Tariffs, government cuts, a Cryptocurrency reserve, relations with Ukraine…
You name it, it’s been happening since Trump entered the White House.
The market has been up and down, trying to react to all the geopolitical events, but it seems impossible to keep up.
But remember, as day traders, we still have tons of setups out there for the picking, no matter what the broad market’s doing!
It’s the Golden Age of Trading Opportunity!
Back to politics, listen, I get it…
It’s a hot-button subject, and it’s easy to let emotions take over, especially when you think the market is moving because of a particular political party or policy.
But if you let your political beliefs dictate your trading decisions, you could be setting yourself up for disaster.
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Why You Shouldn’t Trade Stocks Based on Political Views
I’ve seen this happen so many times.
Traders let their personal biases cloud their judgment, and the next thing you know, they’re shorting a stock out of spite or refusing to buy a winner because they don’t like the administration in power.
That’s not trading. That’s gambling with a political agenda.
The Market Doesn’t Care About Your Politics
One of the first things you must understand about the stock market is that it’s driven by money, not ideology.
The cold, hard truth is that just like with your wishes and hopes, the market couldn’t care less.
Institutions, hedge funds, and big-money traders aren’t sitting around debating political views. They’re focused on opportunity, trends, and momentum.
Yes, policies can impact industries—tax cuts might boost certain sectors, regulations might hurt others—but the market adapts.
It always does.
If you refuse to trade a strong stock just because it doesn’t align with your personal beliefs, you’re missing out on potential profits.
Examples of Politics Clouding Judgment
Let’s look at some real-world examples:
2016 Election:
A ton of traders thought that if Trump won, the market would crash. Guess what? It rallied big.
Those who let their political bias convince them to short the market got wrecked.
Here’s a chart of the S&P 500 shortly after election day on November 5th, 2024.
SPY 1-Month, 5-Minute Candles Chart; SteadyTrade
2020 Election:
Many assumed that if Biden won, the market would tank. Wrong again.
The market surged to new highs in the following months.
Take a look…
SPY 1-Month, Daily Candlest Chart; SteadyTrade
Some people refuse to touch EV stocks because they don’t like clean energy initiatives.
Conversely, some won’t trade oil stocks because they believe fossil fuels are doomed.
Meanwhile, both sectors have had massive trading opportunities.
If you’re avoiding strong stocks because of who’s in office, you’re missing the point.
Trade the Chart, Not the Narrative
At the end of the day, price action is what matters.
Stocks move because of supply and demand, not because of social media debates or political outrage.
Your job as a trader is to follow the trend, respect the price action, and trade what’s in front of you…not what you wish would happen based on your personal views.
Be On Top of the Only News That Matters
Limit your intake to credible sources so you’re focusing only on information that can help you make informed trading decisions. No emotions or political biases involved…
This is where our Breaking News Chat service can do much of the work for you.
It separates all the noise from what’s actionable for stocks on the move.
And right now, you can get two weeks of both our Breaking News Chat service and our STT platform for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17!
My Final Thoughts…
Next time you find yourself hesitating on a trade because of politics, ask yourself:
- Is this an emotional decision or a logical one?
- What does the chart tell me?
- Am I ignoring a solid setup just because of my personal beliefs?
Politics are important, sure…
But in trading, they should never be the reason you buy or sell a stock. The market is a game of probabilities, not opinions.
Data is your friend.
Focus on solid, reliable patterns, volume, catalysts, and trends. That’s what will actually make you successful.
For more mentorship on trading smart, join my StocksToTrade Advisory service.
You’ll get a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade