With the Dow Jones, S&P 500, and Nasdaq all starting 2016 with declines of at least 6%, Money Morning Chief Investment Strategist Keith Fitz-Gerald has developed a strategy for how to invest during the volatility of 2016.
According to Fitz-Gerald, it’s more important than ever to focus on his eight favorite market trends.
That's because they'll make investors money even during periods of high volatility...
There's extreme value in being an investor who's willing to "zig" when the rest of the masses are "zagging."
No one proves that point better than the legendary investor I'm going to tell you about today.
His strategy and approach are so effective, in fact, that our Chief Investment Strategist, Keith Fitz-Gerald, is using it right now on three stocks that should prove to be among the smartest Contrarian investing moves of this year - and beyond.
And you're going to be able to participate, too...
With the Dow Jones Industrial Average falling more than 5% to start 2016, new investors have plenty of questions about how to start investing now.
The first thing investors need to remember is that even when the markets are volatile, there is plenty of profit to be had.
One of the first important investing events of the year is the Consumer Electronics Show (CES), which kicked off yesterday in Las Vegas.
CES is a dream world for tech fanatics. For investors and traders, it's a quick way to find growth in public companies.
Predicting market performance in any given year is a lot like predicting heavyweight fights; you assess each fighter's history, weigh it against their opponent, read the "tale of the tape," and put your money down on the line.
For 2016, my market prediction is the same as Mr. T's Clubber Lang from "Rocky III": Pain!
Asset classes and markets all over the world will get a heaping helping of extreme volatility.
Here's why 2016 will be so volatile, and what to do.
There's no doubt 2015 was one of the most volatile years in recent history.
But here's the thing... I believe 2016 could be even rougher.
We haven't even seen the sell-off I'm predicting yet; it's likely to make the plunge we saw on Aug. 24, 2015, look like a kiddie ride.
Just as there's nothing solid or healthy underpinning the stock market gains we're seeing now, there will be nothing to catch investors who aren't prepared to trade this volatility - just a long, deep drop.
There's no bottom in sight, but the good news is there's one easy way to trade just about everything the market is likely to throw at you this year.
What you do every day has a major impact on your wealth. Reading, in particular, is a "rich habit," according to author Thomas Corley, who spent five years studying the lives of rich people and poor people.
Reading provides three key elements successful investors need: mental stimulation, knowledge, and stress reduction. All help you form new brain pathways called synapses while strengthening existing mental connections.
And each one of these eight investing books will help you get a profitable head start on 2016.
Penny stocks are very popular, and the dream of finding the next great Microsoft, Facebook, or Netflix is alive and well in the minds of millions.
Finding successful penny stock investments is no different than finding other great investing opportunities... if you know what to look for and have the right risk tolerance and perspective.
Tiny micro-cap companies - penny stocks by any other name - can be fabulously profitable over time when done right.
Last month the New York Stock Exchange (NYSE) announced that it would no longer accept stop-loss and good 'till cancelled (GTC) orders. It went on to say that it would cancel existing orders of those types in its books, too.
The policy, subject to Securities and Exchange Commission (SEC) rule filings, goes into effect on February 16, 2016, so there's plenty of time to prepare. Besides, GTC orders usually expire in 90 days, anyway. And of course the brokerages will continue to offer these types of orders. They'll simply trigger in-house and then be sent as limit or market orders for execution.
So, on the surface, this announcement doesn't seem like such a big deal.
While there's no really bad time to kick underperforming stock positions out of your portfolio, some times are actually better than others.
The good news is, if you're sitting on losing positions, now may be a great time to exit them.
Stocks are near all-time highs, making it easier to see which stocks in your portfolio haven't participated in the long run-up we've had.
It's also a good time because some investing themes that saw big gains are fading, some are dead in the water, and others are just starting to take shape.
Starting next year, three of the biggest exchanges in the United States will no longer allow investors to place stop-loss orders on their trades.
So what are you - the average retail investor - to do? How are you supposed to protect your capital and your profits?
Let me offer you a few considerations that will help you (and the capital in your account) survive this move by the major exchanges.
Investors pulled almost $40 billion from stock markets last quarter alone, according to Morningstar. That's nearly 50% of everything taken out for all of 2015.
But here's the thing... no matter how grim the global situation is or even becomes, indiscriminately selling is exactly what you don't want to do.
It's one of the worst possible decisions any investor can make and, ultimately, one that will cost investors billions in lost profits.
There's no shortage of stock charts out in the wild. These days, anyone can go and pull up highly customizable charts for pretty much an stock trading on domestic markets.
There's so much information available it can be completely overwhelming, even if you've been trading for a while.
Today, I'm going to share with you my favorite type of stock chart and give you everything you need to start seeing your trades like a pro.
The stock market is diverging, split between the top-tier "Haves" and the struggling, shrinking "Have Nots."
This shift means big profits for investors looking at the companies I'm about to talk about.
In options trading and investing, as with any business you're in, you want to turn a profit.
When things are going great and profits are coming in, the business is thriving. When things take a turn for the worse, your winners come less frequently, and your profits become smaller.
That's when things can get really ugly. But just like in any business, it is how you deal with losses that matters.
