Trading Videos

Wednesday, May 18, 2022

Traders Reducing Stock Market Risk

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Dan Passarelli, CEO - Market Taker Mentoring

There was a big stock sell off in the S&P500 today. And the reason is all the traders reducing stock market risk and refusing to buy the dip. Volume was average, indicating a lack of conviction on the part of traders.

To me, that means this sell-off could be slightly exaggerated. There could be more room to the downside, but over the next couple of weeks, the more likely scenario is that the stock rallies somewhat.

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Tuesday, May 17, 2022

How to Trade Rangebound Stocks

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Dan Passarelli, CEO - Market Taker Mentoring 

I'm often asked how to trade rangebound stocks. As a long-term stock investor, rangebound stocks are kind of a dud. they go up and you make money, they go down and you lose money. Not very successful trading.

But with option trading, there are option trader strategies that can work well with rangebound stocks. There are basically two ways one can think about these trading setups.

First, from a bounce off support or resistance. If the stock bounces off support, a trader can buy a call, to play the rally. If a stock hits resistance and the stock pulls back, a put buying strategy would be the play.

But when implied volatility comes into play, there may be some option strategies that make more sense. Watch this video to learn more about trading rangebound stocks.

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Monday, May 16, 2022

The Par Level: Will It Hold?

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Dan Passarelli, CEO - Market Taker Mentoring 


The S&P 500 is trading right around $400 a share on the close today. In stock trading, we call big round even numbers like that "par." It's just a stock trader colloquialism. But the real question is, the par level: will it hold?

This has been a quiet week in the market. There are not a lot of financial reports coming out. There are not a lot of earnings this week. And volume today was very low. The market will be watching to see if this par support level holds or if it will break and support becomes resistance. If that happens there might be some more selling stocks that could lead to a lower market.
 

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Thursday, May 12, 2022

You Can Learn From This, Option Traders

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Dan Passarelli, CEO - Market Taker Mentoring 

I've had many traders tell me trading the stock market is tough right now. There's too much market volatility. I don't know how to trade this market. This sucks! But guess what... You can learn from this, option traders!

I was talking to one of our 1-on-1 Option Trader Coaching students today, and I said, if you can even break even in this market, you can dominate once the market gets back to normal. Now is the time to learn.

The best thing I can tell you is, if you're having a tough time trading, lower your size (a lot), pick your spots and learn to trade by watching what happens. Learn from your losers. Learn from your winners. Right now might be the best learning experience in a decade for traders.

One of the best things about trading is it's a life-long learning process. As they say, a trade "works until it doesn't work." Then the market changes, traders have to change with it. Once a trader tells me he or she has learned enough, I know they've lost. Keep at it. Trading can be a rewarding game. And as they say, "the more you learn, the more you earn."

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Tuesday, May 10, 2022

Trading Market Signals

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Dan Passarelli, CEO - Market Taker Mentoring

Trading market signals in the stock market is essential to survive and thrive as a trader. All too often traders trade with "gut instinct" that has been scientifically proven not to work. The only way to make it as a trader is to wait until the trading signal triggers a trade entry and then get in.

This can mean support and resistance, trading studies, trading indicators or a host of other criteria. But Dan Passarelli says the key is to pre-cognitively set criteria for entry and to wait for the trade to trigger.

In this video, you'll learn some of Dan's favorite signals and why it's so important to wait for trading market signals.

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Monday, May 9, 2022

Correction vs. Bear Market

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Dan Passarelli, CEO - Market Taker Mentoring

Correction vs. bear market, which one is it? These stock market terms are technical definitions that have strict definitions but little meaning when it all comes down to it. If anything maybe psychology of the market is affected. But it just defines the state of the market.

What's the difference between a correction and a bear market? It's simply a matter of how far down the market has gone. It doesn't necessarily predict where the market is going. It doesn't predict anything about what the market will do. In each case--correction or bear market--its how far it's fallen from its high. And that's it.

In this video, Dan Passarelli of Market Taker Mentoring explains these definitions, what they mean and what his thoughts on the future of the US stock market are.

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