I hope you all had a nice weekend.
Today, as promised, we are going to talk about US elections and what are the effects we believe they will have on the stock market or actually, to be really honest, in our positions,
The true is, nobody really know if the market going to go up or going to go down, we don’t know, and the more we watch the midia or YouTubers or whom they call financial experts, the more mess we create in our mind, and more our unconscious fear will take over our actions. Therefore, we had to learn to make our trading decisions by staying away of this type of irrelevant influence.
And this is why we are constantly reminding the importance of using an effective portifolio diversification as key element of our investment strategy.
We want to make sure our positions are protected regardless a crash or a bull run. So for instance, we are investing in a lot of stocks that have nothing to do with the effects of “fear” due to the elections. There is always stocks that will do well, even when the market crashes. The first stocks that are normally see that are dumped are, the banks, material, energy stocks, major players on the Asx200 index. Nevertheless we normaly exploit stocks that are already at what we believe to be discounted price or are already pretty low, they tend and mostly important, stocks that are satisfying the KPI’s of our strategy.
Further more our BGS 20 STRATEGY is clear and it is built to protect our trades regardless the market conditions. For example, we keep working with our strategy and as soon as share price (SP) and exponential moving average (EMA) intersect SMA on the bearish side of the trade, then we sell regardless. If eventually our strategy tell us to sell all of the stocks we will sell them all and the exposure to a massive crash will be signifcantly reduced because that.
Now look at EML on the chart bellow for example. By using our BGS 20 STRATEGY, KPI’s anyone holding a postion pre-covid would have avoid a 74% crash, by selling at the time our KPI’s would tell to sell.
Now look at the ANZ Chart bellow, Covid-19 market crash in March, by selling at the time using BGS 20 Strategy, anyone holding ANZ would have been protected by 40% market crash.
If you wish to learn more about our BGS 20 Strategy KPI’s, please DM us and we will take you through our VIP HUB program.
Good luck everyone over the next couple of weeks and again don’t get yourself affected by what you read in the media or from Financial Experts. The truth is nobody knows what’s going to happen, we have absolutely no clue of whether the markets going to go up or down with US elections. This is why sticking with a solid strategy is the key for success.
Good luck everyone and we really hope it helps.