Using Discounted Closed Ended Funds Created To Increase Earnings And Decrease Risk

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Currently focuses on:  Cohen & Steers Select Utility Fund (nyse: UTF)

Its investment objective would be to achieve a higher level of after-tax total return through investment in utility securities. In pursuing total return, the Fund equally emphasizes both current incomes, consisting primarily of tax-advantaged dividend income, and capital appreciation. Under normal marketplace conditions, the Fund will invest at least 80% of its managed assets in a portfolio of common stocks, preferred stocks and other equity securities issued by firms engaged in the utility industry.

The Utility and Electrical industry is forecasted to grow at 8.5% for then next 5 years.*

At present the Cohen & Steers Select Utility Fund is at a 16.89% discount

That means for every $100,000 invested in principle you invest roughly only $83,000.

Making use of regression to the mean* theories believing that  historical mean for US based  closed end funds historically trade at a 5% discount we would forecast Cohen & Steers Select Utility Fund  would increase in principle about 12 percent assuming  no change in the marketplace value.

** Regression to the mean can be a technical term in probability and statistics. It means that, left to themselves, things tend to return to normal levels, whatever that’s.

Cohen & Steers Select Utility Fund has a short but profitable history of developing principle

The current income from this fund is 6.14%

We believe due to the fact you could acquire 100,000 dollars of income producing utilities that produce above 5% earnings or more than $5,000 dollars per yr for around an investment of $83,000. Those how invest with the a lot lower amount of $83,000 still has the same income of above $5,000 giving a very much higher earnings of 6.14%

Performance:

“If you’re patient, buying funds at a steep discount can be extremely lucrative? For instance, suppose you divided the closed-end universe into fifths, starting with the most expensive. The priciest 20 percent gained 48 percent in the past five years. The 20 percent with the steepest discounts, however, soared 160 percent.” ***

To Lessen Risk

With an effort to decrease the risks associated with closed ended funds at deep discounts with high earnings we recommend diversification using many different asset classes and fund families utilizing asset allocation approach.   In our development and earnings model we use 7 different asset classes to provide a balanced portfolio.  This structure was designed to minimize fluctuations.   An event that may well hurt a single class of investments may benefit one more.  Two examples of this is after the 9/11 terrorist attack as well as the 2000 stock market crash.  In both cases the stock market had a tremendous sell off, but the higher grade bonds had very large rallies.  During those two events the stock market and high grade bonds had no correlation.  Many experts believe diversifying between non-correlated asset classes could be the single best way to lessen volatility risk.

When building  portfolio’s we use a selection criteria that focus on: unique asset classes, deep discount , high yield, consistency of payments, ongoing fee’s and other factors we incorporate into the selection are, past track record with the fund, and past track record with the management team, and of course the management team. We apply our selection criteria to above 600 closed ended funds having a goal to find only 1 or 2 in each asset class that fits our needs.

Simply don’t put all your eggs in 1 basket.  If the assets classes are non-correlated this reduces the portfolio risk.

To summarize Cohen & Steers Select Utility Fund:

1) A conservative industry
2) Diversifies investments inside the utility industry
3) An industry forecasted to grow at 8.5%
4) Investing at a 16.89% discount
5) Receiving a 6.14% current income
6) Regression to the mean would indicate principle development of about 12% with no marketplace change.

We forecast Cohen & Steers Select Utility Fund to achieve industry growth rates plus regress to a more historic means these two combined events would indicate a total return of 10.9% percent per 12 months over the next 3 to 5 years.

Randy Durig manages several Portfolios’ including the Development & Earnings Portfolio to see the full list go to www.durig.com or www.money-manager.us

Randy Durig owns Cohen & Steers Select Utility Fund in his discretionary client’s portfolios and in his personal account. Past performance is not a guarantee for future returns. All information we believe to be correct but make no guarantee to accuracy.

Durig’s Monopoly Blue Chip Portfolio National Performance Rankings: 3rd In the United States, Ranked by 3 12 months annual return, for Large Capitalization Blend, 4th Quarter 2005, By Funds Manager Review.

