Summer is seasonally a low volume time for the market, the big traders are on vacation with their families, playing golf with their buddies and attending various charity events in beautiful locations. Meanwhile, the rookies are at the desks with their hands tied behind their backs.
Now that Labor Day has come and gone, volume starts to pick up and the rookies are back to fetching coffee for the big boys. This year has certainly not been immune to this traditional September adjustment
As always I use my top down approach to first identify themes in the broader international indexes, then search for opportunities within sectors and sub sectors, and finally identify specific stocks. I’ve gone through that process, as I do every week, and have identified 5 excellent risk vs reward opportunities that I think we can all profit from.
As an added bonus, I also discuss how I like to properly manage risk and define how much I could potentially lose BEFORE I even enter a trade. Click below to view the video: