stocks or rent the profits. My answer to that would be simple. No, I don’t know about it. I’ve never heard about it, and I’m not sure exactly what you’re referring to when you ask that question.
Question about Earning $1000 per Month
As far as looking at how easy or difficult is it to earn a $1000 per month trading stocks. And all that as a newbie with $2000 to invest. This depends on your strategies and your risk levels. I hate to be the bearer of bad news but let me give you a little calculator here real quick.
Right here when we’re looking at making $1,000 per month trading stocks with two thousand to invest, the first thing you have to think about is what is the additional capital that you have on the sidelines — that capital you need to put in when things go against you.
If you’re looking to invest $2000, you’ll probably only want to put on the line $1000. Or even if you go the one percent route you know you could also put in a $100. It’s a lot less of an amount. Let’s say $2000 and let’s say you’re making a 50% return on investment.
In that case, you could make a $1000, but in general, 50% investment is quite huge. It’s not something that most people can do. I would say if you’re starting then what you’ll want to do is shoot for probably 1%. Okay, you’re making $10.
If you’re looking at $2000 and putting all that money in right there, then you’ll get $20. That’s what I would say is a starting point if you’re new because you’re not going to start to build up a business that’s making $50,000 a year. Unless you have things skyrocketing and things work out in your favor.
It does happen, but it’s not going to be your first month in business. As far as difficulty making $1000 per month, a new investor with $2000, it’s challenging. You got to put in that 5-10 years of training first then maybe it’s possible. But the first month probably very difficult.
You got to be making 50% to be able to make a thousand, and that’s huge. I wouldn’t expect that from a new trader.
Question about Robin Hood Trading Platform
I think if you’re referring to Robin Hood trading platform then it’s a cell phone trading platform.
Most brokers are $5 or $1-$ two depending on how many shares you’re trading. This is a popular trading platform because you trade for free. You’re able to trade for free, and you get real-time market data.
There are some issues with this platform:
- I don’t like trading on a cellphone platform
- They need to make their money still some way
- An issue that goes into when they do the clearing
Issue #1
There’s a big issue with that for me because you want screen real estate as a trader you want to get in things to get out of things very quickly. If I were to use this platform, I would probably use TeamViewer to connect into it and use my mouse and keyboard to manipulate the cell phone.
Because you have to use your cell phone to trade it, or maybe even use an application like on Google Chrome to use these applications.
Issue #2
They have to make their money in some way to execute a trade. Because the exchange is still charging them a cleaning fee, no matter who you go to there are clearing fees. That means if you go to even some of the popular brokers (like tasty works) they’ll also talk about very low commission rates.
All closing trades even are $0, but you still have clearing fees. Because they still have to pay for it.
Big Question: How is it that Robin Hood gives you these trades for free?
Well before we get there let me explain. The first thing is I don’t have an account with Robin Hood. But there’s a lot of stuff in the industries I’ve heard and seen, and I understand how they work.
The first issue is you can’t short any stock. If you’re looking to short stock, you can’t borrow it. That means if you need to hedge a position that becomes problematic with a more extensive account.
The second issue is you can’t hedge when it comes to options. If you have a thousand shares of Tesla and you’re looking to sell some call options against it (in case the stock pulls back so that way you can make some money again) you can’t do that either.
Issue #3
Think of it this way. When you have a business the only way that they can do free giveaways is if they’re looking to have expectations of future sales sometime in the future.
They mention that their profits come from partly investing the remaining capital that’s not on deck or that’s not funded. But then also they have partnerships and deals when it comes to the platform. And those partnership and deals are where they send your orders through.
Let’s say you have company A, B, C and D. What they do is they have a partnership may be with company C and D but it’s not always the best fill rate. Take for example if you’re getting into stock and the stock price is $55 plus clearing fees Robin Hood may give it to you at $55.75. You’re paying an extra quarter or seventy-five cents per share or trade execution to get that order through.
That’s how they make their money on the back end. Because they have partnership deals, they funnel it through their system and their partnership deals. And that’s how they make money.
I think they’ve been getting away from that because people in the industry saw that. It slowly spreads through word-of-mouth how they make their money. You have to be able to make money to be able to sustain a company.
