Donald Trump's Advice on Trading

President Trump. The president says, president Donald Trump unveiled. You better go out and buy stock now. That was Trump saying, you need to buy stock now because America will be like a rocket ship that goes up. But how true is that? Is it really a good time to get in and make some returns, or should you hold back before Trump's rocket crashes into us all? I've been through several bull and bear markets over the last few 14 years, and there's a few key things to look out for when making a decision like this. That's what we'll be discussing in this video, along with how to profit from Trump in power when you should be getting in and out, and how to make sure you're not part of the 90% that's gonna lose money in this market. Before we do that, though, it is important to understand the context that we are in right now. Back before Trump became president in January, I actually said that this market will be a trader's, not an investor's market. What did I mean by that? Well, if we look at the past couple of months of Trump's presidency and how it relates to the stock market and global markets in general, we can see exactly what this means. Volatility has spiked considerably based on the headlines that have come from the White House, specifically from Trump's policies. And these have translated into markets kind of going up and down, down and then bouncing again, and all different shapes that we did not have under Biden, whose presidency, rather predictable. And of course, alongside the monetary policy that just led to markets going all the way up and to the right. Can we expect more of this from Trump? Well, yes, absolutely. I think that is Trump's whole shtick. It is him as a president, he loves volatility. He loves just randomly saying things, you know, 10pm on a weeknight for us in the UK and really, really wrecking markets. If we take, for instance, his recent comments on pharmaceuticals, he has said that he wants to decrease the price of pharmaceuticals by 30 to 80%. Now, this is a hugely contentious issue, especially for the United States, considering how much they actually produce pharmaceuticals and how much of the S and P is pharmaceuticals based. If we look at United Healthcare, for instance, their recent collapse has not so much been caused by Trump, but you can definitely see connotations with how he can disturb certain sectors just with a tweet or a post on Truth Social. When I worked in the city from 2016 to 2018 during Trump's first presidency, he also created a hell of a lot of headline risk with more trade war Nonsense. And I say it's nonsense because in the end it culminated in very little. It was just volatility and headline risk. Now, this is fantastic, as I said, for traders, but you've got to really understand what game is being played here. Volatility and headline risk creates the ability to, to buy the market effectively. That is what we are looking at when we're trying to trade these volatile situations. And I'll give you some insight towards the end of this video as to how we can actually trade this and look at it objectively, and also why it works in terms of buying the dips when volatility peaks. Now, the Chinese trade war issue is not going to stop because both countries are very, very proud. But I think Trump has played a bit of a blinder here. We have to remember that markets move based on relative surprise. And where we started with the initial tariff Percentage was at 145% on China. Trump has negotiated it down to 25%. That is worse than where we started. But the market understands that it was initially pricing in 145%. So to settle at 25% is fantastic. If you can get into your head that markets only care about relative surprise, that is one way to make money. But let's focus a little bit more on a specific strategy that you can employ to understand how to make money from Trump's markets. We are going to face another dip at some point. However, you need to be able to capitalize on this, and I'm going to tell you exactly how you can do that. But firstly, you need to understand the players that are involved in the market. There's something called a volatility control fund, and these guys will buy stocks based on certain points of volatility in the market. They will effectively look back and see, okay, the market was volatile back here. We have to buy X amount, or the market was this volatile and it's improving over this period. We have to buy Y amount. You then have participants called CTA's Commodity Trading Advisors, who tend to trend follow quite a lot. They're very much focused on moving averages and looking at how they can make use of new and existing trends. Understanding these two components of the market is absolutely key. And these two participants are absolutely essential to understanding why this works. When you next see a dip, what you will find is that the VIX goes up to, say, 40 to 60. On the most recent VIX spike, when it peaked out at 60 on April 7, we saw the market kind of put in a bit of a bottom. It started to flatten out and the market stopped going down as fast. And this is how the VIX works. If you look the maths of the Vix, it is actually a 30 day variant swap on multiple different S and P 500 strike. Now you don't really need to understand that, but let's just avoid ever trading the VIX because there are people that are extremely smart that do that purely as their job. You do not need to understand the VIX necessarily, just that it is a function of volatility based on the S P. However, what you do need to know is that when you tend to get a spike like that, there is then something that triggers off in all of those algos that are out there. And specifically with volatility control funds, these systematic funds will be focused on certain time periods. So notice I said 30 day, which is basically one month 30 day variant swap, okay? Of the S P, take 30 days ahead, then add one more day. They are looking back 30 days and from that increased level of the Vix they will be saying okay, well that was 30 days ago, we're now 31 days past that. Oh look, the VIX has started to come down again. They will then be factoring in this new data, this new volatility regime, which means that these volume control funds will now start being forced to buy stocks. This is complex and I want you to rewind this whole segment because it's absolutely important. What you are seeing is a forced buying of the market. You are seeing people come into the market that have to buy these companies. It's not a question of oh, they're making a pun. They are buying these companies because they are obliged to based on the calculations and based on the fact that they are a volatility control fund. Once that old data is completely out of their systems, the algorithms are then able to kick in and start doing what they do in a normal stock market regime. Make sure you understand this. What then happens is once that trend starts kicking off and once the volume control funds have started piling into those stocks that are at the top of the S&P 500. It's why you start seeing tech move so quickly. At the beginning of a V shaped bottom, you then start seeing CTAs pile in. CTAs have a hell of a lot of cash and these are the guys that really start igniting trends again. Now it doesn't mean that it's just going to go all the way up straight away. You're still going to have some turbulence. There are going to be some technical levels and other systematic levels where these guys are selling and there's a battle going on. But generally what you are seeing when these participants are starting to get involved is indeed a bottom. Now, the next time that this happens, you need to be aware of this, and we go into this in far more depth. In the Think Academy, we actually teach you the specifics of when to look for this, how to look for this, and why. You need to seriously focus on this in an even more granular detail. So click the link in the description and make sure that you check out what we have to say there. Going forward, Trump's regime is going to be packed with headline risk, as we've discussed. I don't think the China situation is done. I really, really think that things are going to start to piss him off with certain aspects of what happens. Perhaps there's another player that comes in, maybe he starts getting angry at Saudi Arabia. Maybe the oil situation starts spilling over because oil is actually very, very low at the moment in terms of price. The US Is the largest producer of oil as well. So I think Trump might really seem to maybe want to get the price of that a little bit higher just to have a big pushback against opec. But now you don't need to worry where that headline risk is coming from because you understand exactly what to do. Those are my thoughts on the market right now, and I hope you really found some value and can make some money now. If you want more in depth coverage of the exact trading strategy that I implement, then check this video out here. It's how I made my first six figures within one year. I'll see you later.