RECAP: Day Trading Breaking News
Published: 2024-11-11
Status:
Available
|
Analyzed
Published: 2024-11-11
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
The speaker observes a historical correlation where crashes in Bitcoin and cryptocurrency markets have led to a decline in small-cap stocks, and vice-versa during surges.
"what I have noticed is that when Bitcoin crashes small caps also suffer we saw this in what was it I can't I think it was December of 2018 we had a crash in cryptocurrency and all of a sudden small caps went totally dead we saw it through the pandemic cryptocurrency surging and then when FTX went under and we had this collapse in the cryptocurrency markets small caps were also dead so they seem to trade similarly"
Pending
In a 'hot' market, a catalyst that would be insignificant in a 'cold' market can cause a stock to increase by 200%.
"in a hot Market a catalyst that maybe in a cold Market wouldn't have gotten much attention or wouldn't have done anything at all in a hot Market that same Catalyst can send a stock up 200%"
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The speaker believes that sophisticated, multi-strategy trading capabilities are primarily found in algorithms, not humans.
"I honestly the only people that I really know who are there aren't people but they're algorithms and they've been trained to do this when this happens and this when this happens cuz it just gets really complicated"
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There is a correlation between Bitcoin crashes and small-cap stock performance, with small caps suffering when Bitcoin declines.
"what I have noticed is that when Bitcoin crashes small caps also suffer"
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Following the FTX collapse and subsequent cryptocurrency market crash, small-cap stocks also experienced a downturn.
"we saw it through the pandemic cryptocurrency surging and then when FTX went under and we had this collapse in the cryptocurrency markets small caps were also dead"
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The author's initial scan for tradable stocks on this particular morning did not yield many promising opportunities, leading to the trading of 'sup' as the first stock.
"so when I first sat down this morning no we didn't have too much that looked good on the scans and the first stock I trade was sup"
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The stock 'sup' was identified as a Hong Kong stock, indicated by the 'HK' notation, despite lacking other news.
"I saw that it lacked news but I also saw HK so I'm thinking oh Hong Kong stock"
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A trend of Hong Kong stocks ('HK') appearing on scanners is noted, with 'PWM' being another example that began popping on Friday and continued into pre-market trading.
"so now there's a little bit of a Trend going on so I'm like all right we got another one popping up here this one had begun to pop Friday after hours popped up a little bit more pre-market than out of nowhere went from $1 to $180"
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The author acknowledges that their strategy of trading pops on breaking news is most effective for those who trade pre-market, as this is when news often emerges.
"I saw someone mention that the strategy that I trade of trading you know this pop on breaking news doesn't work for most Traders if they don't trade pre-market"
Pending
Traders do not necessarily need to trade the initial pop on breaking news; waiting for a rejection and then trading a second leg higher is a viable alternative strategy.
"you don't have to trade the first pop when the news first comes out you can have the pop the rejection and then take the second leg higher"
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The author suggests that a bank holiday likely impacted market volume and liquidity negatively.
"I do think that that probably affected volume in the market a little bit today and and perhaps you know liquidity not quite as good because of that"
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The iShares Russell 2000 ETF (IWM), representing the small-cap index, is trading very close to its all-time highs.
"the iwm I mean look this is this is the small cap index it's at all-time high oh sorry not just not quite it's very close to all-time highs"
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The author believes the current market conditions are favorable for trading, provided risk management and discipline are maintained.
"I I think that this will be a favorable Market"
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The author reported an average daily trading profit of over $25,000 during the previous week.
"last last week was a great week average 25,000 a day a little bit more than that over the the five days"
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In a 'hot' market, catalysts that would be insignificant in a 'cold' market can cause stocks to surge dramatically, potentially by 200%.
"in a hot Market a catalyst that maybe in a cold Market wouldn't have gotten much attention or wouldn't have done anything at all in a hot Market that same Catalyst can send a stock up 200%"
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Market sentiment, which is external to the trader, is often the key differentiator in the success of similar trades across different market conditions.
"the difference in a lot of cases is that sentiment it's external to you"
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The effectiveness of a trading strategy is not constant but fluctuates depending on the prevailing market environment.
"the performance of the strategy varies as environment varies"
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The market exhibits periods of high activity ('hot') where trading is highly profitable, and periods of low activity ('colder') where profitability is reduced.
"you'll have markets that are really hot where you can do really well and then other markets that are colder and you don't do as well"
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Highly skilled traders often possess mastery over multiple strategies, allowing them to adapt and profit across different market conditions and asset classes.
"some of the best Traders out there are so good that they've mastered a dozen different strategies so when one is up another is down and so on so forth"
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The author suggests that sophisticated, rule-based algorithmic trading systems are the only entities truly capable of seamlessly adapting to complex market conditions, unlike humans.
"the only people that I really know who are there aren't people but they're algorithms and they've been trained to do this when this happens and this when this happens"
Pending
Historically, small-cap stocks have shown a tendency to suffer when Bitcoin and the broader cryptocurrency market crashes, and conversely, surge when cryptocurrencies rise. This correlation has been observed in December 2018 and during the pandemic, including the FTX collapse.
"what I have noticed is that when Bitcoin crashes small caps also suffer we saw this in what was it I can't I think it was December of 2018 we had a crash in cryptocurrency and all of a sudden small caps went totally dead we saw it through the pandemic cryptocurrency surging and then when FTX went under and we had this collapse in the cryptocurrency markets small caps were also dead so they seem to trade similarly"
Pending
In a 'hot' market, a news catalyst that would have minimal impact in a 'cold' market can cause a stock to surge by as much as 200%.
"in a hot Market a catalyst that maybe in a cold Market wouldn't have gotten much attention or wouldn't have done anything at all in a hot Market that same Catalyst can send a stock up 200%"
Pending
The effectiveness of a trading strategy is not constant; its performance fluctuates based on the market environment, with 'hot' markets yielding better results than 'colder' ones.
"the performance of the strategy varies as environment varies so it's not like the market is fixed every single day you'll have markets that are really hot where you can do really well and then other markets that are colder and you don't do as well"
Pending
Top traders often achieve consistent success by mastering multiple trading strategies, allowing them to adapt and profit across different market conditions, such as switching from small caps to other assets when small caps are underperforming.
"some of the best Traders out there are so good that they've mastered a dozen different strategies so when one is up another is down and so on so forth so they're doing small caps but when small caps are slow you know they switch to to whatever and so they just get this really nice average"
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Highly proficient and adaptable trading capabilities, akin to mastering multiple languages with both hands, are currently more commonly found in sophisticated algorithms than in human traders.
"the only people that I really know who are there aren't people but they're algorithms and they've been trained to do this when this happens and this when this happens"
Pending