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1. Market in correction trading?

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Sometimes it looks like prediction when I create scenarios of the potential stock market development and draw them into the chart. But it's not prediction, it's planning. I saw and study so many market situations that I developed a feeling for the market over time. Patterns repeat over and over again, because humans didn't changed so much in the last 100 years or longer.

I might be wrong, but I see the potential of a last rally attempt in the market. Don't forget that the trend from March 2020 is already late stage. The stock market went up for more than 1.5 years now and never saw a deep correction. How much gas is left in the tank?

The economy itself is getting into trouble: Exploding high yields in China, high valuations of companies, commodity prices explodes to the upside, decrease of GDP forecasts … Never forget that a new bear market often starts out of nowhere and when everybody is happy and feeling good! Always be prepared for such an event. Nobody can predict when the markets will turn around. Maybe we will go up 15%, 30% or even 100% from here. You don't want to predict, you want to react and you want to be prepared for everything.

I offer a lot of examples, helpful indicators and tactics to interpret the market environment in my video course Growth Traders Toolbox.

This week I have 23 stocks on my watchlist, 8 less (!) as last week. I removed weaker stocks and I want to be very focused at the moment.

Would you like to learn how to find stocks like below? Look into my video course Growth Traders Toolbox.

Do you know yourself? Your strengths and your weaknesses? What you like and what you don't like?

When we grow up as children we have so much time to get familiar with ourselves and discover what we like and what we can do best. Later we choose a job which we like and can do, we try out different sports and find out what we like and can do best. But when it comes to trading, people ignore that area completely.

It's one of the most important things to find out which trading style matches your personality. Otherwise you will never be able to perform. It's one thing to find an edge, it's another thing to execute the edge. We are only able to execute a trading system when we are compatible with the trading system.

If you are a person who performs best under stressful conditions, need a lot of variety and have the feeling of doing work, a long term trading or investing approach will kill you! You are too impatient to sit in a trade for months, go through several deep pullbacks and maybe give back a lot of profits to the market.

The opposite is true too. If you are a person who need time to make decisions, collect information, do analysis and need days to come to conclusion, a day trading approach is not the right thing for you. You will not be able to make fast decisions and strive under stressful conditions.

I also encountered traders which are very social persons. They need other people and have to work with other people. Only then they are able to perform. When they are alone, they do not have the energy and will to work. You can encounter such personalities in trading teams, communities, funds or prop trading companies.

Spend time to get familiar with yourself! The best way I found to do this: Analyze your past decisions. Why did you take the job your are doing right now? Why did you switched from one company to another? Why did you choose to live alone or share a flat with other people? What motivated you? What is easy for your to do? … Try to understand that and it will help you to create the right trading style and environment.