You can find more information about the crash of 1929, day trading picks, and buying cheap stocks

Using Discounted Closed Ended Funds Created To Increase Earnings And Decrease Risk

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Currently focuses on:  Cohen & Steers Select Utility Fund (nyse: UTF)

Its investment objective would be to achieve a higher level of after-tax total return through investment in utility securities. In pursuing total return, the Fund equally emphasizes both current incomes, consisting primarily of tax-advantaged dividend income, and capital appreciation. Under normal marketplace conditions, the Fund will invest at least 80% of its managed assets in a portfolio of common stocks, preferred stocks and other equity securities issued by firms engaged in the utility industry.

The Utility and Electrical industry is forecasted to grow at 8.5% for then next 5 years.*

At present the Cohen & Steers Select Utility Fund is at a 16.89% discount

That means for every $100,000 invested in principle you invest roughly only $83,000.

Making use of regression to the mean* theories believing that  historical mean for US based  closed end funds historically trade at a 5% discount we would forecast Cohen & Steers Select Utility Fund  would increase in principle about 12 percent assuming  no change in the marketplace value.

** Regression to the mean can be a technical term in probability and statistics. It means that, left to themselves, things tend to return to normal levels, whatever that’s.

Cohen & Steers Select Utility Fund has a short but profitable history of developing principle

The current income from this fund is 6.14%

We believe due to the fact you could acquire 100,000 dollars of income producing utilities that produce above 5% earnings or more than $5,000 dollars per yr for around an investment of $83,000. Those how invest with the a lot lower amount of $83,000 still has the same income of above $5,000 giving a very much higher earnings of 6.14%

Performance:

“If you’re patient, buying funds at a steep discount can be extremely lucrative? For instance, suppose you divided the closed-end universe into fifths, starting with the most expensive. The priciest 20 percent gained 48 percent in the past five years. The 20 percent with the steepest discounts, however, soared 160 percent.” ***

To Lessen Risk

With an effort to decrease the risks associated with closed ended funds at deep discounts with high earnings we recommend diversification using many different asset classes and fund families utilizing asset allocation approach.   In our development and earnings model we use 7 different asset classes to provide a balanced portfolio.  This structure was designed to minimize fluctuations.   An event that may well hurt a single class of investments may benefit one more.  Two examples of this is after the 9/11 terrorist attack as well as the 2000 stock market crash.  In both cases the stock market had a tremendous sell off, but the higher grade bonds had very large rallies.  During those two events the stock market and high grade bonds had no correlation.  Many experts believe diversifying between non-correlated asset classes could be the single best way to lessen volatility risk.

When building  portfolio’s we use a selection criteria that focus on: unique asset classes, deep discount , high yield, consistency of payments, ongoing fee’s and other factors we incorporate into the selection are, past track record with the fund, and past track record with the management team, and of course the management team. We apply our selection criteria to above 600 closed ended funds having a goal to find only 1 or 2 in each asset class that fits our needs.

Simply don’t put all your eggs in 1 basket.  If the assets classes are non-correlated this reduces the portfolio risk.

To summarize Cohen & Steers Select Utility Fund:

1) A conservative industry
2) Diversifies investments inside the utility industry
3) An industry forecasted to grow at 8.5%
4) Investing at a 16.89% discount
5) Receiving a 6.14% current income
6) Regression to the mean would indicate principle development of about 12% with no marketplace change.

We forecast Cohen & Steers Select Utility Fund to achieve industry growth rates plus regress to a more historic means these two combined events would indicate a total return of 10.9% percent per 12 months over the next 3 to 5 years.

Randy Durig manages several Portfolios’ including the Development & Earnings Portfolio to see the full list go to www.durig.com or www.money-manager.us

Randy Durig owns Cohen & Steers Select Utility Fund in his discretionary client’s portfolios and in his personal account. Past performance is not a guarantee for future returns. All information we believe to be correct but make no guarantee to accuracy.

Durig’s Monopoly Blue Chip Portfolio National Performance Rankings: 3rd In the United States, Ranked by 3 12 months annual return, for Large Capitalization Blend, 4th Quarter 2005, By Funds Manager Review.

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Use The Power Of Autosuggestion In The Stock Market

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Self-Confidence is an essential starting point for any business venture. This is true even more if the company is trading in the stock market because psychology plays such a main role. Keep reading, this may change your life!

About ten years ago, I received a copy with the book  “Think and Grow Rich!” written by Napoleon Hill. Today, I credit most of my success in enterprise (including trading) to this book.

At first applying some of the principles described in this book  appears a bit crazy - for instance reading a Self-Confidence formula along with a Definite Plan aloud every day. But you really have to look at it with an opened mind and believe me (and many peoples who have made millions) this stuff works:

Here can be a brief overview (you really require to get the book):

- First - you must have a burning desire - for a trader this desire should be “to become a consistent winner in the stock market”.

- Second - you need to have a definite goal including the amount you want to make as well as the date by which you want this funds to be in your account.

- Third - You will need a definite plan, or what you will do in exchange for this money.

Here is an illustration of a plan - it can be generic adequate to be applied to most trading styles. Items specific for your style should be added. Your plan should be read aloud first thing in the morning and right before going to bed.

By December 31st 2006, I will make $200,000 dollars with my trading. In return for this funds I will do the following:

- I will follow a trading plan to guide my trading - therefore my job will probably be 1 of patience and discipline

- I will plan each trade carefully - I will not jump into trades by fear of missing out

- I will monitor the market’s current picture

- I will monitor the current picture for each industry

- I will manage my trades to protect my capital and my profits

- I will protect my capital through good funds management

- I will take responsibility for all my actions.

- I will trade to trade well and for that love of trading, not to trade often and not for your money. The funds will come as a result of trading well.

- I will not be influenced by the opinions of others. I will reach my own decisions and follow them.

- I will build the self-trust necessary to operate in an unlimited environment which has no rules.

- I will be rigid in my rules and flexible in my expectations.

- I will never believe that taking funds from the market is easy and I will never assume that I know sufficient.

- I will have no particular expectation when I place a trade because I know that anything can happen.

- I will treat trading as a probability game in which I do not need to know what is going to happen next in order to make cash. All I require to know

is that the odds are in my favor before I put a trade

- I believe that I deserve this money. I believe that I will have this funds in my possession. My faith is so strong that I can now see this money before my eyes. I can touch it with my hands. It’s now awaiting transfer into my account. I am awaiting a plan by which to accumulate this money, and I will follow that plan when it is received.

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Upside Potential With Convertible Bonds

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Convertible bonds are bonds issued by corporations that are backed by the corporations’ assets. In case of default, the bondholders use a legal claim on individuals assets. Convertible bonds are special from other bonds or debt instruments simply because they give the holder from the bond the proper, but not the obligation, to convert the connection into a predetermined number of shares from the issuing company. Consequently, the bonds combine the functions of a bond with an “equity kicker” - if the commodity price with the firm goes up the bondholder makes a great deal of funds (much more than a conventional bondholder) In the event the share cost stays the very same or declines, they receive interest payments and their principal payment, unlike the share investor who lost funds.

Why are convertible bonds worth considering? Convertible bonds have the prospective for higher rates although providing investors with revenue on a normal basis. Think about the following: 1. Convertible bonds offer typical interest payments, like regular bonds.

2. Downturns in this investment category have not been as dramatic as in other investment categories.

3. If the bond’s underlying commodity does decline in value, the minimum benefit of your expense is going to be equal to the worth of the high yield bond. In short, the downside risk is a whole lot less than investing within the popular commodity straight. Nevertheless, investors who invest in right after a considerable cost appreciation must recognize how the bond is “trading-off-the-common” which means they may be no longer valued like a bond but rather like a commodity. Consequently, the price tag could fluctuate significantly. The benefit from the relationship is derived from the benefit of the underlying stock, and thus a decline in the worth of the share will also trigger the relationship to decline in benefit until it hits a floor that is the benefit of your standard relationship with out the conversion.

4. If the value with the underlying share increases, connection investors can convert their connection holdings into commodity and participate within the growth of the business.

During the past five years, convertible bonds have produced superior returns compared to much more conservative bonds. Convertible bonds have produced higher returns since numerous companies have improved their monetary performance and have their stocks appreciate in value.

Convertible bonds can play an important role in the well-diversified purchase portfolio for both conservative and aggressive investors. Several mutual funds will invest a portion of their investments in convertible bonds, but no fund invests solely in convertible bonds. Investors who desire to invest straight could consider a convertible connection from some from the largest companies in the world.

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Tips For Achievement In The World’s First Sports Activities Inventory Market

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

The AllSportsMarket is a monetary exchange using a expert buying and selling platform to purchase and market issues of sports activities clubs. It can be just like the inventory marketplace, but with sports teams! You compete with other players for genuine cash. Cash is earned from the ups and downs with the rates of teams and from dividends paid when clubs win. The AllSportsMarket is 24 hours, 365 days a year - it is possible to industry at anytime and as generally as you would like.

It is possible to fund an account for as little as $25 or try the “no catch guest entry” to check out the user interface. Unlike the store industry, exactly where you need a hefty upfront sum to get started, and gambling in which you can drop all your funds at once, you are able to start off having a minuscule amount of cash and not shed it all in one shot.

Acquire Low and Sell Large

Just like the stock industry, you make funds off with the ups and downs of the underlying protection. Within the situation of the AllSportsMarket, the protection could be the issue with the group. Purchasing shares while using intention of promoting them later at a increased cost to produce a income is referred to as long. In ASM, you make the difference minus the total commissions you pay.

This really is the simplest solution to make your gains, but it does acquire some timing and patience. The big question is what do you take into account high lower? A good point to look at is the prices from the rest of the clubs inside the league. You ought to anticipate how the better clubs will have increased costs, but there will be the occasional discrepancies for a single reason or an additional. With that said, you have a array of rates and you also must look to get great teams that are in the reduced cost variety. Do as very much study as feasible to locate out what teams are being undervalued.

Dividends

One more way to make money (and one with the keys to accomplishment in ASM) is dividend payouts. Each online game your group wins, the dividend pot grows. You are paid dividends depending on league specific pay outs and payout schedules.

The dividend strategy is an approach to make gains from dividend payouts. This is exactly where you acquire shares of a group specifically to capture the dividend payout. There are diverse dividend payout schedules based on the league you personal shares in. The teams that have increased dividend reserves spend greater dividends. Dividend reserves change from game-to-game based on the leagues specific rules of dividend transfers for the winner and loser from the game. Inside the exchanging platform they list the highest dividend reserves (see the figure around the right)

Dividends are great within the sense that they reward for selecting winning clubs. For illustration, more than the course of a long season, the Detroit Pistons will likely win more than they lose, and will as a result pay out out a good quantity of dividends.

You’ll need to be careful when purchasing shares solely for dividends - the share cost may possibly go down leaving you using a net loss even right after you capture the dividend.

Selling Quick

It is possible to also make cash selling short. This involves borrowing a share and promoting it expecting the share to decline in price tag so it is possible to acquire it back at a lower price tag. Marketing quick could be a lot more risky due the reality which you can shed a lot more than what you place in since the cost has an unlimited upside possible. Whenever you long, the store can only go as low as $0.00 and also you only shed as much as you set in. Whenever you quick you could drop what you put in and much more.

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Understanding The Commodity Marketplace

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Watching the numbers roll by on the bottom of the screen during a news cast might seem like nonsense to you. Individuals numbers are extremely crucial to several people simply because they make their fortune with shares. They steadfastly watch the stock markets wanting to see how their purchase is doing.

To understand the stock industry you first must realize what stocks and shares are. Shares are the capital raised by a organization when they promote shares. Shares are offered via the share industry and also the funds taken in from those becomes the company’s stocks and shares.

There are numerous key share exchanges within the world where shares are traded. Company’s stocks and shares are increased and decreased each day.

One of these stock markets is the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotations. The NASDAQ can be a United States based commodity market. It’s the world’s initial electronic centered commodity market. It also trades a lot more shares each day than any other commodity marketplace which indicates it has the most influence on stocks and shares.

One more big stock marketplace that is United States based may be the Dow Jones Industrial Average. You might hear someone say that the Dow is up or down this really is what they are referring to. Several stocks and shares are released on the Dow.

Several other countries also possess a excellent influence on stocks. In Europe almost each country has their personal stock marketplace this includes Portugal, Germany and Lisbon. The folks living and working there follow purchase the commodity market there and just like in North America the stocks and shares rise and fall.

The folks who deal with the purchasing and exchanging are called stock brokers. Their career would be to promote and trade the shares that their clients request. It is a demanding and rewarding job being engaged straight in stocks this way. Commodity brokers can make a lucrative income and also the ones that study the markets and realize all the ups and downs possess a definite benefit.

