Bulls To Bears: Will You Win The U.S. China Trade War?

The time has come to invest in the world's most populated country and 2nd largest economy!

 

If you're a novice investor and you're looking to buy stocks and get into the China stock market, there are many quality Chinese listed companies that are trading in the U.S. like:: (PTR - Petro China, BABA - Alibaba,  and  NTSE - NetEase) that remain in our sights.  Today, Chinese stocks are the cheapest they’ve been in comparison to the S&P 500 in 2 decades. The data coming out of China, shows some green shoots, that are actually very encouraging. This trade war could be long and drawn out, but for the investors that can see beyond the horizon and withstand some volatility, looking at the emerging markets, more importantly China, might be appropriate. The Chinese consumer is alive and well, just dealing with the ever present loom of the trade war.

 

It is understandable that many investors will remain wary of owning China shares. After all, it is a communist country that suppresses free speech, jail’s people, limits Internet content and uses state-run companies, like banks, to direct where the money is invested. With that said, smaller consumer companies have a great deal of freedom, and the ruling Communist Party has an big interest in promoting economic growth for its people in order to keep unrest at bay. As the Chinese people get richer, they will want more of the finer things in life like traveling, entertainment, education and future prosperity.

 

Trumps Trade war hasn’t just hurt American farmers and Chinese exporters; it has also hit U.S. investors who dumped $2.8 billion into China funds in essentially the first quarter 2019 on top of the $6.4 billion they added in 2018.

 

The next phase of the trade war entails significantly more uncertainty for the consumers in the US economy. The Trump administration plans to tax an additional $300 billion of Chinese imports annually would affect a broad range of everyday consumer goods, including about 80% of all clothing imports, 65% of furniture and equipment, and 90% of durable goods.

 

So, know right now there will be volatility. But that may wind up in the long run being a good thing! Emerging markets stocks have always been rocky, but China stocks have been even rockier. With so many investors worrying about China, stock prices have been oversold off and, in many cases, become very attractive. If you don’t have China stocks in your portfolio, we are urging now is the time to be adding some.

 

In all of history, no economy has made as big of a leap in such a quick period of time as China has in the last 100 years. With a country with over 1.1 billion people who not so long ago relied on the bicycles as their primary form of transportation, they are today the world's biggest automobile manufactures. To boot: They are also the world's largest smart phone maker and are set to surpass the US as the biggest retail market in this year. I reiterate that understand the magnitude that China is the world's second-largest economy number 2 to the U.S.

 

Despite the current pessimism, there may eventually be a tariff-killing trade deal between the U.S. and China. It may even be possible for us to see one soon, according to analysts at Credit Suisse. On Aug. 13, the office of the U.S. Trade Representative said some tariffs the U.S. had planned to place on imports from China on Sept. 1 would be delayed until Dec. 15 and that some tariffs would be removed entirely.

It is important to understand that the most important thing to remember about trading in China today is they are capable of self sustained fast paced economic growth, so it is important to know the real risk in investing in china today is that - it’s risky not to invest there!

 

Are you ready to make a fortune trading stocks and learn to manage your Risk and trade with confidence? At BullsToBears.com our Short-term trading program offers the best of both worlds. We give you the ability to place short, fast, exciting trades combined with controlling your maximum profit or loss BEFORE you trade. With us you can trade hot market sectors all the time with our trading opportunities. Learn more about how you can place top trades in all the best companies you love from one platform, with no brokers or broker fees.

 

Whether you’re looking day trade, swing trader, or long-term investing you’ll benefit from subscribing to our NEWSLETTER. Our articles, trading tips, are there for all traders and investors to explore our tools and techniques we are showing our paid subscribers. We also offer a 14 DAY FREE TRIAL so you to can learn knowledge for yourself about market structure, trend identification, cycle analysis, volatility, volume, what and when to trade, position management, and how we put it all together so that you now have a winning edge.

The time is NOW to invest in your future success!

 

Until Next Time... Happy Trading...

