Taking a Break from the Market

The stock market can be both a rewarding place and an “evil place bend on taking away your money”.  In order for you to be consistently profitable you have to realize there are some times you should just take a break and let the market work itself out.

Whenever the direction is unclear and stocks are making record percentage gains one day and record percentage losses the next it might be time to stay out.  Walk away from the computer screen and wait for the next trend to emerge.

But there are a few things you can do while you are waiting for things to calm down.

1.       Look for potential stocks

There is always one or two stocks out there that you will be able to find appetizing and want to trade or invest in.  There is nothing wrong with looking for the opportunities of tomorrow, just as long as you don’t confuse them with the opportunities of today.

2.       Learn some Volatile Market Strategies

Some traders love these kinds of markets.  If you are having success with day trading or option selling you can be making some good money during volatile times in the market.  If you aren’t familiar with these strategies you might want to take a look at them.

3.       Continue Paper trading

I know paper trading isn’t nearly as fun as trading with real money.  The money you make from it can’t really be spent on anything so why even do it?  Well paper trading gives you input or information.  Information is extremely powerful in the stock market.

If you keep paper trading you might learn some good ways to actually make money in the market.  You might even find some big flaws in your trading system and find ways to correct it.  Either way it can help you in a big way.

For information on different strategies visit http://www.stocks-simplified.com/stock_market_traders.html