What Goes Down… Must Come Back Up?$?!$ Cashing in on Stock Market Volatility…

What a wild ride today! If you follow the stock market you know what a crazy ride it’s been over the last week…

From the Dow’s 1100+ point drop yesterday… to todays 900+ point plunge to turn around to end the session 560+ points positive… AMAZING!

As a trader/investor for over 15 years, I can tell you, that it’s been an incredible ride… with crazy swings up and down… enough to make you pull all your hair out or even make you think the unthinkable… But just like so many others that have ridden the market through all its good times and its bad, one thing is sure… it has ALWAYS come back stronger than it ever was before any crash.

Let me explain my personal experience… I started out as a day trader, making about 20-30 trades in and out every single day.  I was fully leveraged.. and at the time, you could easily borrow 3x’s the amount of equity you owned. Yeah, it was fun… for awhile… you could easily make money as the overall market was positive, but who couldn’t?!… That is, until the market starts falling endlessly with no bottom to stop it… At those times, you feel helpless… you start seeing all your gains you made over the years wiped out and soon after you see your very principal getting wiped out as well… Personally, I saw all my gains PLUS 50% of my principal wiped out during the “Great Recession” in 2007… Believe me, that was rough…

However, even with all the losses and stress, I stuck to it and didn’t give up. I knew from my prior trading experience that making money in the market as a trader was actually possible so I decided to keep at it instead of throwing in the towel once and for all.

I decided to learn from my mistakes as a day trader and started to trade smarter… trading on a longer time frame versus the quick in and out trading I was so accustomed to.  I started playing more options to leverage my bets instead of playing borrowed money that wasn’t even mine to begin with.  And most importantly, I started investing more rather than playing the trade game…

I must admit trading is fun and addicting.. but it’s the same type of feeling when you are at the casino playing craps (or roulette) or a good game of poker… You feel great and unstoppable… but in the end (that is at least for 99% of players) NO trade is ever safe no matter how good of a player you are… and eventually you WILL get popped no matter what…

After years of trading, I finally had enough… I turned to purely investing (well at least 95% investing… with 5% aggressive options trading- hey, I still need to satisfy my trading itch somehow… lol)… And my positions that I held after getting obliterated have grown significantly… now at 300%+ of my initial investment when I first started, gained in a 7 year time frame… Not too bad if you ask me…

So these last few crazy days in the market have actually not been that too bad… Yeah on paper these huge drops last Friday and Monday seem to have gotten everyone feeling like it’s the end of the world… but if you just hang in there you will eventually see some light… Today was one of those days where the market bounces back and leaves those who panicked and sold behind…

It’s really just a matter of time that investors will see the value of the market at these levels… And eventually, if you stick it out long enough, you will see it bounce back… and when it does it will bounce back to even greater highs… And those that kept in or even put more money in believing in the true value of the companies that make it up, will be greatly rewarded…

Happy Trading & Investing Everyone for the rest of 2018…

ZLS Consulting, Inc. (c) 2018. ALL RIGHTS RESERVED.

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