Counter Unpredictable Markets With A Systematic Strategy

Recently, a counter I was tracking displayed a classic bearish chart pattern. Anticipating potential downside, I shared this analysis with a friend who was invested. As predicted, the price dropped significantly, aligning closely (to within the dollar!) with my forecast.

The recent market correction at the end of July was not unexpected as markets are cyclical and were in overbought territory. That said, during such times, retail investors will still try to buy in while smart money would already have exited. Do you have a strategy to take emotions away from investing? Ask yourself before any trade:

• “How much higher do you expect the market to go?” (No, “to the moon” isn’t a valid answer!)?You should at least be able to make a multiple on your stake.
• “Where are your exits?” Having predetermined exits, whether it is a profit or a loss, helps with decision-making.
• “Would it be more prudent to wait and buy on a dip?” Remember that markets are cyclical - there will always be another opportunity!?

Rather than taking a gamble on the market, consider regularly investing part of your monthly savings by applying strategies like dollar-cost averaging and portfolio diversification to help manage risk and enhance long-term returns. ?

PM me for a discussion on how to start automating your investing, and gain access to my technical analytical insights.

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