Editor’s note: Today, we’re featuring a guest essay from master trader Larry Benedict. Larry has spent over 35 years trading. And while most investors are nervous for what the year holds, Larry is excited. To see why, read on…
And if you enjoy Larry’s work, we encourage you to attend his free investment summit next Wednesday, February 22 at 8 p.m. ET. According to Larry, only 32 market days truly matter each year in the market. That’s because almost all the largest one-day moves happen on these days.
And traders who understand this stand to do very well in 2023. To get the full story from Larry, reserve your spot with one click right here.
Investing is on pause…
The post-COVID stock markets seemed invincible… until last year wiped out $18 trillion worldwide.
Now people are understandably nervous to put their money into stocks.
Because while two down years in a row is rare… when it does happen, the second year tends to hit even harder.
And recession fears are compounding the issue.
Recently, Microsoft, Amazon, Google, and Meta have all chopped workers with big layoffs… Big tech has cut more than 330,000 jobs since January last year. That’s heightening fears that these kinds of moves could spread throughout the economy.
And retail purchases fell three out of the past four months as consumers tightened their wallets.
That’s why a poll of economists put the probability of a recession this year at 61%.
One Morgan Stanley analyst said the upcoming pullback in company earnings could rival 2008. And that could push the S&P 500 down 3,000 points in the first quarter alone. A Bank of America analyst anticipates the market slump continuing into summer.
All that hardly bodes well for 2023.
So the days of buying a high-flying stock and expecting to retire early are in the rearview mirror.
But I’ve never really bought into “buy and hold” investing… and I steered clear of much of the irrational exuberance surrounding meme stocks and crypto fever.
And I’m not concerned about making money this year.
In fact, I’m excited about what I see in 2023. Because there’s a phenomenon happening this year that traders can use to profit – even if this year continues the bloodbath.
In fact, this phenomenon can work even better than ever in down markets like these.
Let me explain…
I’m a trader at heart. I’ve spent over 35 years eating and breathing the markets and learning how they move in all kinds of environments.
Back in the 2008 financial crisis, I made $95 million for myself, my partners, and my clients.
And in my career as a hedge fund manager, I went 20 solid years without a losing year.
These aren’t just long-ago achievements either.
Even last year, when most people were deeply red… my Opportunistic Trader advisory ended December with an overall 155% gain on the year.
And in The S&P Trader, a $25,000 investment would have generated $9.5k in income… that’s a 38% return.
As for One Ticker Trader, we only launched in August. So we don’t have full-year returns yet… But during those first five months, we snowballed 11 trades into a total 240% return on our initial cash investment.
And remember, this was in a year that erased $18 trillion from the stock market globally.
Longtime readers will know that a big part of my “secret sauce” includes conservative risk management – I recommend starting with small position sizes and working your way up over time.
I always want traders to earn their risk by slowly building their portfolios… instead of blowing themselves up on a single trade.
Likewise, I always take profits quickly, even if they’re small, instead of swinging for the fences. That’s one of the biggest mistakes traders can make.
But there’s one other aspect to trading that I’ve never really discussed with my readers…
Lately, the government has had an outsized influence on the stock markets. And that has handed traders a gift…
Because 32 “money shocks” in the market are now primed to generate bigger gains than in years past.
Historically, from 2009 through 2011, I helped my fund make $81,208,050 in profit just by trading on the dates when these shocks occur.
And the profit potential I see now is even stronger.
So while traditional investing may be on pause for many people this year… I don’t want you to sit on the sidelines.
Even if you ignore the other 200+ trading days in the year, you’ll be ahead if you just pay attention to these 32 events…
That’s why I’m planning to share which days I’m talking about… and the reason their profit potential is amplified… at my upcoming special briefing.
I’m calling it the Money Shock Calendar. And it’ll go live on February 22, at 8 p.m. ET.
I’d like to invite you to join me then.
Because not only will I give you my latest market commentary and expectations for 2023… I’ll also be making an offer I’ve never made before.
So to sign up to join me with just one click, go right here to put your name on the list to attend.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict
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The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.