I hate to be a Debbie Downer but this market is still over inflated. In a perfect world it let’s the steam out slowly and offers predictable moves to the downside that are easy to trade, but that is not likely.
So are you ready now? I mean, keep grabbing the wins on the rest of the way up but it is only prudent to have your trading account “go bag” ready when the market shifts.
Here are three things to work on now so you are all set.
Where Will You Move Your Money?
Simple exiting trades is important for step one, but you will want to keep that money working for you. Look into high yield savings accounts and make sure you have it set up before you need it. Be familiar with CD rates and which banks or institutions offer the best rates. Both will have small yields compared to your trading targets but a 5% return when the market is down 20% is more like a 25% return.
Understand Bear Market Trading Strategies
Get familiar with these now. Do your homework on put trades and the right kind of spreads to use in bear markets. You will want to have these at your fingertips when you need them and not have to reinvent the wheel when Rome is already burning.
Look Into Inverse ETFs
This article has been around a while but I can tell you the traffic to it goes through the roof when markets get ugly. It outlines some of the biggest inverse ETFs that are designed to go up when the market goes down. Get familiar with them and look at which ones have the best options and open interest so you don’t have to sort through that later.
Save this article or email it to yourself so you can find it when you need it.
Until then, keep grabbing bull wins.
Keep learning and trade wisely,
John Boyer
Editor
Market Wealth Daily
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