{"id":2815,"date":"2010-08-13T06:00:11","date_gmt":"2010-08-13T10:00:11","guid":{"rendered":"http:\/\/club.ino.com:80\/trading\/?p=2815"},"modified":"2010-08-13T11:48:18","modified_gmt":"2010-08-13T15:48:18","slug":"how-to-keep-your-profits-flowing-in-a-volatile-market","status":"publish","type":"post","link":"https:\/\/wwwtest.ino.com\/blog\/2010\/08\/how-to-keep-your-profits-flowing-in-a-volatile-market\/","title":{"rendered":"How to Keep Your Profits Flowing in a Volatile Market"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft\" src=\"\/img\/sites\/ino\/email\/2466.jpg\" alt=\"\" width=\"200\" height=\"150\" \/>Chuck Hughes' recent guest post received such a phenomenal response from  Trader's Blog readers that we decided to bring him back for weekly wrap-up. Today Chuck is going to tell us about a basic trick he uses in volatile markets. Be sure to comment with your thoughts on how to play volatile markets and visit Chuck at <a href=\"http:\/\/broadcast.ino.com\/redirect\/?linkid=1491\" target=\"_blank\">Wealth Insider Alliance<\/a>.<\/p>\n<p>-----------------------------------------------------------------------------------------------------------------------------<br \/>\nSince this continues to be the 'year of volatility', let's take a look at how you can continue to go for consistent profits without being stopped out \u2013 or wiped out \u2013 by whipsaws.<\/p>\n<p>In market conditions like these, I rely on two primary trend indicators... <!--more--><\/p>\n<p>\u25cf\u00a0 The 50\/100-Day Exponential Moving Average (EMA), and<br \/>\n\u25cf\u00a0 The 1-Month Price\/20-Month EMA<\/p>\n<p>...PARTICULARLY if I'm taking a short position.<\/p>\n<p>The 50\/100-Day EMA trend following system is used to generate buy and sell signals for short to intermediate term trading \u2013 in other words, positions that you intend to hold for less than six months.<\/p>\n<p>If the 50-day EMA of the stock is above the 100-day EMA, an upward trend is indicated and a short position should not be taken.<\/p>\n<p>If the 50-day is below the 100-day, then a downward trend is indicated and it's time for step two: Checking the 1-Month Price\/20-Month EMA.<\/p>\n<p>The 1-Month Price\/20-Month EMA is a major trend indicator used to generate buy and sell signals for long term trading \u2013 positions you intend to hold for 6 months or longer.\u00a0 However, it all serves as a fantastic filter for avoiding whipsaws on shorter term trades.<\/p>\n<p>If this major trend indicator <em>also<\/em> shows a downward trend, then it confirms the intermediate term trend indicating that stock or index is much less likely to stick you with a whipsaw.\u00a0 Otherwise, the stock or index is more vulnerable to a whipsaw move and should be avoided.<\/p>\n<p>How well does it work?<\/p>\n<p>As a broad example, consider the S&amp;P 500 Index.\u00a0 Its 1-Month\/20-Month EMA showed bullish from mid-2003 until January of 2008 \u2013 meaning it was in a major price up trend. During that four and a half year period, the shorter-term 50-Day\/100-Day EMA system issued five \u2018sell\u2019 signals, all of which turned out to be losing trades.<\/p>\n<p>These five losing trades could have been avoided if you used the 1-Month\/20-Month EMA Major Trend System as a filter, and did not take short trades unless the major price trend was also down.<\/p>\n<p>For a narrower example, consider the first six months of this year.\u00a0 I used these indicators in my screening process for each of the trades I issued my members.\u00a0 The result:\u00a0 42 winners out of 52 for an 80% win rate, an average return of 33.7%, and over $151,000 of profit despite all of the volatility of March's flash crash.<\/p>\n<p>As simple as it may seem, this little strategy has worked wonders for my <a href=\"http:\/\/broadcast.ino.com\/redirect\/?linkid=1491\" target=\"_blank\">Cash Flow Trader<\/a> members and, with a little practice, I'm sure it will help you unlock even greater profits as well, despite the ongoing market volatility.<\/p>\n<p>Yours for life-changing profits,<br \/>\nChuck Hughes<br \/>\nEditor, Cash Flow Trader<\/p>\n<!-- AddThis Advanced Settings generic via filter on the_content --><!-- AddThis Share Buttons generic via filter on the_content -->","protected":false},"excerpt":{"rendered":"<p>Chuck Hughes' recent guest post received such a phenomenal response from Trader's Blog readers that we decided to bring him back for weekly wrap-up. Today Chuck is going to tell us about a basic trick he uses in volatile markets. Be sure to comment with your thoughts on how to play volatile markets and visit [&hellip;]<!-- AddThis Advanced Settings generic via filter on get_the_excerpt --><!-- AddThis Share Buttons generic via filter on get_the_excerpt --><\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[3478,3472,993,1863,3477,2182,3471],"class_list":["post-2815","post","type-post","status-publish","format-standard","hentry","category-general","tag-cash-flow-trader","tag-chuck-hughes","tag-ema","tag-guest","tag-how-to-keep-your-profits-flowing-in-a-volatile-market","tag-kenny","tag-wealth-insider-alliance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v23.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Keep Your Profits Flowing in a Volatile Market  - INO.com Trader&#039;s Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ino.com\/blog\/2010\/08\/how-to-keep-your-profits-flowing-in-a-volatile-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Keep Your Profits Flowing in a Volatile Market  - INO.com Trader&#039;s Blog\" \/>\n<meta property=\"og:description\" content=\"Chuck Hughes&#039; recent guest post received such a phenomenal response from Trader&#039;s Blog readers that we decided to bring him back for weekly wrap-up. 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