What does an inverted yield curve mean for the stock market today, and does it signal a stock market crash? With plenty of geopolitical uncertainty & headlines prompting wild volatility, you must have a trading game plan! There’s no better time than now to get involved in the stock market for beginners and advanced traders & investors. One stock market live stream will discuss which stock market news headlines you should be paying attention to right now.
Learn How To Make Money In A Recession & When The Yield Curve Is Inverted
True Trading Group prides itself on using fundamental and technical stock market analysis. They teach you how to find the best stocks to trade and top stocks to invest in for 2022. Learn, first-hand why this is the year of the active trader. Gain an understanding of how to identify stocks to buy now. Find out how to use the latest trends to find the best stocks to buy tomorrow. Even if the economy goes into recession, that could result in some of the BIGGEST money-making opportunities of our lifetime.
Will History Repeat Itself?
Did you capitalize on the 2008 stock market meltdown or find stocks to buy during the recession that followed? Between 2007-2009, the last US recession, some of the most significant opportunities were presented to investors. They may haven’t been clear to beginners, but those with experience & education were able to gain an upper hand. In fact, since the end of 2007 (the start of the last recession), the S&P ETF (NYSE: SPY) is up more than 200%, the Dow ETF (NYSE: DIA) is up more than 160%, and the Nasdaq ETF (NASDAQ: QQQ) has climbed over 600%!
But unless you knew where to find these opportunities, you likely missed out. Now isn’t the time to sit on the sidelines. It’s time to learn how to trade the right way to take full advantage of stock market trends in 2022. The first step is getting the proper education.
If you are interested in learning more about penny stocks and the stock market as a whole, then you need to check out True Trading Group, the fastest growing & highest-rated online premium educational platform available today.
True Trading Group offers a 7-day Trial of its platform for a 1-time, non-auto renew payment of just $3 – To Learn More, Click Here
What Is The Yield Curve?
Is an inverted yield curve bad? This is a good question if you’re unfamiliar with the term or theory. The yield curve plots the yield of Treasury securities. In normal circumstances, the yield curve slopes up as investors will anticipate added payback in exchange for taking on the risk of rising inflation over time. One example is “The 10s and 2s,” which references 10-year and 2-year notes. In this example of “normal circumstances,” the 10-year will yield more than a 2-year since there’s a longer time to maturity and, thus, higher risk.
However, when you see a “steepening” yield curve, it suggests that strong economic conditions are expected, which typically comes with higher inflation and interest rates. You also have a “flattening” yield curve, suggesting that investors anticipate rate increases in the short-term with a more pessimistic outlook on the economy.
Is An Inverted Yield Curve Bad?
This brings us back to the original question: is an inverted yield curve bad? In this scenario, investors are looking for indications of a recession. With the 10s and 2s example, the inversion happens when the 2-year yield is actually higher than the 10-year yield (thus, an inverted yield curve). It’s usually a warning sign that there could be a recession on the horizon. As some readers already know, recessionary conditions can be extreme, so the “R-word” has recently brought concern to the markets. The definition of recession, however, doesn’t include fire and brimstone. Instead, it’s a term referencing a decline in general economic activity. We typically see rising unemployment, manufacturing, and retail sales.
The National Bureau of Economic Research defines a recession as:
“a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough. Between trough and peak, the economy is in an expansion. Expansion is the normal state of the economy; most recessions are brief and they have been rare in recent decades.”
So while an inverted yield curve isn’t a recession, it has been used as a gauge to base the economic outlook on in preparation for a potential economic slowdown.
Are Penny Stocks Worth It For You?
Are penny stocks worth it for you? This is a question that is asked by many investors, and the answer is not always straightforward.
There are a few things to consider when answering this question. The first is the amount of time it takes to become good at day trading. It takes a lot of practice and experience to develop strategies that you are comfortable with.
Another thing to remember is that you are just one investor in the entire market. You are going head to head against people who have been trading for decades and have resources from trading firms. These people almost always succeed with their trades in the end.
Then there is the government that cuts down your profit margin due to short-term gains taxes. These apply to any investments that you hold for less than one year.
Penny Stocks: 7 Day Trading Strategies for Beginners
These factors make it challenging to make money day trading penny stocks. However, if you are patient and willing to put in the time and effort, it is possible to succeed. Remember always to do your research and never invest more money than you can afford to lose.
How To Find Penny Stocks To Buy
When looking to make money through day trading penny stocks, it’s essential to understand what volatility, technical trends, and trading volume mean. Volatility measures how much a stock’s price changes during a given session; because penny stocks tend to have higher volatility, day traders have a lot more potential for higher profits. However, this also means that there is a lot more risk, resulting in heavy losses.
Identifying different technical trends can also help you decide which names on your list of penny stocks have a higher and lower potential for gains. For example, the chart with no established trend and many single-day volatility spikes may not be the best one to look at if you’re a swing trader. On the other hand, the chart with a slow, steady uptrend with 1-day moves of less than 2% may not be best if you’re a day trader.
Deciding which penny stocks to buy depends a lot on your personal style.
Trading volume might be one of the most critical factors when trading penny stocks. Volume is the amount of stock bought and sold during a trading session; traders will usually compare the average daily trading volume of a stock to its current volume to evaluate interest. Also, if a penny stock lacks volume, it can be challenging for a trader to exit a position.
When considering penny stocks as an investment option, knowing all of this information is vital to making the most informed decision possible. By understanding volatility, technical trends, and trading volume, you’ll be on your way to successful day trading in the penny stock market.
Penny Stocks & Risk Tolerance
When it comes to trading penny stocks, investors must understand and set their risk tolerance. They can place stop-loss orders to protect their investments while also giving themselves some breathing room if the trade doesn’t go their way.
It’s also important for day traders to be aware of their own personal limits so they don’t end up losing more money than they intended. Taking a break after a bad trading day isn’t a bad idea to avoid revenge trading, but knowing your thresholds can help you make smarter investment decisions in the long run.
So remember, always be mindful of your risk tolerance when trading penny stocks, and be sure to use stop-loss orders to help limit your losses!
Making Money through Penny Stock Trading
Day trading penny stocks can be a profitable way to make extra money. However, it is important to remember that it is not a get-rich-quick scheme. It takes time and effort to learn how to trade effectively.
That being said, there are many benefits to day trading penny stocks. For one, you are in control of your destiny. You are not subject to the whims of a boss or someone else’s opinion. Additionally, as you get better at trading, you can make more and more money.
Finally, remember that no one strategy works for everyone. Be prepared to try different things and see what works best for you. With a little bit of hard work, you can make a lot of money through penny stock trading.
Again, if you are interested in learning more about penny stocks and the stock market as a whole, then you need to check out True Trading Group, the fastest growing & highest-rated online premium educational platform available today!
True Trading Group offers a 7-day Trial of its platform for a 1-time, non-auto renew payment of just $3 – To Learn More, Click Here
