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Looking at the wild markets this week, one thing – maybe the only thing – for sure right now is that market volatility is here to stay.
Long-term investors will want to simply stay the course. Stay disciplined and stick to your established strategy.
Of course, daily 1,000-point swings have handed us many new short-term profit opportunities. Exploiting this volatility, as many smart traders do, can be very profitable.
Smart trading does not mean trying to find a stock that will pop and time your buying perfectly, as some investors have tried to do recently. Piling in to the "hot" biotech stock that's jumping on vaccine rumors can be extremely expensive and high-risk – and it rarely pays off.
That's why I love options. In a market like this one, they allow you to get in and get out in a short time frame, with much lower risk, much lower cost, and much lower stress, as well.
Of course, huge moves like this can bring increased risk to your trades – but there's a simple way to lower that risk while taking advantage of this historic volatility…
About the Author
Tom Gentile, options trading specialist for Money Map Press, is widely known as America's No. 1 Pattern Trader thanks to his nearly 30 years of experience spotting lucrative patterns in options trading. Tom has taught over 300,000 traders his option trading secrets in a variety of settings, including seminars and workshops. He's also a bestselling author of eight books and training courses.
At last I find a very educational explanation of the relation of the behavior of other assets and the stock market performance. Thank you