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The Metrics of DreamTrades with Thomas Hughes, Ep #67

by | Jul 1, 2021 | Podcast | 0 comments

Thomas Hughes DreamTrades

Thomas Hughes DreamTrades

Thomas Hughes started trading October 5th, 2005. Some friends took him to a seminar where he was taught how to buy/sell stocks. It was exactly what Thomas wanted to learn. He started his adventure learning about trading and options. In all of his years in school, he was never taught that trading and investing was where there was money to be made. Thomas is now the head research writer for DreamTrades.com. He also writes for MarketBeat and Seeking Alpha.

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You’ll want to hear this episode if you are interested in…

  • [1:26] learn more about Thomas Hughes
  • [3:56] What Thomas likes to trade (and what he looks for)
  • [6:37] The best pick from 2020: Etsy
  • [9:02] The worst pick from 2020: Beyond Meat
  • [13:45] What Thomas thinks about Coinbase
  • [17:12] Why the DreamTrade reports are so helpful
  • [22:25] How to cut losers and manage winning trades

What Thomas likes to trade (and what he looks for)

Thomas likes when he can match a great fundamental story—whether it’s dividends, dividend growth, tech, etc.—with a good chart. It tells him that the market sees what he’s seeing. Over the last year he’s invested in consumer staples, financial companies, and small startups (many of the stocks he lists in the DreamTrades Newsletter).

Thomas doesn’t want to see choppy price action or volatility. Depending on the story, he’ll look for signs of support, bottoming, or reversal. In a growth stock, he looks for uptrends, consolidations and breakouts. Volume is important as well. He primarily uses MACD and Stochastic for indicators. What has caught Thomas’s eyes recently? Listen to find out!

The stocks in the DreamTrades Portfolio

The DreamTrades portfolio got in on Etsy at $53 per share and it’s currently trading around $168. Thomas is the one that researched and chose that stock. What made him believe it would trend upward? They not only had a positive growth outlook but it’s also a great platform for eCommerce and a great target for the artist community. They have a clear strong lead in their category. Their position in the marketplace and name recognition will go a long way. If they play their cards right, they could grow for at least 5–10 more years.

The pick they chose that wasn’t a winner was Beyond Meat. The price hasn’t followed either of our personal expectations for this stock. But we both believe they’re still a great candidate long-term. We likely just bought in too early. The pandemic adjusted the growth outlook, but the share price is bottoming and recent news is positive. It should move sideways if not higher.

How did some of the stocks in the DreamTrades Portfolio perform? Learn all about it in this episode of How To Trade It! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet

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What does Thomas think about Coinbase?

With approximately $56 million users, Coinbase’s ability to build its user base is marketable, even outside of crypto. It’s a huge growth opportunity. Every time someone does a crypto transaction, Coinbase gets a commission. The potential and opportunity is unlimited, which is why the price was so hyped up (and correcting now).

What is the future of coinbase and the crypto markets? Thomas says to picture two big glass jars. In one jar, you have all the money in the world. The other jar is mostly empty but it’s starting to fill up. That’s cryptocurrency. All of the wealth recorded on paper will eventually flow into cryptocurrency. Everything will be managed by blockchain.

Bitcoin is the first layer in crypto. Ethereum is perhaps the 2nd and 3rd layer combined. DeFi is another layer. Eventually all of the bitcoins will be mined and people will worry about something else, but it’s still the foundation that crypto is built on. Coinbase is one of the first exchanges and the first to go public. The potential seems to be unlimited.

The money that’s created when a company goes public

When a company goes public, it’s creating money out of thin air by creating shares. Phil Knight wrote a book about his business career (he ran Nike). He wasn’t rich until he went public in 1980. His net work went from $5 million to $100 million in 5 minutes.

The DreamTrade reports allow you to follow along with the richest people in the world. You can get a piece of Amazon, Tesla, and Niki without doing any of the work. You buy the shares and ride the coattails of the hardworking geniuses. They’re creating things that add value and change people’s lives.

How does Thomas know when it’s time to get out of a trade? What does he do? Listen to the whole episode to find out!

In this episode of How To Trade It, we talk about how money is created when a company goes public. Check it out! #stocks #stock #trading #StockMarket #Investing #DayTrading #StockPicks Click To Tweet

Resources & People Mentioned

Connect with Thomas Hughes

Connect With Casey Stubbs

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Disclaimer: Trading carries a high level of risk, and may not be suitable for all investors. Before deciding to invest you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

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