For me, I need to be able to trade and make profits to stay in the business of trading. The same thing is with selling courses. If that business is to continue to survive, I need to be able to sell products, classes, books and that kind of things.
The same thing is with Robin Hood. They send it through their partnership deals and make a little bit on the cut. That’s why you get a worse fill rate. It’s not necessarily bad, but it’s not as great.
Question about Charting for Intraday (Tc2000 or Thinkorswim)
Who is better for who’s better for charting for intraday trading at TC2000 or Thinkorswim?
This is a personal preference. I mean there’s a handful of different companies out there that’s great for charting and stock trades. I liked TC2000, and I’m comfortable with it.
You can execute the orders right away in the Thinkorswim platform. There are other great trading or charting platforms. If you look at the trading view as well, sometimes they’re also outstanding. They have more of a real-time I find than TC2000.
But I’m not a fan of the scanning feature. Because I’m more used to TC2000, but it’s a personal preference. Whatever works for you then use those tools. That’s all it comes down to.
Quick question: What car is better? Is it a truck or a van?
Well, it depends. If you need to carry eight people on a road trip, probably a van. If you need to haul lumber, maybe a truck. If you need to tow something, perhaps a truck could be better.
It’s just personal preference. Which one you think is better and works for your needs that’s what it comes down to.
Question about Back-testing
Backtesting is looking at the history of things and seeing how that would apply in the future as far as your results.
Whether that’s profit and loss or how the strategy would do, and when we look at Thinkorswim what’s interesting about this is they do have different back testing strategies. Other brokers have great backtesting things. They also have an on-demand platform that you can go back in days and put in and execute orders.
The whole point behind backtesting is to see if your strategy works. You could do it manually by putting the orders in and seeing it day by day. Or you could do it systematically. The way you would do it systematically or automatically is you go into studies, then edit studies, and then there’s a strategy.
studies > edit studies > strategies
You can create a new strategy, and then you’ll name the procedure and start scripting.
There’s a lot of functions in here that you can use. There’s a lot of editors and script editors that you could do and formatting the code. You can see some studies are pre-designed (like Bollinger Bands). But you could custom code, your strategy, and style and then input it, and run it throughout your chart.
Once you see that then it’ll tell you your profit and loss for that timeframe. Anyways that’s how you go about doing that backtesting, and that’s how you create a script on the baseline. But it could take an hour or two to create one depends on how complicated you want to make it.
Question about Ticker Symbols
Let’s look at overall market conditions. Keep in mind right now we have earnings that are coming right around the corner. Tomorrow we have JP Morgan, Citigroup and then the next day we have Bank of America and a couple of other financials.
We have the earnings season kicking off. Already there’s a few that are released, but earnings season is coming right up and in the forefront. And with that in mind, you need to be careful of the stocks that you own.
Don’t miss the earnings and be naive to think that your stock is going to go up or your stock is going to go down. Make sure you understand the risks involved. That’s important because they can jump high during earnings or sink low.
If you’re trading ETF like SPY or doing options on the SPX or UT, then that’s a different story. You don’t have to worry much about earnings. You don’t have to worry much about fundamental analysis. But if you’re doing stocks then keep in mind the earnings season is right in front of us.
Looking here at the overall SPY today market continues to trend real high from that moving average. If you look at it, we’re at 47.6 million shares and 43 the previous day.
We’ll see what happens tomorrow morning with those earnings. That’s what’s going to move those these stocks one way or the other based on that sentiment.
If we look at Nike here on the tickers, we can start with the monthly or even quarterly. When we take a look at this company overall, it’s had some excellent growth. We’re a bit extended if you look at the long long-term picture right the long-term view.
If we look at the monthly, we’re doing okay. That’s because we’re coming right into an average moving average right there. And we’ve been consolidating in this range and this base. That gives us almost a two-year consolidation pattern.
In that case, it looks okay. If we look at the weekly, there’s our consolidation pattern. I’m also checking the volume here. You’ll notice that volume was picking up lightly, but then we’re decreasing a little.
Right there you can see there’s that decrease in volume as we skyrocketed high. Consolidation is, and as we go back into the weekly you can see the stock attempted to break out (in June, July time)
But it couldn’t hold it. It couldn’t get back above that $60 price level. There was some resistance, so you could say on a shorter term this is our little sideways consolidation move. You can also see how this lines up clearly. Let me pinpoint a few swings points out. You can see it touched it perfectly.
A handful of points were hit at rejection spots, and now we’re coming back to test of 50. When I look at this stock 50 is the line in the sand. That’s the critical point you want to watch. If we get a bounce at this level should be good again for a little bit.
I would take some profits in the 60 – that would be my plan. If you’re trading options, I will sell some puts. If you want to go short wait for the bounce and rejection at 60 and you could potentially sell some calls on the dull side of things.
You could do something like this:
- butterfly strategies
- calendar strategies
- iron condors
- so many other strategies
But, that’s more complicated. What I’m seeing is there’s a lot of rejection, but this market has been pushing higher and higher.
If this breaks lower, you could see an accelerated sell-off. On the other hand, if this stock breaks lower, I would also expect other stocks like Starbucks to break lower just many other companies that will unwind altogether. In either case, this was digesting. It’s been almost two years, and it’ll probably continue doing it for quite some time. Until that 50 is broken or we get a bounce.
A risk to reward, give it a couple of dollars ($48) if you’re doing a stop and see what you get if the volume coming in.
Right now there’s some bearish volume right there. I don’t like it because we have a few higher spikes. I would like to see this died down in bearish volume usually. And then you’ll see the bullish volume pick up if it’s a favorable view of it. In this case, you’re holding flat and level with the volume.
Sony and SNE – The Flare
If you look at SNE or Sony, I want to say to you that I call these stocks the flare. That’s because what they do is they explode they flare up, and then they die down. Anyways when we look at this, you always start again with the monthly. You look at it, and then you get closer into it. And you start seeing what’s the volume telling me.
What’s the longer-term picture telling me?
It seems like a lot of times, especially over the last 17 years the stock historically anytime it gets wind, it looks to sell off. It’s not one that people are buying a lot into.
I’m wondering if there’s a lot of overhead supply over here that people are trying to get out. I’m not sure if that’s the case because we have a lot more volume. Generally, if that were the case, there would be more volume earlier. But in this case, what’s happening is we’re still getting a lot of selling action around this range. And then if we start looking it over here, you’re seeing that at this level (which is right around $40) we’re also getting some rejection.
I know that the bigger picture is – that flare is dead. The flare has been dying out after that significant initial spike. The stock was a big point, but now the flare is losing steam.
Could you get some pops here and there like you did here in 2016 or even a breakout a little in 2017 for a $5 here and there?
Yeah, you could. But is it one that attracts me? Not really. Because the volume here is light, you can see the volume also continues to decrease here as we look at it.
I’d much rather see as an increase in volume. If we started to notice, volume picking up that would be a lot nicer. When you look at Tesla, and we look that the volume began to pick up and started to hold. That’s what you want.
You’ll still have some selling spikes, but you want growth in volume on the upside moves. And we do not see that with Sony. You got a one or two spikes, but overall it’s still to the downside.
Question about The Right Time for Ordering ETF and Options
Would it be better to start ordering ETF before start ordering options?
You can trade ETFs any time you want. I think they’re better to trade before you start trading stocks. The reason is you don’t have to worry about earnings and the movements behind them. There’s a lot less volatility but usually, make less money because when it comes to trading, you want volatility you want a higher VIX.
Not a crazy VIX, like at 20, but 16-14 is ok. You want more volatility, and that’s why people like those more volatile stocks like Tesla. Because they move, in this case, I’d say ETFs are a good starting point then maybe getting into stocks then options.
That would be a better approach for educating yourself. It’s merely because the options are more complicated.
Quick question: Could you jump into options?
Yeah, you can. But the learning curve is probably going to be a little slower. And it’s more complicated of a subject matter. There’s much more education you have to do before you see some results. Or before you’re able to do anything.
Question about Indicators and What to Trade?
What do you trade? Stocks or options? What indicators do you?
