The Perfect Time To Learn To Trade

One question I get asked a lot is: “Is this a good time to learn to trade?”

Now, depending on what’s going on in the market, the question is often followed by what that person has heard about the economy. The obvious answer is that you should learn to trade as soon as possible. So, what makes now the perfect time to learn to trade?

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The Big Picture

Last week was another winning week for the market. Obviously, it wasn’t a straight-line rally. But both the S&P 500 and the Nasdaq had their third consecutive weekly gains. The S&P 500 reached another record closing high on Thursday (August 12) before pulling back slightly on Friday.

As I noted in yesterday’s newsletter, the markets shrugged off the mixed economic data. Yesterday’s trading didn’t change my opinion.

Now, some people look at the economic data and sideways action over the past week as bearish. Not me. I look at the market reaction, okay?

What I’m seeing is a market with an interesting setup going into fall. If you’re new, it’s a perfect time to learn how to trade.

You Didn’t Miss a Thing

One of the excuses I hear all the time is:

“Oh, I missed it, I’ll try to catch the next one.”

If you are new to trading, you didn’t miss anything. Get ready, okay?

Now, if you’re a little more experienced, this is a good time to double down and recommit.

The Perfect Market To Learn To Trade

First off, remember that we don’t anticipate, we react.

But based on what happened last week and how the market is holding and pretty much going sideways, I’m encouraged.

We are seeing solid plays every day. And it’s a lot of different patterns. Everything from morning faders and weak open red-to-green, to afternoon short squeezes, VWAP holds, and more.

There are opportunities every single day.

Also, it’s the middle of August and Labor Day is coming. You could say we made it. Fall and winter are always the best time of year for penny stocks.

Let me lay it out:

• There are plenty of opportunities to suit different styles of trading and risk tolerance
• These 2-3 weeks are the quietest time of year (in a bull market that can keep going)
• The market keeps shrugging off mixed or poor economic data
• You have more tools available than at any time in history
• We have 24/7 access to information
• You have your choice of trading platforms and software to suit your needs

Now, am I saying you can learn everything you need to know to be a successful trader between now and Labor Day? No.

You will have to make some choices and find the strategy that suits your life circumstances.

But there is NO better time than now. I haven’t seen anything better in my 20+ years of trading.

My Take

Last week gave bulls a pretty good story (the reason the stock market didn’t sell off into the poor economic data). Yesterday didn’t change my mind.

I look at that as very bullish because as we get into fall, I think the data will start to improve. That just sets us up for a massive bull market run.

Watchlist

Today’s stock is another “welcome to penny stocks” story. In other words, you couldn’t make this stuff up if you tried.

First, here’s the IP Strategy Holdings, Inc. (NASDAQ: IPST) chart from yesterday:

So, why was IPST up so much yesterday? Let’s call it a “speculative momentum trade.” (Okay, it was a chat pump that went bananas.)

The company is like a mini-version of Michael Saylor’s Strategy (NASDAQ: MSTR). Except instead of holding Bitcoin, it holds $IP and $DATA tokens as a reserve asset.

Now, you almost have to laugh because the company started as a distiller of fine spirits and won a bunch of awards before pivoting earlier this year.

So, why watch it? Because short sellers LOVE stocks like IPST (and yesterday a bunch of ‘em got squeezed). I think it could squeeze more today. If it holds overnight, look for short sellers to be in full panic mode around $9.50.

On My Radar

• Looks like the SEC is removing regulatory hurdles to “compute as an asset class”
• Meanwhile, Nvidia (NASDAQ: NVDA) is backing an OpenAI data center to the tune of $105B
• Next level agentic commerce: soon you’ll be able to shop directly inside ChatGPT
• VIX Volatility Index dropped to its lowest YTD read on Friday (August 13)