“MSFT is invested heavily in artificial intelligence – a major sector that’s also among my top to watch in 2025.”
Yesterday was electric at the Monument Traders Alliance Roundtable.
In case you missed it, click here to watch the replay.
During my talk, I mentioned how 2025 could be a great year for traders, and a not-so-great one for investors.
Here’s how I’m looking at it…
The last few years have been easier to trade, with the S&P 500 demonstrating significant growth.
In 2023, the index achieved a total return of 24.23%, including dividends. That positive momentum continued into 2024, with the S&P 500 delivering a total return of 23.31%.
But that could all change in 2025, and here’s why.
The truth is there’s much greater potential for unforeseen events this year – especially with Donald Trump taking office.
One random comment from Trump, and it could send markets spinning up or down.
Which is why my theme word for 2025 is “Volatility.”
Volatility is a word that might scare some traders, but it’s actually the best time to capitalize on major price movements.
Two strategies to manage risk include…
- Hedging: Reducing or eliminating risk of adverse price movements by offsetting position.
- Scaling into trades: Starting small, and taking a 1/3 or half-size position to give yourself extra time in the case of unforeseen events.
I’ll be utilizing those two strategies the most in 2025.
And there’s one company I think could see big moves amidst this volatile trading year.
My Top Pick for Q1 2025
One of the current charts I like for the first quarter is Microsoft (MSFT).
MSFT is invested heavily in artificial intelligence – a major sector that’s also among my top to watch in 2025.
The tech giant plans to invest $80 billion in AI-enabled data centers to train AI models in 2025.
Plus, MSFT has earnings coming up, which could act as a catalyst.
In the more volatile 2025 market – there will be plenty of potential big moves to play and MSFT’s is one I’ll be watching closely for trades in Q1.
Action Plan: Yesterday I joined Bryan Bottarelli and Karim Rahemtulla at the Monument Traders Alliance Roundtable.
We gave out our top strategies and also some of our favorite picks for 2025.
Click here to watch that video.
P.S. As traders might know, big market volatility also leads to big market dips.
But don’t worry, there’s actually a powerful way to play market downturns for major gains.
In fact, ONE simple trade on ONE ticker within 15 minutes can target gains as high as 157% the next morning after big market downturns.
