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In case you've missed the news, President Trump's trade wars have officially begun.
After months of circulating rumors and political rhetoric, a 25% levy on $34 billion of Chinese goods entering the United States took effect just after midnight on July 6.
And neither side is showing any signs of backing down, as China immediately slapped U.S. shipments with "retaliatory" tariffs.
Now, as you might guess, this could cause quite the disruption in an already volatile and uncertain market - especially when you don't know when the next set of retaliatory tariffs might hit.
So here's everything you need to know to survive even the worst of the trade wars...
A New Way to Trade
Over the last few weeks, I've sent you trading strategies to help you navigate any kind of market.
But today, I want to focus on options.
Now, we all know about the opinions surrounding them: Stay away from options, options are too big of a risk, and more. But the truth is, options are the best way to make money in any market. Yet there's a right way and a wrong way to approach these lucrative opportunities.
And it starts with this one, simple rule: Plan your trade and trade your plan.
This sounds easy enough - and it is.
But there's a little more to managing your trades than you might initially think...
Trade management involves using price and time targets to maximize your profits and minimize your losses. And the best way to do that is to establish these targets first.
Your price target is the price you need the stock, exchange-traded fund (ETF), commodity, or whatever you're trading to hit in order to capture profits. Your time target is the time frame in which you need to hit your price target. You can set both of these targets easily by looking at a stock's past price moves and patterns and eyeballing the time frames in which the price moves you need have happened.
When you've got your plan in place and stick to your guns, you can feel confident about what you're doing and can set yourself up to make money no matter if the markets go up, down, or sideways. It also allows you to remove the emotion from trading and investing that can potentially sabotage your profit opportunities. It gives you control of the markets instead of leaving you at their mercy.
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You shouldn't change the way you trade regardless of the market temperature. So shut out the fear of missing out, the talking heads, the flashing red headlines, and the constant dialogue about the "next big market crash" - and follow your rules and strategies.
The profits will come quicker than you can imagine.
But that's not the only little trick to success.
It's easy to know your rules once you get into a trade - but knowing which position is best to take can be harder.
Don't worry - I've got you covered...
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.