Home Trading Strategies How To Profit From A Recession (A Fool-Proof Strategy)

How To Profit From A Recession (A Fool-Proof Strategy)

How To Profit From A Recession (A Fool-Proof Strategy)

hey hey what’s up my friend so I want to shoot this training video here for you because I don’t share how you can actually profit from a recession because at this point in time right the SMP 500 has dropped lino 20 plus percent many investors many traders they are worried right whether you know the virus are the kovat virus you know will it affect the whole world is this just a pullback or is this something more to come so here’s the thing right we never know ahead of time whether it’s gonna be a pullback or recession if we can predict right we all be filthy filthy rich so whatever the case is right whether it’s gonna be a recession or not this video here will prepare you for it if it’s a recession great right then you can use the techniques concepts that I’m about to share with you right to profit from a recession if it’s just a pull back no worries right few years down the road if there’s a recession you can also use this information right to your advantage so here’s what we’ll cover in today’s training number one I’ll share with you the truth about recessions that nobody tells you yes right a lot of gloom and doom out there no business closing shops things are not going well but amid this crisis period I mean this volatility amid this you know uncertainty there is money-making opportunity if you can spot it and I wanna share this with you number two how to time the market during a recession so you can buy stocks with conviction and confidence right how do you know when it’s a good time to buy stocks in the markets right what if you you buy a stock and the stock continues to drop further or I showed you average into your losses should you cut your losses and stuff like that how do you know when is the right time to buy I wanna share with you my own technique right on how I’m gonna time the market and I’m tree right how to know what stocks to buy during a recession what do you buy the wrong stocks and the stocks goes to zero what if the songs goes bankrupt because the economy’s not doing well so I so how do you pick the right stocks right they’d have a greatest chance right of surviving a recession anybody know rallying right afterwards and finally right how do you know when to sell your winners for maximum profits right you don’t want to just you know sell and book a 1020 percent profit when you get it doing a recession this is like the great Singapore sale the great fire sale you want to hold it right for maximum profits and I wanna share with you how to know when is the right time to sell your whole thing so all this and more in today’s training let’s get started so the first thing I want you to know about recession is that in the long run stock markets they are generally in a long term up so what I’m about to share with you here is pretty much right a long-term chat of the SMP 500 right tracks the US economy and you can see that this chart you can agree with me that it’s in a long-term uptrend know that we have pool backs then you see over here on this chat a long way you know there’s a slight pullback that’s like bleep pull back pull back pull back pull back pull back pull back we call this retracement but when you are experiencing this in real time right some of you right would say that this is actually a recession right where the market actually no corrects quite a bit on 40 50 percent or more but one thing that we can agree that whenever the pullback ends whenever the recession ends the stock market tends to continue higher it tends to break out of the previous high so bear this in mind in the long run stock markets they are in an uptrend right this is important so this will give you conviction right to know that hey this is something that I want to be buying when prices are low and we all talk about when to buy later on the message that I want to bring out to you in here is that recession it will be over one day eventually the markets will will go back up and continue its uptrend next one bear markets are shortly phrasal Sherry’s table here with you if you look at the bear markets how long it lasts right you can look at this column over here generally you can agree that most bear markets they are less than two years of duration like for example the O in online financial crisis it lasted for one year in six months that’s about 20 18 months the one before there around the dot-com bubble is probably eight months or so or I can go back as far as the 1950s and stuff like that generally most of them are less than two years right of course the Great Depression is only slightly longer almost four years but we can agree that bear markets are short-lived and this should make sense intuitively because we look at a previous chat over here you’ll see that this retracement retracement retracement they are much shorter compared to this trending move over here this trending move over here this trending move over here so bear markets it’s shortleaf yes it’s painful yes it’s uncertain yes volatility is high by remember it won’t last forever it’s usually pretty short life usually less than two years next one the returns right after a bear markets are usually pretty done good and this again right it’s a salt meth right so if you look at this some stats over here right during here is the the recession no ID this column over here and what happens after the recession after one year of the Trias of the five years if you look at the numbers right after three years or after five years you get pretty insane returns right after the market collapse after recession so this should tell you that when the market is in recession