Howdy traders, it’s Bryce here.
There’s a lot to look forward to this week …
And make no mistake, it’ll lead to volatile trading opportunities
First of all, the bank issue is going on for two weeks.
This is about the time I’d expect we learn whether things are basically contained or if we have a large tissue at hand.
Secondly, the FED is expected to raise the interest rate yet again on Wednesday.
“By how much,” is the big question.
The bank crisis pointed to a shaky economy, possibly on the verge of recession. The FED is tip-toeing a tightrope. And the markets are laser-focused on the interest rate decision.
Here’s how to take advantage of the volatility …
It’s imperative as a trader to recognize the difference between …
- Trading volatility
- Gambling on speculations
We don’t hold shares through a catalyst like a new interest rate hike.
We have no idea what the FED will decide. And we certainly don’t know how the market will react.
Sometimes, an upcoming catalyst is already priced in because everyone knows about it. That can cause the market to move in the opposite direction.
One way to minimize risk in the market is by trading the volatility before and after the catalyst.
Keep an eye on major indices like the S & P 500 ETF Trust (NYSE: SPY) to gauge market sentiment.
A bullish reaction will likely spike stocks higher in our niche. That means more opportunities to profit.
But the opposite is also true.
In order to stay profitable. It’s really important for me to keep my expectations in check. I can only profit as much as the market lets me. And that’s why market direction/sentiment is so important.
In terms of finding hot plays …
Again, I wait for the stocks to pick a direction and show me volatility.
One of the most important factors of my scan is looking for stocks that are up +20% on the day.
Because a stock up +20% can spike higher. I see it every week. If you don’t believe me go check out Bellerophon Therapeutics, Inc. (NASDAQ: BLPH) …
For more on the hottest trading strategies, mark your calendar for March 23, 2023.
My college buddy and millionaire trader, Matt Monaco is going live to give traders an in-depth look at his process.
There are trade opportunities every day.
But if you don’t have the right info, they’re hard to find and harder to profit from.
Don’t miss Thursday’s demonstration!
See you in the next letter.