I prefer options at this point in my life. Because it’s simple. For me, it’s more advanced strategies that you can do. I will trade stocks from time to time, but usually, that’s more longer-term investing. That’s where I’m placing my money on the stocks and letting them go.
There are some advanced Options strategies that you can mix – stocks and options like theta scalping and gamma scalping.
There are some advanced strategies, but you need a lot more capital to go ahead and do that. And also you need more of a volatile market. The thing that stinks with this current market is the VIX is so low. That means that a lot of strategies (day trading swing trading) and it’s tough to trade in these market conditions.
It’s hard with a lot of computer trading, algorithmic trading. It’s only because there’s no market. There is no movement, and if you look as well with the SPY or y or the SPX, we’re moving four or five points.
In five days, you’re moving like the seven or ten points. And sometimes you get these breakouts where they move a little bit, but there is the issue. You can’t get in on dips like this and then expect huge pops.
If you go back in 2010 and 2011, you can see it’s much easier to trade. That’s because you have all these pool backs that happen. And there’s movement in the marketplace. Nowadays, it’s a little more difficult to trade. But if you’re looking for stocks or options, it’s not our personal preference and experience.
When it comes to indicators, I keep it simple.
I look at:
- price
- action
- the volume
and that’s it.
The behavior is the price action. The chart will tell you everything you need to know. There are no real indicators that I look at. I will scan and jump on an indicator from time to time. But it’s 1% out of the 99% of the things that I look at. That’s just because a lot of times they confuse you.
You can get everything right from this chart. If I looked at Bollinger Bands, I already know that this is stretched from the price. How do I know? Because of the moving average. I know that this is contained within the Bollinger Bands. When I pull up the Bollinger Bands, you can see right there.
Here are our stretch points, so you could see because the moving average is already right there. You can get that from the chart itself. You don’t have to use any indicators. Now sometimes I have some chart setups like this. I like the three timeframe view.
If I look at the SMP, I might do a 30-minute then a daily and monthly to get a bigger perspective.
It shows me the short-term then I might get a daily intermediate term and a monthly big picture view. You can get a glance where is that resistance and where is that support.
I’ll start looking at things like that. Sometimes that’s helpful, but I don’t look at it. I have some of these things on there, but I think I look at it maybe once every two months or three months.
Mostly, price action and volume it’s pretty much all you need. It does take time to get there to understand the charts and a lot of practice. But if you keep it simple, you learn about price action and volume. You don’t need to complicate your life.
Question About Replay Platform
Who has the best market replay platform?
I use Thinkorswim on-demand, but they only have to playback speeds.
When I was starting, they didn’t even have that at the time. I had a bunch of different brokers. Thinkorswim have the best one from my experience. However, I haven’t used the playback features on any brokers.
Because of that, I couldn’t tell you of any of the new ones. It might be good for me to sign up to a couple more brokers and investigate those tools.
t I know Thinkorswim does a great deal for that. Much better than most or any brokers out there from my experience.
Question about Tools I Use to Check Certain Things
What is the name of the tool that you’re showing to check the stocks, S&P…?
This is called the TC 2000. There’s also a coupon if you go to the traders fly website and you go to the resources.
It’s TC 2000 by Worden, and that’s what I use. There’s a lot of tools here, and if you go into the start section, there are more tools. I’m planning to upgrade a few of these things as well and adjust some things because I know TradeKing got bought out.
I think there’s a $25 discount for you guys. Feel free to check it out. TC 2000 it’s not free, but it’s worth the service if you’re big into charting. They also have free stockcharts.com which you need internet explorer to use the service.
Question about the Average Moving Line
What is the moving average line on your volume and could you mention how to use 80?
The more important one here is the moving average on my volume. Well, why do I have this? Think about it. Why do I have the 20 moving average on my volume?
I like that moving average because it gives me an average estimated price or volume throughout any period. The reason I use 20 is that there are 20 trading days in a month
That’s why we use 20 on the moving average for the volume. There are 20 trading days in the month. That way we get to see a monthly average of that volume. I hope that makes sense.
Question about Apple and The Way They Rolled Out
Do you think that the way they rolled out the I 8, I 10 messed up the price action in Apple?
