Six Reasons for Income Investors to Day-Trade Amid Disasters

Six reasons for income investors to day-trade amid disasters offer ways to reduce risk.

The six reasons for income investors to day-trade during disasters warrant weighing to provide an alternative to long-term strategies that can cause worry for weeks, months or years. The goal with day-trading is to produce profits in just hours or even minutes.

The short-term nature of day-trading can mitigate the effects of continuing crises such as disasters like the collapse of the Francis Scott Key Bridge in Baltimore on March 26, ongoing wars and potential recessions. Day-trading also avoids the need to know each industry or company well enough to put one’s money at risk in narrow ways.

Six Reasons for Income Investors to Day-Trade Amid Disasters: 1. DayTradeSPY Trading Room

Novice day-traders may want to consider the DayTradeSPY Trading Room that not only features the supervision of its founder and head trader Hugh Grossman, but his fellow seasoned trader Ahren Stephens. Each of them brings his own experience and expertise to subscribers of the service, Grossman said.

Since the pair take different approaches to trading options, they are able to cross-verify whatever trend the other partner identifies. Verification of a trend is “paramount” to attaining a high degree trading success, Grossman told me. When both he and Stephens agree on the market’s direction and strength, the traders who follow their guidance generally profit, Grossman added.

“When our indicators unite, our trades ignite,” Grossman told me.

Six Reasons for Income Investors to Day-Trade Amid Disasters: 2. Sidestepping Risks

“Our daily Trading Room is unique in a number of ways,” Grossman told me.

One way is to sidestep market risks by initiating trades and exiting them within an hour or even less, Grossman told me.

Hugh Grossman leads DayTradeSpy’s Trading Room and Pick of the Day.

The Trading Room advisory service that Grossman started has “catapulted” to a new level of expertise with the addition of Stephens, who brings his indicators like Fibonacci retracements and Andrews’ Pitchfork, the senior partner said. By collaborating, they identify trades that have a high probability of success, Grossman continued.

Ahren Stephens co-heads Pick of the Day and the Trading Room.

Combined, their joint analysis offers extra brainpower for their subscribers who want to tap the guidance they offer through their DayTradeSpy Trading Room advisory service, Grossman said.

“Our Trading Room is an event that traders look forward to, earn while you learn and absorb all you can from two outstanding mentors,” Grossman told me.

Six Reasons for Income Investors to Day-Trade Amid Disasters: 3. Avoid Market Unpredictability

“Frankly, I have no idea where the market will be years from now or even a week from now,” Grossman told me this week. “There are so many dichotomies at play, it’s near impossible to predict anything anymore, if we ever truly could.”

For years, predictions have been plentiful about how a recession of unprecedented proportions is on the horizon, Grossman continued. Yet almost everyone seems to be working and making money, he added.

Another big risk widely talked about is the potential impact of global warming. Young activists such as Sweden’s’ Greta Thunberg and India’s Licypriya Kangujam have spoken publicly about the dangers of climate change and the need to take swift action to address it.

“All I hear about is global warming and how humankind will be driven into oblivion if we don’t all start driving electric cars,” Grossman said. “Yet, how many… recall talk about an ice age worry back in the 1970s?”

Right now, at least two major wars are being fought, immigration and drug problems are out of control and the world fears artificial intelligence will blow up the planet, yet the stock market continues to eke out new highs, Grossman said.

“For that reason, I cannot invest in a market fraught with anxiety and fear, having no rational reason for its exuberance,” Grossman explained.

Six Reasons for Income Investors to Day-Trade Amid Disasters: 4. Short-term Focus

“I can handle very short-term engagement,” Grossman said. “Day-trading SPY options gives me exactly that: in and out quickly after having made some money based on immediate market nuances, both financially and emotionally. Making a consistent income on the stock market is not that difficult, if you know how.”

Day-traders can stay connected to the market on a minute-by-minute basis in advisory services that specialize in quick trading, said Stephens, a co-leader of the Trading Room. Every morning, 9:20 to 10:30 a.m. ET, Stephens and Grossman host the Trading Room, a virtual meeting where training and trading converge in a live, real-time market environment.

“We need to think quickly, logically and without emotion in an effort to buy and sell quickly and to be on our toes at a moment’s notice,” Stephens said. “Because of this fast execution and response time, sometimes it is possible that our emotions get involved in our trading setups. For me, I would say that occasionally emotions can play a role in our trading decisions.

“When news items come out and trades are going in your favor, as well as when you have to wait out a news event that isn’t going in your favor, that is when you need to exercise either quick exits or long-term patience.”

Six Reasons for Income Investors to Day-Trade Amid Disasters: 5. Use Trend Indicators

The pair look at fundamentals to gauge the overall market sentiment. Then they back it up with an in-depth look at Fibonacci and Andrews Pitchfork indicators, among others.

In addition, Grossman told me he likes to use short-term technical indicators such as exponential moving averages, support and resistance levels and chart patterns. With the collective strategies of both partners, the result usually is a successful trade, he added.

Six Reasons for Income Investors to Day-Trade Amid Disasters: 6. Successful Track Record

The DayTradeSpy Trading Room features a 14-year track record of success, Grossman said.

“The DayTradeSPY Trading Room is the longest running trading room that we know of… now in its 14th year,” Grossman said. “We know what works and what doesn’t in both trading and training.”

The partners also spoke favorably about the interactive chat aspect to their Trading Room, allowing real-time feedback with their subscribers.

Six Reasons for Income Investors to Day-Trade Amid Disasters Trump Emotion

“Sprinkle in some emotional control and, like magic, we have a successful trade,” Grossman said. “Repeat this process day after day, and not only is it profitable, but a lot of fun as well.”

There is something very rewarding about beating the market at its own game, Grossman continued.

“And I hold no apologies for doing so, either,” Grossman said.

Six Reasons for Income Investors to Day-Trade Amid Disasters Can Lead to Quick Profits

“Long-term investing may work for some but earning 5% annually on a certificate of deposit does not excite me,” Grossman said. “Nor can I afford to gamble on ever-changing technology stocks, meme stocks or anything affected by government policy. But pay me 5% a day on the money invested in SPY call options and I am happy.”

An average person tends to think of trading in terms of normal rules of life, Stephens said. However, that view is flawed, he added.

“If you work harder at something, you tend to get rewarded with bonuses, with promotions, or with a greater sense of purpose and accomplishment,” Stephens said. “This is not true in trading.

“People who work harder in trading often get burned out, work longer hours, or make trading mistakes because they are chasing the one that got away. If you tend to think of trading in terms of a similarity to fishing, that would be a better mindset to have. Every day you come to the ocean: there are whales – the market makers, the sharks – institutional traders, and the swordfish, mackerel and salmon – the retail traders. This is the one place in the world where the longer you last, the higher in the food chain you can go. We as traders are also the fisherman.

Income Investors Limit Time Commitment by Day-Trading

Why the entire world is not day-trading is a mystery, Grossman said. Participants in his Trading Room can accumulate small amounts of money every day, trading only options on one stock or fund for about an hour a day, he added.

The amount earned depends on one’s investment, but many people start small, build their accounts and eventually reach “epic levels,” Grossman said.

Almost all the trades involve options of the SPDR S&P 500 ETF Trust (NYSE ARCA: SPY).

“Get immediate answers, relevant answers and answers you need to hear,” Grossman said.

Chart courtesy of www.stockcharts.com

Alternatives Include Pick of the Day

For those not ready to try the Trading Room, Grossman suggested the DayTradeSPY Pick of the Day.

The Pick of the Day is “ideal” for traders who may not have the time to watch the market or stare at charts,” Grossman said. The Pick of the Day is sent to the inbox of each subscriber daily at about 9 a.m. ET.

Subscribers are provided with an overview of the exact trades that Grossman and Stephens are looking at before each market opens.

Day-Trading Newcomers Can Subscribe to the Ultimate Trading Workshop

Grossman and Stephens also offer their Ultimate Training Workshop to help people day trade profitably. They created videos based on a live event held a few months ago, teaching everything they thought would help day-traders.

“If you have never traded options before, this is what you need,” Grossman said. “Even if you are a seasoned trader, the nuances, tips, tricks and traps you will pick up from this series of 11 sessions, each roughly an hour and a half in length, will benefit you immensely.”

The two investment gurus share their “deep in the trenches” experience with concepts that cannot be found anywhere else, Grossman said. Key topics include setting up Schwab (formerly TD Ameritrade) Think or Swim charts to visualize patterns, identifying key indicators and strategies, “repairing trades,” money management and more, he added.

Stephens provides a deep-dive analysis that can answer many questions in the Q&A section of the Ultimate Training Workshop, Grossman said.

“It’s all there,” Grossman advised. “Of course, there may be other updated information only available through our trading room sessions, but the Ultimate Training Workshop will provide the launch pad you need to get started day-trading SPY options.”

The videos are available for at least six months and can be viewed as often as desired during that period, Grossman said.

“Fast forward, pause and rewind,” Grossman continued. “We recommend going through them at least once completely, even if you are an experienced trader. It’s the little subtleties that can make all the difference in your trading. Take advantage of 40+ combined years of Hugh and Ahren’s market participation… master the Ultimate Training Workshop.”

Geopolitical Risk Proliferates

Geopolitical risk exists both domestically and internationally. Even local disasters can disrupt trade and commerce internationally.

One example occurred on March 26 when a large cargo ship lost use of its engine, electronics and control of its steering, then careened into the famed Francis Scott Key Bridge that connected two sections of Baltimore on I-695 across the Patapsco River. The Singapore-flagged, 984-foot-long container ship called “Dali” collided with a pillar of the bridge, triggering a massive emergency response when multiple people and vehicles plunged into the water.

\Two construction workers who fell from the bridge into the water were rescued, but one remains seriously injured. The bodies of two construction workers who were in a red pick-up truck when the bridge collapsed have been found and recovered. A search is ongoing to recover other missing people, including four additional construction workers.

In 2023, the Port of Baltimore handled a record 52.3 million tons of foreign cargo worth $80 billion. That total ranked the port as America’s largest for the transport of foreign cargo. Approximately 15,000 workers are directly impacted and about 140,000 workers are indirectly impacted from the bridge’s collapse, according to state officials.

U.S. Transportation Secretary Peter Buttigieg said in post-accident press briefing that between $100 to $200 million in value of goods pass through Baltimore’s port each day, with about $2 million in wages affected on a daily basis by the closure.

“If ships aren’t moving, they’re not working,” Buttigieg said. “That’s one of our main areas of concern.

The economic impact will be huge, with cruise ships and other vessels that use the Port of Baltimore restricted from normal operations for an unknown period of time. Maryland Gov. Wes Moore requested $60 million in emergency relief funds from the federal government “for our immediate response efforts and to lay the foundation for a rapid recovery.”

The funds would be used for the state to proceed as quickly and safely as possible, with debris removal, demolition, traffic operations and other emergency needs. The request supplements funding provided by other federal partners to provide related work for the emergency response, according to the governor’s office.

Russia Suffers Attack from ISIS-K

Russia suffered a murderous attack reportedly committed by ISIS-K that killed at least 143 people, including five children, and injured more than 100 others at a concert hall near Moscow on Friday, March 22. The assault by four gunmen, who also started a fire by using incendiary devices at the building, marked the latest major incident that shows mounting geopolitical risk in the world.

U.S. government officials warned Russia’s leaders days earlier in writing that ISIS militants planned an attack in or around Moscow, but its President Vladimir Putin rebuffed the advice and called it “provocative.” The assault by the gunmen became the worst terrorist attack of Russia’s capital area in decades.

As far the ongoing invasion of Ukraine, Russian forces attacked a residential area in Kharkiv on March 27, killing one and injuring at least 19, including children. President Putin cautioned on March 18 that the membership of nearby countries in NATO could spark World War III if they interfere with his military activities.

Putin won re-election to a fifth six-year term just weeks after the mysterious death of political opponent Alexei Navalny, one of Putin’s most ardent critics in Russia. Navalny seemed fine to observers when he appeared in a courtroom the day before he died.

Navalny’s burial on Friday, March 1, drew thousands of mourners. With Navalny dead, Putin had no genuine opposition to his re-election to a new six-year term as Russia’s president during the country’s March 15-17 election.

Navalny’s family claims their loved one was fatally poisoned at the arctic prison with a nerve agent on Putin’s orders.

President Putin’s surprise attack of Ukraine with Russian forces more than two years ago has caused him to send continuing waves of soldiers into battle to gain land that is within the sovereign borders of its neighboring nation. The invasion shows no signs of waning, as Russia keeps firing missiles at civilian targets in Ukraine, with women, children and the elderly among those killed or injured.

UN Votes for Ceasefire in Gaza, But Not Release of Hostages

The United Nations Security Council voted on Monday, March 25, for a resolution demanding a cease-fire between Israel and Palestinian militant group Hamas, without requiring the release of an estimated 130 remaining hostages abducted on Oct. 7. The United States abstained from the vote, causing Israel to cancel a high-level delegation’s planned visit to Washington, D.C.

Middle East diplomacy efforts have not borne fruit as Israel seeks the return of the hostages taken from their country by Hamas militants during a murderous raid on Oct. 7, as well as to bring the perpetrators to justice. The Israel Defense Forces (IDF) entered neighboring Gaza, but the death toll there has been high, reaching more than 32,550 at press time, according to Hamas officials.

The war started on Oct. 7 when Hamas fighters invaded southern Israel in an unprecedented assault that reportedly killed 1,163. Other barbarous acts included rapes, torture and the abduction of at least 250 others at gunpoint.

A week-long truce in late November led to Hamas freeing more than 100 Israeli and foreign hostages in exchange for Israel releasing about 240 Palestinian prisoners. However, talks aimed at securing the release of additional hostages have stalled.

President Biden approved and initiated a humanitarian air drop and food distribution for beleaguered Palestinian civilians in Gaza. Roughly 130 hostages abducted on Oct. 7 by Hamas remain trapped in Gaza. But Israeli officials say about a quarter of them are dead.

Income investors worried about geopolitical risk may want to consider day-trading to limit the potential impact of disasters by taking advantage of the quick nature of such trades.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Easter Season Sale! Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for reduced pricing on multiple-book purchases.