Happy Friday, tradersā¦
Jeff here.
Itās a fascinating time in the markets. Nvidia Corporation (NASDAQ: NVDA) finally took a dip as it dropped 16% in three trading days starting last Thursday.
Donāt say I didnāt warn youā¦
But the rest of the market has been incredibly resilient, chugging along, shaking off the NVDA bearishness without much problem ā¦ yet.
Now, Iām looking forward to whatās gonna happen on Monday morning. And that means studying over the weekend.
That said, for me, the weekend is all about balanceā¦
On the one hand, you must apply yourself just as hard when the market is closed as you do while actively trading.
On the other hand, itās just as important to rest your mind, get away from your screens for a while, and spend time doing the things you love on your few precious days off from the market.
So, if youāve ever wondered how a 25-year veteran of the options market spends his weekend, let me show you how Iām preparing for the trading week ahead…
Plan #1: Spend Time with My Family
When Iām not trading the options market, Iām spending quality time with my wife and three children.
Deep down, Iām a family man.
Trading professionally while raising three kids isnāt easy ā but itās a lot of fun.
No trading gain or stock market accomplishment can compare to the feeling of watching my children grow into amazing human beings.
Sure, Iām a trader by trade (excuse the pun) ā but Iām a dad and husband first and foremost.
That said, I gotta put food on the table. So, during the week, Iām incredibly focused on my trading.
Iām in a flow state, in the zoneā¦
But once Friday comes around, I try to go flat on my positions and be present for moments with my wife and kids.
Except for very rare exceptions, I donāt hold big trades over the weekend.
I donāt want to be stressing out about whatever unexpected news story could drop during my kidās soccer match.
What truly matters is that after a long, hard week in the markets ā¦ I get to spend my weekend with the most beautiful family on the planet.
Plan #2: Analysis Without Distraction
You should take time over the weekend to study your charts, the news, and the market without the distraction of the market being open.
Iām usually awake at around 6 a.m. on Saturdaysā¦
I begin my day by looking at some longer-term charts, marking up technical indicators, and analyzing key price levels.
I find that doing this chart analysis when the market is closed helps me to gain valuable perspective.
Sometimes, during the active trading week, you can lose the big picture.
Too many moves are happening at once. It can be overwhelming.
But on Saturdays, my charts donāt move. I can make accurate calls without worrying about the charts moving as Iām analyzing.
Iām looking at daily, weekly, and monthly charts ā¦ trying to gain long-term perspective for potentially juicy swing trades.
Next, Iāll scan the internet for any big weekend news stories.
If thereās a major market-moving catalyst occurring on a Saturday, I can absorb that news and then look for charts and stocks that could react to said news.
Again, this is easier to do when the market is closed. I can have an entire ācatalyst watchlistā prepared come Monday morning, so Iām ready to strike as soon as I see how they open.
Plan #3: Read Sunday Barronās (and Watch Spoos)
Iām an old-school Wall Street guy ā¦ and one of the habits that hasnāt left me from my floor-trading days is reading Barronās every Sunday.
Doing so refreshes my memory about whatās in store for next week and gets my mindset in the right place to trade my best.
Then, on Sunday evening, the spoos open.
Spoos ā a slang term for S&P 500 futures at the Chicago Mercantile Exchange ā are the first opportunity to see where the market sentiment is heading for the week.
Before the NYSE opens, the spoos are already trading. I always watch these moves for indications of what may happen next week.
But I mainly use the spoos as a reference point. I donāt trade them very much these days.
And because futures are designed for professional traders, requiring more up-front capital to purchase ā I donāt suggest you start trading spoos.
However, you should watch them on Sunday evenings, as they can often foreshadow whatās gonna happen on Monday morning.
Plan #4: Get Some Fresh Air
As traders, we spend way too much time inside staring at computer screens.
And thatās why itās important to go outside and get some fresh air over the weekend.
This may sound trivial, but the link between your mind and body is stronger than most traders realize.
Your mental state is crucial for making solid trading decisions. And if you stay inside all day without exercise, your mindset can suffer.
Break this habit. Go outside and move around. Touch some grass.
You may have noticed that I do so while walking around my neighborhood, filming my morning market analysis videos. This is intentional.
Donāt be a hermit. Donāt let trading lock you inside your house.
Who knows, you might trade better on Monday just by spending a little bit of time outside this weekend.
Have a great weekend.
Study hard, but make sure to give yourself a break as well.
Find that balance.
Iāll talk to you on Monday,
Jeff Zananiri
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