A Trader Over The Shoulders Podcast
A trader over the shoulders is all about professional insights and inspiring stories covering all aspects of trading. Todays podcast discusses the battle between Stocks and Crypto and try to find out which will give you more profit.
Join Alex and Miki Katz, a professional trader of 15 years, for a new episode each week.
Watch The Podcast – Stocks vs. Crypto – Where will you have a higher return?
Stocks vs. Crypto – What should you trade
First of all, it doesn’t matter what you trade, Forex, Futures, whatever it is, you gotta look at the U.S market because that’s the king of all and, not trading stocks, not trading shares, that’s insane for me, because there’s so much volatility these days, there’s a variety of stocks, a variety of companies, you can do a lot. You can find what you want in this ocean of companies. Forex is great, you have many pairs, but you obviously don’t want to trade every single forex pair. But then again, you don’t want to trade every stock in the market either. Most of the guys in The5ers trade once they have specific news, and this is also something amazing that we have in the stock market that you don’t really have in other markets because every single day you will have those 5 stocks that will get big news coming in. Negative or positive, you will find those stocks.
Don’t you feel that once the news reaches you, the move has already happened?
That depends. First, which news are we talking about? An upgrade, like we saw the other day – when we saw an upgrade going from Goldman Sachs to other banks and it showed up premarket and also during the market.
Can you explain what upgrade means?
Basically we have upgrades and downgrades that the institution will give the countries or the companies. Let’s say Goldman Sachs is saying they will upgrade the status of the company from hold to buy, so they are recommending or anticipating the price should continue up and they will usually give it a Target as well. So once a big name like Goldman Sachs is saying that, everyone is jumping in.
Bitcoin
I was looking at Bitcoin and it has gone up probably over 100% right now since the start of the year, and I thought: where else can you get that kind of return in 6 months? Then I saw facebook.
Facebook, Tesla, Nvidia, so many big-tech stocks made a 100% in the last year or so!
We looked at meta from 100 all the way to 300. And that’s a $100 stock. For Bitcoin, even if you put like $20,000 or $30,000 then you have 1 single Bitcoin. It went up to $60,000. You doubled your money, that’s fine. But this is a $100 share, you can buy a lot more than what you will buy from Bitcoin and that 300% will make you a lot more.
I can understand the hype about crypto trading but if you want to trade and you have the option to buy 100 stocks then go over there.
The U.S Market
The market in general for the U.S is looking pretty good at the moment, the volatility has gone up a lot. What are your thoughts on where the market is going?
First of all it depends on why you want to know, because if you’re aiming for the 5 years / 10 years, it doesn’t really matter. If you’re aiming for day-trade it doesn’t really matter. If you’re day trading and swing trading you need to understand basically for the next two weeks, you don’t need to know if the market next year will be higher, if you’re not holding your positions longer than that. The market is close to 6-7% from the top range, breaking into an all-time high. I guess we will do that, it makes sense, but before that we have a major resistance that will drop the price a little bit. But generally speaking it makes sense that we will break through that.
So you don’t really look at like the economy on a whole
Why would I? It doesn’t really matter.
I go through Twitter and see so many talking about the market from an economical perspective, and that’s fine, that’s nice to talk about but when you’re talking about trading it doesn’t really matter. As we trade on our level, not institutional, not holding the position for a year or so, on a day-trade basis it does not matter.
Prop Twitter
There’s an area on twitter that’s just prop traders. You can see some interesting, good parts to it and then some dodgy kind of other parts. Right now you see it and mostly on the Forex side since Trade The Pool is the only company that’s doing prop funding for stock traders.
These days you see a lot of forex prop firms. The5ers has been here for the last seven years we are probably among the three companies that has being been around for so long, the rest are just a lot of “pajamas companies” because they are run by two people that operate it, just promoting and marketing, doing it good, it’s like a white label company and you see it also afterwards on trustpilot or on Twitter because they don’t last for long. Traders have to be careful with that. Go with the prop firm that you know that at the end of the day will pay for your profits.
These days there’s so many opportunities, so many resources and to get fully funded by these companies is fantastic for all Traders, you just have to find the right ones.
Brokers account
I’ve been saying it for at least six months or so, going into a broker account, especially for stocks, it’s just a bad decision. These days you literally don’t need to have money in your broker account unless it’s for a long term and you want to just invest in those big-tech, but generally speaking, for traders we have the complete solution that the trader needs. The platform, the feed, the buying power, the additional software. Everything that a trader needs in order to succeed – we’ve got now. And you don’t have to pay $3,000 or $5,000 or 10,000. There’s an evaluation phase after you pay $97 or more, and you pass it.
I’ve played around with different Brokers and I just don’t see the point anymore to put money on an actual brokerage unless it is for long-term spot buying.
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