Bulls To Bears: U.S. vs China Tariffs and Trade War

As we mentioned before in a previous blog about the subjects.of Tariffs and Trade wars, we reiterate the U.S. will not lose a trade war with China or anyone else! 

What is a Tariff? A Tariff is a tax on products made abroad that are coming into our country. In theory, by taxing items coming in from other countries it means that the U.S. consumer will be less likely to buy that countries products because those goods will be more expensive. The alternative is that they will buy cheaper local products instead and it will in the end boost its countries own economy.

There’s no doubt that America’s manufacturers are still rebounding thanks to actions taken by the Trump administration. The tariffs that President Trump imposed on steel, aluminum, solar panels and washing machines have already created more than twelve thousand new jobs. The tariffs were imposed after probes by the US Commerce Department had declared that steel and aluminum imports are a big threat to Americas national security. President Trump finally took action on those reports and imposed even larger tariffs than what had been suggested by the Commerce Department.

In theory, by taxing foreign steel and aluminium it will mean US companies will buy local steel instead. These tariffs have been welcomed for the most part, by companies like U.S. Steel, AK Steel, Nucor, and Cleveland Cliffs . However, some aluminum producers like Century Aluminum that wholeheartedly supported the tariffs and some companies like Alcoa feel that the Trump administration ins't addressing the core issue of Chinese overcapacity and US automotive companies like Ford, General Motors and Tesla continue to be weary about the possibility of tariffs on the auto industry and automotive component imports.

But, U.S. car companies are doing fairly well. Ford’s North American operations recently posted a $2B in profits in the fourth quarter, while GM’s North American net income were topped by $3B. Even steel consumers like Caterpillar and United Tech have reported very strong results.

Despite all the positive results, condemners of the tariffs, widely among large retailers are claiming the tariffs will in the end lead to hefty price increases.  But that’s not what’s happening now. Prices for new cars which contain plenty of steel products remain steady. And the price of aluminum like that used in canned goods are also rising at a lower rate than that of inflation. This means consumers simply aren’t seeing any major price increases from these tariffs thus far, and core inflation is remaining low just above 2 percent. This means Industrial users of steel and aluminum just aren't currently being affected by higher prices.

In fact, steel prices have actually fallen back to the levels where they were before the tariffs took effect. Also, federal data is showing that the Producer Price Index rose a cumulative 2.5 percent last year in 2018, at exactly the same rate as they did in 2017. These numbers are remaining strong, and it shows that the U.S. manufacturing industry has added plenty of jobs in the manufacturing sector since the last recession.

So what's with all the noise out there about the tariffs? Why aren’t the they causing all of the trouble that were predicted? It is because these manufacturers are simply capable of absorbing any cost increases that have resulted.

Lets face it - the U.S market. is the largest and most affluent in the world, China exporters would rather reduce its prices than lose access to U.S. consumers. Chinese producers are still able to earn huge profits on American sales, thanks to their low labor wages bout $3.50 an hour along with government-subsidized steel and aluminum.

Because their costs are much cheaper, Chinese producers have priced its products high enough to make large profits. But with the tariffs now in place, those margins are at last finally shrinking.

The end result of the tariffs is that the U.S. economy will be much better off. when consumers pay the same for many imported goods than exports and  U.S. producers will enjoy a better competitive margins, and the U.S. Treasury will gain more income from tariff revenues.

Of course, there will always be the cronies who will condemn Trumps efforts in major publications by attacking the tariffs and delivering noise about the high prices that will ultimately deal lower profits to U.S. companies and they will continue to voice their concern for companies that had to pay more money for steel and aluminum last year in 2018. But what you need to remember is the end result of the tariff negotiations are intended to SAVE good paying jobs in America’s steel and aluminum sectors and savet these gigs have been under attack for YEARS by  China's government-subsidized goods on Chinese steel and aluminum products.

The people in the Obama administration should have expressed concern for America’s workers 10 years ago, when China’s predatory behavior and outright technology theft became super apparent. After all, such cheating absolutely violates free markets and free trade. And it has taken a heavy toll on the U.S.economy.

