Most of us have heard of International Business Machines (IBM). It’s a blue-chip stock and one of the biggest companies in the U.S.
But even IBM isn’t immune to market volatility.
Back during the dot-com crash, its stock fell 60% to its 2002 low…
Just look at the choppy ride down…
And the company didn’t get itself out of that hole for another decade.
In the meantime, it continued to swing back and forth. After hitting rock bottom, it rose 64%… fell 15%… rose 17%… fell 18%… rose 23%… and fell 12%. And so on. That’s a lot of movement for such an established company.
I don’t tell you all this for no reason…
Last year, we experienced one of the roughest markets in recent memory. The S&P 500 fell nearly 20%. The Nasdaq fell closer to 30%.
Many investors saw their portfolio gains from the previous two years disappear.
And just like after the dot-com bubble burst… we could be facing several years of shaky markets and high volatility.
Some are even calling for a “lost decade” in the stock market…
Now, no one really knows how long it will take to recover. But it’s pretty clear that we’re going to face a number of “shockwaves” in the market for the foreseeable future, just like we’ve seen after past crashes.
If that frightens you, it’s only natural. But I’m going to offer some reassurance…
I’ve been in the markets for over 35 years. Much of that time was spent as a professional trader on Wall Street and on running my own hedge fund.
So even with a new period of choppiness ahead, I can help you protect your capital… and find ways to grow your money in the days ahead.
In fact, we’re just a few days away from a shockwave that could give us a huge opportunity.
Trading in Choppy Waters
It can be tempting to sit on the sidelines in cash when markets are chopping back and forth.
Or if you’re a “buy and hold” investor, you may be tempted to just hold on… and hope for the best. Maybe that’s smart… sometimes.
But I’m not a “buy and hold” kind of guy. And I’m not a “sidelines” guy either. After all, who knows whether the market will be higher or lower a year from now?
You could be waiting for lower prices that never come. Or you could be buying and holding for a rally that never comes. So why wait? Instead, I’d rather trade in and out of the market using options.
Because I know one thing for sure: wherever the market is one year from now, between now and then, it will have done a whole lot of moving around. As a trader, that’s the kind of market I crave.
By playing in and out of the market, options allow me to amplify my returns compared to just buying and holding stocks.
One of the most powerful things about options is that they enable you to trade both directions – up and down. With the markets as choppy as they are now, this vastly increases our chances of making money.
My Opportunistic Trader advisory maintained a 60% win rate last year using options. And that was enough for us to generate a 155% cumulative return on our cash – all while the market slid deep into the red.
My S&P Trader subscribers maintained an 80% win rate in 2022. In real numbers, a $25,000 investment account could have generated $9.5k in income last year.
I’m looking forward to seeing these kinds of returns continue in 2023.
In fact, in just one week in February, The S&P Trader made 13 trades. Two were losses… but the other 11 trades were all 100% winners.
That’s the kind of thing that’s possible during these shockwave periods.
And it’s why I’m looking forward to the next shockwave that will hit very soon… because this shockwave will hand us the chance to double our money… or more.
Free Trading Resources
Have you checked out Larry’s free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just click here to check it out.
An Engineered Shock
During volatile periods like this, high volume can really send the market into overdrive. And that’s why I’m paying such close attention to this next shockwave.
Because Wall Street is engineering an event that essentially guarantees a shock to hit on a specific day.
And the strategy I use is incredibly effective for these types of circumstances… I have a 91% success rate using this strategy when these kinds of shockwaves have hit the market in the past.
In moments like these, billions of dollars pass through a single ticker… and give us the chance to profit in less than a week – usually just a day or two.
So, I’m preparing a presentation to show exactly how it works… including my favorite ticker for this shockwave.
It’ll go live on March 8 at 8 p.m. ET. And I’d love to have you join me there.
It can be challenging to navigate these kinds of periods, so I want to help you take advantage of this market volatility – and be prepared for the shockwave that’s just around the corner.
To save your spot, you can go right here to RSVP with one click.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict