Let’s face it… the market is dying for some action right now. It’s pretty incredible how we’ve just halted here, with so much going on.
For example we’ve had:
- Jobless claims hit a 50-year low this morning
- We’re entering the heart of earnings season
- Active IPO month- Zoom Video, Pinterest, and Lyft
However, stocks have kind of paused here. And while I’m not completely sitting on my hands…I’m also not doing much either.
But that’s okay.
They say the game is won on the practice field. And if trading is the game, then research and preparation is the practice arena.
That said, I’ve been able to elevate my trading each year by working on different aspects of my game.
There are two ways to get bigger as a trader. The first is to trade more shares (stocks) or (options) on the strategies and setups that are working for you.
The second is to expand your horizons, pick up on a new strategy or setup. In other words, find something to add to what currently is working.
As for me, option number two is what’s worked the best for me…
(If you’re struggling to put it all together, check out the Sniper Report, it’s a great place to start a foundation)
The other advantage number two has is you deal with fewer PnL swings. Some traders are comfortable swinging their accounts $20-$30K a day, but that just doesn’t fit my risk tolerance at the moment.
Instead, I’d rather focus on base hits and grow by introducing new strategies and plays to my toolshed.
That said, one area I’ve spent a great deal of time researching is 5G. You see, billions of devices will need to run their data through a faster and more efficient network.
In a data-dependent and connected world, the 5G network will be significant for businesses and consumers.
Furthermore, I’ve already started investing in 5G stocks, two of those stocks are in my Sniper Report Portfolio, and are on the lookout for more plays related to the space.
Of course, there is already a ton of media attention on TV and in newsletters about 5G. However, I do think it will be different then what we’ve seen from other hyped sectors like marijuana and blockchain… read on to learn more about 5G stocks.
If you remember some blockchain stocks… they only went up to get pulled back. However, 5G stocks aren’t anything like that… it’s not a fad… 5G is the future. You see, this time it’s different.
With blockchain stocks – and pot stocks – it’s hard to actually figure out the scalability and who would actually use blockchain and how many consumers would use cannabis products. Mainly, it was just hype around blockchain and pot… no one really understood what was going on, and just bought to take part.
So what are the differences between 5G stocks and blockchain and pot stocks? Well, for one… blockchain and pot stocks are very new markets – so it’s nearly impossible to value them… that’s why you typically see these stocks spike… only to sell off.
Now, with 5G… there should be a flurry of consumers using this new network… because it means increased data speeds and literally being connected to the Internet with nearly no lag time. Once it gets rolled out to all markets… so many companies and industries should benefit.
So what’s going on with the 5G market now?
The Need to Know About 5G Stocks
If you haven’t heard yet, Verizon Communications (VZ) and AT&T (T) have been rolling out 5G in select networks. So these two stocks would probably be clear leaders in the communications industry for 5G stocks.
It’s going to be pretty easy to identify the leaders. All we really need to see is some guidance and earnings – indicating how much revenues and profits 5G has actually brought to these companies… and if they provide guidance, it’ll give us an idea of where the 5G market is headed.
Now, we’ve been seeing a changing landscape with 5G stocks. Just this week, Qualcomm (QCOM) – a long-time leader in the wireless market – noted it would supply 5G chips for Apple (AAPL) iPhones as early as 2020. This comes after QCOM and AAPL announced a deal to forgo all the legal proceedings between them.
Thereafter, we actually saw Intel (INTC) announce it’s planning to exit the 5G modem market… due to the deal between Apple and QCOM.
With these recent catalysts, it’s pretty easy to see who the leaders are.
However, since there are clear leaders… the 5G catalyst may be priced in for them. In other words, that means traders have already bought the stock ahead of the catalyst… and are holding these leaders… and buying these clear leaders would just be chasing, and your risk at those levels wouldn’t be favorable.
For example, here’s a look at QCOM after all those catalysts came out.
I don’t know about you, but I don’t want to be buying this stock right here… because it was just trading under $60 two days ago.
What I’m looking for is something that has low risk, extremely high reward, and exposure to the 5G network.
Again, there will be clear leaders, but there will be some small-cap players that could be standouts… meaning some 5G small caps could rise… and continue to rise.
For example, one of my stocks is positioned to see its revenue rise… we’re seeing the pieces of the puzzle come together. You see, this company is projected to offer 5G to approximately 700M 1.2B consumers (according to my analysis) of advanced countries by 2020-22. And by implication the company’s technology integration into the Internet of Things (“IoT”) requires vendors of these new products to begin finalizing specifications of new products and production plans in earnest as late as Q4 of next year.
Right now, I have two 5G stocks in my Sniper Report portfolio… one of them is a stock you’ve probably never heard of before… and those tend to be the best ones for outsized gains. If you’re wondering where to find the Sniper Report, here you go.