When it comes to becoming a successful trader, having the ability to spot bubbles can make you a lot of money and help you make better trades. Over the years I have taken advantage of this to exploit bubbles in penny stocks and in options trading. The key to it, is know the stages to a bubble and this is essentially based upon trading psychology. Becoming a good trader doesn’t necessarily revolve around knowing how to trade options or how to trade penny stocks, because there is a huge emotional factor. You are going up against other market participants and if you know how to spot the signs you can exploit their psychological weaknesses. The key to this, is making sure you don’t get caught in the pump and dump esque nature of asset bubbles and make sure you are able to protect yourself. I go over asset bubbles in this video and how to take advantage of them and explain briefly situations in which I used them in options trading, in relation to the earnings bubble of 2015. As well as how I used it in the marijuana penny stock bubble of 2014. The thing about spotting bubbles and taking advantage of them is all about timing to maximize your rewards. Sure you can day trade them, however daytrading wont really be as effective since you will be playing musical chairs for little amounts of money. Ideally the best strategy to take advantage of bubbles is swing trading. The interesting part about bubbles and trading them is that they are not necessarily fundamental analysis or technical analysis, it is pretty much the psychological part of trading and more or less related to price action but on a deeper level. As I state in the video, the key to the bubbles is finding industries in the markets that are bubbling or getting hot and then zoning in on companies within those industries. If it is just one company and the industry isn’t popping or there is a lot of hype around the industry, it could simply be just a pump, which is very common when trading penny stocks. Moreover, if you are a beginner penny stock trader or beginner options trader, you have to make sure you don’t confuse artificial demand/hype with bubbles and be quick to jump in. As I explain, you kind of have time on your side and can still make a lot of money if there is truly a bubble so be patient! Anyways I wont keep ranting, as always ask me specific questions and if you want me to elaborate on certain aspects post them below in the comments and I will make a follow up video! Please SUBSCRIBE to the channel LIKE, SHARE, and COMMENT so I have questions to answers and things to talk about. If you think you can hang with the brothers and are qualified to be one of the 25 people we accept every quarter to join my 3-month mentoring program, where you are able to watch me trade stocks LIVE every second of the day, every day of the week and be able to ask me questions live while I trade, go to http://www.thetradingfraternity.com to request and application. The lazy an un-dedicated need not apply. NEXT PLEDGE CLASS STARTS APRIL 2017 Application Deadline is March 21st, However we will take certain applications after if we believed you are qualified, up until the date of the group interview! Group Interviews April 7th Next pledge class April 14th! If you have any questions about me or what we do, I have a 9,000 word FAQ here: http://www.thetradingfraternity.com/FAQ If you haven't done so follow me on social media! Twitter: http://www.twitter.com/JoshAnswers instagram: http://www.instagram.com/TheTradingFraternity Facebook: http://www.facebook.com/TradingFraternity Twitch: http://www.Twitch.tv/TradingFraternity Sign up to be a TTF Citizen and get access to our private LIVE webinars 2x a week, private newsletter, and REAL ESTATE chatroom!: http://www.TTFCitizen.com Apply for mentorship: http://www.TheTradingFraternity.com
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Duration: 12m 4s
Rating: 160