Just like the weather, the stock market has different seasons...
It's not always easy summer time... it can be winter.
BUT just like seasons, the next one is always around the corner.
Let's walk you through how to not only survive but thrive in each season.
Audio Version:
The weather here in Michigan has been pretty crazy... And so has the stock market
One day the weather is 70 degrees and the next it's snowing..
And the stock market has been behaving similarly.
What I want you to do is this:
Tailor your expectations of the stock market like seasons.
When you understand the seasons change and you know what to do with each one, you will have a way better experience in the stock market.
Summer
The sun is shining, everyone is outside, just enjoying life...
In the stock market, we were just in the summer season. Once everything sold off because of the pandemic, everything went up for the last year and a half.
It didn't matter what you bought or when you bought it...
Everything was going up.
There was a lot of money being poured in the economy which reflected in the stock market.
Everyone was happy - even those who never invested before and just started, everyone was making a killing.
Therefore everyone thought they were experts in the stock market.
But that doesn't last forever. The season started to change.
Autumn/Fall
Now the leaves are starting to change...
The grass is dying... and you can visually see that something is changing in the environment.
In the market, you may start to see stocks having a hard time to break through a certain level...
And now everything isn't just going up.
There is a transition.
It's so important in the stock market that you pay attention to the charts and are able to read them to recognize this transition.
You start to become more picky about what stocks to be in, and you should start taking profit.
Winter
In winter here in Michigan, most people start to hunker down inside because of the snow and cold.
You have to have a lot of clothing for protection.
In the stock market, winter looks like something similar to what we have been experiencing...
You have people stopping operations in Russia because of the war, increased gas prices and interest rates.
So the market now starts getting volatile.
It isn't easy to trade - you need "protection" just like a winter coat.
You can't just "buy anything" right now.
Meaning right now you need to be thinking about account preservation.
Some people think that you should be making money every single day.
Sometimes that isn't the case, though.
There are seasons where it's about protecting your account, and taking SMALL, consistent profit.
That's why your expectations are so key - just like how you expect different things for different seasons.
But winter doesn't last forever -
Not when the market crashed in '09, not when Trump was talking about Tarriffs, and not when the pandemic hit.
Spring
The trees start to bloom and the grass gets greener.
We start to come out on the other side of the war and inflation... We get a "new normal".
New companies start to pop up and make money.
The market will start to go up and into spring, and a new round of traders emerge.
Takeaways
Tailor your expectations in the market.
It isn't summer all of the time - recognize that you need strategies to get you through winter and know that summer will come back when hard times hit.
If you need to learn how to read stock charts or strategies to help you survive winter and thrive in summer, join us inside of Power Trades University.