That what is needed and Trump knows it is strong medicine such as these tariffs are simply a necessary recourse here and now. And as America’s manufacturing resurgence in 2018 demonstrates, it is working!

Now, President Trump needs follow through, with his threats of 25% tariffs on another $325 billion in goods like footwear and other sectors not yet subjected to tariffs. The time is now and It is a must that we once and for all curtail China’s cheating and spur more manufacturing job growth in America.

So as far as we are concerned the recent market volatility as of late is fine and ok! The way Bulls to Bears views it- it is short term pain for long term gain. We anticipate a truce at some point in the coming months and Yes this Tariff war with china is the necessary bitter medicine that was needed to fix Chinas unfair trading practices which has hurt our economy and jobs for many years.

We agree with Presdent Trump as he stated "We are, again, in a very, very strong position. They want to make a deal. It could absolutely happen. But, in the meantime, a lot of money is being made by the United States, and a lot of strength is being shown. This has never happened to China before.”

Continue to invest and stay strong and steady. Keep in mind: We believe victory is close at hand.

As we previously mentioned,  we embolden you to Join our FREE E-Newsletter and we will give you our trading perspective that will help you outperform the stock market and place better trades. Again, take advantage of our 14 Day FREE Trial  and get 2 weeks worth of FREE trading signals on stocks that are poised to move higher.

Till Next Time... Happy Trading!

Bulls To Bears: Wisdom and Dollar Cost Averaging

If you have been following the stock market over the past few months, you know that things have been very volatile of late. For a lot of people, all the market turbulence is unsettling. After all, after a stock market correction, how do you know when the time is right to put your money in the market? and when to pull it out?
On occasion every trader, or stock picker dreams of buying a stock right before it skyrockets, turning them into a millionaire overnight. Many traders and investors tend to take short cuts to try and create wealth by trying to time the market. They try to get in before a certain stock, or the DOW takes off... Wouldn’t that be great? But, is it too good to be true? When you purchase a good stock on market dips it isn't. Some traders might get it right once in a while, but unless your "Carnac the Magnificent" you won’t be able to call a stocks ultimate bottom every time. However, we have some good news for you; there is a way to for you to time the stock market and create the wealth your looking for over time with Dollar Cost Averaging (DCA), this involves investing money into a stock at different prices, willingly better ones. 

The main advantage of DCA is so traders can buy more of their stocks at lower prices rather than at higher ones. Below we are giving you an example of an investor who makes 12 smart buys in a year $200 worth of shares each month when a good stock dips and declines and the annual trading range for this particular stock is between $6 and $15 for the year, and how you could avoid the risk of buying $2400 worth of these shares at its peak prices if you were to made a 1 time purchase. 

Here is how dollar cost averaging would look if you broke $2400 down as an IRA investment over 12 months making smart random purchases each month of declining GE stock. For this example below we used the actual 12 month trading history for (NYSE: GE) General Electric between (1)January 2018 and (12)December 2018 when the stock traded between $15 and $6.

2018 Buy dates     Amount invested      Price per share      # Shares purchased

January--------------------$200.00-------------- $14.21-----------------14.00

February-------------------$200.00---------------$15.03-----------------13.00

March---------------------- $200.00---------------$13.24-----------------15.00

April-------------------------$200.00---------------$12.82-----------------15.00

May------------------------- $200.00---------------$15.29-----------------13.00

June-------------------------$200.00---------------$12.78-----------------15.00

July--------------------------$200.00------------- -$13.64---------------- 14.00

August----------------------$200.00------------- -$12.97-----------------15.00

September-----------------$200.00-------------- $11.22-----------------17.00

October---------------------$200.00-------------- $12.00-----------------16.00

November------------------$200.00---------------$7.26-------------------28.00

December------------------$200.00---------------$6.48-------------------31.00

Total $2,400.00 - $12.46 average and 206 shares owned with a Current Price of GE $10.40 - this results in a current Loss of $430 or $2.06 -17% per share, still within striking distance if GE rebounds above $12.46.

