Coronavirus Fears Sink Stocks

We finally have a correction on our hands after a long run up from October 2019. Tourism has taken a tremendous hit as governments and commercial airlines have halted flights restricting travel. We can’t blame them but the stock market is adjusting, but will this lead to an all-out collapse? Too early to tell, but if you were following our lead our risk management process has protected us from any real pain. Over the next few days headlines will drive this market. Perhaps even longer as we sort out how this virus will spread. No one knows the future, but we were prepared and are ready for what this market can throw at us in the future.

Many will jump straight to shorting stocks. This will certainly leave many without dry powder when we do turn. The inexperience will destroy your account and shorting is a great way to hand the market your trading capital. Do not attempt to short if you are new to trading. Sit back and let the market stabilize before you act. Too many traders want to force trades and only end up on the losing end. 

While others will argue where the stock market is going to head next we will be seeking out our next opportunity. The stocks holding up the best will be the ones who will lead. Now, if we just reverse and collapse it won’t matter much. The odds we collapse aren’t high and it’s more likely we rebound in some fashion. Pay attention to the stocks holding up.