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A bad day in the headlines is almost always ultimately good for your portfolio.
Today we're going to talk about why and what you can do next to press your advantage.
Here's what you need to know.
The secret to trading "headline risk" isn't really a secret.
Headlines come and go… it's the emotions that drive 'em that trip up most folks.
At least today anyway.
Think about this for a moment…
One minute there's a break in U.S.-Chinese relations, and the Dow goes on a 300-point streak higher. Next minute the manufacturing data comes in a point weaker than expected, and it drops precipitously.
The on-again, off-again relationship between what you understood to be good news is broken. And bad news… well, let's just say it's anybody's guess.
So, how do you get around that?
It's easier than you'd think for reasons I laid out on Tuesday during an appearance on "Varney & Co."
Avoid Doing Anything Rash
Professional traders want you upset, scared, uncertain, and irrational. That way it's easier for them to separate you from your money.
Trading, contrary to what Wall Street would have you believe based on scores of television commercials, is nasty. Professionals are not out there to build their retirement or ensure you build yours.
They want to make as much money as fast as possible by taking your money away from you every chance they get. And headline risk plays a big role in that.
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Wall Street firms don't help or, more precisely, won't. They stand to make hundreds of millions a year in commissions and related trading activity, all of which grow exponentially when individual investors get anxious.
Many will trade directly against the individual investors who are their clients if given the chance. The situation isn't as bad as it used to be but don't think for a New York minute that it isn't happening.
Wall Street sold the rest of us down a river a long time ago.
Stick to What Works and Continue to Buy
About the Author
Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean, and he's also the founding editor of Straight Line Profits, a service devoted to revealing the "dark side" of Wall Street... In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.