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10 Questions With Six-Figure Student Kyle Williams

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Back in July, I featured Trading Challenge student Kyle Williams in this spotlight blog post. I LOVE it when students become self-sufficient and consistent.

Not long after that blog post, Kyle broke through to become my latest six-figure Trading Challenge student. And he deserves it. He studies his butt off, adapts, and refines his process. I’m super proud of him.

Recently, Kyle was one of the speakers at my Trader & Investor Summit in Orlando. He gave a GREAT presentation. (Pre-order the conference DVD here.)

Here’s a photo of Jack Kellogg, Dominic Mastromatteo, Kyle, and me at the Summit…

left to right: Jack Kellogg, Dominic Mastromatteo, Kyle Williams, Timothy Sykes – courtesy of Don Mash

And this tweet shows Kyle on stage during our Summit live trading session. From left to right, that’s Challenge mentor Michael Goode, plus Jack, Kyle, Dom, and me.

Kyle was gracious enough to agree to an interview. Unfortunately, we didn’t get time for a sit-down in front of the camera. And my travel schedule is so crazy…

So I sent Kyle a few questions and he answered the same way he trades. Meticulously. I’ve included Kyle’s Q&A below. But first, check this out…

Refine Your Process By Sharing With Others

As you know, transparency is important to me. We need more transparency in this industry. Instead, it’s filled with people who hide behind big profit screenshots.

So it makes me happy when students share every trade on Profit.ly. And it’s cool when they create videos about their trades and their process. It helps them refine … and it helps everyone else in our community, too.

Kyle creates monthly recap videos to review his trades. And they’re excellent. Other Challenge students rage about them on Profit.ly…

Profit.ly user Sky_Hi_Trading had this to say: Thanks for sharing Kyle!!! Great work and awesome message!! Dont waste energy on the mediocre plays!

Here’s another from CrazyWillows: Yea great one Kyle!!! Enjoy seeing these lessons from you man, keep it up…

And another from BigMike2020: Just watched two of your videos on youtube: August recap and 0 to 100k! Very helpful to me a newbie! Thanks for sharing all your hardwork and documenting it so others can learn from your willingness to share! Means a lot! Best of luck going forward and thanks again and here’s to the next 100k!

Every video is packed with good lessons from this amazing young man. See Kyle’s Profit.ly page here.

And now, turn off all distractions and take notes. Here’s Kyle’s September trading review:

 

Wasn’t that awesome? Be sure to comment below — let me and Kyle know what you think of the video.

Now, for my Q&A with Kyle…

10 Questions With Six-Figure Trading Challenge Student Kyle Williams

1. I’ve watched your videos and listened to your interview on the Beyond the PDT podcast. As a trader, you’re very detail oriented and meticulous. Are you always like that?

Kyle: I’m very detail oriented and meticulous in most areas of my life. Both my parents are as well. So I think it’s a characteristic trait I picked up and something they instilled in me when I was very young.

2. In regard to trading, how important is it to be meticulous?

Kyle: Being meticulous helps drastically in trading. When dealing with large amounts of money with something as difficult as the stock market, there’s no room to be lazy or wanting to cut corners. As meticulous as I am, I find I’m still not to the level I want to be when it comes to trading more difficult patterns such as some Nasdaq plays.

3. How much time did you study when you finally got serious and focused?

Kyle: I made a routine for myself to stick by: I wanted to watch 30 video lessons a day (one video lesson is 5 minutes) and one webinar (hour and a half average). I made sure to watch the first and last hour of the market and study those videos and webinars midday. Then I’d make a watchlist and read a trading book at night for about an hour each. 

So in total, I probably averaged eight hours a day, even on weekends, leading to 50–60 hours per week. I think a lot of students make the mistake of thinking they need to study 17 hours a day like Roland and Dux did. But those guys are absolute animals. I’d much rather study 8 hours a day consistently every day than risk burning out after studying a few days for 17 hours a day.

Read Kyle’s last answer again. Read it a third time. That’s what it takes. Dedication and commitment over time. Kyle found a pace that worked for him and stuck to it. He didn’t try to be somebody else. But he also didn’t try to cheat success.

