Market declines, crashes, and corrections are all constructions... The "original" crash of 1929 gave big money a template of how to/how not to work and manage a crash/correction. That model in hand, they became part of the accumulation cycle for big money, who now have had 100 years to understand the cycle and perfect that model. The market is in bear mode, has been all year, the Dow is propped up and down to keep the image up that the market's better than it is. They only have to manipulate and prop up 30 stocks to do this. Meanwhile they're selling everything else off. They know about every nine years prices are too high, and the economy generally runs out of traders, the bull runs out of gas. So, they prop up the Dow as they unload their shares, knowing on the ensuing correction, they'll be able to get them all back cheaper. They're essentially shorting their own shares, on top of whatever else they can borrow and short. So big money is still liquid. Big money inventory dumps into the market, non-Dow share prices tumble on low volume. Anytime there's low volume, big money can easily drop a share price with steady, low volume sell downs, where they can recover their own shares significantly cheaper. This is also why you see public offerings being announced after a share falls. The company sells off its' treasury shares, gaining cash, knowing they can do a buy back at the ultimate floor, again shorting their own shares. All legal. Later, when they announce a buy back, traders jump in, taking the price back up. Day trading now Any trader who can remain clean day by day as the market walks down will be king, able to buy at the big low (Dow will likely to end up in the mid 20,000s, mirroring the March 2020 scenario). Everything will be cheap, bargains. A crash makes fortunes. If you proactively trade out of every hold you have, you can lower all of your cost basis' while extracting capital as you go. Traders fear a crash, because they fear their current holds will fall. When you have a red hold, you have two options, 1) wait and pray, or 2) trade out of it. Number 2) is better, if you're willing to do the work and keep track on paper as you go. HOW TO GET OUT OF ANY HOLD WITHOUT A LOSS Trader Survival: A formula to get out of an ugly hold. This works, but you have to work at it. Every sudden rise, sell 50% of your position, based on total number of shares. Every big drop under where you just sold, buy the same number of shares you just sold back. If you repeat this process 15-20 times for a ticker, you will eliminate the entire position without any loss. Work with round numbers, easier to do. To make this effective, you must remain active, and only trade in and out on fast, big drops and rises, not smaller ones. It works on any ticker, but use movements of at least 5-10% each in/out cycle. On a really big spike, you can dump the entire position, then wait for a big drop, speeding things up. Look at CYN on Friday 5/27 - an exaggerated example, but if you sold on the spike at 1:45pm, then bought it all back an hour later, how would you do? That one is rare, but smaller versions occur all the time. Every cycle you do, you'll notice the dollar amount in that ticker gets smaller. You're lowering your cost basis, so your original cash is coming back into your account. You are shorting, shorting your own shares, so there's no fee, no interest, no risk of a call. Try this with your smallest "problem" ticker for a couple weeks. Once you master this, which will require keeping a paper notebook, since your gains/losses and running cost basis' will all get messed up as you go. Tracking progress You simply need to know, how many dollars you originally put in, simply flip the same number of shares in and out every time, then anytime you have all of them in hand after a buy, you can multiple CB time shares to get your overall gain/loss from Day 1. Master this and you'll be amazed to see how good it feels to see you're winning back your money. Think of the day you're back even without a loss, you'll feel like you just paid off your mortgage! Good luck, not a gimmick, you will have to work for it, but you will win in the end. Happy trades!
Mostly I'll daytrade SOXL TQQQ on moves up like I did Thursday, and UVXY SQQQ on down days. Gotta love the volatility, just have to be nimble.
Nimble is the name of the game. They'll always change it up anyway they can to throw off traders. Nimble and the willingness to use it wins.
Absolutely. There is always someone whom buys at the low, as well as sells at the top. However, over time, those are former traders, for obvious reasons.
However, you're accumulating a larger position each time there's a pullback and are wrong, creating holds, which in a declining market, is extra risk to capital exposure, so "foolproof" will only work, like anything else, when you're right. Averaging down "as you go" in this way could also create losses, since at the bottom you could be hit with a reverse split (to meet the 1.00 NASDAQ Rule), which is going on a lot right now, which would create losses on even your small "radar buys." It's not that what you're doing with small "radar" buys can't work sometimes, but if you applied it to tickers like METX, NILE, CEI, GFAI, XELA, TNXP, AMC, SPCE, etc, etc - you'd have been burned, since all took major dives after each pullback. Happy trades!
Damn that was some short lived celebration. June meeting hasn't even happened yet. Damn will the Fed shock n awe with a 75 basis bump.
11,000... when NQ hits the 200 week SMA, pension funds have to buy. They have a four year hold time. Trump or DeSantis would be President by then.