Today’s Issue
Alright Investors your friend in success here,
Something I want to say about this current decline in the market. We always have to keep in mind the declines are part of a healthy bull market. Healthy bull markets can only setup when bear markets come about to keep prices in check.
Become the investor that can protect your gains during months of decline. Heck sometimes you can profit from the declines while also protecting your long term gains.
📊 Protecting Your Profits
- Buy put options, obviously this is just a suggestion of what I do with my money this is not advice, once a decline is confirmed I buy put options to hold for more than a 2 week sell off.
Buying the option that protects me and always buying one out of the money strike. I purchase 1 contract more than the number of shares you own.
Example: if I own 340 shares of XYZ stock then I purchase 4 put contracts to cover 400 shares.
That extra cushion is what can generate a small profit from the decline depending on how big it is.
My Trading Journal
I always keep track of bull market runs and historical points where downturns happen. Bull markets are slow in building and typically last an average of 1866 days. Bear markets last an average of 410 days and occur 20% of the time.
Bear market conditions are not in place currently so the October decline is just a historical pullback in my opinion and nothing to worry about right now.
If conditions persist then a crash could occur and historically we all know that many crashes have happened in October.
If no crash then the decline becomes a healthy place to look for buys that could rise for strong earnings into January.
Massive mutual fund sell offs have occurred in October historically and those cause panics, but the Mutual funds poor results are still better than average as of today so maybe not so many losses to sell off this year.
🎯 Big Ideas:
💡 I’m reading “Poor Charlies Almanac”
Rules for a successful life that I have added to my daily habits:
Don’t borrow what you cannot pay back
Don’t create drama you do not need
Don’t associate with dumb people
Keep your ego out of the equation!
Your Friend in Success,
⚠️ Final Word + Disclaimer
The win isn’t the trade — it’s sticking to your plan. Protect capital. Stay intentional.
Keep going. You’re doing the hard part most never will in order to eventually live like most never have.
This newsletter is for educational purposes only and does not constitute financial advice. Always do your own research and consult a professional before making investment decisions.