This is an excerpt from a post written back in March when everyone was just a little or should I say very scared about the future. Now that the sun is shining and the indices are showing some strong gains, individuals may tend to get a little lax. So this is just a reminder for all you folks:
There are only a handful of ways to make money and survive this market. My ideas are below.
If you are long term investor and I mean with a 20yr time horizon. With the indices looking at 1997 lows, I should dare to even say it. average down on the indices. Cost average into your position. Find an ETF that tracks the indices such as the spiders and just start loading up month after month.
This is an opportunity that we may never see again for another century. All the long/short, market neutral funds are getting killed. The quants, forget about it. There isn’t a model that can plan for these kind of market conditions. The folks that will come out on top are the folks shoring up their capital, preparing to aquire distressed assets at deep discounts. All I have to say to lucky son of a guns who pull it off is, wow.
Last but not least is my area of expertise. Let me start by saying, for the time being the buy and hold mentality that most of the world has been fed, just isn’t a viable option anymore. This is, in no uncertain terms a traders market. In my personal opinion holding positions longer than a few days can be disastrous. With the market looking for anything to hold onto. Whether it is a policy shift or a Buffet saying “we are falling off of a cliff”. The complete lack of direction will chop you up. When your profit and loss column is showing a profit, take it. There is something to be said about being flat at the end of the trading day. I recommend you find a trading that fits your temperament. And just apply it consistently. There in lies the secret. Here at FXPOWERTRADING.COM we have a few that will work for you I’m sure.
Happy trading. and welcome to all the new members! We are here for you.”
PowerTrader
