When the Market Changes and Google Surprises Everyone
Dear Traders,
This morning, my trading took a hit with some overtrading on $AMD. I traded outside of my TradeBook and did not stop when I should have. There is a lesson to be learned in that. Brian also unfortunately did not have a stellar day. You can watch our recap here.
The most noticeable news thus far this week was that Google, the tech titan, reported growth … everywhere. Their numbers were crazy good, with quarterly revenue of about $75bn, up 32% on this time last year. YouTube Ads were up 25%, Google Cloud was up 45%, and Google Search was particularly positive, with its quarterly revenue alone being $34bn, growing 36% on last year. Investors gave Google a big thumbs up, with shares rising 7% this morning. The company also announced a 20-to-1 stock split, presumably to make shares more affordable for retail investors. It will be great to be able to eventually trade Google in the $200 range!
This evening, for Wednesday Psychology, Dr. Kenneth Reid is leading a presentation entitled, When Markets Change. As you know, while the markets change character over time, people do not. And we are certainly creatures of habit. The S&P and QQQ have more than doubled from the March 2020 bottom and for only one month have closed below the previous month’s low. Naturally, we all get accustomed to trading long. As of mid-January, SPY is down 5%, QQQ is down 10%, small caps are down 15%, but ARKK is down more than 50% as the heady highfliers plummet. Nonetheless, habits die hard. In this webinar, Dr. Reid will discuss what you can do to prepare yourself mentally for all types of markets. Dr. Reid’s webinar starts at 8pm ET.
All of our webinars are exclusively for Elite members and are available for viewing 24/7 in our Education Center. If you are not yet an Elite member, please make sure you benefit from our current 50% discount on an Elite annual plan. This results in a rate that is the same as our basic plan! You can check out our deal here.
Today is 2/2/22. I hope everyone is ready for the month of February, which includes of course Valentine’s Day.
To your success,
Andrew
PS: These are volatile times in the market. Whether you are a new or seasoned trader, I encourage you to use our free Market Replay tool to practice your trading. You will find it at stocktradingsimulator.com
