One of my favorite trading sayings is “We don’t anticipate, we react.”
The people who get wrecked are the people who constantly play guessing games. That’s why it’s so important to approach trading and investing with different mindsets. If you approach the markets from a trading perspective, it opens up all of your possibilities…
3 traders + $36M + 1 room = The Millionaire Formula
Table of Contents
The Big Picture
Now, probably 99% of what I teach is day trading or swing trading.
One thing I see a lot is people getting upset with events they have no control over. They get so angry when the Fed does (or does not) change rates. Or when the president announces a policy change.
It’s because those people are playing guessing games. When their guess is wrong, they get upset about it.
The reality is, they should just trade the price action. That’s why it’s so important to approach “events” with a trading mindset.
Now, this is where so many people screw up. They let their long-term investment brain cloud their trading brain. Then, they let their trading brain cloud their long-term investment brain.
Trade for Income, Invest for Future Wealth
Before I go any further, let me be perfectly clear.
I own tons of stock via my retirement accounts. That’s the money I’ll depend on decades down the road. All I have done in my long-term accounts is put money in. Money goes in every single month and I don’t even look at those accounts.
But that is separate from what I do for income. Trading for income is completely different.
So, through presidential changes, wars, and other events, I haven’t changed a thing in my long-term investments.
Remember, there’s…
Day Trading, Swing Trading, and the Stuff You Forget About
People take that long-term investment mindset and try to time the market. Warren Buffet is the exact opposite of a trader. He’ll tell you don’t try to time the market. But that’s over massive time frames.
Now, if you trade chart patterns then you know: the tickers change but the patterns don’t
My Take
Every day the same day trade and swing trade patterns appear. Only the stocks change.
We hold them for minutes, hours or weeks. Maybe months, but that’s the extreme long end of trading.
In the meantime, we can absolutely CRUSH it based on short-term trends by reacting instead of anticipating.
Then, you just forget about the stuff that’s out there forever and keep putting money in. If you look at the S&P 500 from 1957 (the year it expanded from 90 stocks to 500), you’d have to be stupid to try and move money in and out.
I don’t understand why people can’t separate trading and investing. That’s why so many people get in trouble. They trade these volatile stocks, it goes against them, and then they become collectors of momentum stocks. They get destroyed because they’re trying to buy value in penny stocks.
Watchlist
FreeCast, Inc. announced the expansion of its’ DIRECTV deal on Thursday (June 11). Not much happened until Friday when it closed up 158% at $1.55. It spiked as high as $7.56 in premarket trading yesterday.
CAST 6/12-15/26, weekend gapper, set perfect RCT in premarket on 6/15
There were several different ways to play CAST. One obvious play was the Red Candle Theory (RCT) it set in premarket trading yesterday.
This is an example of trading the chart pattern and NOT thinking of it as an investment.
On My Radar
- Bullish: US and Iran reached a “framework” peace deal,
- Fox Corp. (NASDAQ: FOX) announced it is buying Roku Inc (NASDAQ: ROKU) for $22 billion with the deal expected to close in early 2027.
- Frenzy over Anthropic’s Fable 5 instigated a weekend meeting with White House officials.
- Space Exploration Technologies (NASDAQ: SPCX) is a great example of why it’s important to separate trading and investing. People actually borrowed money to get in on Friday. Mark my words, there will be opportunities to buy for the long-term if that’s what you want.
- Calendar Watch: Quad Witching OpEx only happens four times a year including this Thursday, June 18.