Bulls To Bears: Outlasting A Stock Market Meltdown

As a stock trader and investor you must realize that big market sell offs are an anticipated and a healthy part of investing in the market. It make good stocks cheap. As a smart investor when you are concerned about market risk you can use tools, tricks and trading strategies to help protect and hedge your investment portfolio in uncertain and uneasy times.

You have to understand since the inception of the stock market it has been true that what goes up does come down, and what goes down usually comes back up, and way up! The market has always made higher highs - but has never gone to zero. Although the stock market has continued to hit new highs this year, it has often been subject to periods of declines and downturns. When the market is a steady green investor confidence is high, and when red then fear sets in, especially when changes happen fast. You will learn to become a better trader when you're trading with a long-term aspect on the market, only then will you will be on your way to real wealth creation. Especially, when your under valued stocks come off their lows to begin to trend higher. But, not if you sold your holdings and walked away. 

Most online traders like to use short-term plays to profit, but you have to understand, as an investor, that these play will eventually work out, but they are subject to take a bit more damage during volatile times. Stocks will forever rise and fall, occasionally by substantial amounts. That is the game. When the market is increasing in prices over a lengthy period of time it's called a bull market. When it decreases substantially like 10 to 20 percent it is a called a correction, a bigger decline of more than 20%, is considered bear market territory. These 3 movements are all a part of the stock market stages and its life-cycle.

When trading the market, big ups and downs tended to balance each other out over time. As a general rule, up trends in the markets have always outweighed periods of declines. Because of this, stocks have had a stronger performance of any other investment class, even real estate, over the long haul. But, remember past performance does not guarantee you any future results.

If it were just as easy as simple math, it could be very easy for any investor to just sit and wait out the market sell off for its recovery. But it is not that easy. It is how investors react when the market declines, as it spooks investors, that is the key to stock trading success. Don't be that trader that when your stocks begin to free fall, you act irrationally and start making poor trades and bad decisions, negatively affecting your investment returns.

Knowledgeable investors who are a bit savvy enough tend to take the necessary steps and prepare their portfolios for occasional market declines. These investors are better composed when managing their emotions in times of stock prices decline. But, investing too conservatively may contribute to them not reaching their profit targets. 

Just as we've seen in previous market sell offs, many individual traders continue to make bad trades, they keep selling good assets when the market declines, only out of fear, like the stock market will never, ever recover and come back. However, the opposite is always ringing true. Not only will the market come back, but it will probably happen a lot sooner than one might think. When the pundits are predicting there are further corrections ahead, the reality is NO ONE can predict the future of the market. But one can certainly use past experiences to help gain an understanding about current market conditions. So in this blog we are trying to explain how market corrections typically work, so you can get off the sidelines and invest in your future.

Recognize, investments of all types involve risk. Because the stock market was on a huge tear, investors now are sensitive to downward trends. So when this market recently corrected, the result was met with fear and uncertainty, and a lot of investors pulled their money out of the markets. But just how long should that last? How low can it go? Since the current correction is still in progress, we’ll look at past market data, which is the last market correction on record, 2016. While a good portfolio anticipates all possibilities from the outset, you can improve your stock trading at any time by subscribing to our service and by implements some of our stock trading methods. This isn't our first rodeo.

As a long-term investor, you shouldn't be focused on short-term volatility. You need to make the long journey a little more enjoyable by implementing a few simple steps during a market correction like this. You will face some risks as a holder of stocks and mutual funds during periods like this, and we have a few ideas about how to substantially reduce your chances that your portfolio suffers big long-term losses during times like these.

We are not there yet, but unfortunately bear markets do take a little longer to recover. But good news is they will and do eventually recover!  But emotions, fear and human nature are tough things to overcome. So while ignoring market corrections and bear markets and staying the course is the right thing to do, it doesn’t necessarily feel that way when markets are uneasy and volatile. So our advice: do not go  at it alone! Use a battle tested service like BullsToBears.com to guide your decisions, and remember that making better stock trades as well as going slow and steady when trading stocks will always win the race.

Bear in mind, if you a day trader, swing trader, short-term or long-term investor you can't help but benefit from subscribing to our FREE NEWSLETTER. Our trading methods and tips, are there for all traders and investors to explore. We also offer a 14 DAY FREE TRIAL so you can learn for yourself about market structure, trend identification, market volatility, volume, where and when to trade, and how we put it all together, so that you can have a winning edge.

Remember, the time is NOW to invest for your future success! 

Till Next Time... Happy Trading!

Bulls To Bears: Trading Post Market Sell-offs

After this most recent stock market decline, it has left many investors feeling very anxious about trading stocks, but we promise it's going to be ok. So, take a deep breath and exhale! This latest sell-off feels a bit more unsettling because - it’s been a while since investors have experienced this type of volatility. Last month's gut wrenching big dip was the third one this year, similar market moves like this typically happens about 2 to 3 times a year. This last sell-off appeared different to us, because it seemed to look more like investors were in some sort of a panic selling mode and that many novice investors were implementing bad trading habits and making irrational investment decisions.

