From peak to trough the S&P has lost 19.0% . . . and that’s just one of many examples.
The losses are real. And in my opinion, they will continue. Annual gains of over 25% to 30% in the S&P are behind us for the foreseeable future.
So, the question I have for you is this: What’s your plan? Ride it out with your portfolio of stocks and hope for the best?
Why not implement additional strategies that make you money in different types of market environments? Bullish, bearish, neutral . . . you should be using a toolbelt of strategies that take advantage of all three scenarios.
And in this environment, you NEED to have a bearish strategy in your arsenal.
In Volatile Markets, Keep It Simple
I keep it super simple when I trade. I have a single technical indicator I use to profit from sentiment and technical extremes on highly liquid ETFs.
This go-to indicator helps me select and manage my trades in three ways:
- It alerts me that a profitable trade may be on the horizon. That gives me time to prepare.
- It lets me adjust my time horizon to craft a trade that fits my needs.
- It tells me when I should think about getting out.
The end result? Steady, reliable gains with short holding periods.
A Typical Trade
Several weeks ago, my one and only indicator was signaling a trade. As a result, I immediately sent out a trade alert to my subscribers.
Six trading days later, the Dow (DIA) moved lower and we closed the trade for a healthy 16.3% profit . . . at a time when most stock market investors were losing money!
In 2018 I used this one simple indicator to make 44 trades with an average return of over 12% per trade. Think about it . . . that’s like 44 dividend payments paying out 12% each. . . in just 12 months.
Want to learn more about using this simple but valuable tool to boost your overall gains, even while stocks are selling off?