How to take back control of your portfolio during these tumultuous times!
n the last few weeks, we have seen hundreds of billions of dollars wiped out of the markets.
We have seen crypto drop its trillion US dollar market cap status.
And we have seen top traders, influencers and institutions lose their portfolios.
It's exactly times like these where the inexperienced, greedy and clueless traders destroy their accounts…
And it's not because they don't have a profitable trading strategy.
No! It's because these traders don't know how to protect their trading positions when things go bad.
In this article, I want to show you how to protect your portfolio during these difficult times...
You may be surprised to hear this but “It’s a buyers market right now!”
If you’re not sure what to buy on the JSE or where to look, then I strongly suggest you consider Francois Joubert’s analysis of the markets... He says there are some of the best opportunities available right now if you just know where to look.
You can blow your portfolio with a winning strategy?!
Yep that is not a typo.
Let's say you have your proven strategy, correct mindset and strong money management rules.
Is that all it takes to be a successful trader?
For the first couple of years of trading, I believed it was.
But let me tell you my story.
I had all of these elements – a great strategy, strong money management rules and a confident mind set.
One day, I woke up looked at my portfolio and realised I was down R70,000, in just three days.
I didn't understand what I was doing wrong.
But the year was 2008.
I had decided to go long (buy) over 20 trades.
And over the course of 2 weeks, I was down over 35% of my portfolio.
I was reckless.
Every trade I took was a loser.
So how did this happen and how can you avoid this situation?
Let’s say you have R10,000 in your trading account.
You have a strategy showing you where to get in and how much money you need to put in, to only risk 2% of your portfolio.
So should the trade go against you, you’ll only lose R200 in your trade.
Next, over the course of one week you decide to trade 20 trades.
You’ve gotten in exactly where you should. And you’ve placed your stop loss (risk levels) to the places where you’ll only risk 2% of your portfolio.
But then a stream of bad luck hits you.
Every one of your trades, go in the complete opposite direction to where you expected them to go.
Your longs and your shorts get stopped.
And so your trades start to hit their stop losses.
One after another, after another, after another.
So even though you followed the strategy and the risk management rules, your
portfolio still ended down 40% (R4,000) in just one week (2% X 20 trades).
So how do you avoid losing 20 trades in a row?
Yes! Sure, don’t take so many… but how many trades can you afford to take?
Well, the trick is to limit the percentage of your portfolio if you hit a losing streak.
My limit is to never be down more than 21% of my portfolio in any series of trades.
And if I’m risking 2% per trade, this means to only have seven open positions at a time.
You’ll be able to stomach the losses, and then able to search for higher probability trades.
Or take a break completely until the market improves.
So, how do I know how to take back control, limit my losses and when will be the right time to start trading again?
Unfortunately, this needs a bit of time and explanation, as well as some calculations and examples so you can understand how to protect your portfolio...
That’s why I’m going to be sharing a special prerecording exclusively with my Red Hot Storm Traders.
After all they are actively trading the market every week using my service so its critical, as a trader they understand:
• The strategies, & rules you need to put in place to prevent the downside
• How to lower your risk in each trade
• How to control your drawdown on your portfolio using trading indicators
• And most importantly, how to fast-track your portfolio back to profits
If you sign up to Red Hot Storm Trader today, not only will you receive the next 90 days of trading signals FREE thanks to our moneyback guarantee, I’ll also send you the entire prerecording plus a special calculator – FOR FREE.
Trade well, Live free.
Chief Analyst, Red Hot Storm Trader
This special will only apply to those who sign up today! So go here now...