 

Last years big movers like NVDA and BIDU recently have had larger than normal declines  that lasted over multiple days. When events like this happen in the market and to your stock holdings, as a good stock trader, you have to be on the lookout for the future bounce that is going to occur, when it is going bounce back. It's ok if you miss the first bounce when it begins, but you should be on the hunt to trade the second bounce after the initial bounce occurs. 

We tell our subscribers to never sell their holdings out of fear; instead, to be more selective about how you trade stocks during periods like this. So, if you feel the market cycle is nearing an end, take into account the current stock markets factors and  dynamics when making new allocation decisions. Diversify your portfolio to include sectors with strong growth prospects (like infrastructure), read our research reports because when the market sells-off, you need to understand what is happening and what assets you need to be buying. If you subscribe to our service we will show you a few ways you can play a dead cat bounce, and how we manage to pull out some serious returns after steep market declines.

 

Take a step back from the recent declines. The majority of the numbers that came out suggests the U.S. stock market is still dead center in the middle of the longest-ever bull market, with the S&P 500 more than quadrupling itself already. When the Bear-market rallies it tends to be quick and robust, so we’ll see how this last decline plays out. But, if we are heading into further bear market territory, a big bounce will take a bit more time to transpire from its yet impending bottom.

 

Many traders for the most part don't seem to notice when their stocks are moving higher over an extended period, but the market’s got a way of getting their attention when it goes down. Nevertheless, learning to tune out all the noise, and all the hysteria, is the winning combination to long-term success in the stock market. And as we've stated in a few of our previous blogs, that a major key to our successes is our ability to be buying quality stocks during periods of declines - rather than selling steep sell-offs. Because buying rather than selling  during those times usually presents you with a much better opportunity for prosperity.

 

Having the insight and leap of faith to lower you stock price average is an unrecognized perk of big market sell-offs. If your investment strategy warrants, and you have some liquidity to invest - that is probably a very good time to consider adding to your existing stock holdings or find some  new gems. However, take into account and be prepared for some possible uneasiness: as your assets could fall further still - that is until the selling stops and the buying begins again. 

 

Buying stocks before the proverbial breakout is one of the most sought after common stock trading strategies, but if your are new or a novice to trading stocks or have little experience trading market breakouts, you may find that they're not as easy to trade as they appear. Often the breakout turns out to be false breakout, which could have you losing some more money. But, if it is a real market breakout, that bounce will provide you with great entry levels and better dollar cost averages.

While there’s no “Right” time to playing the market! When the market is down big, it tends to make us feel like it is always the "Wrong" time to be trading. But, you need to fight those fears away and keep investing. Keep looking for good valuations. With the vast majority of asset classes and sectors in the red right now, you have a lot of attractive alternatives for investing into 2019. So, it's prudent to continue to practice good trading habits now and bet on the stock market’s proven history of recovery, as a long-term investment theorem.

 

A plethora of strong profits reporting from companies like software legend Microsoft, to social media giant Twitter, as well as electric car company Tesla and behemoth AMZN, confirms the overall strength of the U.S. economy and the U.S. markets. We believe more strong results will be forthcoming in the next few days and weeks and months that will re-affirm our convictions that the market will rebound and/or hold these current levels.

 

Recent  investment declines didn’t just stop with stocks!!! Right now, Gold & Oil, as well as Bonds are among big downed assets this year; in fact, over 90% of 70 asset classes tracked by Deutsche Research have posted negative returns in dollars, up through the mid-term November elections, according to The Wall Street Journal. In fact, traders haven’t observed this much RED in the market in about a century.

 

Taking everything into account... If you are as optimistic about the U.S. economic growth, as we are, current market volatility should serve as an opportunity to buy stocks at good cheaper prices. Use this dip to buy better stocks, that will move up with the overall economy, or consider selling some low quality investments, offsetting some gains (this is known as harvesting tax-losses), to make room for better ones. Don’t miss an opportunity to make a lot of money for yourself now. Don't exchange a chance to prosper, for your own personal set back, by not taking advantage of cheap stocks in the stock market at this point in time.

Now, if you want to earn big profits, and want stop spending so much time trying to figure out what stocks to buy, sell and trade! We’ve got it covered! Start today by utilizing our 14 DAY FREE TRIAL, we will show you during that time how to reduce your downside risk, and teach you when it is time to add to good, or yet cheaper stocks in your portfolio - instead of selling them, and then you will be looking at a lot more profits for yourself.

 

Thanks for visiting... Till next time... Happy Trading!