By: Steve Smith
I hope you’re having a great weekend. I won’t take much of your time…
However, this is an important – and timely – message.
On Thursday last week, I entered a position in UPS.
We had a great setup, and it looked like we had the making of a solid trade…
Then the trade went against us and we closed it for a small $95 loss.
Not the end of the world, but why didn’t I roll the trade, etc?.
It’s not unusual for me to adjust a trade, reduce our cost basis, and manage the trade to maximize gains or minimize losses…
But in this market, it’s often better to just take a small loss and go on to the next position.
As I have said over and over, this is a bear market. The Nasdaq is over 20% down – and while the Dow and S&P 500 haven’t fallen 20%, I can say with confidence that I know a bear market when I see one.
I’ve lived through enough of them.
In a bear market making money becomes tough. I’ve been harping on that for a while, but it is CRITICAL that you grasp that idea and accept it.
The S&P 500, our benchmark index, is down 12.74% YTD.
That means if we were just breaking even we would be doing quite well by any reasonable trading metric.
I pointed out Wednesday that we had achieved a new high watermark for the year at 12.5% ROI this year.
That means we are beating the S&P 500 by more than a 25% spread!
We hate booking losers, but it’s part of this business. If you want to trade you’re going to lose some. There’s no getting around that.
However, my Options360 subscribers are doing well and are happy with the overall portfolio.
Isn’t it time for you to take a $19 “test drive” to Options360.
I can guarantee you it’ll be the best money you ever spent!
To Your Success,
PS. It’s time to get conservative. The goal in a bear market is to survive and make a little money where you can. Once the market turns…
And it always does, we will be set to clean up! Get on board with the plan for just $19.