© 2018 Millionaire Media, LLC

4. You mentioned reading trading books. What books do you recommend?

Kyle: I answer this question with these books every time because they’re that good…

  • First, “The Market Wizards” series by Jack Schwager. This series is very inspirational and motivational, reading stories from so many legendary traders is a gift to the reader.
  • Second, trading psychology books by Brett Steenbarger. “The Daily Trading Coach” is my favorite. It has so many action steps one can take to improve their psychology in the markets.
  • Third, trading books by Van K. Tharp, specifically “Super Trader.” This book made me take the seriousness of trading to a whole other level. It teaches you how to actually treat trading as a business by writing a business plan and many other things.

You should read every book Kyle recommended. I also recommend “The Complete Penny Stock Course” by another student, Jamil Ben Alluch. The reason is because it explains my strategies so clearly. It also answers about 95% of the questions I get from students. Read it!

5. When you’re testing a new setup, do you take smaller position sizes?

Kyle: Yes, I do. For students or myself when I had a small account, I can’t recommend enough to start with just 100 shares or smaller to test. Now that my account is bigger, my testing size is certainly larger. I usually risk $100–$200, which can lead to a few hundred shares instead of just 100.

6. I noticed you use StocksToTrade. What do you like about it and do you use the STT paper trading feature for testing?

Kyle: If you’re trading low-priced stocks, I think STT is such a useful tool. STT’s screener has allowed me to find so many plays that I wouldn’t have found elsewhere. Although STT offers paper trading, I never used it because I’d much rather trade extremely small and experience the emotions of having at least some money on the line.

I agree with Kyle about finding plays using STT. When asked how I find stocks, my answer is ALWAYS the same. I look for big percent gainers using the StocksToTrade built in screeners.

Here’s what Profit.ly user GooniesTrader81 says about StocksToTrade: I found BNGO using StocksToTrade. I highly recommend it. Studying breakouts for months is now paying off. BNGO 300s $2.67 out at $3.30 $190. A good win after beating myself up for selling SES and BIMI wayyyy tooo soon earlier this week. Now back to work. 🙂

history-teaches-powerful-lessons
© 2018 Millionaire Media, LLC

Back to the Q&A with Kyle…

7. For someone considering the Trading Challenge, what advice can you give?

Kyle: Understand that this isn’t a get-rich-quick hobby. Even though trading doesn’t require any qualifications like a degree, it’s still a career path that one can choose if they’re serious about it.

If you join the Challenge, it should be because you want to learn to trade for a living, not to make a few extra bucks here or there. Trading takes way too much commitment to not give it a 100% effort.

Kyle committed. Do you have what it takes? Apply for the Trading Challenge here.

8. What advice do you have for someone who’s putting in the time and effort but still struggling?

Kyle: I say this to those putting in enough time and effort, you didn’t get this far … to only get this far. Like I said with the last question, you should want to learn to trade for a living for the rest of your life. When you have that level of commitment you’ll have much more power to keep pushing forward when times are tough.

9. I’m impressed that you’re so focused on trading well, rather than just profit and loss. What’s your best trade in terms of how well you traded?

Kyle: I love this question because it shows your biggest trade might not always be your best trade. 

My $IGC and $VBIV in June definitely made me feel incredible by just how in the zone I was to read the price action so well that day.

Another trade that comes to mind was $IGCC where on February 24 they put out news they would uplist to the AMEX from OTC and change to the ticker back to $IGC. The stock ran from 36 cents to over $3 dollars in just two days.

I was able to take two trades on it to total close to a $2,500 profit. Everyone I talked to thought I was crazy for thinking it could go back to its previous prices before getting delisted to the OTC market. But that’s exactly what happened and I was prepared for it. Pictures of both trades below:

IGCC chart from Kyle’s first trade — courtesy of Kyle Williams and StocksToTrade.com
IGCC chart from Kyle’s second trade — courtesy of Kyle Williams and StocksToTrade.com

[Please note Kyle’s results are not typical. Kyle has exceptional knowledge and skills developed with dedication over time. Most traders lose money. Trading is risky. Do your due diligence and never risk more than you can afford.]

