- How I’m profiting in this market. It’s scary out there — take notes for safe trading!
- Learn more than one way to profit. Diversify your knowledge for new opportunities.
- Top stocks and study resources delivered to you for life! Stay tuned for this big announcement.
It’s no secret — the 2022 markets have been a bit of a bloodbath so far. The good news: There are always opportunities to profit.
Let me show you what I’m looking for right now and what I’m avoiding. Plus, I have some big news to share with you.
There’s an opportunity coming to diversify your trading knowledge. Learn more strategies to profit more reliably. Learning new ways to potentially profit helps keep you safe in poor market conditions.
Let’s get into it…
What I See In the Markets Now
I’m not going to spend much time on a market overview. If you’re paying attention, you should know this already.
The markets are dipping. Check out the chart for the S&P 500 ETF Trust (NYSE: SPY).
SPY chart 6-month, 1-day candles (Source: StocksToTrade)
I’m glad to see $450 is holding as support. We could be experiencing a little dip before a breakout. It could also be the beginning of a crash.
Either way, it’s best to stay safe and focus on what’s working.
What’s Working Now #1: Singles
The name of the game right now is quick profit-taking.
A slow market means patterns are more likely to fail. Take a look at this chart of TD Holdings Inc. (NASDAQ: PETZ). Usually, when a stock falls off like this, it’ll bounce. But this one is all downhill.
PETZ chart 1-day, 1-minute candles (Source: StocksToTrade)
That’s a dangerous chart.
Luckily I stayed out of this play because I follow the rules. I could tell it wasn’t going to bounce. The panic dip buy is Tim Sykes’ favorite pattern right now — and I learned from the best.
What’s Working Now #2: Dip Buys
Consider focusing on the dip-buy strategy. Buying on a dip helps ensure the stock has some support to bounce off.
Don’t chase stocks. If the price breaks out, leave it alone.
You must block out the FOMO. Failed breakouts are a dime a dozen right now. You don’t want to buy the top of a failing stock.
Let me show you a successful dip buy opportunity and where I’d buy…
Here’s the chart for Dogness (International) Corporation (NASDAQ: DOGZ). Look at the morning panic down to double-bottom support at $2.50.
DOGZ chart 1-day, 1-minute candles (Source: StocksToTrade)
Imagine if I bought at the breakout of $3. There’s no support to keep it from falling down. Obviously, we know it doesn’t fail, but that’s beside the point.
The idea is to buy at the double bottom. If it falls through $2.50 I’d cut it. This way I have a clear and set risk.
The pattern is more likely to fail in this market. So do what you can to stay safe!
New Strategies
Slow markets are the perfect time to find new ways to profit.
And lucky for you, traders like Sykes and me love helping students learn the trading process.
In a few days, you’ll see an all-new jaw-dropping opportunity to up your trading strategies. Keep an eye out for this game-changing announcement.
Our current market proves that patterns don’t work all the time. Strategies come and go.
But if you learn to trade different strategies you’ll be better prepared to profit in any circumstance.
For example, I learned day trading from Sykes by joining his Trading Challenge.
But lately, I’ve been developing my swing trade strategy and I’m trying short selling.
I became a millionaire by trading penny stocks. But there are other opportunities to profit in the market. I want to be as versatile as possible.
Last Words
The best way to protect profits in this environment is to …
- Size down
- Only focus on the best plays
- Cut losses quickly
This is no time to get aggressive. We’ll experience another hot market soon enough. Until then, stay safe!
Study for profits,
Roland Wolf
Editor, The Wolf’s Den
