This week we have a stock market forecast for the week of 8/22/21 from our friend Bo Yoder of the Market Forecasting Academy. Be sure to leave a comment and let us know what you think!
The S&P 500 (SPY)
Another week of drifting from the markets as we work our way through the August doldrums.
The market’s action is almost like if you took the biggest breath possible and began to hum one note for as long as you could. Of course, it would be hard to predict just how long you could sustain that note, yet we would both know that at some point, you would run out of air and have to take a big breath in...
The market keeps drifting higher but without any cycles of correction upon which to build a healthy foundation. This movement creates an extreme risk to the downside, and so it’s a bit of a hot potato. I’m focusing on intraday trading in the smallest time horizons, so I keep my time exposure to a bare minimum as I believe the extreme overnight gap risk.
The PNC Financial Services Group, Inc. (PNC)
PNC gave me a nice first week as the weakness I forecast showed up and took the price down with an expansion in bearish interest... Unfortunately, nothing I can do to add value to this trade this week, so I’ll “sit tight and be right.”
SPDR Gold Shares (GLD)
Gold didn’t do much this week, so there is little to add as we wait and see if the bulls begin to accelerate their accumulation next week...
This Week’s Lesson: If it’s ONLY About The Money You Are Doomed!
One of the things I have learned about really successful traders is that their first love is the process and activity of trading.
Optimizing their trading edge is more about winning and getting better results than profits.
The money is just a byproduct of their quest to become the best traders they can be.
So, I want to tell you something you may not want to hear, but it’s the truth so listen carefully, because it will save you a LOT OF MONEY AND TIME...
If your quest to trade the markets is ONLY about the money, and you don’t really like the other stuff that trading makes you do, then please look for another way to make money...
Trading just isn’t for you.
This is a universal truth in life.
Think about it...
The things you love and have passion for never feel like work.
You have endless energy for them, and the hours fly by as you are doing the thing you love.
If trading isn’t like this for you, then you just won’t be successful, and I’m here to tell you that’s OK.
I believe that people spend too much time doing things they don’t like, hoping they will get some reward for that misery in the future.
Remember... TODAY is your day!
Who knows how many days we will all get in this life... You should enjoy today!
You should not just get through today in anticipation of tomorrow.
And why would you want to quit your job, which you may hate, in order to do something new you also hate?
It doesn't make much sense.
There are a LOT of money-making opportunities out there in the world, especially now that the Internet allows you to connect to potential clients all over the world.
So here is how I think you can get clear right now whether trading is something you should pursue...
Or if you should continue your search for the thing that will take you from where you are now... to the future you want for yourself.
Look back on the past two weeks... Were you thinking about the markets and your trading in the shower? In the car? While you were having your morning coffee?
In my life, I have observed that where our minds go when we have some downtime is a powerful indicator of our real interests in life.
When I am interviewing a possible client for a high-level mentoring relationship, I always ask questions that help me understand their “WHY
Why do you want to be a successful trader?
Those who answer “to make more money” or “to take care of my family” usually don’t make it.
What I have seen over the decades is that these folks don’t have the internal energy and drive needed to do the work it takes to master the skill of trading.
Instead, they ask questions about when they will make money or how fast they can reach a certain goal...
So what happens is that because they don't really like the process of analysis and trading, when they don't get success right away, they lose focus and try to cut corners...
It's this simple...
When things get hard, as they always do in life, they don’t like trading enough to power through.
They start to make excuses...
They don't do their research and homework...
They start to miss appointments...
And then they drift away and disappear.
As an educator and mentor, my sacred responsibility is to share the best information and the best processes I have developed over the years as the result of a LOT of losses and pain.
It is my responsibility to share resources and open doors, but I cannot drag somebody by the hair through this process...
It HAS TO COME from within.
I know that while ANYBODY can learn to trade, trading ISN’T for everybody...
So, If I can help you understand that trading isn’t for you, that’s the biggest gift I can offer you.
Because then you can realize that you will be happier and much more successful doing something else that really lights you up!
So ask yourself, would you still enjoy the game of trading if there was no money involved?
I’m DEADLY SERIOUS!
Would you still study and work to get better like somebody who loves golf or chess does?
Even though they never expect golf or chess to make them any money.
If the answer is yes, then congratulations!
You are in the right place because I LOVE the game of trading, and my life’s work has been to help traders become the best they can be.
So if trading is your jam, then stick with me here….
We are going to have a LOT of fun together! But...
I need to know that I’m reaching out to passionate traders and that my time and effort aren’t being wasted.
So, let me know in the comments if you would trade and forecast and study the markets even if money was no object and you were set for life?
To Learn How To Accurately and Consistently Forecast Market Prices Just Like Me, Using Market Vulnerability Analysis™, visit Market Forecasting Academy for the Free 5 Day Market Forecasting Primer.
Check back to see my next post!
Market Forecasting Academy
About Bo Yoder:
Beginning his full-time trading career in 1997, Bo is a professional trader, partner at Market Forecasting Academy, developer of The Myalolipsis Technique, two-time author, and consultant to the financial industry on matters of market analysis and edge optimization.
Bo has been a featured speaker internationally for decades and has developed a reputation for trading live in front of an audience as a real-time example of what it is like to trade for a living.
In addition to his two books for McGraw-Hill, Mastering Futures Trading and Optimize Your Trading Edge (translated into German and Japanese), Bo has written articles published in top publications such as TheStreet.com, Technical Analysis of Stocks & Commodities, Trader’s, Active Trader Magazine and Forbes to name a few.
Bo currently spends his time with his wife and son in the great state of Maine, where he trades, researches behavioral economics & neuropsychology, and is an enthusiastic sailboat racer.
He has an MBA from The Boston University School of Management.
Disclosure: This article is the opinion of the contributor themselves. The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. This contributor is not receiving compensation for their opinion.