This market has been crazy, and if you don't have the right methods, it could start to drive YOU crazy.
How can you stay sane and protect your account?
There is so much going on the world today... threat of war, inflation, gas prices are up...
And the market has been responding with major volatility.
So how do you stay sane? And also protect your account?
I break down 5 ways in the episode below.
*Note this is not advice or me telling you what to do, but a few things to consider
Audio version:
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On March 8th, the market started to rally...
With all of the craziness going on in the world, I thought for sure we would be on a tear downward in the stock market.
And for awhile there it was, but on March 8th, 2022 something unexpected happened...
The stock market started to rally.
This makes me want to double down on my put options because I think we are about to crash and crash hard.
To a certain degree, we have the makings of a potential recession...
So I think we are headed for a possible short-term crash.
BUT in the meantime how can you stay sane and protect your account?
1. If you own stock, consider selling a covered call
We teach this strategy inside of Power Trades University, and if you haven't heard of it before and don't know how to do it, then obviously learn it first.
Most people don't lose money from stocks going up, it normally happens when the stock goes down.
Because when stocks fall, they fall faster than they rise.
If you own 100 shares, you can sell an option against your shares and bring in some money up front.
2. Have insurance to the downside by buying put options
Put options allow you to repair your portfolio if stocks are falling.
Again, if you don't know how put options work, I strongly suggest you learn how to by reviewing some of our education or even better by joining us inside of Power Trades University.
We have been really emphasizing put options inside of our community.
Lately, we have been making more money from stocks falling then stocks rising.
3. If you are investing, look at your portfolio and ensure you are investing in good companies
A lot of bad companies are just getting completely destroyed in this stock market.
Good companies are getting a hit, but if they are good enough they can weather the storm and eventually go higher.
If you have an investment portfolio, don't ignore it.
Now is the time to review it and ensure you have the right investments with the right companies.
Look at the financials of the company but also the environment that we are in.
Who can survive gas and oil prices rising? A shift in travel? Etc...
4. Diversifying your account
You can diversify by owning stock in different sectors.
You can also do so with mutual funds and ETFs.
But a third way that a lot of people typically don't think of diversifying by is:
Calls and puts options.
Have a mix in your account so no matter which way the stock favors, you can succeed.
Sometimes the goal isn't to make a killing, sometimes the goal isn't to be killed.
5. Sometimes the best trade is no trade
Sometimes the best investment is the cash in your account while you are waiting for the right opportunity.
You don't have to feel like you always have to do something.
You need to do what is the best for you and your trading.
* These 5 points aren't advice, just something to consider *
If you want to get in the community where we talk strategy every day, then join us inside of Power Trades University.
I hope these points help and that you not only survive but thrive in this market.
PLUS:
For a limited time, we are offering one of our premium courses for FREE as a gift.
Grab it here: www.PowerTradesUniversity.com/Join