For the everyday individual to get included in stocks they need to do a bit of research. It may possibly be wise if a huge amount of funds is engaged to talk to a commodity broker. Their work is related to stocks and no one is better qualified to assist you.

Stock brokers are paid on commission and therefore their drive is to purchase shares that may ultimately turn a profit. Often a commodity broker has extensive knowledge with just a few stocks and shares and he concentrates on individuals. If you determine to invest in the share that a particular stock broker is really well versed in, it may possibly be prudent to have him or her deal with your dealings. They could offer the best advice as to when to purchase and when to market.

You will find other avenues accessible for folks interested in shares and that’s the online share trading companies. Numerous of these firms enable anybody to sign up and purchase and trade their own shares. This could be a fantastic way for somebody to be launched for the planet of shares and with some study and practice they are able to make themselves a profit.

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Understanding Alternative Buying And Selling, Basically

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Option buying and selling is one method of buying and selling which you can partake in. But, to be able to take edge of it, you need to discover just what it’s and how it works. This will assist you to make decisions that will affect you throughout your trading experience. Here is some simple information about alternative buying and selling to aid you.

What Is An Choice?

Your fundamental question of what an alternative is could be answered like this. It is really a contract that permits two parties to come to an agreement that the customer will have the right to purchase or promote a parcel from the shares. It can be set at a predetermined price and at a predetermined date. The purchaser doesn’t have to take the choice though. He has the right but not the obligation to accomplish so. To obtain this right, the customer will provide a premium towards the seller.

Call Options

There are two kinds of alternative trading that you have to know about. Inside a call choice, the purchaser has the right to purchase underlying shares of a share. It’s set at a predetermined price tag and also a predetermined date. Again, the purchaser has the proper but not the obligation to accomplish this.

Set Alternative

The second form of option is the put choice in alternative exchanging. In this type of alternative, the taker has the same fundamentals but is selling underlying shares. He has the exact same set up of having the right to accomplish so but not the obligation to do it. Also, the same standards of the predetermined price tag and date also apply. The purchaser of your place alternative is required to deliver the underlying shares only if they exercise the alternative.

In case you would like to discover much more about alternative trading, you simply must contact your monetary advisor and learn how it can serve your wants.

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Trading Utilizing Multiple Time Frames

July 30, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Why do we need to Trade Utilizing Multiple Timeframes?

To improve the efficiency of our buying and selling strategy. We see the key Trend making use of a increased time frame than what we intend to use & a lower Time frame to enter a trade.

Say we want to trade utilizing the Daily Charts. We take the Weekly charts to see the main trend. Suppose it’s an uptrend inside a Weekly chart. We will tend to trade only long positions. We will use entries in the daily charts to enter long positions only. When sell signals are produced we will just exit our long positions. I.e. we don’t short promote.

Suppose it is a downtrend in a Weekly chart. We will tend to trade only short positions. We will use a entries inside the daily charts to enter short positions only. When purchase signals are generated we will just exit our short positions. I.e. we don’t enter long positions.

Now that we are making use of two timeframes. Now coming to timing the entry of trades or adding additional positions. (Pyramiding) We can further use a Hourly chart to time our entries. Supposethe weekly & daily charts are in the uptrend. We will enter a long position or an additional long position when a hourly chart gives us a acquire signal. Supposethe weekly & daily charts are in the downtrend. We will enter a short position or an additional short position when a hourly chart gives us a promote signal. This timeframe would not be used to exit the trades. It is solely to increase the timing for entry. For exits we would use the signals generated inside the daily charts.

Using multiple time frames to trade

We take three charts from the very same security. Very first could be the weekly chart. Next chart is the daily chart. Third chart may be the hourly chart.

We will now use the daily chart to trade. We check the weekly chart for the weekly trend. Lest assume the weekly trend is up. So based on this info we will just trade long positions in the daily chart.

We look for a purchase opportunity within the daily chart or we can see the hourly chart to enter a long position.

Now for entering additional positions we use buy opportunities inside the hourly chart. We would exit based about the daily chart only, because we were trading centered around the daily chart.

Similarly we can trade short where weekly charts are in the downtrend and daily chart generates sell opportunity. Additional positions are entered whenever promote opportunities are produced about the hourly charts.

