Here are 6 things to remember
Traders,
Equities limped into the weekend and based on Sunday night’s movement in the futures market, the weakness will continue into Monday morning. Bearish evidence is beginning to mount. To help keep your wits about you, let’s review a few critical points regarding corrections.
First, the stock market drops 5% from its highs 3x on average per year.
Second, the stock market drops 10% from its highs once per year on average.
Third, no one knows the duration nor magnitude of the current drop. Maybe the worst is behind us; maybe it’s just beginning.
Fourth, this will undoubtedly lead to excellent buying opportunities. Every correction does.
Fifth, protecting your emotional capital during a downturn is imperative. Those who are too shellshocked at the end of this won’t have the intestinal fortitude to buy the bargains.
Sixth, episodes like this are precisely why we preach the importance of having a plan. There’s nothing wrong with seeing your account suffer a drawdown when markets falter. However, there is something wrong with allowing yourself to lose so much that it jeopardizes your ability to participate in the inevitable recovery.
Patience is required here. Don’t force trades.
#TeamTackle
Chart of the Day
Will the Russell rendezvous with Support?
Small-caps have led the market lower and are quickly approaching the lower-end of their six-month-long trading range. The looming battle at 2100 in RUT will be watched by investors everywhere. Its resolution will signal the direction of the market’s next move. Here’s to hoping bulls put on their big boy pants and bring out the big guns. |
|---|
Video of the day
Bear Market Trading Tips
This week the Bear Market Survival Guide MasterMind Group is being held and Coach Tyler did a wonderful job holding a special webinar on bear market trading tactics a while back that we thought we would share.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Weekend Reports
Watch the Stock, Options, Commodity and Forex Reports to help you prepare for the week.
Financial freedom is a journey
The Tackle Today series is brought to you by Tackle Trading.
Sign up now and gain unfettered access to all of the quality content and powerful Scouting Reports that our Pro Members enjoy for 15-days absolutely free with no strings attached and let us show you what your trading has been missing.
# Sign up now for a 15-DAY FREE TRIAL #
Legal Disclaimer
Tackle Trading LLC (“Tackle Trading”) is providing this website and any related materials, including newsletters, blog posts, videos, social media postings and any other communications (collectively, the “Materials”) on an “as-is” basis. This means that although Tackle Trading strives to make the information accurate, thorough and current, neither Tackle Trading nor the author(s) of the Materials or the moderators guarantee or warrant the Materials or accept liability for any damage, loss or expense arising from the use of the Materials, whether based in tort, contract, or otherwise. Tackle Trading is providing the Materials for educational purposes only. We are not providing legal, accounting, or financial advisory services, and this is not a solicitation or recommendation to buy or sell any stocks, options, or other financial instruments or investments. Examples that address specific assets, stocks, options or other financial instrument transactions are for illustrative purposes only and are not intended to represent specific trades or transactions that we have conducted. In fact, for the purpose of illustration, we may use examples that are different from or contrary to transactions we have conducted or positions we hold. Furthermore, this website and any information or training herein are not intended as a solicitation for any future relationship, business or otherwise, between the users and the moderators. No express or implied warranties are being made with respect to these services and products. By using the Materials, each user agrees to indemnify and hold Tackle Trading harmless from all losses, expenses, and costs, including reasonable attorneys’ fees, arising out of or resulting from user’s use of the Materials. In no event shall Tackle Trading or the author(s) or moderators be liable for any direct, special, consequential or incidental damages arising out of or related to the Materials. If this limitation on damages is not enforceable in some states, the total amount of Tackle Trading’s liability to the user or others shall not exceed the amount paid by the user for such Materials.
All investing and trading in the securities market involve a high degree of risk. Any decisions to place trades in the financial markets, including trading in stocks, options or other financial instruments, is a personal decision that should only be made after conducting thorough independent research, including a personal risk and financial assessment, and prior consultation with the user’s investment, legal, tax, and accounting advisors, to determine whether such trading or investment is appropriate for that user.
