Bear Market and Corrections

Bear Market Strategies for profit, protection and income.

Become A Better Investor and Beat The Bear By Learning To Take Profits With This Spreadsheet

Categories: Bear Market and Corrections, Profit And Income Strategies

Become A Better Investor and Beat The Bear By Learning To Take Profits With This Spreadsheet

There are days when the market seems like all it wants is to take your money. In fact, that is what a lot of investors think much of the time. Today is another such day and in fact October looks to be another month where many investors could face losses. To calm nerves and keep investors focused on the larger picture, consider learning how to take profits as it is key to successful investing. If the market wants nothing more than to take your cash,…

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Protect Your Naked Put Positions From The Brexit Meltdown

Categories: Bear Market and Corrections, Profit And Income Strategies, Trade Alerts and Ideas

Protect Your Naked Put Positions From The Brexit Meltdown

With markets in Europe this evening in full retreat and some shocking drops in some of the European Bank Stocks, many investors will be sitting with naked put positions and worried about how deep the losses may be Friday morning. Here is a strategy I have used often in corrections and bear markets to reduce capital in use, protect from margin calls, guard my capital against loss and recover losses from naked put trades that are now going to cost a lot more to buy…

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Market Outlook – Morgan Stanley Cuts SPX Outlook – Beat The Bear Trade Ideas for Mar 14 2016

Categories: Bear Market and Corrections, Profit And Income Strategies

Market Outlook – Morgan Stanley Cuts SPX Outlook – Beat The Bear Trade Ideas for Mar 14 2016

Morgan Stanley analysts are joining the global recession bandwagon as they slash their market outlook for the S&P from 2175 to 2050. They are advising that investors sell stocks that have recovered in this latest rally. Accordingly to Morgan Stanley this rally has run its course and is on the final stages. Their market outlook is stocks will fall from shortly. They are not alone in their outlook. In their comments they indicated: “Weaker growth forecasts and rising political risk lead us to close our…

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Beat The Bear – Learn To Take Profits With This Spreadsheet – Become A Better Investor

Categories: Bear Market and Corrections, Profit And Income Strategies

Beat The Bear – Learn To Take Profits With This Spreadsheet – Become A Better Investor

The volatility since August 2015 has been almost unrelenting. Since late August the number of days the VIX Index has been below 20 is less than 15%. Since the start of 2016 there have been only 5 trading days where the VIX index closed below 20 and no days has it closed below 19 as of Friday Feb 26. 71% Of All Trading Days Have Seen High Volatility This has meant many wide daily swings and whipsaws in the market. From Jan 4 to Feb…

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Beat The Bear – 6 Tips To Control Margin Calls – Investor Questions

Categories: Bear Market and Corrections, Investor Questions

Beat The Bear – 6 Tips To Control Margin Calls – Investor Questions

Margin problems can be tricky and sometimes they can lead to losses that an investor is unprepared for. Many investors setup “stress checks” at specific S&P or NASDAQ Index valuations. A common one on the S&P 500 for example, was 2000. Many investors had used 2000 as their point of where margin calls may start appearing. Others picked 1900 and others 1800. Longer-term investors would use 1750, 1600 or 1400. Recently an investor wrote me who is concerned about a market drop to 1400. Let’s…

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5 Keys To Safeguard Capital From Losses In Spy Put Trade – Investor Questions

Categories: Bear Market and Corrections

5 Keys To Safeguard Capital From Losses In Spy Put Trade – Investor Questions

Trading market direction is not the easiest of trades to accomplish. It is not a matter of buying at the top of a market and selling when the market bottoms or vice versa. The chance of an investor “nailing” the top and bottom of market moves is very small. Instead trading market direction is more about pinpointing the moves within larger moves. This helps defray the periods when an investor buys into a position as the market moves, watching unrealized profits grow as the move…

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TSX – Intraday Trading Of The Downside – Pullbacks and Corrections – Become A Better Investor

Categories: Bank Of Montreal Stock (BMO), Bear Market and Corrections, Profit And Income Strategies, Selling Put Options

TSX – Intraday Trading Of The Downside – Pullbacks and Corrections – Become A Better Investor

One of the biggest problems with trading the downside intraday on the TSX is the difficulty caused by the lack of market directional ETFs and the poor volumes. The large US markets have a variety of products available which on a day like today, Sep 22, with markets reeling under selling pressure, means big fat profits for those who are nimble enough to trade ETFs or options to the downside. For the TSX products are limited. This strategy article ties in with my morning intraday…

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Why Scaling Into Positions Works In Corrections – United Health Group Stock – Sep 9 to 11 2015

Categories: Bear Market and Corrections, Trade Alerts and Ideas

Why Scaling Into Positions Works In Corrections – United Health Group Stock – Sep 9 to 11 2015