For Day trading we can use the Hourly, 15 Min and 5 Min charts here we trade the 15 Minchart. Or we can use 15 Min, 5 Mins and 3 Mins charts here we trade the 5 Mins chart.

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Video Report: Are US Markets Topping Here?

July 25, 2010 by Ryan · Leave a Comment
Filed under: Investing 

Elliott Wave Global Market Service - Short Term Report 20th April 2010

There are plenty of reasons why the US equity markets might be close to completing a major topping pattern right now.

A highly bullsih atmosphere prevails nows as is indicated by the trade-futures.com daily sentiment index.com which currently sits at 92% on their daily sentiment index, there are some very long term bearish daily MACD divergences that have continued to develop over the entire rally off the March lows of 2009 that are still yet to resolve.

There certainly seems to be a number of factors converging here that are indicative of a major top being imminent. Not the least of which is a clear elliott wave pattern that is either complete or close to in our view.

Rather than go through the individual detail of each market I have decided to attach to this article a copy our daily short term market video report from the 20th of April 2010 (today) for readers of this article to watch at their individual convenience.

If you would like to receive daily video reports covering the short term elliott wave and technical analysis of the major US markets, Gold Trust, Oil Holders and USD Bullish please visit our service at www.eliottwavegms.com.  Further, we deliver video analysis of all major global equity markets, currencies and commodities along with a weekly portfolio stock video report.

If our analysis is indeed correct, once we top here there should be a signifcant decline almost universally across the board from stocks to commodities to most currencies that run counter to the US dollar, which is looking good to us at ths time.

In today’s report we also take a closer look at the gold trust (GLD),  the oil service holders (OIH) and finish with a quick wrap up of the action in the $VIX.

For more information and detailed reports please visit our service at www.elliottwavegms.com.  We offer a fully inclusive service at only $29 per month and combined with our risk-free no hassle 60 day money back guarantee makes the service great value.

 

Stocks And Shares - How To Trade Profitably In A Bear Market

July 21, 2010 by Ryan · Leave a Comment
Filed under: Trading 

Trading in a bull market is easier than trading in a bear marketplace. Many traders find they can make money trading in bullish markets, but when there is a major correction underway or when the market is bearish, they literally freeze and are unable to trade successfully or find profits in their trading.

First,when a market has collapsed, it is important to accept the fact that the marketplace trend has changed from bullish to bearish. It is human nature to find scapegoats or to find a “reason” or to rationalise away the fact that the industry trend has changed. But unless the trader accepts the fact that he is solely responsible to trade his way out of a bearish industry, he will find his position untenable and discover losses that add up daily as the industry bearish sentiments continue. It does not pay to refuse the responsibility of your own trading action and put the blame on your broker or your friend who has given you the “tips” that led to your losses.

If you are faced with losses from a sudden collapse in prices, accept that it is your responsibility to now institute action to get out of this situation with profits.

Secondly, while in bullish markets it is easy to trade by just buying stocks that are in initial outbreaks and just holding them and coming back again after a few days to reap profits, you cannot do the same during bearish markets.

In bullish markets, you trade with the trend, and as long as the trend is up, you stand to make easy profits. On the contrary, in bearish markets, the market goes into consolidation, and trends are “shorter” in duration or the marketplace will go into a sideways direction, with prices oscillating between ranges. During bearish markets, we are more biased towards range trading rather than trend trading. So if you do not know how to change from using trend trading to range trading, you can be caught with short term trend changes and suffer whipsaws and lose money trend trading during bearish markets.

Dealing with traders who have gone through a series of major marketplace corrections since 1987 has led me to conclude that there is no room for lackadaisical trading during bearish markets. The margin of error for a trading signal is much lower when trading in a bearish market. I have seen traders who are able to quickly change or adapt from longer trend trading to trading shorter swings in the industry or range trading to be able to make money from their trades. In bearish markets, they are contented with smaller profits, but trading more often and in higher volumes. To aid in their margin of profits, they are able to negotiate the lowest brokerage terms possible with their brokers or to use discounted online trading platforms.

In bearish markets, the trader who range trade will be the one who is best positioned to take advantage of the shorter and faster rebounds that occur as stocks get oversold and retrace upwards. Accepting personal responsibility and adapting to range trading will improve his chances to make money during bearish markets.

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