Hey Tackle Traders,
I hope you are all doing ok taking care of yourselves and your loved ones during this current situation we are have found ourselves in. It’s absolutely mind-blowing that a month ago when I wrote about the trading time capsule markets were hitting all-time highs and now we are sitting at May 2017 levels on the S&P 5000. Going from 3393 to 2400 or dropping 30% in 30 days is just absolutely insane and it gives a whole new meaning to bulls take the stairs and bears take the elevator. I feel like the cables from the elevator got cut and now the market is just free falling. The speed and volatility in the markets right now are just incredible to watch and it’s leaving many of us wondering now what?
As much as many of us have been anticipating for a bear market, certainly, I did not think it would be caused by a virus that has the whole world at a standstill. When I imagined a bear market I was looking at it from an economic and fundamental perspective but now here we are with the markets down, schools closed, some business closed, other with open but with limited operations, airlines and hotels with cancellations after cancellations. I cannot count the number of times I’ve read or heard the words Social distancing and Covid-19 in the last few weeks.
The human side of this situation is a role we can all take part in. Taking care of yourself and your loved ones is a no brainer but let’s also be good Samaritans and check on our neighbors, especially the elderly. Let us not forget to thank the many men and women in the health and medical field working endless hours doing their part to keep us healthy. They are leaving their families and going to work for our sake. Small gestures go along way in times like these. This is also a great time to pick the phone and call people and have conversations that aren’t rushed. The other day my siblings and I talked to our parents for the longest time uninterrupted to the point my mom got tired of talking to us she hung up and left us kids to talk to ourselves. It was so refreshing to have a moment like that. Perhaps the universe is trying to tell us to slow down and reconnect with one another beyond likes and comments on social media. No one knows how long we are to remain isolated but as new cases and the numbers keep increasing across the country, we can assume that this situation is going to last longer much longer than we all anticipated.
We also need to have a conversation about the financial side and how its affecting people. Many Americans are starting to feel the effects of this virus due to job cuts, furloughs and businesses shutting down. In addition to decreased income or no income at all, many are also concerned about their retirement accounts and are wondering what they should be doing with those accounts. Unfortunately, there is no one size fits all when it comes to retirement accounts because we all have different retirement needs but the one thing we could use is an education in understanding exactly what is in our retirement accounts and have a plan in place to know what to do in situations like these. Burying your head in the sand and ignoring the problem as if it doesn’t exist is irresponsible. Rip the band-aid and let’s start to have these conversations. Others are looking at this as an opportunity to start investing in the stock market and set their families up. To them I say great but what do you know about the markets? The most important thing one can do is get an education and learn about the markets. A lot of companies are directly affected by the virus and there’s a good chance they won’t be business once the dust settles. Some companies will be bailed out by the federal government and others won’t. You need to be able to analyze these companies and not just randomly investing in companies that might be on the verge of dissolving. One needs to have a plan for long term investing and short trading and the two have a completely different approach right now. Luckily, if you are reading this blog you are either already a member or you have found your way to this great community of ours and now that you are here stay a while and get educated. Plug into our daily webinars, shows, blog and participate.
Catch up on all things Tackle Trading the links below aren’t a bad place to start.
Take it easy and take care of one another!
Until next time Traders!
Emily Muiruri was born and raised in Nairobi, Kenya before her family moved to the US and settled in Maryland, Emily began her trading journey in January 2015 after 17 years of Property Management in the Self-Storage Industry. Like many new traders, Emily started off with directional trading strategies such as long calls, long puts and very little in cash flow strategies. Over time that has changed and now her core trading strategies are cash flow based such as are Covered Calls, Naked Puts, and Iron Condors. Though she is still a student learning and enhancing her trading skills, she has a strong desire to teach women to take control of their finances and become traders. Writing blogs is one of the ways she’s is looking to spread the word and get more women involved. Emily knows that with the right education and trading system women can be successful traders.
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