If you had decided to put all of the $2400 of GE in December at a $14.21 the average you would have had on 176 shares at $10.40. You would be down -$4.22 a share or -$670 = -28% with an  $14.21 per share average. 

(DCA in this scenario Leaves you with more shares of GE and a lower cost per share, as well as smaller % loss .)

A downside to DCA is that investors don't have an opportunity to buy additional shares at lower prices if the market is in a prolonged bull market. However, even in a bull market on big down days or a sharp market correction it does allow an investor to reduce their average cost as they hold the shares through dollar cost averaging.

As you can see from the scenario above is why we know DCA is so effective and is so simple to implement that you can get started investing in your future fairly easily with a small amount of money, and consistently invest it over time and that you don’t need a lot of money to start trading. You should always be investing consistently, even when the market is down (more shares for your capital), you continue to invest this way it’s a savvy, tried and true way to build wealth at the same time limiting some risk.

Another negative aspect of trading this way with DCA is you incur more fees. Dollar cost averaging means making more transactions, which can result in higher brokerage fees. But you benefit when you don’t pay any transaction fees if you are investing in a 401k or an index fund that doesn’t charge commissions.

There is always risk involved when your trading stocks or investing in anything, and you need to be very careful. But, you can reduce a lot of risk and build a nice piggy bank, for yourself using the dollar cost averaging strategy we teach. When our members use a combination of the dollar cost averaging and our market timing strategies to buy stocks they tend to see their investments rise in value and who doesn't like to see a drastic increase in their investments? Bare in mind, investing is for your future, and should always feel like a long drawn out process. Historically, the stock market has risen over time. So, don't take short cuts to wealth, by trying to time the market! Instead adapt to a DCA strategy.

In conclusion, the point of dollar cost averaging is not to try and time the market or a particular stock– it is to save or invest with amounts of money you can afford. The amount you can invest could be as low as $25 a month or into the thousands. The point here is that you get into the habit of investing, and dollar cost averaging provides you with an easy and affordable way to invest your money into stocks on a regular basis with small funds.

If you like the idea of using DCA as an investment strategy you’ll benefit from subscribing to our FREE NEWSLETTER. Our articles and Trading Tips, are there for all traders and investors to explore as well as some of our tools and techniques we are show our paid subscribers. 

We also offer a 14 DAY FREE TRIAL so you too can learn knowledge for yourself about market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so you have a winning edge.

Again, the time is NOW to invest in your future success! We look forward to seeing you soon.

Till Next Time... Happy Trading!

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!

Bulls To Bears: Trading Psyche And Mindset

Traders have been dealing with a bag of mixed signals lately. One second the market’s on fire - the next second it's cold as ice. It comes on strong - then the drop. The one thing that stays the same, is that traders are always on the hunt for big profits. They get exhilarated when their stocks make money and lose enthusiasm for trading when they lose money. This is a very bad trading mindset. Traders will have the success they seek more often when they act like they are in the market for long-term. When a trader gains a better understanding of why those trades are down, and losing short-term value - they will begin to trade more effectively.

 

Your state of mind and they way you think about the markets, plays an absolutely critical role in your ability to make better trades and succeed at trading the markets. We are talking about discipline, a general sense of self-control. Typically, traders with good levels of self-control in other areas in their life, make better overall investors. So, if you are someone who is very irrational or disorganized, or otherwise lack other forms of self-control, you will need to fix your mindset and overall trading psyche if you want to succeed and make money trading stocks. It is extremely tough to be a highly controlled person trading stocks if you're not controlled in other areas of your life as well.

 

If you're not a person of high self-control then you have to re-train your brain to be a person who thinks counter intuitively. What that means is, you have to think different from the multitude of stock traders who fail, the “flock” of sheep, so to speak. When the market looks like it wants to breakout, making higher highs, it’s likely to be a false breakout, and a majority of novice traders get sucked right into that false breakout, only to get slammed by  the downturn when it materializes. This is another one of many examples where a market looks great and even ‘feels’ great like it’s going to continue to surge higher, and just when almost everyone is onboard and "drinking the kool aid" the market tanks and reverses and moves sharply to the down side.

