It can be stressful to trade right now...
IF you don't have the right tools and strategies. Living to trade another day is key, especially in times of volatility.
How can you stay alive and even potentially thrive in a bear market?
Let's break it down....
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The Market is Volatile
At the time of this recording on June 9th, 2022 the market has been very volatile.
You can look at the VIX (fear indicator) chart to help detect the next direction. There was a big spike in the vix which can indicate a potential sell off in the overall market.
So how do you survive in a volatile market?
If you only know how to make money on the way up...
Then you need to expand your strategies.
We talked about this with our Power Trades University members on Monday night in our live session...
You have to put yourself in a position where you win no matter what or you win long-term.
We know the market eventually goes higher, but short-term we can cause ourselves some panic because we think the market will only go up. But the truth is there are seasons to the market (as we talked about in this podcast here).
The stock market doesn't just go up, we are in a volatile season.
So what do you do? How do you put yourself in a position to win?
1. Don't be a buyer of inflated options, be a seller
The market makers are making the price of options high due to the volatility.
So don't get caught up in that trap of buying overpriced options.
Recently, my strategy has been more selling covered put options.
I get the option premium paid to me.
This could help you keep your sanity.
2. Buying the stock
Right now stocks are on sale.
We have had a major correction and pull-back, and know that overtime the market goes higher.
So this could be a good time to buy stocks at a better price.
You can also sell options against your stock.
Look for strategies that remove risk of the volatility of the stock market.
3. Pause trading, keep learning
You can also sit on the sidelines, but continue to learn new strategies.
You can take a break from trading but never take a break from learning. You want to be ready for the next season of the market and have strategies to deploy in each one.
There's times to make money, there's time to protect your account, and there's time to do nothing.
Don't feel like you got to do something right now and blow up your account.
If you do decide to do something, make sure it minimizes your risk.
If you want to keep learning and discover new strategies, join us inside of Power Trades University.