No, I don’t think the iPhone rollout, messed up the price action. Already the stock was priced in. I got a little above it, but it wasn’t able to hold it.
We had this pullback. Now we’re getting a little retracement, but it’s on lighter volume. If we reject here, we could see an ABCD pattern forming. That’s something to be very careful about. Because we have 52.9 million shares and that bar and we’re trying to do 15.6 million.
Can it still go higher? Yeah, it can. But you have 52 million shares sell side going into 15.6. That means it’s a little tougher if you take a look at some Fibonacci sequences on a retracement level.
Look how perfect this lines up on a 50% level. That fibs aren’t always reliable. But you can see it lines up real perfect and we still got a little above it right there. Look how perfect that lines up.
I don’t think their rollout was a problem or a mistake. I’m not a fan of Apple products. However, I like their stock. It trades well a lot of liquidity. But the products are not my taste but they branded it well, and people are sucked into it.
In the case point being here is watch that 150 or 158 level and see if that gets broken. I think the issue with Apple is there’re other companies that people are picking right. And the price action it’s got extended, then a pullback. We’ll see what happens here.
The other thing that happened the other day is there was a misprint in one of the news articles for the Apple stock. They said that Google was buying Apple for like 9 billion.
But, “Sorry that was just a test” – Dow Jones said this. After that, all the robots and algorithms kicked in and bought up the stock. They were assuming it would go higher. Some investors lost money there.
Question about Volatility
How and where do you go to see if volatility is coming back?
I usually look at volatility on the VIX to see how much potential there is and how low things are. You look at it as a band. Fifty is a little high and extreme relative to the overall last twenty years. I doubt we’ll hit those levels.
You start looking at things like where’s your range your weekly range. I would say it’s here you’re trading at right here.
Let’s stretch this out a little bit. If we go a three day and now you can see where the excellent core levels are.
That’s the average where you want to be. Right now we’re at the lows, and I would rather see it somewhere in the 16, 15. That’s a nice sweet spot. If it gets in the twenty, it can be a little bit panicky, and you can get corrections in those situations.
But a nice sweet spot is 14, 15, 13, 16 is good volatility. It’s surprisingly nice for trading and if you can trade short and long. There’s usually more sell-offs. Typically volatility goes up when markets sell-off. The professionals want it to sell off. But keep in mind they also want to liquidate their positions and let the other people hold their back.
They need to get out a lot of shares if they do a flush and a dump then they lose money. That’s what they do. They unroll positions, and then eventually they dump it. That’s where the crash has come in. That’s where the pool backs come in is when they start dumping significant shares.
Look at P&G. All of a sudden you had some people dumping and flush it all in one day. You can get a massive sell-off. Some people will repurchase it and buy into that. But when you have a significant flush especially to the whole market, it’s remarkably lovely trading for people that can go long and short. It’s merely because you have more volatility that creates higher option prices.
It allows you to trade options more frequently. Also, it will enable you to sell more premium. You can buy on dips, and then you get sweet pops.
I’ve thought about it when you had the Brexit timeframe. When you have this, and then you had a pop. Those are excellent points: pullbacks and pops. Anytime you get a pullback you get a nice extension. Nowadays with this market, the risks are you haven’t had pool backs.
Anyways, do you know when it’s coming back? It’s hard to say with more robotic trading. It’s slowly dying out I guess you could tell.
Question about AMAT
If I purchase it at 49 what is my risk to reward ratio?
Look at the monthly chart. It’s extended. Take a look here’s our issue right here. That’s already where we’re at, and again I look at it as a bar, not just a price level.
This whole range is your risk. I would say the stock is extended and it’s extended on lighter volume. That’s the big picture right away. That’s what I see. Now, can it go higher? Yes, it can, especially in the current market.
If we look at overall the weekly, this paints a different picture. We have an A to B, B to C, C to D pattern right there. If you look at it in that way, but still it’s extended. And I have to think again and remember the other bigger picture I just saw. That is we’re coming into all-time high prices.
The same stock we just talked about P&G. Look at this one 2015 all-time high prices and little pullback. The key here in stocks is the price. When we look at AMAT right here, I’m coming into that $53, $54, $55 level.
I know on the monthly that’s coming into all-time highs. So, $54, $55 is almost my max. If I look at the weekly, it’s breaking consolidation pattern. And if we look at the daily, it continues to do well, and the stock has this trendline that’s looking reasonably nice.
It’s a good healthy level. If you’re doing short-term trading, 47, 48 could be your risk. If you want to be tight on it, you could do something even closer — 51, 50 and that level nice round number, under there 49. But you’re looking at a $3-$6 risks for a potential gain.
When I look at the monthly here or quarterly for a potential gain of 55, so two dollar gain, risking $6 to make $2, it’s not my thing.
Question about Google
This one is coming into resistance right there. There is a little bit of trouble if they can break through past that level. Call it a thousand fifteen. Give it a small wriggle room might see higher prices. Down there is vital support right around nine twenty.
Question about What Can Happen With The Market?
What will happen with the market if there’s a war with North Korea?
Who knows. War is as weird as it says unless we’re dead people buy out to buy more stocks after the initial sell-off.
There might be an initial panic reaction, but then people buy stocks. That is because while they’re still alive. If they’re not alive, then they can’t buy stocks. If you survive, great. It’s going to go up, and then you’ll live through it. That’s usually the way things work.
If you’re not, at that point, it doesn’t even matter. That’s the typical old-school mindset that a lot of old-school traders say. They say if you’re alive then you’ll be able to buy stocks. If you’re not, at that point, it doesn’t matter what your position is.
Usually, you will get some panic selling with the initial effect.
The bigger question could be: Will that escalates into more of other issues?
As far as the individual topic to pinpoint the sell-off to it, usually it’s not one thing that moves the market. The individual news item isn’t going to move the market. It’s going to create an initial movement, but then other things will escalate.
Question about Market News and Social Media
What stations are websites to use for market news and social media?
I don’t do the news and social media. I will outpost some things on Twitter, and that is me feeding things out for you guys. Otherwise, I don’t comment or interact much on social media.
I don’t have the time for it. I’d instead answer your comments on YouTube or other platforms or social media. But I don’t usually interact with people and socialize and that kind of thing.
Question about Analysis of ULTA
Here here’s our initial movement (A to B, B to C, C to D). You could say that also this is A to B, B to C, C to D. And then internally if we go orange you could say A to B, B to C, C to D.
There is a couple of little patterns on the big picture. If we look overall what’s happening, we need to watch the volume. I’m checking out what’s going on with the volume and the resistance levels and support levels.
You can see the stock couldn’t get back above it. It had an initial sell-off, tried to get above it. It couldn’t do it further selling is coming into place. And the volume to the sell sides is increasing. Here’s our support, if it breaks this I would expect further lower prices.
You can see this big full price spread bar, so that’s also the issue. Further selling if it breaks 200 that could create another problem. You could see that’s the issue in that area.
I would expect further selling in the longer term. In the shorter term, we are slightly extended, and you can see with the moving average you get a little extended. A little bounce and maybe a bit of selling could take place. That’s my thought, and that’s also because the volume is picking up on the sell side.
But little bounces do happen, and then a further selling is my guess. The way I look at it 187 might be a sweet spot because now you’re getting into that level of the moving average.
It’s Time to Wrap up
Here’re the last couple of critical points. Keep in mind we’re looking at the overall market right here. We have earnings coming into play. Be careful here on the S&P; over the next couple days see what happens. Friday is coming up as well.
People like to sell off a little bit, but things what people are going to watch is those earnings. That’s going to be the key here over this next couple days and then the next week. It’s all going to be earnings talk, and that’s what’s going to dictate and move the markets.
We’ll see how things perform if you’re in stock. And it has earnings coming up it’s best to sell half, a quarter, a third. Even get out of the position if you’re worried about it is a good idea. You don’t want to be left holding those earnings or holding those stocks through earnings especially if you get massive movement against you.
That’s where a lot of problems lie for people within their accounts. And that’s where the big trouble is because if you get a massive movement against you, you can lose a great deal of capital.
And it’s a lot of work to get that cash back. If you have any more specific questions, please feel free to reach out and get back to me. I’ll try my best to reach out to you.