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As Market Trends Continue To Drop – Where Is A Good Place To Invest? – Chris Vermeulen

Market trends continue to drop due to investor concerns about geopolitical events, record inflation, rising interest rates, slowing housing, plummeting auto sales, increasing retail inventories, expanding consumer credit, and pending layoffs.

Even stocks that had previously held up or remained strong now seem to be showing signs of topping and breaking down. This is normal behavior for a bear market trend where the initial wave of vulnerable markets takes a hit which then causes traders to shelter their remaining cash in more robust markets. But as losses mount and their capital diminishes, traders eventually are forced to liquidate even their strong market assets to meet margin calls and raise needed cash.

As we review the following market trends, we quickly realize that the best option for most traders is to simply go to cash, watch, and wait.

BERKSHIRE HATHAWAY -25.34%

BERKSHIRE HATHAWAY INC • BRK.A • NYSE • DAILY

QQQ NASDAQ 100 ETF -33.16%

INVESCO QQQ TRUST SERIES 1 ETF • TBF • ARCA • DAILY

RUSSELL 2000 INDEX -32.23%

US RUSSELL 2000 STOCK INDEX • OANDA • DAILY

BITCOIN -71-87%

BITCOIN / US DOLLAR • BTCUSD • BITFINEX • DAILY

VALUABLE INSIGHTS FROM SUCCESSFUL TRADERS

Market Wizards by Jack D Schwager (www.Amazon.com) is packed with insights from successful traders who have shared their wisdom based on firsthand trading experiences. Here are a few of our favorites:

Willian O’Neil:

David Ryan:

Marty Schwartz:

LEARN FROM OUR TEAM OF SEASONED TRADERS

In today’s market trend environment, it’s imperative to assess our trading plans, portfolio holdings, and cash reserves. As professional technical traders, we always follow price. At first glance, this seems very straightforward and simple. But emotions can interfere with a trader’s success when they buck the trend (price). Remember, our ego aside, protecting our hard-earned capital is essential to our survival and success.

Successfully managing our drawdowns ensures our trading success. The larger the loss, the more difficult it will be to make up. Consider the following:

Recovery time also varies significantly depending upon the magnitude of the drawdown:

Depending on a trader’s age, they may not have the time to wait nor the patience for a market recovery. Successful traders know it’s critical to keep drawdowns with reason, as most have learned this principle the hard way.

HOW WE CAN HELP YOU LEARN TO INVEST CONSERVATIVELY

At TheTechnicalTraders.com, my team and I can do these things:

Sign up for my free trading newsletter so you don’t miss the next opportunity!

We invite you to join our group of active traders who invest conservatively together. They learn and profit from our three ETF Technical Trading Strategies. We can help you protect and grow your wealth in any type of market condition by clicking on the following link: www.TheTechnicalTraders.com

Chris Vermeulen
Chief Market Strategist
Founder of TheTechnicalTraders.com

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