I am reluctant to say this but apparently after the disastrous Jobs report and the poor ISM report, June is a month where we need to be EXTRA careful. If your stop loss is reached, we encourage you to cut your loss. If you do not wish to cut your losing positions, the following are some strategies you might consider in June.
Some tips for trading in June:
2) Consider doing some hedging against your bullish position if you are still holding to some stocks. One good way would be to short a weak stock while longing a strong one. This is called pair hedging. In a weak day, the weak stock will go down more than strong one. In a strong day, the strong one will increase more than the weak one.
3) Consider buying some commodites like GOLD and SILVER as there is anticipation of QE3. GOLD is now an alternative currency and may be a safe haven. May consider buying GOLD ETF "GLD" or SILVER ETF "SLV".
4) Consider taking a look at Defensive sector stocks like utilities companies. ie. Duke Energy (DUK) or Southern Energy (SO). They hit new high on Friday. You may buy them to hedge against more offensive stocks.
5) Try not to hold any bullish positions overnight as there are risks. Day trade more often.
6) If you would like to buy cheap stocks and hold for long term, make sure you divide your capital for each stock into 3 portions. Buy with only 1/3 of your capital allocated. When price of stock goes down by 1/3, buy again. Plan your average down position and price at the start.
7) Pay attention to any money printing hints from Europe and US now. Let us see if Ben Bernanke announce any hints on printing money on 19th June FOMC meeting.
8) Try to cut down on your overall position size when entering.
Btw, we will be discussing on June Strategies more in our investment seminar below:
<<How should you invest in June now?>>
Where is the likely support of US Dow Jones and STI?
5 June (Tue) English SessionDo recommend your friends to this workshop!
You shall learn
1) Strategies to invest in June
2) Outlook of Singapore and US market
3) How to still make money even when market goes down
4) How to Earn Rental Income every month from the Stock Market
5) Basics of Options and how to use it in a Down market
Date: 5 June (Tue) English Session
Time: 7pm -10pm
Tanjong Pagar MRT exit G, walk straight 80m, opp traffic light
Speaker: Daniel Loh (Raffles Business International Director, Mr Hu Li Yang partner, US Stock & Options Trainer)
To register pls click here
or SMS <Name><Email><HP><Date><Number of seats> to 93676623