When the market has a big rally in a single day, almost always the next day or two will be choppy as the market tries to consolidate gains. The day after a big rally is almost always a case of investors trading their positions. Some are selling and others are busy adjusting positions for what is often a new move higher shortly. This type of choppy market is easy to profit from with the right strategy. It’s a good chance to boost a portfolio through the use of the Ultra Pro UDOW ETF. With a proven strategy in place, I find these trades have less risk against my invested capital.
My strategy for trading this overbought condition in the market direction, requires just one technical trading tool, the Bollinger Bands.
Trading Overbought, Choppy Markets
This strategy article looks at the method I use for profiting from the choppiness of a very overbought market condition in the Dow. The article is 3200 words in length and will require 8 pages if printed. I believe strongly in stacking the odds of success in my favor when trading in assets as risky as stocks and bonds. That means using strategies that have been tried and tweaked to the point where I know when to get in, how to control the trade once entered and how to get out with the most profit possible based on the strategy being used.
My Market Direction Trading Strategy for a Choppy 2014
This lengthy article shows the strategy I have used for a while, for trading an overbought, choppy market. When the market has a big up day like March 4, I turn to this strategy to boost my portfolio returns. I used this strategy for many years in other indexes, but with the advent of the Ultra ETFs I tailored it to fit the market direction trades. It has produced stellar returns while assisting in timing when to trade and when not to. It advises me when the conditions are right and when they are no longer prime for big profits. This article is 3200 words in length and took several days to put together. You can tell that I think there is going to be a lot more choppiness ahead in 2014 and this is one of the strategies I will be using to boost my return.
Hazardous To Capital In Use
Trading the market direction can be profitable but it can also be hazardous to capital in use if not done with a proper strategy. FullyInformed Members can can login directly through this link to read the rest this strategy article or Members can sign in to the full members site here. Non-members can join here or read about the benefits of a membership.
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