10. OK, final question. I often say that people should have passions and interests outside of trading. (Mine are charity and awesome food.) So, what are you passionate about?

Kyle: I would say something that the trading community doesn’t know about me is my passion for my health and fitness. I work out four times a week with just as much discipline as in my trading — I don’t miss a workout.

I enjoy feeling good from eating healthy meals that I cook at home. Also, when my friends and I go out to bars or clubs, I’m the first person on the dance floor. Alcohol in my system or not, I’m out there dancing like there’s no tomorrow.

Nice! I’m so impressed with Kyle. I love his dedication and passion for trading. Thank you, Kyle and GOOD JOB! Keep up the great work!

Tim Sykes
© 2018 Millionaire Media, LLC

What Other Students Say About Kyle Giving Back

Again, I love to share my students’ success. Some, like Kyle, are self-sufficient. Others are just starting their journey, testing strategies, and building their knowledge base. Here are some recent chat room comments about Kyle’s videos…

Challenge Chat

_Stitch — kylecw2: Watched it mate, really enjoying your videos. That book’s been added to my looooong list of trading books to read.

AveryG — kylecw2: Great vid. Similar to a practice in meditation called ‘noting.’ Just acknowledging a feeling and saying “Oh that’s frustration.” etc

Sky_Hi_Trading — kylecw: thanks Kyle – always appreciated!!

Peachtart — kylecw2: Thanks so much!! I love the observer idea. Am going to use that…starting now. Hmmmm….should I post this? Yes.

Gardner56 — kylecw2: Thanks for the video.

JMad — kylecw2: oh nice! I love your recaps. stoked to check it out.

Millerruth23 — kylecw2: I’ll def be watching, thanks, man.

Ramesh_Kumar — kylecw2: Today I will watch your videos 🙂

AveryG— kylecw2: It was a great vid man! We can always do better

tim in Italy
© 2019 Millionaire Media, LLC

TonyG1 — kylecw2: Yes, watched it…Good Job tks

D22 — kylecw2: your videos are always good tho buddy (handshake)

Sky_Hi_Trading — kylecw2: great video bro – love all your videos!

MannyAFVet — kylecw2: GM…Your videos are sincerely appreciated for all the right reasons..thanks

Edu — kylecw2: Nice video bro! This is why I do Steenbarger‎´s report cards. It focuses more on the process than profits.

QuentinC — kylecw2: watched it this morning, it’s really adding value thanks!

LADONEGRO — kylecw2: oh yes thx man, always watching your videos !

equity-market-trading
© 2018 Millionaire Media, LLC

RockRobster — kylecw2: Thanks for the video. Always good to hear from successful traders.

millerruth23 — kylecw2: Great video Kyle, lol, when I saw all the trades you posted, I was thinking, wow! that’s a lot of trades, not normal for you.

Familyguy — kylecw2: Great video, loved it! Thanx for your efforts.

Twitter

And Kyle’s getting love for his videos over on Twitter, as well…

@AdamYaretz:

@johnnyjumper124:

@SAOshortsman

What do you think of Kyle’s video lesson and Q&A? Comment below! 

The post 10 Questions With Six-Figure Student Kyle Williams appeared first on Timothy Sykes.



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Is Canopy Growth (TSX:WEED) Stock a Contrarian Buy at $20?

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The downward spiral in the share price of Canopy Growth (TSX:WEED)(NYSE:CGC) and other pot stocks continues.

What’s going on?

Canada’s largest marijuana company just reported disappointing results for its most recent quarter ended September 30, 2019. Canopy Growth lost $374 million for the quarter, representing a 13% increase in losses compared to the same period last year. Management says the hit is mainly due to rising operating costs.

Cannabis producers have increasingly warned of weaker-than-expected for the current quarter and into and 2020 due to a lack of retail outlets in Ontario and Quebec. In fact, there is growing concern that the marijuana industry has switched from a shortage of product that hit the sector a year ago to an oversupply.

Canopy Growth booked a $32.7 million charge on returned products and a $15.9 million write-down on inventory in the latest results. The problem appears to be connected to weak demand and lower sales of oil and softgel products in the recreational market.