 

We are not suggesting that you can always avoid losses with this theory, not at all. What we are suggesting, is that experience tells us when you are patient, and maintaining good trading habits, not acting with haste, you have better trading successes. We feel that trading should be viewed and treated like your own business. Your trading methodology should also be your business strategy when trading the markets. You should include things like, better trade setups, and risk management plans, stop loss protection, profit target executions, trading convictions, etc.. Any successful business has a strategy and a plan of execution in place. You should do the same with your trading business. If you don’t have an investment strategy and plan then you’re really just throwing "darts at the wall." That is not intelligent investing.

 

Whatever your current trading plan is? It needs to be reinforced on a regular basis, so it becomes part of your winning trading mindset. The Bulls To Bears trading strategy the one we teach in our program is essentially a “K-I-S-S” approach. Keep it simple silly! This is all built into the BullToBears.com trading plan and we teach it daily and try to reinforce it into our subscribers trading psyche.

 

To be a better than average trader you must truly believe in your own ability, as well as your trading strategy. As I mentioned before, in other blogs, there's no room for hesitation when placing trades if you want to succeed long-term in the market. But, don't ever get overly confident, as too much confidence in any trader could end up being a very humbling experience.

 

Very successful traders think differently from most traders. They act differently too. They are more planned and structured than most people. Winning traders are not easily distracted from their trading strategy, from the long-term reward, regardless if the market is up 2000 or down 2000 points in a day. We teach our subscribers to have long-term and short-term goals and after a while they learn to tune out all the noise. They continue and build up short-term goals, and this eventually leads to the long-term  success. They are focused on continuing on, moving forward and learning the game. They are rewarded when staying focused and executing their trading plan with discipline and precision.

 

The power you can acquire as a savvy trader with a structured daily trading routine cannot be exaggerated adequacy. Repetition is how you form better habits, these habits will either make you or break you and determine your trading life span. That depending on what your knowledge and experiences are... What does your stock trading routine consist of currently? Do you even have one? If you aren’t sure, then you don’t. You should be able to explain in- depth what your daily trading routine is and you should have a specified understanding for analyzing the markets each day.

 

So, the remaining questions are... Are you ready? Are you really ready to become a better, a stronger and more effective and successful version of yourself? This only YOU can decide! If your answer is yes, then you better get ready to make some meaningful changes because nothing different is going to happen without change.

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Till Next time... As always, Happy Trading!!!

Bulls To Bears: Surviving Choppy Markets

Investors are always searching for robust returns as well as consistent gains on their investments. When the market is weak, dealing with heavy sell offs and a declining stock portfolio isn't anyone's idea of a good time.

They are called selloffs because investors react to these big declines by panicking, liquidating and selling off  stock positions. We see this happening over and over again despite investors having  held top quality companies with good fundamentals within their group of holdings.

Professional seasoned investors will tend to do the very opposite. Through experience they have learned to see a big correction or huge downturn as a chance to review their risks within their portfolio and take that opportunity to add to good positions creating a cheaper entry price rather then selling into that weakness. 

When confronted with adverse market conditions like big sell offs, whether or not it's a one-day decline or longer, an investor must take the time to review their portfolio and access the collateral damage occurring. Having to deal with your portfolio during market volatility may be burdensome, but an important necessary task. We comprised the paragraphs below into a few suggestions that will help you and your trading account survive big market declines like the one we just witnessed that wiped away 2000 points on the Dow, all of 2018 gains, in about 20 trading sessions.

Have long-term goals etched in the back of your mind. The one thing for certain we can GUARANTEE our followers is that regardless of what your stock holdings consist of, the stock market will forever experience volatile moves ups and volatile moves down. That is the main reason why it is important to keep emotions in check and stay focused on your long term trading goals. Having a buy and hold strategy and holding that course steady - despite short term choppy market moves, will most likely determine the difference between profits and losses. While the very opposite of  this strategy is to Day Trade stocks and try and figure out what the market will do today with in the next few hours. Bulls To Bears as well as most investment professionals will tell you it is very risky trading, not to mention if your predictions are wrong, it could cost you a lot of your money and you can miss out on a particular company's best days that are ahead.