Back on Sept 9 I posted a trade idea in United Health Group Stock. In that article I indicated that I would be scaling into positions. Scaling works incredibly well in corrections. This article looks at the recent United Health Group Stock trade and shows how scaling works and why it is a superior strategy to consider to assist in keeping income flowing into a portfolio while working to keep capital at risk as safe as possible during periods of high volatility. This strategy discussion…

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Protecting A Portfolio In Corrections – Investing Strategy Notes And Trade Ideas for The Week Ahead – Second Week Of Sep 2015

Categories: Bear Market and Corrections, Editor's Picks, Investing Strategy Notes, Stock Market Outlook - The Week Ahead, Trade Alerts and Ideas

Protecting A Portfolio In Corrections – Investing Strategy Notes And Trade Ideas for The Week Ahead – Second Week Of Sep 2015

With the correction continuing to create investor anxiety, a lot of analysts are calling this correction a repeat of the 2011 correction which at that time, most analysts had labelled as the start of a new bear market. With so many analysts fooled by the 2011 correction, the majority with this correction are now on the same bandwagon calling this present correction to be a repeat of the 2011 correction. The most difficult thing to decide is can the majority of analysts be right? When…

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Understanding Stock Selection – What Pullbacks Teach Us – Become A Better Investor

Categories: Bear Market and Corrections, Profit And Income Strategies

Understanding Stock Selection – What Pullbacks Teach Us – Become A Better Investor

The continuing rally today would certainly seem to mark the end of the recent pullback. Despite analysts and brokerages warnings investors of an impending coming summer correction, stocks have remained resilient which considering all the “bad” news out of Europe and China combined with the likelihood of a rise in interest rates this fall, is very impressive as you would think stocks would be lower. The problem with investing, especially for the average investor is not knowing when to commit capital in a pullback or…

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Enjoying Big Returns In A Downturn – Understanding The Power of the Spy Put Trade – June 29 2015

Categories: Bear Market and Corrections, Profit And Income Strategies, SPY PUT (SPY)

Enjoying Big Returns In A Downturn – Understanding The Power of the Spy Put Trade – June 29 2015

Yesterday in several articles and this morning, I wrote about buying spy put options to profit from the move lower today. It was basically a given that the market would plunge today on the back of worries globally over the Greece debt issue. This issue has been festering for a very long time so it is nice to see that it is finally coming to an end, one way or another. For now though investors should be looking for profit making opportunities and the Spy…

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All Stocks Are Not Equal – Pullbacks and Corrections – Become A Better Investor

Categories: Bear Market and Corrections, Profit And Income Strategies

All Stocks Are Not Equal – Pullbacks and Corrections – Become A Better Investor

As opinions continue to vary on whether a summer correction has already started, I think the most important thing for investors is to keep larger than usual amounts of cash to the sidelines and only trade within big cap globally diversified stocks. The most important thing to remember when market appear more vulnerable to downturns is to understand that all stocks are not equal. This strategy article from the category Become A Better Investor, is 1200 words in length and will require 5 pages if…

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Put Selling Options Index – Stock Trade Examples

Categories: Bear Market and Corrections, Selling Put Options

Put Selling Options Index – Stock Trade Examples

Separated by year, this index looks at different Put Selling strategies and trades as they are applied in actual trades. By reviewing these stock trade articles investors can gain a better understanding of how Put Selling strategies work, how to modify and adjust them, how to rescue or repair failing trades and how to apply them to their own portfolios and stocks. Articles are listed from most recent to oldest. To read an article select the article title. To search this index page for a…

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9 Tips For Selling Call Options In A Bear Market – Investor Questions

Categories: Bear Market and Corrections, Investor Questions, Profit And Income Strategies

9 Tips For Selling Call Options In A Bear Market  – Investor Questions

Since January 2015 I think every investor knows that something has changed with the markets. For the first time since this rally started in March 2009, the market has been trended sideways since the fall of 2014. With the end of March we are now 5 months into a market that has gone nowhere. The 3 year S&P chart below shows the daily movement of the S&P index and you can see the steady climb in the index up until after the pullback in October.…

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Profiting With The SDOW 6-10-12-20 Strategy On Big Pullbacks – Market Direction Portfolio – Dec 10 2014

Categories: Bear Market and Corrections, Stock Market Outlook

Profiting With The SDOW 6-10-12-20 Strategy On Big Pullbacks – Market Direction Portfolio – Dec 10 2014

On Dec 8 I bought 2000 shares of SDOW for $20.46. On Thursday Dec 9 I was stopped out for a small profit when the Dow rallied back. I indicated that I was going to wait for a clearer signal. By 10:00 AM today it was obvious that the market was going to move lower. This meant stepping back in to buy the SDOW again. Late To The Party The problem though is that the Dow was already down by 10:00 AM. When I am…

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