Recently I have been receiving a lot of emails and messages asking about the market, and also an unprecedented number of people joining my private trading network, and the obvious reason for this is that the markets now are offering excellent trading opportunities.

Heading into Bear Market Territory

Last Thursday, we officially saw the stock market enter the bear territory, with a 20% correction from all-time highs.

Many people tell me that it is impossible to time the markets. But is that really true, or are they just parroting something they read online or from a book?

Take a look at the 2 charts below. The one on the left is the chart I posted for my students on 27 February 2002.

Now take a look at how accurately it played out on the right, which is the what actually happened.

Now imagine if you had that roadmap on the left, how much money would you have made, or how much money would you have saved by liquidating your portfolio before the full crash?

How Much Did You Make from This Crash?

While most “value investors” or “long-term investors” are complaining about how badly hit their portfolios are, the truth is that the only thing they can do now is quote Warren Buffett and hope that the market rebounds in the long-run.

Eventually, it probably will, and I will also be buying in once the crash is over, but why would I want to sit through a crash that can be avoided?

And more importantly, why would I want to miss such a great money-making opportunity?

These past few weeks of steep declines have probably been some of the best trading days I’ve seen in my career, allowing me to more than double my trading account (ROI of +169.54%) in this short span of time.

This is probably more than most people’s one year salary. Yikes!

 

 

 

And I am glad to be able to guide my students (including complete newbies) during this period of time to generate awesome returns as well on their trading accounts.

Swing Trading Opportunities

With the market in such turmoil (and high volatility), there are going to be a lot trading opportunities on the intraday and swing timeframe, but you will need to have the right skills and techniques to trade these markets.

I would also recommend using smaller lot sizes to trade if you are not used to fast markets.

For example, in my trade below, I used a very small 0.01 lot size to take quick trades on the S&P 500, which allowed me to make US$671 on just one trade in a few minutes.

 

If you take a couple of such trades a day, and use good money management to pyramid or stack positions on strong setups, it is not hard to generate 5 figures a day in such markets.

Of course, these are not normal market conditions, and I do not know how long they will last, which is why we need to make the most of it for the next few weeks.

Roadmap for the Bear Market

Some of the common questions I have been getting:

  • How long and how deep is this correction going to be?
  • When is the virus going to peak?
  • When should I start buying?
  • What should I be buying?
  • Should I sell off my portfolio in case it falls more?

In my opinion, a lot of factors are hard to predict, and this crash is unique because it happened so quickly.

The 2008 crash took 18 months to correct about 50-60%, while this time we took about 3 weeks to correct 25-30%.

That’s insanely fast. some people have not even had the chance to panic sell yet. 😆

Although China has mostly managed to control the spread, and is on the route to recovery, many countries in Europe, Middle East and the US are still seeing and exponential increase in cases, so what we want to see is a deceleration of cases, so that from there we can estimate where the peak is.

If you look at the graph of all the past corrections in the S&P 500, there are only about 5 times in the past 55 years where it has gotten worse then this. (Also don’t forget to join our free Telegram channel for daily market updates if you click on that link.)

Personally, I do not think the bottom is here yet, and after consulting my charts over the weekend, I have come up with another roadmap for the next few months.

To be fair, I will only be sharing this new roadmap with my students, and I will continue to monitor the markets daily so that I can update them when I feel that it is time to start buying.

The Once-A-Decade Opportunity

Anyway, if you have missed the move down, do not despair, because the next big opportunity is the move up, once the decline ends.

Opportunities like this to multiply your wealth only comes once in a decade, so if you don’t want to miss this chance, I would like to invite you to join our private network with an awesome community of traders.

If you would like to avoid missing out on any of such awesome trades (which we deliver on a daily basis), then you should definitely check out our training program & trading signals bundle:
https://synapsetrading.com/the-synapse-program/

See you on the inside! 💰😎🔥

Recently there have been a lot of large fast moves in the financial markets, due to the recent stock market crash, and this has also affected the forex markets, so I am going to share the 2 best trading strategies to tackle such situations.

Although they are quite rare in the stock market, such fast moves are actually quite common on the intraday market, and professional day traders who do news trading or intraday trading will be quite familiar with them.

When I was trading professionally, we would see such sharp moves a few times a week, be it a market crash or market spike.

For retail traders, the best trading strategy is to stay out, and wait for dust to settle before coming back into the market. The idea is to stick to your area of competency, if your trading strategy is not suitable for fast markets or news trading.

For those who want to try out fast trading in the stock market or forex market, there are 2 basic trading strategies:
1. Breakout trading + momentum trading
2. Fade extreme moves, like overbought or oversold conditions

The most important part of any strategy is to have a gameplan before you enter the market, or else you will part of be someone’s gameplan.

Your game plan should include your trading strategy, and specific points you will have your entry, stoploss, target, etc.

This way, once the market is open, you can just focus on execution instead of trying to strategize and execute at the same time.

This is especially important if the market is moving fast, or during a market crash, because there is no time to think, and very emotional, hence it would be impossible to make good trading decisions on the fly.

You will end up trying to chase every price movement, and you will always be one step behind those who have a solid game plan and a consistent trading strategy.

Enjoy the video, and remember to “like” and “subscribe”!

Last week, we had an epic week, with stock indices swinging up and down on alternate days, giving swing traders one of the best opportunities to trade.

Yields plunged (which meant bonds spiked), Gold was up, and oil was also bearish.

In this post, I will be giving an update on 2 of my largest positions:

  • Short position on Crude Oil
  • Short position on S&P 500

 

Short position on Crude Oil

For those of you following my last blog post or my Telegram channel, you will know that I have been stacking my short positions in oil for quite a while, and recently with the price war OPEC, Russia and the US are having, prices are on a downward spiral.

Just today, prices plunged 25-30% in one day!

I have taken the chance to cover my positions, and recently initiated a long position at $30, as I feel that it is a bit oversold, and prices are very near the lows back in 2003 and 2016, so maybe negotiations might start again to push prices back up.

 

Short position on S&P 500

For those who have been following closely, you will also know that I have been short on the stock market, using the S&P 500 as a benchmark.

At the first sign of decline, I posted this predictive roadmap, which has turned out be be uncannily accurate.

 

Simply by following this, my students and I have managed to stay one step ahead in the market, and we have been profiting handsomely both from long and short positions.

As I mentioned in my last trading video, you need a solid trading plan if you want to be able to make money from the markets, instead of chasing price movements blindly.

 


This is where we are the moment in the roadmap, and I am still holding my short positions.

Is this a good time to start buying?

In the long run, I am still bullish on stocks, so I will keep looking for good buying opportunities.

The challenge, however, is avoiding large drawdowns.

So I will want to wait for the dust to settle before buying, and not attempt to catch a falling knife.

If you look at the chart below, since the 1970s, there have only been 3 times when the market corrected to 50% or more, so such super crashes are actually pretty rare.

So maybe a 20-25% correction this time might be more likely, I will see when we get there, since I am still short at the moment.

 

 

Overall, the last 2 months have been pretty fantastic, with 39.81% portfolio gains in February, and 25.8% returns so far in March.

These gains large larger than normal, due to market conditions, but it would allow me to chill for the rest of the year. 😄

Remember, it’s not how many shots you make, but how many shot actually hit the target. One good shot is all is needed to make the kill.

 

Going forward, this week the market is looking bearish now, and the level of fear is increasing. This will present us with excellent trading opportunities.

If you would like to avoid missing out on any of such awesome trades (which we deliver on a daily basis), then you should definitely check out our training program & trading signals bundle:
https://synapsetrading.com/the-synapse-program/

See you on the inside!

 Most people think that in trading, the more trades you make, the money more you will end up making. But is this really true? Traders who adopt this philosophy will constantly be chasing the next big shiny object, reading every piece of news online, and hunting for new opportunities every day. The danger with […]

Last week, we saw the stock market decline for every day of the week, crashing about 15% from all-time highs, making it the sharpest decline in history.

This huge spike in volatility was excellent for short-term traders, and might also be an opportunity for bargain hunters looking to buy stocks cheaper.

I also made a short video talking about the different approaches to tackle the market crash:

The Start of the Decline

The first 2-3 days of decline was sparked after fears of a worldwide contagion of the Covid-19 virus, which saw a gap down on the S&P 500.

I started to post warnings about not trying to pick the bottom or to start buying, because I knew that a larger move was likely to come.

 

How Far Can this Crash Continue?

As the crash continued, I consulted my charts to plot a possible long-term roadmap, which would see a continued decline to about 15-20%, followed by a rebound and period of consolidation.

 

If there is a strong second wave of selling, we could see a larger sell-off to the bottom of the trendline, or the 200-moving average of the weekly chart.

 

At the same time, we also started initiating short positions on Crude Oil and AUD/JPY.

How to Catch a Falling Knife (Successfully)

On Friday, I predicted that there would be a rebound towards the closing, since there was no meaningful pullback after 6 consecutive days of selling, and also traders would likely close their short positions going into the weekend.

So I started accumulating long positions as the market tested new lows, and true enough, there wasn’t much further decline and even had a bullish surge into the closing minutes.

I took the chance to liquidate some of my positions to lock in my profits for the weekend.

 

Overview of Trading Results for Friday

Overall, it was a once-in-a-lifetime exciting chance to trade such volatility, and also a great learning experience for my students as we got to observe and discuss it together in real-time.

My trading portfolio booked a net 39.52% gain, with most of the profits coming from just 3 positions:

  • Short on AUD/JPY
  • Short on Crude Oil
  • Catching the bottom of S&P 500

 

Going forward, next week is going to be an excellent week for bargain hunting, and I have already posted my target portfolio allocation for my students so that we can be on the lookout for buying opportunnities.

If you would like to avoid missing out on any of such awesome trades (which we deliver on a daily basis), then you should definitely check out our training program & trading signals bundle:
https://synapsetrading.com/the-synapse-program/

See you on the inside!