By: Steve Smith
I try to avoid making these kinds of predictions because making predictions is a losing proposition.
Not to mention I have been doing this long enough to know that the market can do almost anything…
And often will!.
The only way to play the “prediction game” is to make a few predictions and have limited success, or you make hundreds of predictions and brag about the ones that come to pass. Either way, I am not a fan.
That said, I am going to make a prediction about the post-election market.
First, whoever wins we are going to see the market indexes continue their upward movement through 2021…or at least well into 2021.
I doubt it will be as drastic an upward trend as we have seen since the market bounced back after the March crash…
But it will keep going up.
That’s because we will have more stimulus and continued artificially low rates.
The problem with stimulus and artificially low rates is that it makes the market very volatile…even if the trend is higher.
We’ve discussed the at length over the last few months, so I am not going to beat a dead horse here.
What I will say is that volatility represents extreme opportunity and extreme risks for traders like us.
Opportunity because we have more chances to make more trades and more profit.
Risk because any position can make an unexpected move, and if you are naked in that position you could have a massive loss.
Remember the story of my first trade. I held a naked position overnight that I knew was a “sure thing.”
The sure thing cost me $50,000! Money I could ill afford to lose in my 20’s.
That’s why I work so hard to make sure that all of our positions in Options360 have a very limited and defined downside.
Big upside opportunity and limited small downside risk.
That’s how you traded successfully in any market…
But most especially in this market.
To Your Success,
PS. Make sure to grab your trial membership to Options360. It’ll be the best money you’ve ever spent!
Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.
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