Plot Your Winning Strategy for a Stagnant Market

Why do I still hear from investment “experts” that we should be buying stocks? It’s always the same story. Buy stocks and forget about them; eventually they’ll go higher.
That’s all the mainstream media, your mutual fund advisor and your personal money manager will ever tell you.
Investment professionals would have you believe you should diversify among asset classes, pick the right stocks and average-in. They will point to charts that show if you held this asset or that asset over the last 30, 50 or 70 years you would have made healthy returns.
Could it be because the professional investment managers, mutual funds and the like don’t care about your financial future? Or is it that they are too busy trying to sell their products that they have forgotten their job is to make clients money?
If they truly cared they would use every investment tool at their disposal.
That brings me back to the stagnant performance of the market. You, as a self-directed investor, can learn how to make money using strategies that take advantage of range-bound markets – or any market environment, for that matter. With a winning strategy, you can do better than just “buy and hold.”
So, how do you make money when the market goes nowhere? That’s the question the experts should be asking.
The answer is simple: Use the Iron Condor strategy and allow probabilities to do the work for you.
Some here at Wyatt Research call the following approach the “No Directions” strategy.
Why?
Because the winning strategy allows you to choose a wide range for a stock or ETF to trade in over a 30- to 45-day period. If the chosen security trades within your chosen range during our 30- to 45-day period, you make a profit . . . a profit of 15% to 25%. That’s certainly nothing to take for granted and certainly something you should not chalk up as another lost opportunity.
For instance, take a look at the chart below.
The S&P 500 (SPY) has year-to-date return of 9.7%.
Yet, during the same time our “no directions” options strategy has led to gains in excess of 175% with an average return per trade of 11%. So, about every 20 to 30 days we are making 11% on our “no directions” trade. One trade alone has a return over four times that of the overall market.
This should speak volumes to you.
At minimum, it should garner your curiosity on how you can implement alternative strategies to complement your overall portfolio.