My opinion â take it or leave it...                                                                                                                                                                      Good Morning! The biggest temptation for traders this week will be trying to capitalize on the volatility in bank stocks⦠All the bank stocks were battered yesterday after news of SVB Financial Groupâs (NASDAQ: SIVB) collapse spread on Friday⦠So is trading these stocks a good idea? As traders, we like to take advantage of volatility. And the bank stocks are definitely volatile⦠But we also have to focus on high-odds setups, weigh risk vs. reward, and stay disciplined enough to stick to our bread-and-butter setups. Thereâs a balancing act between taking advantage of opportunities and knowing your limitations. So hereâs my take on trading bank stocks â take it or leave it⦠Should You Dip-Buy Or Short Bank Stocks? The term I use when sector news like the [failure of a bank]( hits is, ânewsy.â It means the stocks and sector are too news dependent. Now, [news catalysts]( are generally something we look for when we trade penny stocks... But when big news like [a bank's failure hits an entire sector]( it creates an environment where there are too many unknowns. And positive or negative news announcements can create overreactions to the upside or downside. One minute news reports that banks are failing... Then five minutes later a politician or hedge fund manager says the [banks are safe](. Maybe you dip buy regional bank stocks like Western Alliance Bancorporation (NYSE: [WAL]( and First Republic Bank (NYSE: [FRC]( because theyâre âdown too muchâ and you hear the government will save them. Then minutes later a politician says, no we're not jumping in to save them. Or maybe you short the bank stocks thinking itâs all over for them and itâs going to be a repeat of 2008. Then the news outlets announce a bailout package⦠Thereâs just too much we donât know. The politicians and regulators will act like they know what theyâre talking about. But nobody really knows until it plays out. Thereâs no edge if youâre thinking about buying these and holding them overnight. Or if you want to short them thinking theyâre going to $0. Because we just donât know how this will end. The banking stocks are creating a ton of volatility. We like that ⦠but we donât just buy stocks that are low hoping to sell high. We use a system, good risk management, patterns, and discipline. If you have $500 in your brokerage account and have [no trading system yet]( trading these stocks is like taking your money to the casino and betting it all on black. Keep your money in your account and wait for a higher odds setup. Stay focused on what youâre trying to build â consistency. Penny stocks donât follow the overall market. And there are still a ton of opportunities out there... I had two nice winners yesterday from my weekly watchlist. So you donât need to be distracted by the overall market noise. If you want to know what stocks Iâm watching and what I think about overall market news and themes â [watch my Market Update videos three times a week]( You get a ton of bonuses when you join StocksToTrade Advisory â [check it out here](. Have a great day everyone. See you back here tomorrow. Tim Bohen Lead Trainer, StocksToTrade sponsored Why canât trader and mentor Tim Bohen stop laughing? He keeps âowning the hedgiesâ with this incredible strategy. (And he thinks itâs hilarious!) To see how this could radically boost your trading, starting tomorrow⦠[Go here to check it out before the market opens TOMORROW]( sponsored Trade alongside millionaire traders every day. Get your stock info from a reliable source. This exclusive chat room is moderated by three 6-figure traders who are fully transparent and alert to their trades in real-time. Millionaire trader, Matt Monaco can walk you through what this chat room entails⦠[Learn more about how you can get into this chat room today.]( Recommended Membership Gifts ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. [To The Moon Report Weekly Stock & Crypto Watchlist]( [Mark Croock Evolved Trader Daily](
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