Trade Index Funds, or Stocks in Play? How to Decide

Dear Traders,

I was recently asked by a website to comment on the issue of when it is best to trade stocks and when it is best to trade index funds. In short, my response was that for day traders, it is better to focus on index funds and leveraged ETFs when the overall market is quite volatile, like what we are seeing now or what unfolded during the March 2020 pandemic sell off. When the overall market is calm, or when we are in the earnings season, such as what we are heading into, individual Stocks in Play that have some fundamental catalyst are usually better to trade. I discussed this topic in today’s recap with Brian which you can watch here. My apologies for missing trading on Wednesday, but I made up for it today with a reversal on TQQQ.

As for Bear Bull Traders, our Thursdays are dedicated to mentorship. My own session just finished up (it starts at 11 am ET, every Thursday). Ed Martin offers his mentorship session at 5pm ET (note the special time today, it is usually at 4:30pm) and Thor Young starts his session at 8pm ET. I hope you can find the time to join with one or all three of us. I know the subjects that are canvassed will serve you well in taking your trading to the next level.

As ever, you can reach out to me by simply replying to this email or sending an email to [email protected]. I look forward to having you in the chatroom every trading day. See you soon!

To your success,

PS: If you have not yet examined it, be sure to take a look at our free, web-based replay simulator here. While at the site, don’t forget to register for Aiman and Simon’s lessons, trade ideas, recaps, and webinars