Right now the Greece crisis is going from bad to worse. The Greek government are trying every trick in the book to put a quick fix on this train wreck, but nothing seems to be working. The market last week went crazy on this news, and many investors got caught out in both directions. The market is brutally volatile right now, but is there a way for you to profit no matter what the market is doing, and no matter what bad news is coming next. First of all you better get use to the turbulent market. As it is likely to continue with more news coming out of the EU region.
Here are fives way to help protect yourself against losses in the coming months.
1) Take a rest from trading
The market right now is coming off a very violent upwards rally. If the market takes a rest so should you. The data seems to suggest there is more upside coming, but the market is overbought at current levels and may need to take a breather. Just wait a bit for a better opportunity to get back in.
2) Stay away from bank stocks
Right now bank stocks are seeing some gains, but as the economy hangs in the balance you are better off to stay away from banking stocks, due to the current climate and volatility out there. There several other sectors you should get involved with other than the financial sectors right now.
3) Look to Emerging markets
As interest rates spread, and inflation fears subside, emerging markets can sometimes be a much better vehicle to get involved with. Emerging market mutual funds have seen quadruple the money flowing in other than the US and European markets at the moment, and emerging stocks seem to be doing a lot better.
4) Hold Long Positions
Traders in this market seem to be getting killed. Even the good ones cannot handle this volatility. You have to be an investor, not a trader. Hold smaller positions longer for more profits. Be patience and allow for more wiggle room, as the Greek news and events play out.
5) Buy familiar stocks (Not Bank stocks)
For those with the longer term trend in mind, it is wise to stay with your favourite stocks that can last through this debt crisis. That means stay away from banks, and financials. That environment is not only risky, but there is a lot of uncertainty right now, and the risks far outweigh the returns in this sector. Go back to the basics and use smaller positions. That way you will keep the odds in your favour.
World recognized trends forecasters, known by many around the world most addictive & highly accurate. Sign up for a FREE Trends alert at: http://www.forecastfortomorrow.com
Article Source: http://EzineArticles.com/?expert=Jon_Safer
Tidak ada komentar:
Posting Komentar