The TSX officially turned negative for the year yet again on Tuesday. The market was down YTD about 50 points or .31%. After a miserable February, we started to climb out of the hole and got our first Confirmed Up Call on May 9th. A pretty good rally ensued, leading the TSX finally to a slightly positive YTD return on July 13th. Unfortunately, that market high has been followed by several weeks of a choppy price action leading to Tuesday’s close underwater for the year.
Tuesday was typical of the way the market has behaved lately. It’s been volatile! By 10:18 ET things looked good. The TSX was up 92 points led by oil stocks. But then President Trump started speaking at the UN, the price of crude began falling, and news reports surfaced that NAFTA talks were “almost certain” to miss the weekend deadline for a deal. That was a triple whammy for Canada. The market slowly but surely slipped into the red, closing down 48 points. That’s a whopping 140-point intraday reversal!
As challenging as the market has been, there are a couple of tested and proven ways to make good money in our Canadian market.
- Follow VectorVest guidance and buy safe, undervalued stocks rising in price, only when the market is rising. Even then, more than ever in 2018, you need to weed out the weakest performers on a regular basis, especially when the market is falling. This portfolio money management technique is covered in video Lesson 2 in the Successful Investing Quick Start Course titled, Weed Your Portfolio located on the Training Tab.
- Implement swing trading. More and more, investors have turned to shorter term investing with a portion of their accounts, or swing trading. Swing Trading is a strategy that focuses on taking smaller gains in short term trends and cutting losses quickly with pre-determined Stop-Prices, usually set just below a recent price bar or support zone. It’s a strategy that can help boost your accounts, especially in the type of choppy, difficult market conditions we’ve seen most of this year.
The crazy thing is, the more you learn about proven Swing Trading strategies, set-ups and techniques, the better you become at finding the best stocks and entries for your value plays and long-term dividend stocks.
Swing traders take advantage of pullbacks, breakout patterns and short-term momentum plays to capture gains. Tight stops, strategically placed, means higher reward to risk ratios and a low drawdown in your portfolio overall.
It takes the right tools, superior training and confidence-building through paper-trading to become a profitable swing trader. With that in mind, VectorVest will soon be launching a digital Swing Trading Workshop for Canadians in the coming weeks. Called Swing Trading Success with VectorVest, the course will be presented by Senior Instructor Jerry D’Ambrosio who many of you know from his Trade Like A Pro and Art of Mastering Candlesticks workshops, and David Paul, a professional, technical trader. David is VectorVest’s Managing Director, United Kingdom.
You’ll learn techniques to objectively time the CA and US markets to know the best times to buy. You’ll also learn how to identify the most important candlestick patterns; the most important criteria for your searches; and strategies for effective money management. By the end of the course, you’ll be able to put all the pieces together in three separate trading plans to suit your investment style and goals.
If this is something that may be of interest that you think could help your trading, you are invited to attend a FREE SNEAK PEEK into this all-new Swing Trade course. Jerry will be presenting the strategy next Wednesday, October 3 and Thursday, October 4 in a webinar called Swing Trading Workshop Sneak Peek. Click Here to register for the event.
Register now for the Sneak Peek and learn HOW SWING TRADING CAN HELP YOU BECOME A BETTER INVESTOR!