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How to Survive Persistent Year-End Volatility Like a Seasoned Trader

by | Nov 24, 2021

It’s oficial: 2021 year-end volatility is ramping up.

There are a ton of stocks that are getting beat down under the hood — down about 50% from yearly highs. But these stocks aren’t small underdog names either… they’re big companies like Twitter.

And cracks are beginning to show on the surface…

Any financial adviser or investing book will tell you to put in a stop-loss order if you want to be a conservative trader — anywhere from 8% to 10% under where you bought in.

However, they’re not working anymore… 

The stock market is different right now — moving while not going anywhere. When you look at the volatility of average stocks this year, you’ll see it’s at about 20%. 

So while we may have seen gains in 2021, the level of year-end volatility we’ve been having lately is insane. Luckily, this is great news for my Round Trip Trading Club members because we can make profits from the up and downside of volatility — learn more about it here.  

And I expect volatility will increase going into the new year for a couple of reasons…

Why 2021 Year-End Volatility Could Be Setting Up to Surge Soon

By this time next month, I expect to see fund managers trying to press the big-name winners into the yearly close — which is exactly what my Monthly Money Flows strategy is predicated on.  

They’ll try to buy up all the shares of stocks — like NVIDIA Corp. (Nasdaq: NVDA) and keep bidding them up.

Fund managers do this because they want to paint the tape on their own bonuses for the year, and make their performances look good.

But come January 2022 — when that phenomenon is over — oh boy

Investors will need to watch out for the massive fireworks show that’ll be setting off on the stock market.

While this type of market will be an active trader’s delight, if you’re a passive investor, I suggest being very careful…

And then there’s the fact that we have all this money flowing into the market that’s not buying any names — it’s buying the indexes because it has nowhere else to go.

It’s not like traders can buy bonds right now — which will quickly  start sinking from their current nosebleed levels. 

And the ridiculous announcement President Joe Biden made Tuesday tells me things — and inflation — are about to get a lot worse on the market…

Be sure to watch the video below to learn more about the 2021 year-end volatility we’re seeing.

WealthPress Senior Strategist Roger Scott and I also discuss how Biden embarrassed America, updates on the Chinese stock market and how we see the rest of 2021 playing out. 

And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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