As I noted last week, the markets suck at the moment.
It doesn’t matter that we’re up 200 points today. We fell more than 300 just the other day. This is not a picture of market health.
This is a snapshot of the S&P 500 over the last couple of sessions. This is how volatile the market has truly become.
But this isn’t just a one-time occurrence. It’s been like this for months.
Some may even say it’s manipulated.
At the moment, we are still holding all open positions. I see no reason to exit anything at the moment.
As I noted last time, though, we must be cautious moving forward, near-term. Doing so includes tight risk management.
One of our favorite ways to protect for downside is with trailing stop loss orders. Another is to reduce risk per trade. Instead of risking 20% to 30% per trade, halve it.
Know all risks associated with any stocks or bonds bought.
Have ideal entry and exit points for all trades. Never leverage. Know when to cut your losses and move on.
It’s essential that you prepare for the worst-case scenario, as a just in case.
We’re cautious moving forward at the moment, as the markets become challenging.
Forgotten Profits has had a great deal of success in the past. We are looking to resume the win streak that can be found in our portfolios.
For now, for this week, just hold all open positions.
Ian L. Cooper
Forgotten Profits