The phrase "No one can predict the future" has never rung truer than it does right now.
Back when I first heard the word "coronavirus" in January, I could never have predicted it would lead to stocked fridges and toilet paper sell-outs.
See, in the past month alone, restaurants around the country have closed. Schools have moved entirely to online learning. The markets have tanked 30%. And I'm willing to bet the majority of you are reading this from your couch, back aching from leaning over a laptop all day.
Businesses and individuals everywhere are losing money. And when you're watching cash flow out of your bank account, it's hard not to panic.
But you don't have to feel trapped in the market meltdown. There are three things you can do right now:
Easier said than done, I know. But that's exactly why I'm here.
I'm going to show you how to employ these three steps starting today.
It all starts right now.
Of course, it was the 60s, and the show framed mainly woman as these "frenzied people." But if this market crash has shown us anything, it's that everyone is emotional when it comes to losing money. "Just the facts, man. Just the facts," works just as well here.
You see, in any given circumstance, there are two things:
Separating the two is key. In order to take control of any situation, you'll want to put aside those thoughts and feelings and focus directly on the appropriate actions to take - the facts. Think to yourself, "There is nothing wrong here. Only actions to take."
This is especially true when it comes to trading. Gregory R., a subscriber of my Fast Fortune Club, knows this. He said, "My guess as to the number one mistake people make in trades is acting on emotion," and he's right.
So, the market has tanked. You've lost money, and you're afraid that you're going to lose more money. You're also scared that if you get out now, you may sell at the bottom.
Sound familiar?
This isn't the first time the market has crashed. I felt these same exact things back in 2000, and again in 2008. It's easy to let that fear take control. But instead, try and focus on the facts:
Let's dive a little deeper into that last one. Here's a 30-year chart of the S&P 500:
30-year chart of the S&P 500
Breaking down this chart, more facts reveal themselves...
Now that we've established the facts, we need to ask ourselves - what now? We can't just simply sit and wait for the market to rise again.
There are actions you can take right now to position yourself for profits in this market.
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The easiest way to make money, period, is by applying options in a bearish market. And I'm not the only one playing this strategy...
Andrew Keene has been using puts to cash in on the market's crash as well. And on a day when the Dow fell over 2,300 points, he gave his followers the chance to bank a combined 196.75%. To learn how to join him in the profits, click here.
There are myriad ways to trade this market in the short and long term with options. An easy one is to simply buy cheap out-of-the-money (OTM) puts on stocks that are falling like a rock. Reduce the implied volatility (IV) risk by buying put spreads.
Another is to sell short-term credit spreads at resistance and well above the price action - something we talked about back when the Dow first entered correction territory. These trades can bring in a 30% return on investment (ROI) in just a couple of weeks with high probability of profit.
The market may continue its fall for now. But I'll be with you every step of the way to show you not only how to preserve your portfolio, but how to make some money as well.
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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.