 

Keep on top of your trading accounts and individual holdings. With all the wild events happening in the world today, almost on a daily basis, it should call attention to the importance of knowing where your assets are and keeping diligent observations. You must keep in mind that periods of falling prices are an integrated part of investing in the stock market. We guide our followers and help them to use a multitude of trading tools, to hedge against market declines like stock options, to assist their portfolios against sharp and unexpected drops in the stock market. Also, by making better stock trades one can constantly reevaluate what is happening while at the same time limiting overall risk to positions.

 

The Stock Market is a difficult ocean to navigate. We recommend talking with an expert. A professional trader will assist you and help separate you from emotion driven decisions and will prohibit you from making bad trades, that will deter you from your overall goals. Researchers within the investment field of behavioral finance have found that emotions typically lead investors to make very bad trades when those erratic unexpected daily events occur - even though those averse market events in the end didn't have negative long-term adverse consequences. With the aid of a financial professional, you can sort through these short term distractions, and you'll likely find out that if your investment strategy made sense to you before a particular event occurred and shifted the market, it will make sense afterwards when the dust settles as well. Panicking is not a very smart trading strategy!

 

At Bulls To Bears, we scan the market weekly for the emergence of meaningful discounts. We love when stocks sell off and turn pricey quality stocks into less expensive ones. Stock corrections help to keep valuations in line. These corrections do not mean the Market is going to zero. In rough times, if possible, get some cash and boost up your buying power. Or when the market is topped out and your stocks continue to hit record highs, take some profits off the table and build some cash reserves. You might also want to sell some underperformers for cash and when the market finally takes a big hit, use it to pounce on better bargains.

 

As a wise BullsToBears.com member, you will learn to actually welcome market sell-offs, because they provide an opportunity to pick up good stocks when their share price is lowered and on sale before they eventually begin to move in the right direction again, higher! By utilizing the market by buying stocks and selling others our program will help you keep a bit cash on hand, so you'll be ready to buy when other stocks go on sale. Thus turning a market drop into a good trading opportunity. So when the markets get slammed, great stocks usually get caught in the downturn and that is the time to swoop in a buy them.

We agree with Warren Buffett's overall investment strategy when he says: "Be fearful when others are greedy and greedy when others are fearful."

By and large, stop getting bent out of shape by stock market sell offs. Instead put together a diversified stock portfolio of quality stocks and options. Try and avoid purchasing to many speculative stocks, or investments with an uncertain future and low volumes. When you do that you will be less likely to panic during market routs with better stock portfolio holdings. Because of our 16 year track record, we are confident our members will survive, no matter what the economy or market throws at them. By continuing to place better trades - when sell offs occurred our existing clients thrived in good times and survived in bad.

 

To conclude, whether you are a day trader, swing trader, long term or short term trader, we encourage you to join Our Free Newsletter. As a stock trader you'll benefit from our wealth building information that could help you profit and protect your investments from the next stock market surge or sell off.

Utilize our 14 Day Free Trial Offer. Our FREE trial is a way to get your foot in the door and see first hand how our investors benefit from our buy and sell alerts. Just so you know - if you choose to take advantage of the trial - you do not need a credit card to enroll - Just fill in the information and you all set.

"We hope to see you soon!" 

Till Next Time.... Happy Trading!!!

Bulls To Bears: Investing and Cost Averaging

Cost averaging or "averaging down" is an investment strategy used by investors to accumulate shares of a stock strategically based on per share price. A investor purchases more shares to add to a position of existing shares when prices are cheaper or when prices are higher, whenever they add to their position either as prices are more attractive or if the stock price increases. 

Dollar Cost Averaging is highly successful stock trading strategy that allows an investor to put additional money into a particular company to build a larger position over time. The purpose for this method might be to lower the total average cost per share of an investment, giving the investor a cheaper overall cost per share on the investment  by adding more money to previous purchased shares.

