Following Sunday afternoon’s tweet from POTUS, the markets across the world opened on Monday to a horde of panicked investors. At times when the volatility index (VIX) spikes up, I am reminded of the first line of Kipling’s poem:
“If you can keep your head when all about you are losing theirs…” – Rudyard Kipling
I smiled when I saw Jeff Bishop’s own poetic response to the wave of panic in the markets; as always Jeff stated it plainly:
“I’m sure I’ll have some more winners this week if it keeps up!” – Jeff Bishop
How to “Buy on the Rumor”
“Buy on the rumor, sell on the news.” Sounds good in practice, but it takes skill to know which trades to enter when everyone else is selling. However, as Jeff Bishop – Weekly Money Multiplier noted in one of his member updates Monday morning:
“To put this into context, look at the price chart on SPY over the last 3 months;
See how well the 200-hourly has held up? I expect it to do the same this time and I want to be a BUYER of stocks in times like these.”
“Time to cash in some winners.
My puts on STZ hit over 100% yesterday
The remainder of FIVE hit over 200%
TLT calls are up over 130%
KL is now green by about 30%
It has been an awesome stretch of trading and it is time for me to take some chips off the table. I will sell the rest of the FIVE puts and take some of the TLT calls off so I can bank those profits.
I scored big this week, and I hope you did too!”
Sometimes it really does take a Raging Bull in a China shop!
Knowing which trades to enter, which ones to cut to protect your capital, and which ones to let run to maximum profit is a skill that many investors would do well to acquire. Having the confidence and conviction in your trades – and knowing why you feel that way – can be the difference between selling at a loss during a market panic, and allowing your trades to ride the storm to solid profits.
I shared with you on Monday about Mike, who last week “quit” our Millionaire Roadmap trading room last Friday, after noting that he’d made over $37,000 profit last week and had “figured it (trading) out now.”
Making trades, and knowing what to do in volatile or choppy markets can be difficult. Having the right trading mentor by your side can help you to keep your trading account sane in the markets—especially when all about you are losing theirs!
Calm markets never made a good trader.
Learn more about Millionaire Roadmap today; and here’s to more Raging Bulls in the China shop!