Yep, we’re almost at the end of 2020 — so it’s time to start planning for hot 2021 sector plays.
I don’t know about you, but I’m looking forward to a new year. Enough of 2020 already. So of course I’m already scoping what I think could be the biggest opportunities in the next year.
It’s time to sit down and build a roadmap for 2021.
In this post, I’ll share my thoughts on what I believe are the best areas of the market for finding killer trade setups in the coming year.
We’re expecting a huge 2021 in the SteadyTrade Team community. This is an important post to read if you want to make next year your breakout year.
Let’s do this!
Table of Contents
- 1 2021 Sector Plays: Why Focus on Sectors?
- 2 2021 Sector Plays: What I’m Watching
- 3 How to Focus on 2021 Sector Plays in Your Trading
- 4 Want to Become a Top Gun Trader in 2021?
- 5 The Wrap on Hot 2021 Sector Plays
Intelligent trading can be either as easy or as difficult as you’d like to make it…
I know quite a few traders who want to make things complicated and have the markets validate their IQ, and I wish them the best of luck.
Personally, I like to make trading as easy and straightforward as possible, and the simplest first step to make that happen is to go where the money is.
What does that entail? It simply means focusing on the areas and industries of the stock market that have the most excitement, hype, and volatility.
Sometimes it’s tech stocks, and other times, it’s biotechs, cryptos, or even virus stocks.
By focusing on the hottest 2021 sector plays, you get to trade stocks that have the most amount of money flowing in, allowing for great risk/reward setups to grow your account quickly and safely.
If you want to make 2021 your best trading year yet, make sure to start thinking about which sectors will be the most exciting.
Keep reading to find out which sectors I’ll be focusing on…
2021 Sector Plays: What I’m Watching
We’ve had one heck of an unusual year in 2020 — a pandemic that came out of nowhere, a nearly global shut down, huge lifestyle changes, and a scandalous election…
While it’s been a rough year for the world, it’s been a largely fantastic year for active traders.
Huge volatility and trading volume in the markets have provided incredible opportunities for well-prepared traders.
So as we close out 2020, is the party over? Heck no!
The truth is, the world has changed for good. Most of society will live differently in the coming years, and those lifestyle changes will provide huge opportunities for several industries.
Here are some of the exciting themes I’ll be focused on as we move forward…
Alternative Social Media Platforms
We’ve come a long way from the days where you’d call your friend on their home phone if you wanted to chat.
Social media platforms, such as Facebook, Twitter, and Instagram have truly taken over the world in the past decade. They now account for how most people communicate now.
I’m a reasonably heavy user of platforms such as Twitter and Instagram. In fact, if you follow me on Instagram you can tune in to watch me discuss the markets before they open each morning. So I see a lot of great possibilities for social media.
But I also believe social media platforms could be managed a lot better.
These days, there’s a ton of trolling, negative comments, and general toxicity. Plus, whether you like President Trump or not, Twitter’s censoring of his tweets clearly shows these platforms aren’t exactly bastions of free speech.
I think these shortcomings open the door for alternative platforms, with different rules, regulations, and experiences to offer us better, more enjoyable ways to communicate.
As a trader, I’ll be on the lookout for any companies that can take a bite out of the Facebook and Twitter audiences for hot 2021 sector plays.
This seems like a gimme in hot 2021 sector plays to me. Even if we’re cooped up inside our houses, waiting for this darn pandemic to pass, it’s still of utmost importance to look for creative home-based ways to stay fit.
I love lifting weights, but personally, I’ve always felt that public gyms are pretty filthy places. Think about it … You have hundreds of people coming in and out each day, sweating all over the equipment. So to me, it makes a lot of sense to look for home-based, more hygienic fitness solutions.
If you know me, you know how I love Peloton. This high-tech exercise bike has a screen so you can attend fitness classes online. They’re pretty cool, and I actually bought one a while ago.
Over the past six months, I’ve seen lots of creative ways that people are achieving home-based fitness.
The demand is clearly there for clever, in-home fitness solutions, and many companies have noticed the opportunity. I expect this to be a hot little growth industry in the coming years.
One of the saddest statistics to come out of the past year is the rate of restaurant closures we’ve seen. Pandemics just aren’t compatible with people dining at restaurants with family and friends.
As they say, when one door closes, another opens. And the restaurant industry is rapidly adapting by expanding food-delivery services.
Sure, there are your traditional food delivery apps, such as UberEats and DoorDash, but there’s plenty of other exciting stuff happening.
For example, a new business model is the ghost kitchen. That’s where a business has a kitchen, but nowhere for diners to eat on-site. Instead, the business will only sell food via delivery and takeout.
Even after we can get back into the restaurants, I think food delivery is smart to watch when it comes to 2021 sector plays. The cat’s out of the bag on how enjoyable and convenient it is.
I’ve never been a fan of visiting the doctor for minor illnesses. You drive all the way to the doctor’s office, sit in the waiting room, and risk exposure to other illnesses … only to see the doctor for five minutes for a quick check-up or prescription.
To me, it’s not surprising that the medical industry is ripe for disruption and new technologies.
