The world is starting to reopen from the havoc of the coronavirus. Businesses are reopening, people are going back to work, and others are starting to see that the coronavirus isn’t deadly like everyone originally thought.

The stock market has started to react to this in a positive way, but we may not be in the clear yet based on what the charts show.

There are a couple more barriers that could potentially stand in the way before, and if, the market takes off once again.

Shown above is the Dow Jones.

Price has been rising since the end of March, but we are currently testing a strong area of resistance. If you’ve read my previous blogs, you know that support can turn into resistance, and vise versa.

Right now, the previous support zone is acting as resistance.

We need to see price break through this resistance and then break above the 200 moving average (curved black line).

If price breaks through this current resistance level, we may see further strength. If it doesn’t, we could see further weakness or consolidation.

Shown above is the S&P 500 Daily Timeframe.

Price has broken through the strong resistance level, and is now testing the 200 moving average.

This is a very important level that could decide the next direction of the market. We need price to break above this level to give us an indication of potential further strength.

The market is bullish right now, but we do have roadblocks in the way. If these resistance levels are broken, the market could move towards the previous all-time-highs without much hesitation.

Taking long positions isn’t prohibited at this stage, but they should be done with some extra caution.

So to answer the question of the blog title…

We don’t know what the market’s next move is going to be, ever. What we do know is that we are at an interesting time and level in the market. We need to be prepared for whatever direction the market takes.

Stay vigilant and ready to take advantage of any big moves to the upside in the market that develop over the coming weeks.

Keep your eyes and analysis sharp.

What Is The Stock Market’s Next Move? (May 20th, 2020) was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

I always questioned this, and their reasoning was something along the lines of “this pair has always given me the best results” or “this pair just speaks to me better than any other”.

Hmmm…

It didn’t make sense that with so many pairs, someone would trade only one. Regardless, I took the advice and ran with it. Long story short, it didn’t work very well.

But in their small defence, I didn’t have a trading plan and didn’t really know what I was doing at that point in my trading career.

When I joined Dynamic Trader, they told me what I was wanting to hear regarding the currency market…

“Trade whatever pair is providing setups and money at that point in time”.

It makes perfect sense.

Now when I say every pair, I am referring to the major and minor pairs.

Major:

EURUSD
GBPUSD
USDJPY
AUDUSD
USDCAD
USDCHF
NZDUSD

You can search online for minor and exotic pairs.

The reason that some exotic pairs may not apply to this rule is because there can be a big spread and much higher cost to trade these pairs, as opposed to the major and minor pairs.

So back to the point of conversation…

We don’t want to focus on ONLY one currency pair all the time because that pair may not be suitable to trade at many times.

If you, for example, only traded EURUSD, you could go weeks or months without a good setup while there could be other pairs like USDJPY or USDCAD that are providing great setups and are trending well.

We don’t want to marry a certain currency. This gives us an emotional attachment to it and could cause us to force bad trades, hold onto losing trades too long, and miss out on hundreds or thousands of pips generously being provided by other pairs.

If you ever hear someone saying you should pick 1–3 currency pairs and only focus on those, RUN. It is bad advice and it will cost you a lot of money in the long run.

We want to focus on the best pairs and charts, providing the best setups at any point in time.

Thanks for reading, and I hope this helps if you had any questions regarding how you should approach the forex market.

There is not one pair that is good to trade ALL the time. Diversify and always keep an eye on the entire market for good opportunities.

Why You Shouldn’t Focus On One Currency Pair was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

But now…

Fear is taking over and the coronavirus has caused the market to flash crash around 12–13% as of today (Feb 27, 2020)

Traders and investors don’t want to be buying into the market when global trade and commerce could come to a screeching halt.

We see the impact it is having and the greater negative impact lurking around the corner…

So what is the action that should be taken from here?

From a trading perspective, I am currently standing aside. I am not looking to short sell the market yet, or start buying again.

The S&P 500 and Nasdaq are approaching their weekly 50 moving averages, which could act as strong support to help keep the market up and cause a move back to the upside.

If these levels are breached, and we have a continuation further to the downside, it may be a good time to look for short-selling opportunities.

Stocks rise slower, like walking up a set of steps, while stocks crash much faster, like being in an elevator falling at a deadly speed.

So if we do short sell, we need to be ready to act quickly.