 

This strategy is actually a very smart one and can be a great method to earn big profits, but requires some discipline on the part of the investor. The “cost averaging” part of the equation is mostly a byproduct of market volatility: investors are able purchase less stock as prices go higher, and more as they go lower, therefore averaging down on the cost per share at the correct times when it occasionally dips could be extremely beneficial when the investment rises and having owned those addition shares.

 

Another positive aspect of DCA is that it allows investors to avoid investing too much into a stock when it is priced too high and helps traders add to a position when the stocks price is lower, thus reducing overall price per share. However, this method of trading ignores simple logic, common sense would suggest it's better to invest it all at once. Fortunately, smart investors and advisors do not always base their decisions on logic or evidence. However, when it comes to trading the stock market investors emotions usually plays a far greater role in decision making than logic.

 

Dollar cost averaging is an important trading strategy, but it should never be viewed as the only way of maximizing profits, nor does it suggest that you never invest a lump sum as part of your investment game plan. Relatively, it should be regarded as a solid risk reduction strategy suited for investors who are normally cautious in regards to a long term investment approach, because of the fear of market instability.

 

When markets are weak and sinking it can be difficult to foresee a clear path to take. Sensibly, people get worried when experiencing a big decline in the value of their holdings, but by staying focused and maintaining your trading strategy and averaging into your current investment can be intelligent valuable decision.

 

The main reason we tell our subscribers to average down is when they can bring down their average cost of a stock they are holding quite substantially. Assuming of coarse we believe the stock will turn around, this decision will ensure a lower break even point for the stocks position and could result in much higher gains in dollar terms, than would be the case if the position was not averaged down, in the event that stock surges in price.

 

When averaging down works, it's because the investor is willing to hold that stock long enough for it to bounce back. And therein lies the secret to Dollar Cost Averaging. You must have the backbone to hold on long enough for that stock to recover without losing your patience or your shirt first.

 

Below is an example of how dollar cost averaging could be successful when used correctly. Let us use XYZ Inc. and a purchase of 1000 of XYZ at $20 then in 2 weeks the stock falls to $10 by averaging down on XYZ by purchasing an additional 1000 shares at $10 and adding to the other 1000 shares at $20, you can bring down the breakeven point (or average price) of XYZ's position to $15 dollars:

 

•1000 shares xyz $(20) =    $20,000
•1000 shares xyz $(10) =    $10,000
•$2000 shares xyz $(15 avg) =  $30,000

 

No let us pretend that now XYZ stock starts to trend higher and a few weeks later it trades at $18 per share, the investor now has a potential gain of $6000 with an average price per share of $15 on 2000 shares (despite the fact that the stock is still trading below the initial entry price of $20):

 

Had the investor not brought the average cost down when the stock dipped to $10, the potential loss on the position (when the stock is at 18 would be -$2000). So if you’re a novice investor new to the stock market, go ahead and try dollar cost averaging. You might have success with it!

 

Remember, before averaging down on any stock position, it is very important that the company as a whole and its statistics be fully assessed. A trader should make sure whether a significant decline in a stocks price is a short term mis-correlation or a symptoms of a deeper issue at hand. At the very least, many factors need to be assessed - like the company's competitive standings, future earnings outlook, financial stability, and corporate structure.

Bear in mind, at any time you can tilt the odds of success in your favor by adding BullsToBears.com to you trading arsenal. With our trading program you can achieve the best possible results with the least amount of effort by following our stock alerts and proven trading methods. Benefit from our low-risk approach that will leave you no reason to worry. Have more time to yourself to live a more meaningful life.

 

If you a day trader, swing trader, or long-term investor you’ll benefit from subscribing to our FREE NEWSLETTER. Our articles, Trading Tips, are there for all traders and investors to explore our tools and techniques we are show our paid subscribers. We also offer a 14 DAY FREE TRIAL so you too can learn knowledge for yourself about market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how we put it all together so that you now have a winning edge.

 

The time is NOW to invest in your future success! We look forward to seeing you soon.

 

Till Next Time... Happy Trading!