1929… 1973… 2000… 2022…
What do all these years have in common? Each time, markets got crushed.
And in the past, it took years for things to return to “normal.”
Just take a look at the charts…
In the 1929 “Great Crash,” the Dow Jones fell over 89% from peak to trough. And it didn’t reach its previous high until 1954… roughly 25 years later.
During the ’73-‘74 crash, we saw a 50% plunge in the S&P 500. This time, we didn’t see a recovery until 1980.
After the tech bubble popped, the Nasdaq Composite dropped 76.8% by the time it hit rock bottom. It was over a decade before we saw new highs become sustained.
And in the interim years before markets recovered, it was a busy ride. The important thing to note is this… sometimes the initial crash isn’t the worst thing that can happen.
It’s the aftershocks… the up-and-down whipsaws that continue for years afterward… that can mess up your plans for retirement.
For that reason, we need to take notes from history. Because if I’m right, we haven’t yet experienced the full aftershock of 2022’s volatile year…
Riding the Shockwaves
I’ve been a trader in the market for over 35 years. I’ve lived through my share of crashes.
In fact, I was on Wall Street for Black Monday back in 1987, when the Dow closed down almost 22% in a day.
So this isn’t my first time riding (and profiting from) the shockwaves the market can throw at us.
For instance, my hedge fund made $95 million for investors during the 2008 financial crisis. And that was just one year in a 20-year winning streak during my time on Wall Street.
To prove the point, in 2022, most investors lost money investing in or trading stocks. According to Bloomberg, retail traders lost a combined $350 billion in 2022. By contrast, all my trading advisories finished well in the green.
This was only possible due to a couple of things…
First, I keep a strict risk management policy. Most of my trading involves options, and I always recommend traders start small… build up their capital base… and slowly take on more risk only once they have some profits as a buffer.
Sometimes, that means just trading one contract at first. Then, after you’re more familiar with the process and are comfortable with more risk, you might trade two. And so on.
Swinging for the fences immediately often just leads to blowing up your account.
And second, by trading options, we can turn volatile markets in our favor. Options give us the power to profit whether the market goes up… or down.
That’s a hard feat if you’re just buying and holding stocks.
And with options, we not only trade in each direction… we also get in and out fast. Many of our trades close in about a day.
That’s how we turn trading into an income stream that stays steady no matter what the market is doing.
And this concept is so important right now because I expect markets to stay choppy throughout 2023.
Just like in years past, we’re going to see shockwave after shockwave as markets shoot up… and then slump back down.
If you don’t know how to survive this kind of environment, you can rapidly see your retirement accounts erode under this pressure.
But by following my lead, I’ll help you thrive…
And it all starts with a shockwave I see just ahead… one that Wall Street is engineering for March 17.
Free Trading Resources
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Get Ready Before March 17
Right now, we can use the market’s volatility to profit even bigger than usual… with a shockwave that’s going to happen just days away on March 17.
Because Wall Street is “engineering” a shockwave that will send volatility even higher.
Just look at last year for an example. Back in September, I saw a similar setup to the shockwave we’re about to see.
Back then, the market was high on a narrative and had risen about 7% in just four days. But inflation was looming… and I saw a situation primed for a fall.
And I knew on one specific day, markets would have the potential for massive swings in both directions. We were looking at the potential for a big win.
That’s exactly what happened.
We entered an options trade expecting the market to fall… and the next day, the market fell about 4%, sending our trade up 130%. Some subscribers reported doing even better.
That’s a fantastic return for one day… and it only happened because of the high volatility from the shockwave.
That’s why I’m beating the drum about March 17. I see the same kind of engineered shockwave about to happen again.
And I want to help traders get prepared. So on March 8, at 8 p.m. ET, I’m holding a special session to go over what I see ahead… and my favorite way to play it.
I’d like for you to be there, so please add this date to your calendar… and then RSVP with one click by going right here.
I’ll show how you can not only protect your money this year… but actually grow it as well.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict