Why NOW Is The Time You Should Start Trading
- Anthony Speciale
- May 11, 2024
- 6 min read
Hey Trader,
Why NOW Is The Time You Should Start Trading
If not now, then there will never be a perfect time for you to start trading.
Some years are awful for the stock market. Gloomy headlines, contracting earnings, and recession fear loom over us. It feels impossible to get excited about putting money on the market. Other years we're continually setting record highs and FOMO kicks in!
The fear of volatility can appear daunting for sure.
However, this simply isn’t true—at least not for traders.
I promise you; there are plenty of good reasons to be enthusiastic about the volatility in the markets this year. When the market is in a downturn, all you need is a shift in strategy and the right resources. Don’t be fooled, there are some great opportunities in this market. You just have to know where to look as a trader.
In fact, in this blog post, I’ll show you 8 reasons why it’s always a great time to profit from trading right now and step-by-step strategies on how to do it.
1. It’s never been easier to start Trading
So the first reason why you should start trading now is that it’s never been easier to start learning about trading. You can access so much free education online, and the software and trading tools are more sophisticated than they’ve ever been.
2. Trading with technological advancements
With the advancement of technology, traders have access to a wealth of information and tools to help us make informed decisions. This includes real-time market data, advanced trading software, and algorithmic trading.
Some tools are free, such as:
TradingView for online charting;
Webull for the premarket screener, and
Finviz for stock research.
3. Learn trading with tons of educational resources
There are many educational resources available for you to learn more about trading for free, including online courses, books, webinars, and more.
Free resources are great for new traders who want to explore whether trading is the right path for them.
For example, I have a long YouTube playlist for traders that teaches you how I would personally start from scratch: with content about picking a platform, risk management, and trading strategies.
I wish I had these resources when I first started 13 years ago to cut short the learning time. So make sure to utilize my free content and videos and learn as much as you can!
4. Easier to start trading with higher broker accessibility
There are so many online trading platforms now. It’s so easy for you to start trading without the need to have preexisting knowledge, experience, or high account capital.
When I first started trading 13 years ago, most brokers required initial funding of $2,000 to $5,000 in order to open a margin account.
For now, you can open an account for as little as $100.
Note that I’m not suggesting you open an account and start trading with only $100, but sometimes you do need to put money in the account in order to activate paper trading.
But we can’t deny that the barrier to entry for investing has been lowered, with reduced account minimums and heavily discounted, sometimes even free, commissions.
For example, Interactive Brokers offers trades for only $1, while advanced brokers like Centerpoint even offer rebates. Of course, there’s $0 commission trading as well.
While I’m not a proponent of using these free commission apps or platforms to day trade live, I think using them for swing trading or investing is totally fine.
5. Good thing to have market volatility
Another reason why you should start trading now is also the same reason why some people advise against trading: market volatility.
Bear markets are characterized by increased volatility, and while some people say this is a bad thing… Well, only traders understand the opportunities it presents!
Investors want a calm steady trend in a slow market.
However, as traders, we thrive from volatility day in and day out. Whether the markets are flying to the moon, or crashing to the ground.
Volatile markets present opportunities for day traders to make profits because day traders make money from big ranges per share, not in the long-term percentage gain.
6. Money is made faster on the downside
Now that you know you can trade volatile markets, this brings me to my next reason why now is a great time for you to start trading.
Now is the best time to start or practice your short-selling strategies.
Short selling means borrowing shares from a broker, selling them, and hoping to buy them back later at a lower price to return them to the broker.
In all market conditions, there are lucrative opportunities for short selling as many assets experience downward price movements.
Here is a shorting strategy that would work well in a bear market:
The asset should have a consistent volume
It has a lot of range: $2-4 range.
Daily chart aligns with the setup.
Bonus Tip: Keep an eye on the indexes
You can find out the overall market sentiment with SPY/ QQQ, which applies to NVDA, TSLA, and most large-cap tech stocks.
Short selling isn't for everyone, and it requires really strict risk management.
Before making any short trades, you should always remember how important it is to have your stop losses in place and risk management at the forefront of your approach!
7. Buy the dip
A great reason why you should start trading this year is that there are many opportunities to buy the dip.
I know some of you must be thinking, "Oh my, you just said now is a good time to short... now you're talking about buying the dip?! Make up your mind."
Believe it or not, there are good opportunities to profit from both long and short positions in all market conditions. The timing is what changes. In a bear market, your timing for buying stocks during a reversal needs to be very precise.
Buy the dip means you buy stocks or other securities when their prices have dropped, with the expectation that they will eventually rise again later on and make a profit.
Bear markets can offer some of the best buy-the-dip opportunities that you will see in your trading career. That’s because the phenomenon that caused the bear market is typically short-lived, and the market often quickly recovers.
So despite what you might think, in bear markets, rallies still happen, and you want to ride them. The key is to watch your timing when longing reversals, and following trends.
8. If not now, then when are you going to start?
Okay, we’ve made it to my last reason why you should start trading now.
If you’ve made it this far, this could either mean one of two things:
You already know this is the year to learn trading, and you’re just sticking around for my bad jokes.
You’re still not convinced, and you need another reason to take action.
If you're still not convinced that you should start trading this year, you might be thinking, "Well, it's a bear market, we're in a recession, everything is so uncertain, I could lose everything."
I understand your concerns. I felt the same fear 13 years ago. But let me ask you this one question: if not now, then when? If you don't start now, when will you?
There’s that age-old saying: "Today, you will wish you started yesterday."
If everything we just talked about isn't enough to convince you that this is the year to start trading, I want to ask you: If not now, then when?
The years 2020 and 2021 were a huge wake-up call for many people who lost their jobs or were unable to work remotely in their careers. Many realized the importance of having a side hustle or developing another source of income.
I felt extremely lucky to have my trading skills, which I have been developing and experiencing for the past 13 years. If I were still working my 9-to-5 job, things would have gotten really tough for me.
Perhaps the extra skills or side hustle you need aren't related to trading, and that's okay. Just learn from those two terrible years and know that you should develop a backup plan. Having your 9-5 job as your only source of income isn't reliable.
Let me be honest. There will never really be the perfect time to start trading.
The risk of losing money is never going to go away. That’s part of the job, but you can determine how much you lose when you trade.
That's the reason why you should:
Start with paper trading
Familiarize yourself with your strategies and technical analysis without the risk of losing your money
Start small with your trade sizing and scale up as you gain experience
Trading today holds immense potential for those willing to take the plunge. With accessible resources, technological advancements, and opportunities in market volatility, this year presents a prime moment to embark on your trading journey.
Remember, the best time to start is now.
Don't wait for the perfect moment that may never come. Start small, educate yourself, and embrace the challenges and opportunities that lie ahead. If not now, then when?
Happy Trading,
Anthony Speciale
Speciale Analysis
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