CEO Mark Zekulin specifically targeted Ontario as a major pain point. The province is dragging its heels on allowing an increase to the number of physical stores that can sell recreational cannabis products.

Net revenue from the quarter came in at $76.6 million, down from $90.5 million in the previous three months.

Investors had hoped the company would get spending under control after the board fired Bruce Linton, the former founder, chairman, and CEO this summer. Canopy Growth’s largest shareholder, Constellation Brands, recently put its CFO into the chairman role.

Constellation Brands invested $5 billion in August 2018 to boost its ownership to 38%. The investment was done at a share price of $48.60.

At the time of writing, Canopy Growth’s stock price is down to $20.20 per share. That’s a 17% decline on the day and well below the high near $70 the stock hit in April.

Upside potential

Cannabis bulls say the total Canadian medical and recreational market is more than $5 billion, and the opening of hundreds of new retail locations in Ontario and Quebec in the next two years should boost sales of legal pot products.

In addition, Canopy Growth is positioned well to benefit from rising demand for medical marijuana in Europe and South America, where it has established production and distribution operations.

The wildcard remains the United States. Selling cannabis products is currently illegal at the federal level, but many states have allowed the sale and consumption of the products. Canopy Growth has an agreement in place to acquire Acreage Holdings in the event marijuana is legalized federally south of the border.

Acreage has production and distribution operations in at least 20 states.

Should you buy Canopy Growth today?

The company now has a market capitalization of $7 billion, which still appears expensive based on annualized revenue of less than $400 million and no clear path to profitability.

Contrarian investors might want to start nibbling on the hopes of a near-term bounce, but I would keep any new position small right now. There is a risk we could see further downside across the sector before the dust clears and bargain hunters put a new floor under the stock.

Other oversold stocks in the TSX Index might be better options to consider today.

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Fool contributor Andrew Walker has no position in any stock mentioned.



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Best 3 Day Trading Indicators – On and Off Chart [Video]

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Day Trading Indicators Video

Before we dive into day trading indicators, first review the below video which is a nice primer.

 

When you are just starting in day trading, you will likely feel overwhelmed with where to begin.

You need to think through your trading plan, trading strategy, trading platform and this is just the beginning.

The other key area of focus is what technical approach will you leverage to succeed in the market. Let’s be clear, you cannot day trade the market using fundamentals. It’s a short game. So short, that most of my gains are made in 3 to 4 minutes.

So having the right tools to analyze the market is paramount to your success.

To this point, we are going to highlight the three-day trading indicators you can use to beat the market.

The three components we will cover in this post are (1) time frames, (2) on-chart indicators, and (3) off-chart indicators.

Picking the Right Chart Time Frame

I do not want to suggest there are any hard rules around the best time frame to day trade. You may have a higher patience threshold and prefer to use 15-minute charts, and I might have a lower patience threshold and prefer tick charts.

You should, however, consider a few things to make up your mind about picking the best time frame for your trading style.

First, you need to answer what time of day do you plan on trading.

Early Morning

If you have a day job, you probably are only going to be able to trade the first 30 minutes to one hour. If this is the case, then you are going to want and trade the one minute, two minute or three minute chart time frames.

Why such low time frames? Simply put, you need to ride the quick waves higher and also protect yourself quickly if things go against you.

For example, if you are trading a low float breakout, you will sometimes know within seconds if the trade is real. You don’t need to wait for a 15-minute bar to print to tell you where to buy and scale out of your position.

Midday Trading

I do not trade in the middle of the day because the action is too slow and give back gains from the morning.

Since the action is slower, you will only confuse yourself using lower time frames. If you are trading after 11 am, you will want to use the 5-minute or 15-minute chart.

This will allow you to draw trendlines connecting key support and resistance levels. You will also not overreact if a high or low of a candlestick is breached.

You essentially are going to use the higher timeframes to quiet the noise from choppy lunchtime trading.

End of Day Trading

You can use the same approach for the end of the day, as the early morning setups. The only difference is the end of the day is the driver to getting you in and out of the market quickly.