Remember that sometimes, not taking a position is the best position. I haven’t been at my computer much at all this week, because I’m letting the market battle out it’s issues. I don’t want to be in the middle of a fight between the bears and bulls.

Let the dust settle, and then follow the momentum of the market.

Standing aside in the stock market also brings up another important topic that has been mentioned in previous blogs…

MONEY MOVES FROM MARKET TO MARKET.

Now that we see a lot of fear and indecision in stocks, we could see the big money moving their funds to forex and/or commodities.

Be alert for trends arising in these markets!

Stocks have been doing so well over the recent years, which has caused forex to be quite stagnant (from a trend trading perspective).

The takeaway and main message of this blog is to:

1. Be patient

2. Let the dust settle, and then see if buying or selling is the right option

3. Look for emerging trends in other markets

The Coronavirus And The Stock Market…What Should You Do As A Trader? was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

But first, there are some questions you should ask yourself:

Can I live below my means?

Do I have a gambling problem?

Am I willing to accept losses?

Am I willing to learn and go through the growth pains of trading?

Why do I want to be a trader?

Can I treat trading like a professional business?

The fact is, most people have what it takes to become a successful trader. It doesn’t require a high IQ or natural instinct. It requires saving money the money to invest, learning the necessary knowledge and skills, and applying what you’ve learned without straying from your rules and trading plan.

It is simple. Trading is not a get-rich-quick scheme. Anyone trying to tell you that is running their own scheme to get rich off of you.

“But Brennen, what if I have a job that takes up all of my time? My job and family take up all of my time, so this must apply to a small percentage of people that have the time and money to learn the ropes and spend hours in front of the charts.”

With my style of trading, it doesn’t require hours of screen time or dedicating your entire life to the charts.

Trend trading is set up to give everyone the chance to win, especially those who have a job or career and are looking for a way out of the rat race. Unfortunately, most people don’t know the opportunity and/or have no money left over at the end of the month after all their expenses are accounted for.

I’m telling you that YOU have the ability to be a successful trader if:

1. You can live below your means. You can’t be a trader if you don’t have any money to trade.
2. You don’t have a gambling problem that will interfere with your trading. You can respect the markets and understand proper risk management.
3. You’re willing to accept that small losses happen, and that you aren’t going to win every trade.
4. You’re willing to do what it takes to become a successful trader.
5. You have a bigger purpose and reasoning behind trading. It will drive you to keep moving forward when you are going through growth pains and feel like giving up.
6. You can treat trading like a professional business. Successful businesses don’t become successful by luck or chance. It comes from successful planning, preparation and execution.

So you may be telling yourself…

“Yeah I meet all the qualifications. I am able to save money and want to have control over my financial future.”

If you can understand that trading should be treated like a business, you can also likely understand that initial investments are necessary. To become a successful business owner, you have to have knowledge of what you’re doing.

That is where our community comes in for you. We have a community of traders from all walks of life, ages, and demographics. We have the education and support necessary to give you all the knowledge and support you need to become a profitable trader.

Dynamic Trader continues to grow and we continue to take advantage of the profits handed out by the market.

The choice remains yours…

If you want to make trading a sustainable and profitable part of your life, you can spend years of frustration and wasted money trying to learn it all on your own, or you can take the leap of faith and let Dynamic Trader give you everything you need to take control.

I believe you have what it takes to become a trader, and a successful one at that.

Do you?

Are You Cut Out To Be A Trader? was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

Or “price has been declining for such a long period of time now, so price has to start going back up soon. It’s time to buy”.

While these statements can be “true”, why do they hold little to no value?

It’s because nobody knows what the market is going to do next, and the momentum of a trend outweighs trying to pick the tops and bottoms of price movements.

What I mean by this is that when price is starting to continuously move up and up, it is gaining momentum and usually gathers strength to keep moving to the upside. So if price is moving up and up, why would you want to try and short sell? You’re taking a gamble hoping and praying that you get lucky and sold at the top of the trend…

Let’s look at a real example of why I don’t follow the hype of buy low sell high

We’ll be looking at the recent movement of the S&P 500 for this example.

Adopting the buy low sell high method doesn’t hold weight in a trending market. If you’re looking at it from this perspective, you can see all of the points mentioned where you would have assumed the S&P 500 reached the top of the trend.

There is merit and validity behind following the trend and the momentum. As of now, the market is bullish and Dynamic Traders will continue to buy into the market until THE MARKET tells us it is time to get out and/or start to short sell.

Dynamic Traders have been taking advantage and profiting well off the bullish momentum in the markets, while others are unfortunately losing money HOPING the market crashes.

Listen to the market and follow the momentum. Always swim with the current instead of trying to force it the other direction. We can’t move the market or change it’s course, so we might as well ride along with it!

Buy Low Sell High? Or Buy High Sell Higher? was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

Constant talk of what is going to happen and the fear of an economic collapse lurk around almost every corner…

This causes many traders and investors to pull their money from the market and stand on the sidelines, while other investors and traders are short-selling and trying to get lucky on a big crash.

Unfortunately for the majority, they are missing out on substantial returns so far in the start of 2020, and even throughout 2019.

Last year, many community members and myself beat the S&P 500’s return by more than double, while many traders tried to sell the market or feared getting in at the top.

If you missed out, why? Fear? Lack of understanding?

I get it. It makes sense to be fearful of the world economy during heightened times of potential war.

Obviously, “all good things must come to an end” right?

Sure, that can be believable based on history. We’re still experiencing the longest bull market in history, so many are getting the inclination that the market must crash any second now.

I can tell you from experience and from good trading education, that this is the WRONG APPROACH!

So what do you do or how do you know what to do in times like these, as a trader or investor?

It’s simple…

You base your decisions off what the market is telling you!

Brennen…what do you mean?

I mean, if the market is bullish and price continues to move upward, you look to buy into the market until it says otherwise.

If the market is bearish and price is continuing to move downward, you look to stand aside or short sell until the market says otherwise.

It is that simple.

So as of now, the market is moving upwards with bullish momentum, which means you should be looking to take long positions.

There shouldn’t be any second-guessing or trying to get lucky and sell at the top. That kills too many traders.

That doesn’t mean I don’t stay extra cautious and manage trades more closely, but I am for certain that I don’t let the fear of the media keep me out of a trending market.

If you’re a surfer, you ride the big waves and hang on for the ride until the wave ends. You don’t try to swim into the wave and force it back out into the ocean. You don’t have the strength to do so. The same applies to trading. You ride the wave and go with the momentum because it is the simple and easy thing to do. Unfortunately, many traders try to over-complicate the process and hurt themselves when the facts are right in front of them.

I wish every trader could see this post, because many need to hear this.

Ride the wave and momentum. Don’t fight it…

Even when the news is trying to scare you away.

Below is a link to the one and only trading course you will ever need. The course pays for itself tremendously in the long run. You can either keep spinning your tires in the mud, or take the leap of faith and make trading a professional part of your life.

If you have any questions, feel free to reach out.

https://dynamictrader.live/level-3-new-member-bf/

When The News Is Instilling Fear Into Everyone… was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

It can be easy for traders or investors to get overly excited when the stock market climbs higher and higher, week after week.

This can cause a rush, or “panic”, to hurry and get into stocks to capitalize on the gains in the market.

With all of the money and confidence flowing into the market, it can be easy to shy away from the idea of a big drawdown (negative movement in the market or a stock) occurring.

Because of this, when drawdowns do happen, people let their ego keep them in the trade long after they should have removed themselves from it.

The emotions and previous movement of the market, and/or certain stocks, can make most think that it will for sure turn back around and continue to rise.

But then what if price continues to decline?

That is the question nobody can answer. Price could continue to rise, or continue to decline.

Because of that, you have to know…

Your exit before you even take the trade.

It is so crucial to know your exit point. It gives you confidence, peace of mind, and it takes the emotion and guesswork out of the trade management.

I recommend buying into a stock at a base, or cluster zone of support so that you have added protection and an increase in the odds that price will move in your favor.

Buying from a base, or strong area of support, also gives you a simple way to determine your exit…

…if price breaks below that strong support zone, that is where you’ll exit your trade.

That is a very basic explanation, but there really isn’t much more to it than that. If a significant level is broken, that is a good sign to get out of the trade.

Use support and resistance to your advantage when determining your exit point.

But most importantly…

Know your exit. Always.

Before You Enter a Trade, Know This… was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

Being a private trader is all in your own hands. Nobody is bossing you around telling you to study the market, look for setups, stay true to your trading plan, or shake off the losses.

The market tests everyone at some point, making you question whether trading is for you or not. You might ponder the idea of giving up and letting yourself believe that successful traders have abilities that you do not posses.

So what gets you through these tough experiences and negative thoughts?

Having a desire and passion for trading.

It is a cliche answer, but true. Just like with anything else in life, getting proficient at something becomes much easier when you have a desire to learn or get better.

Having that desire and passion is what gives you a sense of tunnel vision during the struggles and growing pains.

It keeps you working on your skill and yourself when nobody else is watching. You may still have doubts at times, but they are quickly silenced by your confidence and trust in the process.

Most people give up at the first or second sign of failure or trouble. They’re likely not quitting because they’re incapable, but because they don’t have that true desire or aren’t willing to push through the pain pushing back at them.

If you’re struggling with trading, you’ll know you have a true passion for it when you are willing to keep learning from your mistakes and fighting for that eventual success.

Trading success doesn’t come over night. It is gained over years of working on your craft and staying true to your rules. This is nearly impossible to do in the longterm without the ability to enjoy the process, and love every step of the journey for what it is…which is creating a better trader and, more importantly, a better version of you.

So chalk up all of the trading tips and strategies for good unless you have the desire and passion to trade! If not, you’re just wasting your valuable time and hard-earned money!

Are you willing to go through the trials to get the reward later on down the road? You will if you genuinely love trading and all that it entails.

The need for instant gratification kills success, but passion and consistency trump that 100% of the time.

The Main Ingredient To Eventual Trading Success was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

I wish I would have known the severity of the consequences before I did this, but I didn’t.

I thought I was outsmarting the market, but I was falling into the trap.

This topic came up in a conversation not too long ago, so I thought it would be good to cover in this blog.

So let’s get right to the point.

That mistake was…

Averaging down…

What is averaging down?

Here’s a practical example…

You buy shares of a stock when it reaches $40 thinking price is going to continue to rise, but price does the opposite.

Price retraces to $35, so you decide to buy more shares at $35 thinking that you’re now buying at a better price.

But your main objective is to make up for the loss you’ve acquired from price going from $40 to $35.

So what happens next?

Price goes from $35 down to $33, then $32, then $29…

And now instead of experiencing one losing position, you’ve increased your exposure to the market and now have two losing positions.

This is a common occurrence in the markets, and many people quickly blow their accounts by trying to average down.

This is a greedy tactic that often doesn’t work out in the favor of the trader.

Greed and ego are your worst enemies in the market, which also means YOU are your worst enemy in the market the majority of the time.

Without proper risk management and controlled emotions, you will make poor decisions such as this in an attempt to gain an upper hand on the market.

Averaging down is not worth the risk or your money.

If you get into a losing trade, accept the decision and do not try to fight it. The best traders lose trades. What makes them the best traders is that they can accept those losing trades and move on to the next one without trying to over-correct it.

The risks of averaging down will never outweigh the rewards.

So with that being said, one of the worst mistakes you can make as a trader is averaging down.

One of the Worst Trading Mistakes… was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.

To be successful in trading, you need to detach your emotions from the trades. This means that someone shouldn’t purchase a stock simply because they like the company and their products, or the news is telling everyone to buy.

You should look for the stocks that are out-performing the market and trending well, despite whether or not you’ve ever heard of the company before.

Some of my best trades have been from stocks I had never heard of until days prior to entering.

These stocks are found through stock screening software, where you can set up specific scans to filter out good trading opportunities.

The products that I use to do this are:

1. StockCharts
2. TC 2000

(These products do have free versions, but I use paid versions)

I’ll filter through the stocks on these platforms, find the best candidates, look at a minimal amount of fundamental information, and see if the setup correlates with my trading plan.

You need good trading software and screening software to stay ahead of the game by finding good candidates before it is too late.

Obviously, the scans must be manually entered and there is an infinite amount of scan scenarios, but you should set up scans based on your style of trading.

In my case, it is a trend trading strategy and my scans are based towards that.

If you are interested in learning how to trend trade and want to get ahead of the game, our trading community could be a great opportunity for you.

In summary, to find good stocks, you need:

1. Good scanning software
2. Good scans
3. Good charting software

It is such a simple concept, yet so over-looked.

Focus on finding the best trade setups in the current market instead of only relying on the companies that you only know from day to day life, and you will see a better result.

How Do You Find Good Stock Picks? was originally published in Dynamic Trader — Members Trading Articles on Medium, where people are continuing the conversation by highlighting and responding to this story.