Hey Guys and Girls,

If you saw my email the weekend before last, I gave my reasons why I thought a market bottom was close. That came into fruition and we had a nice bounce off the bottom for a week.

With that said, I want to give you a heads up that we could have one more
“Weak Hands Shakeout” over the nest couple days. There’s still a sense
of fear and panic with COVID-19 and any news from politicians or health experts can send the market down again.

So here’s a suggestion on how to play it…

FOREX TRADERS:

Nothing different is needed to trade and in fact the current fx markets
are much better to trade. The reason is that there’s now much more volatility which creates larger daily ranges.

What this means for you is it’s easier to grab 30 – 60 pips on a trade if the market has a daily range of 150 vs 90. Until recently forex daily ranges had dried up for years and made grabbing pips much more challenging.

EQUITY TRADERS:

There are 3 ways to play this…

  1. Many of you have money tied up in retirement vehicles like 401K or ROTH IRA or pension plans tied to the performance of the stock market. Well I’m in the
    same boat and to quote a line from the movie “Oceans Eleven” by the character Basher…

“Hang on to your knickers chaps!” – Must be said with a heavy British accent:)

That’s all we can do and rest assured your accounts will go up. How long it takes
is uncertain but… I believe that once the the virus threat is handled and no new cases reported that we’ll get a massive rally up.

  1. Trade stock and index options. They can be a great vehicle to take
    small risks and make nice returns during the current chaos. Keep in mind
    that you really have to know what your doing to trades these correctly.
    They’re not anywhere as easy to trade as some people say.

I’m currently honing my option skills by trading 1 lots and doing “Lunch Money Trades”. These are ones where say I invest $100, I look to get about $130 back in 7 to 10 days. It adds up quickly…

  1. For those of you looking for bargains on your favorite stocks now is the time to start looking. Not long ago Tesla was making all time highs and got near the mythical $1000 a share level. As it climbed above $800 a share countless traders bought into the Tesla Electric Freight Train as it was rocketing up.

They were happy to pay that much but little did they know that weeks later it would drop near $350 a share. So if you’re a Tesla fan and believe in the company, it’s certainly a better value proposition at current prices. (Please note that this is an example and not a recommendation)

The same goes for 90% of stocks out there. With that said ,you still have to read the charts and look for sensible entries.

Anyway, I hope this gives you some food for thought and perhaps a “Light-Bulb Moment”…

Stay safe and stay positive!

Jeff

Dr. Jeffrey Wilde
Since 2003 I’ve written 5 books on trading and taught over 14,000 students in more than 73 countries. I love sharing my knowledge and I’ve found by accident that mentoring others actually helped me become a more profitable trader.