Author: Chris Hood
Be sure to check out new episodes of my video podcast each week, where my ace pupil Brian Jones and I talk the ins and outs of options trading- and give you insights and strategy that you can immediately put to work for you in the markets.
Many people are losing money right now.
If you’re in the market as an investor, your portfolio likely has you in a complete panic.
Bear markets with lots of volatility can make some traders lots of money. However, most retail traders find these times terrifying.
I pride myself on my emotional control, but this is one of the most challenging few months I’ve had in MANY years.
So you definitely aren’t alone with market woes.
Inflation is a concern that’s hitting many people hard.
I don’t like paying the equivalent of 12 US dollars per gallon of gas here in Canada. Groceries are too expensive, and I think this economic recovery will take some time.
If you’re making money consistently – GREAT – keep doing what you’re doing.
However, if you’re struggling, I would suggest you switch to paper trading for a while. Or just stop trading altogether.
I don’t make my living selling coaching – I earn it in the market.
Helping clients make money, and teaching them HOW to make money on their own, is one of my true passions. That’s why I place every trade I recommend, and I’m not shy about posting my losers.
I’m in this with you. And as much I wish I were a robot, markets as volatile as this tend to make my hair a bit grayer each day.
In other words…I’M WORRIED TOO.
When I suggested that some of you might want to stop trading, I don’t mean forever. But a string of losing trades can put you in a negative mindset.
And negativity is a killer.
Times are lean right now for sure, but they never stay this way for long. And these are the moments when you learn the most.
High-velocity bull markets can make everyone seem like a genius. We all love to make money and have our egos stroked.
Unfortunately, the market doesn’t care about your cash or your feelings.
Those who put in just a bit of effort to improve their trading skills will be the ones who profit the most when the market turns around.
So if you aren’t trading options with real money, what is the one thing that’s crucial for protecting your capital?
Get out of debt and stay out of debt.
Interest rates are already creeping up. The Fed announcement suggests they will be around 1.5 – 1.75% soon. And many predict they’ll hit levels close to 4% by next year.
If you’re carrying debt, this could be a crushing blow.
I’m sure you’ve been flooded with credit card and loan offers. This is predatory marketing at its worst.
The most egregiously deceptive pitch I’ve seen from this junk mail is:
“Take out a loan while rates are still at historic lows!”
Rates are going up, my friend, and I can promise you that whatever interest rate they’re advertising will go up.
Always read the fine print on these offers.
Big banks want you to accumulate more debt. This is because your debt boosts their bottom line.
Create a plan to pay off what you currently owe and avoid spending money you don’t have. Otherwise, you’ll likely be saddled with payments you can’t afford.
Debt consolidation services can help you reduce what you owe now.
However, only personal discipline and delayed gratification will keep you from making lenders rich while you suffer.
Remember, I know a bit more about wealth management than just options trading.
I don’t mind taking a moment to help you out.