MarketWatch #5
Disclaimer: MarketWatch is for entertainment purposes only. It is important that ALL investors conduct their own market research to determine the best investments for their portfolio. Please do not blindly follow me or any random person on the internet, there are professionals for that. MarketWatch is intended to give you insight into my investment portfolio and my analysis of each investment that is discussed. Please feel free to share any comments or questions below.
Against my better judgment, I want to revisit a topic mentioned in last week’s release. Even though I dislike day trading and trend surfing, it’s easy for investors to insist on the value of these methods.
With that said, It would be silly of me not to share insight into how these methods can work and tell you how some investors have had success with them. Especially with the recent spikes and drops of stocks in the market, most notably: Gamestop ($GMS).
Let’s start by identifying the 2 types of traders.
Trend Traders
So what is trend trading? It’s similar to “crowd surfing.” You look for the strongest people (Trends) in the crowd (The Market) and you ride them to stay above the ground.
Here are my 2 keys for Trend surfing investors.
Set your Numbers
Be disciplined
The hardest thing to do in the market is cut your losses and to take your wins. When your trend trading, you need to know what your cutoff investment is and stick to it.
Blindly throwing your money into a trendy stock will result in highly volatile results.
The best investors know that having an exit plan before you invest your money can not only save your pockets, but it can save your life. Please be responsible.
Day Trader
Day trading is lucrative, for the winners! The losers are usually left with the scraps after the market has had its way with them.
To be a successful day trader, there are a couple of disciplines that you need to know. Before I explain those, there is a major key to day trading that you need to know: you must have a strategy.
Here are 2 keys for new day traders.
Follow the rules - stick to the plan
Don’t get emotional - you will win some, you will lose some. don’t let your emotions control your pockets.
I know that I told you that making investments in GameStop and Blackberry were bad ideas, but my doubt about these investments should not sway your choice to make your own investment decision.
It is important to note that I am still and will always be against emotional, impulsive investments. Do your research and trust the companies that you put your hard-earned money into. Below you will find my MarketWatch list for February 2021. Check out some of these stocks if you're looking to build up your own portfolio.
Top 8 stocks
Moderna
Nike
Verizon
Microsoft
Apple
3M
Tesla
Target
Top 3 Index Funds
SPYD
VTI
O
If you’re already invested in any of these companies, give us your take down in the comment section below or join the conversation on Twitter!