If the market has seemed slower to you recently — you’re not imagining it…
There is an old stock market adage, “Sell in May and go away.”
It refers to the seasonal slowdown in the market during the summer months as many seasoned traders take vacations and overall trading volume decreases.
Does that mean you should throw in the towel and give up on trading for the next few months?
There are still plenty of opportunities to be found if you know where to look…
Focusing on this one strategy can help you uncover potential trades while others struggle to dig up trade ideas…
I’ll share it with you today and give you some valuable tips to help you navigate the market during this period and increase your chances of finding profitable opportunities.
Let’s dive in!
Should You Ditch Trading This Summer?
It’s not uncommon to witness a dip in market activity during the summer months.
Traders take time off and market participants enjoy their vacations which sucks the volume out of the market.
As a result, there may be less volatility and violent price moves.
However, rather than bemoaning the slowdown, we can adapt our approach to uncover hidden opportunities…
The Power of Breaking News
One of the most effective strategies during the summer slowdown is to keep a keen eye on breaking news.
News catalysts can significantly impact stock prices and create volatility.
And that means trading opportunities!
When big news hits the market or a specific stock, it can spark a hot sector or create a big runner.
But to be able to capitalize, it’s crucial to stay informed…
Make it a habit to check financial news websites, follow relevant social media accounts, and set up news alerts on your trading platform.
Of course, I think the best and fastest way to stay on top of important stock news is by using StocksToTrade’s Breaking News Chat.
Our two analysts alert the top news stories with the potential to move stocks. And they focus on news catalysts in the small-cap stocks we love to trade.
Like yesterday’s Artificial Intelligence Technology Solutions Inc. (OTCPK: AITX) alert…
The Breaking News Chat team alerted the company’s news in premarket. And when the market opened, the stock spiked 50%!
That’s why being able to identify potential catalysts is key to finding stocks that have the potential to explode…
Look for catalysts like earnings releases, FDA approvals, mergers and acquisitions, product launches, or any other major developments.
Also, focus on breaking news announcements in hot sector stocks…
In the case of AITX, the company is in the AI sector and announced its subsidiary’s robot will appear on FOX Entertainment’s new T.V. series.
Now, OTCs aren’t my favorite plays. But the stock’s 50% move is an example of the kinds of huge moves breaking news can create.
So even though the summer months can bring a slight slowdown in the market, you can still find ample opportunities.
Remember, trading is a continuous learning process, and adapting to market conditions is crucial.
Embrace the summer slowdown, adapt your strategies, and capitalize on the opportunities that breaking news can bring.
And stay on top of everything happening in the small-cap trading world with my Market Update videos three times per week.
Have a great day everyone. See you back here tomorrow.
Lead Trainer, StocksToTrade