Telehealth is the catch-all term for medical technology and techniques that can allow us access to medical care without having to physically visit practitioners.
It could be as simple as video chatting with your doctor to as complicated as remote-robotic surgery performed by a doctor who’s on the other side of the country.
The world of video games is going gangbusters on a few fronts at the moment.
First, with people bored out of their minds at home, many have turned to the latest video games for entertainment. It’s not just kids sitting in the basement. Grown men and women are gaming too. In fact, the average age of a gamer is around 40!
We seem to be in a golden age of gaming. Tech companies like NVIDIA (NASDAQ: NVDA) and AMD (NASDAQ: AMD) recently released the latest generation technologies that sold out in minutes. They currently have months-long waitlists.
Sony and Microsoft also released their latest Playstation and Xbox consoles to much fanfare. So gamers are absolutely spoiled when it comes to choice.
But it goes deeper. With the disruption in sports such as the NBA and NFL this year, people have turned to watching esports, aka competitive video gaming, for entertainment. And the audience size is exploding.
The esports industry is really interesting. There are already countless tournaments and competitions, some with millions of dollars in prize money. We could be looking at the sports franchises of the future here. Looking for hot 2021 sector plays? This could fit the bill.
It’s clear we’re dealing with a huge amount of unrest in America. Riots, protests, a contested election, and a hugely divided population has made for a lot of drama. People are taking note.
For example, the prepper industry is gaining steam. Historically, this niche industry is where people look to prepare for social unrest, pandemics, and wars by stocking up on food, buying farmland, and learning survival skills.
I’m a country boy who loves to hunt, and I’m basically a natural prepper. So I can see a huge benefit for others to prepare for any further unrest.
Trading and Speculation
I have to admit I’m incredibly biased with this industry. I’m a lifelong stock market fanatic who loves all things trading and speculation…
But, it’s not just my interest in the industry. When you think about it, there’s never been a better time to be a trader.
Plus, with interest rates so low, many people who used to put their money in the bank are now turning to stocks to find some kind of return.
As our lives turn more and more digital, we need to adapt to modern dangers, like hackers and scammers.
Crooks aren’t just thugs in alleyways, anymore. Now, they can be kids at a computer hacking to steal online banking logins.
In response to that, the cybersecurity industry has flourished, offering all kinds of personal and enterprise solutions to keep our data and computer networks safe.
The cybersecurity market is expected to grow to well north of $100 billion a year within the next year or two, and there are huge opportunities for smaller firms to come in and take a slice of the pie.
At-Home Hobbies and Crafts
I’ve seen a lot of people taking up new hobbies during the pandemic.
People have been making sourdough bread, brewing craft beer, sewing, and so much more. I think it’s awesome.
These hobbies and niche interests open up the door to businesses that can serve these markets. It may be a small company that makes origami sets, or a company that produces craft beer making kits. I’ll watch this for potential 2021 sector plays.
How to Focus on 2021 Sector Plays in Your Trading
Now that you have a few ideas for some potentially exciting sectors for 2021, it’s time to go out and hunt for potential tickers.
Here are a few tips for locating the hottest plays and keeping up with all the exciting stocks you find:
- Use Watchlists. These are lists of stocks that you group together to watch, like cybersecurity or telehealth stocks. You can do it by pen and paper, but it’s much easier to use a platform like StocksToTrade with built-in, unlimited watchlist capabilities.
- Tune in to my Live Premarket Sessions. Before the market opens each trading day, you can find me on YouTube or Instagram discussing stocks and upcoming market action. I love doing these. You can learn a lot, and they’re free. Make sure you tune in!
- Join the Weekly Watchlist. Each Sunday, the StocksToTrade team and I compile a list of stocks we think look interesting for the coming week. We send these tickers out, with a small explanation via email to subscribers. It’s no cost — sign up today!
- Sign up for the Breaking News Chat. This is possibly my top StocksToTrade feature. This add-on feature alerts members to breaking news that can move stock prices. It’s run by two Wall Street pros who hunt down the best information. It’s an integral part of my trading. Check it out here.
Do you know what the quickest route to trading success is?
It’s simple: Mentorship in a community of hungry, driven traders you can learn with and trade alongside.
If you want to develop as a trader as quickly as possible, come and join the SteadyTrade Team community, where top trader Mike “Huddie” Hudson and I will teach you just about everything we know about trading and the markets.
As a SteadyTrade Team member, you have twice-daily live training where you’ll see our screens, hear our detailed market thoughts, and be able to ask us anything about trading.
I designed the community to be the best trader training resource on the internet. We’re completely focused on developing the next generation of world-class traders.
We’ve had a killer 2020, and we expect 2021 to be even bigger. Join the SteadyTrade Team today!
The world is undergoing some major changes right now. That means huge opportunities for smart traders to find amazing trades.
2020’s volatility will likely continue into 2021. So it’s important to know which 2021 sector plays to watch for the most promising opportunities.
The above list of sectors is a great starting point to build a few watchlists for the coming year.
If you’re not already a StocksToTrade member, grab a 14-day trial for $7 to build your watchlists, scan for stocks, and so much more.
What hot 2021 sector plays do you want to see? Leave a comment and let me know what you think!