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.
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.
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!
