Chad Shoop brings his Pure Income readers market-beating trades every week.
Those gains don’t always come from the top earners in the S&P 500 Index. Nor do they require you to time the ups and downs of a particular sector.
In a volatile market, even the best-performing stocks can fall to portfolio-wiping losses. And this can happen whether it’s trading up, down or sideways.
Chad doesn’t recommend chasing the top performers all the time. His reasoning — if you find a stock you trust, you should stick with it to realize your profits. This sentiment is true no matter where the markets turn.
You just might need to buy some insurance to protect your position.
And there’s no better way to insure profits on a stock you own than by taking out protective put options.
Chad’s Pure Income readers are familiar with this approach already.
He just wrote about protective puts in his latest Winning Investor Daily article.
Chad designed his trading system with this strategy in mind. Think of it as an insurance policy against the chaos of the stock market.
We asked him to explain why this strategy has proven so effective for his readers:
I hate the idea of chasing stocks. Chasing winning stocks can lead to disappointment in a volatile market. Volatile markets are great for adding exposure on the dips for long-term positions, but trying to time the ups and downs will create a lot of whipsawing in your portfolio.
Whipsawing is when you jump in expecting a stock to continue higher, only to see it fall quickly. You end up buying high and selling low. That should be exactly the opposite of what you are trying to do.
Stay patient. Use volatile markets as a time to add to stocks you like. You can add protective puts to extend the time value and profitability of a trade that’s underwater. Don’t worry about timing the tops and bottoms of volatile markets.
From January through March, Chad’s readers bought stocks in Synchrony Financial, Intel and Boyd Gaming. He recommended adding protective puts on these trades, and they netted modest gains from their positions instead of the losses they were facing.
And with these gains behind them, Chad expects higher returns throughout 2019.
If you’re interested in hearing more from Chad and our other experts, check out their Twitter feeds!
We feature our experts’ latest articles, videos and more at the official Winning Investor Daily Twitter page. You can follow it here.
As always, our experts keep a close eye on the markets to make sure they can offer the best trading advice.
Read on to see the topics that they’re following this week.
And we’d love to hear from you!
Just write to us at winninginvestor@banyanhill.com. We might even feature your feedback in our weekly letter.
Barrick Gold/Newmont Mining Merger Fell Apart — But New Joint Venture Looks Even Better
https://banyanhill.com/barrick-newmont-merger-fell-apart-new-joint-venture-better
The Barrick Gold and Newmont Mining merger fell through, but the newly proposed Nevada joint venture looks attractive. Matt Badiali explains why it’s important to be patient and allow things to settle before buying into either company.
Use Put Options to Offset Potential Losses in Your Stock Portfolio
https://banyanhill.com/use-put-options-offset-losses-in-stock-portfolio
Buying a stock at the right price is important. Everybody knows that. But that’s just half of the investing game. Knowing when to sell your shares is the other half. Chad Shoop shares his strategy, so you never have to sell your stock at a loss again.
5 Habits of Winning Traders — No. 1: Money Is Not Important
https://banyanhill.com/5-habits-of-winning-traders
Most of us have a strong attachment to money, which can have debilitating effects when we play the trading game. John Ross shares his research on market-based beliefs that are common among winning traders.
Artificial Intelligence Is Combating Fake News —2 ETFs to Buy
https://banyanhill.com/adverifai-artificial-intelligence-identifies-combats-fake-news
Disinformation is a harmful and dangerous misuse of the news, and with global communication, it spreads faster. But artificial intelligence is offering a solution to fake news. Charles Mizrahi talks about a company’s algorithm that can scan and verify information before it goes online.
Invest in the EV Revolution and Chinese Demand With Copper Stocks
https://banyanhill.com/dont-count-on-a-rally-in-cobalt-but-heres-how-you-can-profit-with-copper
Even with billions of dollars flowing into battery factories, the price of battery metals is collapsing. Copper will withstand the uncertainty ahead, and a shortage is coming. Anthony Planas explains why the metal’s price will rise as the electric-vehicle revolution pushes forward.
Regards,
The Winning Investor Daily team