Here are three important tips that can save your bacon as this market continues to thrash.
First, the trend is the trend. It doesn’t care at all where you think it should go. Right not the trend is down. It has made some attempts to shake the gravity, but the momentum to the downside is heavy. We have talked bout ways to trade the bear trend before and they are holding true this year. (check them out here)
The trend is very clear when you back up a bit:
Second, when you fight momentum, you lose. When you fight strong momentum you get your butt kicked. The gravity pulling this market down is very strong. And, the context surrounding the market is not really optimistic. Inflation, skyrocketing gas prices, war, and linger COVID. Don’t fight your way to be the first mouse to try get the cheese. Let the bottom confirm, and then confirm again. And even confirm one more time. Then look at getting bullish. Be the second mouse to go after the cheese.
Third, don’t be afraid to wait it out. We had a wild rebound in March that really made it feel like there may be a recovery in the works, When you feel the shift is happening, take smaller positions and be super cautious. Small gains are exponentially better than big losses.
A bonus tip is to make sure you use all of the resources you have available to you. Smart options trades can limit risk in these wild markets and produce wins no matter which direction the market goes. Check out Alan Knuckman’s Bullseye Options program to get a solid understanding of how smart strategies can work well right now.
Keep learning and trade wisely,
Market Wealth Daily