“A hawkish Federal Reserve and heightened geopolitical tensions have driven a 14% gain in the U.S. dollar against a basket of currencies over the last year, forcing companies such as Cocoa-Cola Co (KO.N) and Procter & Gamble (PG.N) to temper expectations for the rest of the year.”
Microsoft is one of the latest companies to warn of a fourth-quarter currency headwind.
The following was reported by Reuters on June 2, 2022: “Microsoft warns of forex hit; cuts forecast”
“Microsoft Corp (MSFT.O) on Thursday cut its fourth-quarter forecast for profit and revenue, making it the latest U.S. company to warn of a hit from a stronger greenback.”
VALUABLE INSIGHTS FROM SUCCESSFUL TRADERS
Market Wizards by Jack D Schwager (www.Amazon.com) is packed with insights from successful traders who have shared their wisdom based on firsthand trading experiences. Here are a few favorites:
Michael Marcus – “A good trader has to be open and flexible, willing to see anything.” “When in doubt, get out, get a goodnight’s sleep, you can always come back.”
Bruce Kovner – “You have to be willing to make mistakes regularly; there is nothing wrong with it.” “I know where I’m getting out before I get in.” “In a bear market, you have to use sharp countertrend rallies to enter positions.”
Richard Dennis – “The secret is being as short term or as long term as you can stand, depending on your trading style.” It is the intermediate-term that picks up the vast majority of trend followers.” “The best strategy is to avoid the middle like the plague.”
LEARN FROM OUR TEAM OF SEASONED TRADERS
In today’s market environment, it’s imperative to assess your trading plan, portfolio holdings, and cash reserves. Experienced traders know what their downside risk is and adapt as necessary. Successful traders manage risk by utilizing stop-loss orders, rebalancing existing positions, reducing portfolio holdings, liquidating investments, and moving into cash.
Successfully managing our drawdowns ensures our trading success. The larger the loss, the more difficult it will be to make up. Consider the following:
- A loss of 10% requires an 11% gain to recover.
- A 50% loss requires a 100% gain to recover.
- A 60% loss requires an even more daunting 150% gain to simply break even.
Recovery time also varies significantly depending upon the magnitude of the drawdown:
- A 10% drawdown can typically be recovered in weeks to a few months.
- A 50% drawdown may take many years to recover.
Depending on a trader’s age, they may not have the time to wait nor the patience for a market recovery. Successful traders know it’s critical to keep drawdowns with reason, as most have learned this principle the hard way.
HOW WE CAN HELP YOU LEARN TO INVEST CONSERVATIVELY
At TheTechnicalTraders.com, my team and I can do these things:
- Reduce your FOMO and manage your emotions.
- Have proven trading strategies for bull and bear markets.
- Provide quality trades for investing conservatively.
- Tell you when to take profits and exit trades.
- Save you time with our research.
- Proved above-average returns/growth over the long run.
- Have consistent growth with low volatility/risks.
- Make trading and investing safer, more profitable, and educational.
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We invite you to join our group of active traders who invest conservatively together. They learn and profit from our three ETF Technical Trading Strategies which include a real estate ETF. We can help you protect and grow your wealth in any type of market condition. Click the following link to learn more: www.TheTechnicalTraders.com