You do not have time for 60-minute charts since this would only give you two bars to make decisions at the end of the day.

Bringing it Altogether

So, the rule of thumb is that you should use a lower time frame when you have less time for day trading activities. Similarly, you should use a higher time frame when you are keeping an eye on the market throughout the trading day.

Figure 1: Comparison of a Bullish Move of Apple Inc. on 5-Minute and 15-Minute Chart Time Frame

In the above chart of Apple, notice how the 5-minute chart produces three times the number of bars. You can easily see this presents some buy and sell signals that otherwise would go unnoticed.

You will need to think through which time of day works best for you and then the corresponding time frame which will give you the most success.

Using On-Chart Indicators for Technical Analysis

If you add many indicators to your chart, let me be the first to tell you it’s a complete waste of time.

Hence, taking a “less is more” approach would not only help you declutter your chart, but also make it much easier for you to interpret the price action.

Best Day Trading Chart Indicators - Volume, 10 Period SMA, and ATR Indicators

Figure 2: Apple Inc. 5-Minute Chart with Volume, 10 Period SMA, and ATR Indicators

I strongly recommend that you keep the Volume indicator on your chart at all times.

In addition to the volume, I always keep the 10-period simple moving average (SMA) indicator on the chart. The 10-period moving average is one of the most popular day trading indicators among day traders. It is fast enough to give an early indication and direction of a significant price move when you are expecting a stock to break in a direction.

Lastly, I like to use the Average True Range (ATR) indicator to gauge the volatility of the security.

For example, Microsoft is not as volatile as a stock like Tilray. Therefore you need to know the behavior of the stock you are trading. This will allow you to adjust your risk parameters and money management rules.

So, to quickly recap, you need candlesticks, 10 SMA, volume and the ATR. This is more than enough for you to interpret the price action.

Using Off-Chart Indicators in Day Trading

While you would find the on-chart day trading indicators to be essential for technical analysis, at the end of the day, charts and indicators are just sugar-coated versions of the order flows that makes up the overall supply & demand in the market.

If you were a retailer, selling fruits, would you prefer to buy from wholesalers or the farmers themselves? Where would you get the best price? Of course, from the farmers.

In this analogy, if you would get the wholesale information about the market from technical indicators, you would get the best data from the Level II quotes. These quotes are the actual pending orders that other traders have placed with their brokers.

Figure 3: Apple Inc. Level II Data

Figure 3: Apple Inc. Level II Data

There are times where my chart will scream buy the breakout, but level 2 is telling me to stay away. I have no quick way of telling you how to interpret the level 2 data. It’s simply going to come down to you watching price action and level 2 to “feel” the market.

I know that sounds like nonsense, but I know when my stock is done. I can feel in the pit of my stomach that the move is over. When I don’t listen to that 6th sense, this is when I get into trouble.

To put it in more concrete terms, if you know that there are a large number of pending buy orders below the current market price compared to sell orders, which way do you think the market is going to break?

To explore more on level 2, please check out our article here.

Time and Sales Data

Figure 4: Apple Inc. Time & Sales Window on TradingSim.com

Figure 4: Apple Inc. Time & Sales Window on TradingSim.com

When it comes to day trading, I also heavily depend on another off-chart day trading indicator – the time & sales window. Tradingsim offers this data in the which is also known as the traditional “Tape.”

Once you start watching order flow in the time and sales window and depth of the orders in Level II, you can take your day trading to the next level.

Conclusion

Keep things simple when trading the markets. The more day trading indicators on the screen the harder it will be to figure out what the hell is going on.

Start with the tactics identified in this article and see if it doesn’t help bring clarity to your trading.

There is also something called total view which displays all of the open orders in the market. I do not feel total viewer is something you need to actively trade stocks, some of you might find it useful.

It is provided via the Nasdaq and of course comes with a fee.

The post Best 3 Day Trading Indicators – On and Off Chart [Video] appeared first on – Tradingsim.



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Uber Share Price vs. Uber Service: The Truth About Big Companies, Popular Products, and Dying Stocks

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There seems to be so much confusion around the Uber IPO, Uber share prices, and Uber service…

The company’s popular around the globe, right? So why isn’t the stock soaring?

Let’s talk about 2019…

This year, a lot of well-known, popular companies had IPOs — Uber, Slack, and Peloton. These companies produce some of the public’s favorite products … but their stocks are complete garbage.

And all of them have underperformed. And traders still ask, “Is now the time to buy?” Let’s look at these ‘hot’ IPOs and Uber share prices to better understand why these stocks aren’t great for small accounts.

Don’t Fall in Love With a Product

Companies continuously produce new and improved products for the public to love. Once the public bites, media outlets jump on and overhype the companies. The results are huge overvaluations, and it just sets up stocks and traders for disappointment.

Just because a company makes a great product doesn’t mean the company itself is good. There can be a ton of things wrong with a company … But people will overlook huge red flags if they love a specific product. So they look for the right time to jump in.

And as these overvalued companies start to fade, that question keeps popping up: “Is now the time to buy?”

Dip buying on large companies isn’t the same as my dip-buy pattern. It’s challenging to know where the bottom actually is with larger companies. The price could continue to fall for months, like Uber share prices. Let’s check out some recent examples.

Slack Technologies, Inc. (NYSE: WORK)

uber share price vs. uber service: the truth about big companies, popular products, and dying stocks
WORK Chart: 1-year, daily candle — chart courtesy of StocksToTrade.com

Since its June IPO, WORK has basically gone straight down. Although it didn’t dump following its IPO, the stock has consistently declined for months. Specifically, it’s dropped roughly 10% every month since the IPO or nearly 50% from its highs.

I can’t tell you how many traders, investors, advisors, and articles I’ve seen calling every one of the dips the bottom. Like when it dropped from $42 to the $30s, according to the financial media, this was a good dip to buy.

And again, when it dipped from $35 to $31, people said it was absolute panic. They thought that was the bottom … only it continued to drop further.

People thought it was an excellent time to buy when WORK dumped to new lows thinking, “Okay … this is down from $42 to $26. This 100% has to be the bottom.

That mindset is a slippery slope. I always follow rule #1 and cut losses quickly. I don’t hold and hope. Anyone who believed in WORK as a company and bought at the “bottom” lost a lot of money.

Don’t get me wrong, I like Slack’s product. I know a lot of people who like Slack and use it every day. But you can’t judge a stock based on a product alone. You have to understand the company’s fundamentals. And even then, these big companies may not be the best investment. That’s just a small piece of the puzzle.

Uber Technologies, Inc. (NYSE: UBER)

Look at Uber share prices and you’ll see another bad IPO. So why is the stock so bad when so many people around the world use its service?

The stock’s down nearly 50% because they have a lot of issues with their cost structure, growth, management, and company culture. I mean, they have endless problems. Uber’s share prices and stock chart speak volumes.

uber share price vs. uber service: the truth about big companies, popular products, and dying stocks
UBER Chart: 1-year, daily candle — chart courtesy of StocksToTrade.com

But if you listen to mainstream media, Uber stock was the greatest buy of 2019. So many pundits and experts hyped UBER as a great buy. People and the media fell in love with the product…

… but they failed to look at all of Uber’s underlying issues. That’s a huge mistake.

Again, I love Uber’s product and will continue to use it. I don’t want to see Uber fail — I’m merely being realistic. Big companies with popular products usually aren’t the best investments.

None of my millionaire and six-figure students made their profits investing in these large, overvalued companies. They used predictable and repeatable patterns like the ones I teach in my Trading Challenge.

Peloton Interactive, Inc. (NASDAQ: PTON)

Uber and Slack aren’t the only failures. This pattern happens every year with several companies. Peloton, the indoor cycling company, was supposed to be a hot IPO this fall.

But what really happened?

uber share price vs. uber service: the truth about big companies, popular products, and dying stocks
PTON Chart: 1-year, daily candle — chart courtesy of StocksToTrade.com

Not much. It dipped a little off its IPO price and has been chopping around. It’s nearly impossible to grow a small account with this price action. That’s why I only trade penny stocks.

