If you’ve been reading these article regularly, you already know that we’re not exactly in the midst of a skyrocketing stock market at the moment.
Instead, Wall Street is basically treading water and getting nowhere fast. And in a sideways market like this, you need to have one characteristic if you want to win (or just not lose badly).
Please let me tell you what that characteristic is, and what my trading strategy is right now…
This column is named Profit Hunter because I’m constantly seeking out opportunities in the financial markets for you and I to make big gains, but part of the overall goal should also be to limit losses, right?
If I give you a big winner that earns you 50% at once, that’s great. But if you also get hit with several losers that wipe out your gains, you’re not exactly lighting up Wall Street.
And in a market like this, losing is more prevalent than we’ve had in the past several years, which is why I want to hammer home the idea that you need discipline right now.
Discipline will help you avoid losing big and often, while giving you the best chance to continue making profits while the market goes sideways…
Don’t get frustrated if your return rate is falling a bit, that’s only normal in a situation like this. And getting frustrated will only cause you to fight the market and end up loading up on bad trades that will cost you even more.
Instead, be loyal to your stop losses because they will keep you from losing big, be OK with tiny losses now and again, and don’t try to make up any losses by dumping all your capital into the market at once.
Being in cash (not trading at the moment) is a position too!
But with all that being said, profits are still being made every single day. The secret for a sideways market like this is to buy on the dips of the market.
Also please realize that this sideways movement won’t last forever. This isn’t some long-term trend.
There are bull markets, bear markets, and transitions in between.
While we may be entering a transitional period, we may just as easily be hitting a snag for this bull market before it roars higher. Either way, if you’re disciplined and avoid emotions, you’ll be able to make the “right” kind of trades with a little help from Code Breaker.
