News Details – Smallcapnetwork
Swing Trader or Long-Term Investor? Know Who You Are
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February 2, 2024

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PDT

Good day all. We got some crazy market activity over the last few days, of which we can chalk up some of it to Trump's press conference yesterday. However, we have noticed a few key technical issues that have surfaced as well. And, depending on how things play out, we could have some tremendous new trading opportunities shaping up for all of our Elite Opportunity Pro Members over the next few weeks. The financial media continues to tout that all-important 20,000 level, but the truth is that number actually means nothing in the grand scheme of things. Second, volatility is picking up, which suggests these markets are on the verge of a big move soon. Lastly, as you can see in this daily chart of the NASDAQ Composite, it's in the early stages of developing a channel, one that is likely to serve up a very nice index ETF trading opportunity over the next several days. I also want to point out the NASDAQ continues to lead these markets higher, and until that changes, we've got a pretty good bead on what's to come for equities in the months ahead. Although there's no question we're 100% convinced these markets are not done going higher yet, they could be on the verge of a fairly sharp selloff sooner, rather than later. If we can get it, there's going to be several excellent opportunities to enter into many of the individual stocks we reveal in our exclusive Trump Report, which is available for free right now to new members willing to give our Elite Opportunity Pro advisory service a free two-week spin. Why is it so paramount we identify these stocks for all of our members right now, and continue to track them for pinpoint entries? Because although we are convinced we'll make new market highs this year, it's not going to come without a fair amount of volatility along the way. With that, I want to share something with you today that is literally one of the single biggest mistakes I see investors and traders make day in and day out. It's something that has taken even some of the best investors years to figure out. And, I'm also going to show you why we think these markets have tremendous room to run over the next several years and beyond. First, here's the mistake - an all-important question every investor needs to address if they're ever going to be among the 20% of investors and stock market professionals in this country who get the most out of the stock markets. What are your timeframes and strategies? Short-term swing trader and/or long-term investor or day trader? If it's the latter, we're not going to be able to help you, as I've been around these markets long enough to know day trading isn't for most. However, swing trading and/or long-term investing most definitely can be very fruitful. I get a very common question all of the time from some of even the most intelligent people, not necessarily market savvy but definitely intelligent. What should I do with this stock I own? I'll ask them what were you intending on doing with it in the first place? They always say, "make money". However, my comeback is the question you just read, and more often than not they didn't even think about any of this before they entered into the idea in question. You see, when it comes to swing trading, you have to plan the trade, make any necessary adjustments along the way, and trade the plan. Extremely successful swing traders employ very little emotion into what they're doing. They don't care about the long-term landscape, and rightfully so. All they care about is being on the right side of the trade on a short-term basis. And, when a trade goes bad, they're not going to spend much time trying to figure out what went wrong, unless of course there's something glaringly wrong with their technical and/or fundamental prowess. This is quite different from the long-term investor, who is simply going to buy good companies and hold them for as long as the markets are going to give them the opportunity to benefit from them. Meaning, unless the markets are topping out like they started showing signs of doing back in 2007, just before the 2008 implosion, they are going to ignore the short-term blips, stay the course and stick with the good companies they've invested in. As you can read, the methodologies are polar opposite. A trader is very concerned about short-term pullbacks and run-ups, while the long-term investor could really care less. Unless, however, they start to see early signs of a major market top, like we had back in 2000, and then again in 2007. More on that in a second. The good news is if you're interested in receiving one of the most thorough all-encompassing subscription based advisory services online, not only do we cater to the swing trader here at Elite Opportunity Pro, we also serve the long-term investor very well, as displayed by our pick return percentage over the last four years now. Now, I will tout that I did see the big selloff coming back in 2007 well before it took place, which is what gives me confidence in thinking these markets still have new highs ahead on a long-term basis. It doesn't mean we're not going to get selloffs from time-to-time, but on a long-term basis, I am 100% convinced these markets are going higher when it's all said and done. Here's why... I've provided two charts below, a weekly isolated chart of the S&P 500 dating back to late 2006 to late 2007, as well as an extremely long-term monthly chart of the VIX dating all the way back to 2000. For those who may not know, the VIX is the primary index measuring fear and volatility in the markets. As you can see here, I've pointed to a historical low in the VIX during the last month of 2006, which triggered a move to single digits. Then, volatility started to pick up. However, you can also see the S&P 500 continued higher, pulled back dramatically, and then went on a parabolic run higher until it topped out in the last quarter of 2007. Basically, until the VIX gets back to single digits, more specifically under 9, I'm really not concerned. But, if and when the VIX finds its way down around that 2006 low again, we're going to want to start being much more cautious in terms of what could start developing. However, when you consider everything I just mentioned above, it's entirely possible the markets could run for several months even after the VIX volatility starts to pick up again. What's the takeaway today? I think it's pretty obvious. Make darn sure you know who you are. A swig trader or a long-term investor? It's literally the single most important thing I can suggest to anyone who's looking to make a substantial amount of money in the stock market. Once you know that, it will literally be the single most important driver of all of your decisions. After reading today's free edition of Elite Opportunity Pro, I now invite you to sign-up for a free two-week trial, and yes, you will also receive our free Trump Report just for giving us a shot. Sign-Up Today to Receive Your Free Trump Report and a Free Two Week Trial The bottom line is navigating the markets, being in the right stocks and ensuring maximum profits are no easy tasks. This is why we work diligently every day to bring you the ideas, both short and long-term, then you decide what you want to do with them. You're in 100% control of your own trades, your money stays comfortably where it's at in your own account, and you pull the trigger when you want. We simply provide you with a wealth of ideas, plenty of education, and most certainly make sure you have the information you need to stay on top of the markets and your portfolios.