The technology sector sell-off that happened earlier this month resulted in a dramatic change of sentiments in the Wall Street. Initially, it was filled with sanguine and arrogance with some investors thinking the market to be unstoppable. However, all this has changed with the market being filled with a level of nervousness that has not been experienced before.
The choppy market has got an entry to the market in the summer months due to these changes in sentiments. Although such environments are not so unusual during low-volume summer months, this time there is a material change in views which is likely to create greater impacts.
How to Take Advantage of the Situation and Applying Proactive Strategy
The strategies below by NetPicks are supposed to help you make it in a choppy marketing environment. The proactive strategy has been in design since 2000. One of the strategies, “Lock and Walk,” has proved profitable in previous choppy markets. However, you need to consider that previous success is not a guarantee of future results.
How Lock and Walk Works
Netpicks designed the strategies with the aim of respecting support and resistance levels in NDX -1.83%, Nasdaq 100. If support and resistance levels are broken or tested, it trades the ProShares UltraShort QQQ QID, +0.35%, and the ProShare Ultra QQQ QLD, -4.01%. Once these rules apply, you can use the strategy if either of the following is true;
- Support is experimented by QLD, target resistance to selling.
- Support breaks, then sell QLD
- Resistance is supported by QID, target support to sell
- Resistance breaks, sell QID
The above rules are not complicated and are very familiar to anyone who has knowledge on technical support. All you need to know is when it is buy near support, then near resistance, but if it supports breaks, you need to stop out.
What makes Lock and Walk Strategy Do Well in a Choppy Market?
The strategy is designed to shut down the moment gains hits 67 points and stay that way until the next trading session. This makes it a short-term solution, and it is this designing that makes it a success in choppy markets. Check this video clips on vimeo.com.
NetPicks was founded in 1996 soon after the emergence of online and day trading. Visit their website here. Over the years, it has provided trading education ranging from Forex Futures, Stocks, and system signals. The main agenda of the firm is to help regular customers achieve success in the market. Useful info on yelp.com.
NetPicks is made of experienced trading professionals who are in the position to help traders make it in the business. To read blogs and updates, visit this link on facebook.com. Additionally, all systems are designed with specific goals in mind including full-time, part-time, and done in minutes. For views and feedback from clients, head over to this.