Is the stock market getting you down?

There are two types of people in the stock market - traders and investors.
In this type of market it is very difficult to be an investor because stocks going up are almost impossible to find, what you would be looking for are stocks that have a future of going up so bargain basement hunting is what you must do now and sit and wait for your money to materialize IF you made the right choices.

Now a trader is making money in this stock market! A good trader makes money whether the market is going up, going down, or going sideways. Last week I stated we were at a crucial point in the market - read Credit Spread trigger tomorrow on SPX and we definitely hit the trigger to sell another Bear Call credit spread. Well that spread is doing very well and in fact after today’s downturn it may be worth it to close the trade depending on where you placed your spread (It was suppose to be above 1000). We are coming close to support now which is at 840, another trigger may be coming if you are considering a Bull Put Spread.

If you know what I am talking about in the above paragraph then you know that you can make money no matter which direction the market is headed. The market has just taken another beating this past week and those of us that traded it made money. Investors had to sit and wait and pray that the market comes back. Only buying stocks leaves you vunerable - heck even if you are a savy stock trader and you shorted stocks you are still vunerable because you have to know when to short and when to cover making it more like a guessing game as to when the market is going to turn in order to make money.

Being a credit spread trader there is no guessing you know when you are going to place a trade and 80 to 90% of the time you are correct and the real beauty of trading credit spreads is that even if you are wrong…you can still make money. Credit spread trading is easy and very profitable when you know what to do and how to do it. You know your profit, you know your maximum loss, and you know when you are going to get out of the trade whether it is a winner or a loser all before making the trade.

The best thing is that you make money no matter the direction of the market. With the wild volatile swings and the threat of a depression looming, now is the time to be a trader. Now is the time to be an option trader. NOW is the time to be a credit spread trader!

credit spreads, investors, spread trading, stock market traders