Like many individuals who have made playing the markets their job, I have spent my entire professional career looking for the most promising investment opportunities…
Opportunities where I can simply plant my capital and grow my bank account.
This could mean betting on anything from gold to real estate to tech, or anything in between.
After all, the market covers a lot of sectors, and the opportunities to build wealth are out there for those few willing to take the risk.
Just look at my most recent Watchlist…
It includes stocks that are not only surviving today’s volatile markets but providing profitable opportunities for early investors.
After all, anyone who invests in the markets has the same goal in mind…
To make money!
That’s why we’re all here, isn’t it?
Yet, despite the many profitable investment opportunities out there, sometimes a trader’s best position is also the simplest…
Sometimes cash is king!
When Cash is King
Cash isn’t the most glamorous of investments.
You’re not really going to make anything of substance like you could by successfully playing the markets.
But you will achieve one of your biggest objectives as a trader… You’ll preserve your capital.
As we all know, the stock market is not always under optimal conditions.
As I’ve learned over the years, there are times when nothing is going to work the way we want it to.
The market is a wild beast that many have tried to tame, and virtually none have succeeded.
Take today’s market for example… Breakouts are failing, small-caps are choppy, tech and growth are getting hammered…
Add to that the fact that Goldman Sachs (GS) is down 13.6% in a week, Cathie Wood’s ARK Innovation ETF (ARKK) is off its highs more than 50% and only 37% of stocks on the NYSE are even above their 200-day moving average!
As I said, in the markets, sometimes things just don’t work the way we want them to.
And it’s during these times that cash is king!
An Abysmal Market
Look at yesterday’s heat map on Finviz.com…
Any box highlighted in red means that stock is currently down.
Notice anything?
Guys, there’s an awful lot of red in that chart.
Stocks are down, and trading conditions are abysmal!
And, as I’ve explained before, during these times when the tape is bleeding red, my advice is to cut your exposure way down.
No matter how good your system or strategy may be, the market will not always cooperate.
The Upshot
If you take anything away from this article today, remember this…
If you want to last as a trader for any length of time, it is important to recognize these times.
Either reduce your exposure or stop trading altogether.
Good days will return, conditions will improve and we will once again see an easy dollar environment where even a monkey with a dart board can pick a money-making stock.
In order to enjoy the sunny days, however, we must learn how to survive the storms.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