when the market is correct thirty forty fifty percent this is where money-making opportunity lies this is where you want to be prepared to buy some stocks and let me just walk up some simple math with you okay so for example let’s see the market so let’s say in the index the SMP 500 let’s say previously is trading at hundred dollars for example and it drops down to $50 at this point the SMP 500 has lost 50% of its value right hundred 250 it’s a loss of fifty percent but now from 50% or from fifty dollars let’s say it goes back up to hundred dollars how much is the game if you do the math the game is not 50% the BK is a hundred percent so when something loses half in value you need to regain 100 percent just to break even and do you know what’s the best part the best part is this right if the SMP 500 drops 50% most stocks out there they won’t drop just 50% they will drop you know 70% 80% or even some ninety percent of their value it tends to drop more than the SMP 500 because they have a larger beta right in some technical term but generally right a number of stocks will drop more than 50 percent so for example let’s say a stock it drops 80% in value let’s say a stock previously again hypothetically right $100 then it drops down 80% the value now is $20 now from $20 to go back up $200 how many percent gain do you require if you do if you do the math okay if I’m not wrong you need again off 400% just to get back to break even okay you need a written or 400 percent just to get back to break even so let this let this sink in for a while because this tells you that the more a stock price drops the greater the opportunity that lies okay so this is important right in the returns after a bear market are usually pretty done favorable so now moving on how do you time the markets how do you know when is the right time to buy a stock so I only share with you a very simple timing that I use myself okay what I like to do is look at the historical shine and see how the market has dropped previously so for the SMP 500 previously in the dot-com bubble it dropped about 50% from the highs wait on a financial crisis about 55 56 percent right now is pretty much a question mark – how much it can potentially drop so one thing we can agree right is that this market could possibly drop 40 percent or even 50 percent or more so this tells you that if you want to prepare for recession you don’t buy just because the market has dropped 10 percent or just because 20 percent because there’s a good chance it could you know drop further to 40 or 50 percent so my game plan moving forward is this you have to enter you can do it in already called trenches so if the index drops 40% then you can use half of your allocate and located capital to buy stocks and if the index drops to 50% you can use the remaining half to buy stocks because you as you’ve seen know historically the SMP it drops 50% or 55 it’s almost near the bottom but you can guarantee right you the the reason why I decide to you know fire a bit when the SMP drops 40% is because sometimes it may not pull back 50% maybe pull backs to 45% maybe to 40% and then in rallies and never looks back and never look back any of you are died died right you are just waiting and at 50% mark already and a 60% month you may not get feel and you might miss the opportunity of the decade so be flexible over here right you don’t have to nail the bottom the exit button to make money okay just a very simple example let’s see stock price drops from 100 down to let’s say $20 is a lower price but let’s see you bought it not at 20 you got it at 30 or maybe even 30 maybe green 35 well does it matter you’re still gonna make money right whenever stock rebound so don’t get too caught up with nailing the bottom right because that mindset might actually cost you to miss the entire opportunity so my guideline is again right if the index dropped 40 then you can start you know buying some stocks maybe about 50% of your allocated capital not your entire wealth your allocated capital right to take advantage of this crisis period and if the index let’s see it does drop to 50% mark then you can use the remaining half of your capital to buy more stocks make sense so now brings us to the question right to this right how do you know what stocks to buy right now Sony stocks out there in the US there’s like thousands of stocks are which stocks to buy so a few technique to share with you number one you can just Google right I break any investor holdings so for example what is invested you can follow the most famous investor of all time Warren Buffett just Google Warren Buffett holdings and you will see something like this over here I just googled it and it shows me pretty much all the holdings that Warren Buffett is currently holding he says that it holds the American Airline groups it’s a 10% stake that’s quite a lot as a Bank of America has Biogen has a delta reg globe life general moto so you can see he’s holding so he sticks in all these different companies that he’s holding it and as you know Warren Buffett is pretty much the greatest investor of all time he has probably done his research the fundamental of the companies the management right and you can just kind of like you know hop on and I mean right on his coattail right and take advantage of all these so-called hard work that is that this is one way to kind of know pick quality stocks right that has been done for you by the world’s greatest investor that’s a one technique you can use and also pay attention to the stick that he has right in those company because the great aristocratic writer in a way can see the greater the conviction he has in the company right so pay attention to the stick as well right 10% stick is definitely more significant than a 0.

