Why I Love Trading and Writing About Trading
Plus, a couple of important charts as we head into a big week of earnings.
Trading gives us the ability to benefit directly from our hard work.
Trading also allows us to set our own schedules, within reason. And regardless of your schedule, there are endless opportunities to make money.
I absolutely love this.
When I get really excited about it, I wonder why everyone isn’t trading!
You might enjoy having work lined up for you, someone informing you of what the priorities are, and a solid routine to execute every week.
To me, that sounds terrible.
I simply do not enjoy having someone telling me what to do, or worse, when to do it.
But it is more than that.
I actually find a lot to dislike about the typical work situation, which most of us are unfortunately very familiar with.
While your hours may not be in exact alignment, you know if you are in a 9 to 5 job.
The good news is, we have options (no pun intended). There have never been more ways to generate income than there are today.
At the top of the list for me are trading and writing, each of which I have doubled down on.
And because of you I am lucky enough to be able to enjoy both.
Every week I know I will get opportunities to make life changing money by trading stocks and options. This is amazing to me.
(I will get to the trading, I promise.)
But I also get a chance every day to share what I know with over 800 traders that now subscribe to A Trader’s Education, many of which have also upgraded.
You really are some of my favorite people on the planet. Thank you for supporting this newsletter!
And we are just getting started.
First it was a weekly newsletter. Then an inconsistent weekly podcast was added.
Now you can expect a daily newsletter with no less than an additional three podcasts every week, packed with market perspectives and quality trade ideas.
None of it feels like work which is why I hope to build A Trader’s Education even more in 2024. I see video content on the horizon!
The goal is to continue to build my retirement account through trading while earning enough newsletter/podcast subscribers to make writing my full-time “job.”
If you enjoy the stock market, there is no better way to make money. Trading is a unique experience and one I am grateful for.
I feel even more fortunate that there is an audience that wants to hear what I have to say about my experiences.
And that is why I will continue to write every day, sharing my thoughts and hopefully helping you make money in the markets.
QQQ and SMH
I mentioned we would look at a couple of important charts.
First up is QQQ, which top holdings include AAPL, MSFT, AMXN, NVDA, AVGO, META, and TSLA.
That is a mix of charts that look great and charts that look ready to drop.
So what does the ETF tell us.
While making new all time highs, the weekly candle for QQQ has a long upper wick which has recently indicated a potential reversal.
After an incredible rally that started in November 2023, another pull back would be healthy and could provide a nice opportunity to buy the dip in many names.
Keep an eye on QQQ for weakness as we start next week. If shares start to sell off it could be a sign of expected selling for the next few weeks.
Semiconductors have been on fire which is why SMH continues to be on the radar.
SMH top holdings include NVDA (21% per Seeking Alpha), TSM, AMD, AVGO, ASML, and INTC.
This past week shares finally cooled off, forming a long upper wick on the weekly candle.
Will this be the start of some profit taking for a sector that has been red hot?
I think the odds are pretty good that we will see some selling in various chip names. A harder question to answer is, for how long?
You can see in the chart above, every big week seems to be followed by consolidation before attempting another move higher.
I continue to be very bullish on semiconductors, but I do think things look a little extended.
Let me know if you have questions ahead of another week of trading!
Thank you again for your support of A Trader’s Education.
-Nate
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This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.
Looking forward to more from you in 2024. Your 2023 content was fantastic.