Some people look at the market now and see insanity. I look at it and see tons of opportunity — 2020 is the gold rush of trading.
Think about it. If you could start your trading career at any point in the past 100 years, when would it be?
In my opinion, there’s only one answer to that question … Right. Freaking. Now!
2020 has been a year we’ll all remember for a long time. Sure there are parts we want to forget. The pessimistic among us sure have a lot to complain about…
But right now, prepared traders have a lot to be thankful for. Everything has seemingly come together this year in a strange perfect storm. It’s what the SteadyTrade Team and I have dubbed the golden age of trading.
And I think it ties back to the famous gold rush in the 1800s. Let me explain…
Table of Contents
Why We’re in a Gold Rush of Trading
Throughout history, there have always been opportunities. Individuals with the right mindset, work ethic, and skills stake their claim. And in the process, they can possibly change their lives…
Let’s talk about the gold rush of the mid-1800s. It helped shape America. People from all over dropped their lives to rush to California all in the hopes of striking it — literally — rich. Imagine being someone with gold-mining skills in California during the gold rush of the 1850s…
Even better, imagine being the owner of a pick and shovel factory in California in those days. You’d be ready and willing to supply all those prospectors with tools, making huge profits in the process … And the opportunities spread from there.
We see moments like this pop up throughout history. In fact, right now, we’re seeing something historic happen for independent traders in the stock market. It’s like California back in the gold rush. Droves of traders are diving in.
The gold rush of trading is on.
Trading Opportunities Galore
There’s no denying it, 2020 has been one of the most volatile years on record for the stock market.
As the world realized it was entering a pandemic, global stock markets got absolutely battered. The S&P 500 dropped a third of its value in a few short weeks. It’s since rebounded to recover most of its losses as of this writing.
During this time, we’ve seen the Federal Reserve and the U.S. government come out with measures to stimulate the economy. The result is a flooding of money into the system. And it seems a lot of it is ending up in the stock market…
Socially distancing is the new norm in the pandemic. Many states and countries around the world have stay-at-home orders. And not too surprising, a lot of people are restless. Millions have started trading stocks to both combat boredom and try to make an extra buck…
What’s Behind the Gold Rush of Trading
For one, we’re seeing a new era of traders, the ‘Robinhood generation’ — new day traders using ‘free’ trading apps like Robinhood…
New money is flooding into the market. Kinda like those would-be gold-miners flocking to California back in the late 1840s.
That’s pushing stock prices up and down rapidly. And if you understand the patterns — like the dip and rip — it can be amazing.
We’re seeing insane spikes. I’ve never seen things quite like this…
And many traders who’ve been studying for years are reporting record profits. One example: Matthew Monaco, one of our TWIST podcast hosts.
Good things take time. On the left, you’ll see June 2019 which (at the time) was my best month. On the right, you’ll see June 2020. My new personal best. I wish I could say it happened overnight but June marked year 3 of my journey. Recap video coming this weekend @timothysykes pic.twitter.com/Z4D29QB99D
— Matthew Monaco (@mono_trader) July 2, 2020
Matt’s barely out of college … and made over $90,000 in June.* Last year, he made less than $3,000 in June.
Matt will be the first to tell you he didn’t hit consistency overnight. It took years. For Matt, the gold rush of trading is helping him achieve his trading goals. It’s all about that volatility and preparation. (Read about Matt’s journey here.)
It’s awesome to see a trader work hard, and he’s not alone in these volatile markets…
(*These trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making trades, remember to do your due diligence and never risk more than you can afford to lose.)
Technological Advances for Traders
So how can new traders be smart in the gold rush of trading?
The same pitfalls that crushed many people with gold fever can take down traders too … Don’t be a fool who rushes in. Luckily, in the modern era, we many advantages to help us stay smart.
At the top of the list: technology.
Every old person has their story of “back in my day, things were way harder.”
As I become an older dude in the markets, my back-in-the-day story is how it was so tedious to set everything up and do my research each morning.
I’d have like 20 different programs and websites. Most of them were clunky. It was nothing like the sleek trading software we have today.
And trading was lonely back then. Basically, if you didn’t already know someone who traded, or you weren’t lucky to find your way into a group of serious traders, you were on your own…
Find Your Gold Rush Clan
These days, social media for traders can be amazing.
With Twitter, Instagram, Facebook, and YouTube, you can follow and connect with traders, discuss stocks with them, and possibly make a few buddies in the process…
For instance, I’m on Instagram daily to give my premarket live sessions and my Daily Market Briefings. It’s a free way for you to get my views on what’s hot in the market and understand how the overall market is moving. Follow our StocksToTrade Instagram account and connect with me … Make sure to bring your questions!
You can also follow my personal account on Instagram, watch my YouTube live streams, and listen to the SteadyTrade podcast. Or check out my tweets about the markets and the latest StocksToTrade buzz on Twitter…
Want more? You could step things up and join my elite trading group, the SteadyTrade Team. That’s where you can learn from me, Kim Ann Curtin, and Mike “Huddie” Hudson. We have an incredible trading community — check it out!
Put it all together, and you can be almost anywhere in the world, have access to state-of-the-art analysis tools, and be able to interact with some of the world’s greatest traders.
What a time to be a trader!
How to Make This Your Golden Age of Trading
Yep, the gold rush of trading is on! So don’t get lost in the dust…
Here are four solid steps to help you go from gold rush fever to golden age trading.
- Open a brokerage account. Make sure to pick the best broker for your needs. Check out this post dedicated to choosing the right broker. You’ll need to fund your account with some capital, but it doesn’t need to be much. Many successful traders started out with small accounts…
- Start using StocksToTrade. That’s our trading platform — the ultimate toolbox for active stock traders. See why many of the world’s top traders use StocksToTrade. Get your 14-day trial for just $7.
- Learn a trading strategy. Before you place your first trade, make sure that you know what you’re doing. Have a well-planned process for every trade. That means trading chart patterns that make sense to you and always having a plan. You can start with this blog, our YouTube channel, or regularly listening to the SteadyTrade podcast.
- Study your butt off. Trading requires discipline — just like learning a sport or musical instrument. There’s a lot of homework. If you’re like me, you might geek out and really enjoy it. Make sure you study hard and do the work.
There are no big secrets in trading. It’s all about finding the right information, doing the work, and staying disciplined.
Bottom Line on the Gold Rush of Trading
Want to feel like you’re in the golden age of trading, not at risk of getting lost in the mayhem of the gold rush of trading?
First, do your homework. Know how the market moves. Understand different strategies. You never know what will work for you…
The market doesn’t discriminate. It doesn’t matter who you are — it’s all about how well you learn to trade. You gotta find your stride and have the discipline to stick with it.
Surround yourself with traders who want the same thing. We have an amazing group of traders inside the SteadyTrade Team community, our elite trader education group.
If you really want to get serious and make this your golden age of trading, come and join the SteadyTrade Team community!
I’m having a lot of fun trading in the markets right now … what about you? How are you doing in the gold rush of trading? Tell me below!