1% stick okay so that’s one technique you can use number two you can start to buy stocks that you believe in all right what do I mean by believing so how stocks work is that in the long run if they make money right the stock price will reflect according to it right so it’s basically a barometer to how well company is being run in manage and how profitable it is so for me personally I believe in Google because five years from now I believe you know such engine is still there they are the biggest player in the search engine market I believe in Google maybe Amazon right I buy things from Amazon pretty done regularly I believe they will be here for the next five years that’s another company I’m living or if you like eating McDonald’s right that’s not a company that you I believe in coca-cola I don’t know right so what are the stocks there you know that you have come across or maybe things that you use you buy off the service that you use right think of those stocks in those lines right do you believe in those stocks do you believe that you’ll be there right over the next five years do you think that they will survive the crisis if you think it’s a yes then maybe those are some stocks then you want to consider alternatively you can pick stocks from your country’s index and from Singapore so I can just look up the STI and see which are the top 30 stocks and see which of these 30 stocks right I believe will still be around after this crisis maybe some bank stocks like you OB OC BC TBS all right from the US it could be stocks that you know banks that you know Goldman Sachs could be Microsoft I don’t know right so just look through your large cap stocks right in your country’s index and see whether those stocks are something that you might believe in right and you might want to consider buy so let’s you know kind of talk a little bit about how do you know right how much to buy so let’s say you have hundred K of L okay and locate that capital that you want to do buy in this recession so remember I say that 40% if the index drops 40% right you use half of it to buy the first the first batch of stocks alright so our $50,000 you can stop buying some stocks right like maybe you know Amazon Tesla Google Apple whatever you want right Tullio this $50,000 is used up and if the index drops to 50% ma you can fire off your remaining $50,000 and buy the remaining stocks that you want might be the similar stocks that you have bought previously but now at a better price or might be some other new stocks that you know you didn’t manage to buy earlier again it’s all up to you but this is pretty much what I’m sharing over here I went to buy and how much to buy and again my suggestion is no trying to automate things easier right if you have 100k of capital and let’s say you buy 10 stocks then simply put right $10,000 to each individual stock you can get fancy food you know and you know overweight certain sectors and buy more stocks within that sector or buy more heavily towards that stock but that’s where you know the idiosyncratic risk comes in where you never know what the medicine of the the company is really doing behind the scenes you don’t have such information so my suggestion is just kind of let spread out your bed never know what happened so there’s some diversification there for you maybe got some banking sector technology you know oil and stuff like that so now in it we have covered what stocks to buy moving on when do you sell and by the way if you’re enjoying this video right hit the thumbs up button and subscribe to my youtube channel this way I can share with you more practical trading tips advice and opportunities out there in the market so do it right now and moving on when to sell so this is the question right I am NOT an investor I’m a trader at heart so I’m not really no devourer you know research paper fundamental news of the company and see you know when’s a good time to buy so some guidelines to share with you is that you can sell half of your holdings right when he reaches near the previous high so let’s say Amazon you know before the crisis is trading in it a thousand dollars for example and crisis you drop to a loaf maybe $500 or 400 dollars so when you buy it at price or any rallies back near the previous high of about thousand dollars you can sell half of it and you keep the remaining half right because you have no idea you know how far this stock could go maybe you know the economy is going to a long-term boom market right all stocks are being lifted along the way you’re the kind of you know drill your stop-loss right – – right this train right as long as possible so what you can do is to sell the remaining 50% when the stock closes below the 200 week moving average so this way you are still giving some buffer right – right further upside if there is but whatever the case is right half of it is kind of ready in the bank right you really book that profit I saw this technically you know risk free to you if you want to call it right so what I’ll do is that again I’m not a fundamental person I’m gonna study research paper I’m not gonna you know read the quarterly earnings right I’m just gonna follow simple technical analysis and write the stop right till it closes below the 200 week moving average till the weekly candle closes be loaded 200 week moving average that’s just my game plan and finally advice for you is that you know this I’ve no idea whether this is gonna be recession whether you know you will be buying stocks over the next few weeks or next few months right so the most important thing here is that don’t invest with money you kind of fought to lose you know if you have bills to pay you have a mortgage to pay you if you no food to put on a table right don’t borrow money to invest don’t borrow money to trade right because just because I shared with you how I’m gonna time the market doesn’t mean that the market will bottom up at 50% who knows in my going further to 60 70 80 % I have no idea and if that’s the case right if you’re boring or you’re investing on margin right you could imagine call and you’re gonna know sell all this quality companies right at the time that you want you don’t wanna be selling because you’re dealing or you’re investing with money kind of fought to lose right so don’t do that number two don’t sell too quickly I know it can be tempting right because in bear markets right the rallies are very quick and many investors right they buy a really good price and the price goes up 20 percent boom they sell everything they say oh wow look at the people MonaVie no paper profits that I have man or man god I’m so tempting to sell let me sell sell sell and when they sell it twenty percent guess what the stock goes up another two hundred percent so don’t let that happen to you don’t sell too quickly so the guidelines that I’ve shared with you earlier it’s meant to keep you holding those stocks those winners for as long as possible if you sell too quickly I did really right why go through all this emotional trauma you know all this you know potential sleepless nights right they’re just gonna book a 1020 percent game doesn’t make sense right so don’t sell too quickly and finally you don’t have to nail the exact bottom to make money many investors do I know always trying to pick the exact bottom to make money but as I’ve shared with you earlier even if you don’t enter and let’s say and the absolute bottom you enter you know ten twenty percent around the bottom right when a stock rebound the returns are still pretty done favorable okay so don’t focus on nailing the exact bottom right and you end up missing the entire move right don’t focus on the trees that you miss the entire forest all right so a quick recap right to today’s training the more one stock markets they are in a long-term uptrend as I’ve said earlier bear markets there shortly if usually you know two years or less and offer lucrative investing opportunities look to buy right when the index dropped 40% or more and so I’ve done this based on analyzing the SMP 500 if you are in Singapore you can analyze the STI and see what’s the the depth of the drop right whenever a recession occurs even the Philippines you can do the same thing as well India same as well you’ll buy fundamentally sound companies or I don’t buy penny stocks during recession right because if that stock goes bankrupt right you lose everything so focus on quality fundamental companies companies that actually has earnings coming it actually makes a profit and I share with you a few techniques that you can use earlier to buy fundamentally sound companies right this is important okay and then look to sell half when the price is near the previous highs and then you can drill the remaining using the two hundred week moving average and finally right last is that don’t invest with money you can’t afford to lose don’t sell too quickly and you don’t have to nail the bottom right to make money in a recession is that all right so with that said I’ve come towards the end of today’s training I hope you know you make some money out of this recession or future recessions and I wish you all the best and I’ll talk to you soon you


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