Looking At The SPY To Make Chart Predictions

I remember when I first started trading and had no idea how to read a stock chart.

I hoped to make $50 for my first trade and when it kept going up and down, it took me a little bit to figure out that I was entering and exiting at the wrong time. The frustration I felt during that time... let me tell you. 

This is why knowing how to read stock charts is one of the most important first steps you can take. We all need to know when to enter and exit a trade to make the most potential profit. 

Let's check out the SPY and see how to identify key trends to look out for in the market. 

Anything could happen in this volatile market. 

We want to make sure we are reading the charts and paying attention to the moves the market is making so we can make the best prediction. 

Looking at the SPY on October 26, 2022, the stock is currently in a downtrend. We had previously hit resistance back in the middle of August, and then it turned and started it's downward trend. The SPY ran up a little bit on October 26th but then ran back down. 

Because the market is in a downtrend, it's a great time to look into put options - so I placed an order for 20 contracts at $10.33/contract. 

The next day, October 27, 2022, we reviewed the SPY to see how the market was trending and to check on the put options I bought. 

I was able to sell the 20 contracts for $12.35/contract, bringing in around $4,000 - about a 20% profit in 24 hours. 

There was a chance I could have made more - but we never want to be greedy thinking about the "what if's" - if you can take profit, take it. It's not worth the risk, because the market could turn around and you could lose it all. 

A few members of Power Trades University were also able to jump on the SPY downtrend and make some profit from put options. 

So now it's your turn.

It's time to learn how to make money in the market from all directions, not just when the stock is going up. Profit can be taken when the market is in a downtrend, and even when it's moving sideways. 

Let's work together on how to understand the market. I believe with the right education, you too can also take profit like the other Power Traders. 

Check us out at Power Trades University and join the thousands of other members that are making their money work for them in the market. 

Thinking about the first time I took profit in the market... I was so excited I made $100. I cracked the code. I did it. 

That $100 started my journey. I knew I could make more if I just learned how. 

Imagine what an extra $50, $100, or $1,000 could do for you.