Again, don’t confuse the stock and the product. Here’s one last example for you…

Celsius Holdings, Inc. (NASDAQ: CELH)

I drink Celsius. I think it’s a great pre-workout drink, kinda like a healthy energy drink. A lot of health-conscience fitness professionals recommend their product.

Theoretically, this should do very well. But, over the past two years, CELH has done nothing.

uber share price vs. uber service: the truth about big companies, popular products, and dying stocks
CELH Chart: 2-year, daily candle — chart courtesy of StocksToTrade.com

Even some of the world’s wealthiest people invested in Celsius, but it’s failed to perform. Li Ka-Shing, the world’s 30th richest person, is an investor who planned to bring the drink to Asia. Celsius should’ve been a big hit there. For whatever reason, it’s not taking off.

I can’t say this enough. Trading isn’t about the product or the quality of the company.

And if you’re trying to grow a small account, getting 10% growth a year (which is considered good on Wall Street) won’t help you much. What can work for your small account? Day trading penny stocks.

Need a place to start? Check out my free penny stock course here.

Stay Out of Dying Stocks

uber share price vs. uber service: the truth about big companies, popular products, and dying stocks
© 2019 Millionaire Media, LLC

You can’t hold and hope. Well … you can, but it’s not a strategy, and it doesn’t work.

I hate seeing traders fail. Trust me, I personally love a lot of the products these companies have created. I even use a lot of them, but that’s not enough for me to trade these tickers.

If trading has taught me anything, it’s that the stock market will never value a company based on people’s reaction to the product or service. I know people still think that’s possible because that’s maybe what happened in the market a few decades ago.

Unfortunately, after a 10+ year bull market, you can’t rely solely on a popular product.

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For example, if you want a company’s stock to go up, the company will have to come out with new products. Especially with big, multi-billion-dollar companies like Uber or Slack. Also, the product can’t be a fad, and the company also needs to be structurally sound. Even if a company has everything going for them, there’s no guarantee the company’s stock will spike.

I see this trend again and again. It’s challenging for people trying to get into the stock market. Many are busy and think…

“Hey … I just want to invest. I want to invest in what I know!”

That’s a popular adage in the market, “invest in what you know.” But people take it too literally. And sadly, it’s not that simple. People like to oversimplify things.

Popular Products, Good Companies

I’m not saying this strategy never works — sometimes it does. Starbucks is near its highs. Sometimes, people love the product and the stock, like Chipotle.

Chipotle had some food safety issues, and the stock got crushed 50%. But the company is solid, and people continue to love its product. Now it’s right back at all-time highs.

uber share price vs. uber service: the truth about big companies, popular products, and dying stocks
CMG Chart: 2-year, daily candle — chart courtesy of StocksToTrade.com

But there’s no discernible pattern with these big companies.

Nike (NYSE: NKE) is near its highs, but you don’t know what will happen next. A lot of people love and use Twitter (NYSE: TWTR) … but it’s been very choppy over the last two years. A huge portion of the business world uses Microsoft (NASDAQ: MSFT), which just hit all-time highs as of this writing. There are just too many factors to consider.

The Reality of Wall Street

uber share price vs. uber service: the truth about big companies, popular products, and dying stocks
© 2019 Millionaire Media, LLC

You can’t guess a company’s value solely based on personal experience. These simple assumptions don’t make for smart, self-sufficient trading.

Let’s say you pick your 10 favorite products and buy the stocks. Maybe you’d get lucky and buy the next Microsoft. But more times than not, you won’t grow your account that way.

If you look at Uber share prices now — and you bought in on day one — you probably already know this lesson firsthand.

Learn from that experience. Learn from my experience. Focus on how you can be a smarter trader and adapt to the market. That’s exactly what I teach my students in my Trading Challenge. Apply today.

Learn patterns like the ones I explain in my How To Make Millions DVD. These penny stock patterns are far less talked about and less counterintuitive.

What do you think about ‘hot’ IPOs? I love to hear from you!

The post Uber Share Price vs. Uber Service: The Truth About Big Companies, Popular Products, and Dying Stocks appeared first on Timothy Sykes.



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