by Ian Harvey
Is it possible that opportunity knocks?
The New Year has started with a pain, not a gain –- or has it?
After last week’s fairly disastrous pullback due to multiple factors – China’s stock market debacle, combined with Yuan devaluation, North Korea’s supposed H-Bomb test, continued Middle East dramas, oil futures dropping again, etc. – it leaves a sour taste in-the-mouth and a feeling that the sky is falling…..
…..BUT – a pullback also provides for the OPPORTUNITY to capitalize on the situation and enter trades at a much lower entry cost then was available before the New Year.
Also, for those that have trades that were purchased before last week, then this is the time to cover those losses, providing the market plays ball and recovers from its malaise.
If you are an option trader then this could be the perfect time to look at recovering losses by doubling up on previous purchases, and/or entering the market at a much-reduced cost on certain new sound trades!
As the saying goes, "Buy when there's blood in the streets, even if the blood is your own."