How to Find Trades with Less Risk in Today’s Volatile Markets

Despite the relaxing long weekend, the markets continue to be challenging. Yesterday, the first trading day after Labor Day, saw the Dow and the NASDAQ drop more than one percent each.

In this volatile trading environment, in which stock prices can rise and drop on a single headline, I’ve been working diligently on fine-tuning the my strategy to better deliver profits in these crazy market conditions – and it is working exceptionally well. Members of my premium trading service, 10-Minute Millionaire Insider, can personally attest to that.

That’s because they had a chance to more than double their money over the long weekend, all on a single “D.R.’s Money Lab” trade recommendation.

On Friday, I recommended they buy calls on Southern Co. (SO) to hold over the weekend.

By Tuesday afternoon, just before close, this position was up more than 100%.

This wasn’t a high risk-trade, either. Far from it.

The wrinkle that I’ve added to my system specifically eliminates stocks that move erratically. It weeds out risky trades on one-of-a-kind events like earnings surprises or other sudden news.

In as news-driven and trade war-focused a market as we have today, that’s absolutely crucial.

Let me show you how can do it too…

Look to Newton to Understand How to Trade

One of the simplest yet most important laws we learn in school is Sir Isaac Newton’s First Law: An object in motion stays in motion, unless acted on by an outside force.

This simple rule explains why an airplane requires continuous force from its engines to counteract friction from the air. It also explains why a satellite in the virtual vacuum of outer space can continue moving at a constant speed until it bumps into something or turns on its engines.

The same is true in the markets.

Some stocks jump up and down on the slightest news, acting erratically like a plane caught in turbulent air. Trading these stocks feels a bit like flying in turbulence, too. If you’re a skilled trader, you may win big playing these stocks.

But counting on it is not a solid financial decision.

It’s the other stocks, the ones that are moving consistently upward, where the money is. These stocks are like a satellite zipping through space as they keep rising in price with only minor dips.

These don’t have to be stocks that bounce all over the place, mind you. The money-doubling profit that 10-Minute Millionaire Insider members had the opportunity to bag on Southern Co. over the weekend was a utility, which is a fairly stable sector. Just take a look at this chart:

As you can see, Southern Co. was on a down swing leading into Christmas. But since December 24, it’s been on a continuous rise, up more than 40%. Stocks like these tend to continue rising, even in the face of trade wars and other challenges.

Of course, our trading technique means you don’t have to wait nine months for a 40% gain. Remember, 10-Minute Millionaire Insider members who followed my recommendation could have doubled their money just over the Labor Day weekend. You can see that large move up in the very top-right corner of the chart.

Combine that move with my options trading technique, and you can make much more than 40% on a stock like this.

Another recent opportunity was on Procter & Gamble Co. (PG), the consumer goods company, as you can see below:

Procter & Gamble similarly had a tough December, but has since been on an upward trajectory. In this case, earnings reports have created larger swings in stock price than in Southern’s case. That’s why Southern rated higher on my trading list.

Now, both are about as well-behaved and safe as stocks get: utilities and consumer goods. That’s what I mean when I say these are low-risk trades.

Now, the trick to finding these steadily (but quickly) moving stocks is simple…

Trading Success in Wildly Volatile Markets

First, we identify which sectors of the market are moving up consistently and with high trading volume. This combination shows us where stocks are going to have the most “oomph” – where people are putting their money and propelling winners further and further up.

Again, we’re looking for continuous gains here, not sudden jumps. There will be some drawdowns, of course, but we’re looking for sectors where these are small.

Next, we identify the best and worst stocks in the best and worst sectors, using the same criteria.

Then, as we’ve always done, we wait for a pullback to established support levels – offering a great buying postion on a strong stock.

If you’d like to receive these potentially money-doubling trade recommendations, as well as my income-generating “Paycheck Plan” investment suggestions, and weekly market analysis, become an Insider today.

I’ll also give you a free copy of my book, which will show you how you can identify your own trades that have a higher probability of success, and how to limit the downside risk that comes with all investing. It won’t be long before you could be enjoying double-your-money trades of your own.

Click here for all the details.

Great trading and God bless you,

D.R. Barton, Jr.

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