The major selloff in the technology sector has impacted all on Wall Street. The sentiment here had been somewhat arrogant earlier. Many investors were considering the market as unstoppable, but now there is a degree of nervousness here that had not been there earlier.
This change in sentiment has made this a shaky market. Typically the summer months used to be like this. But there is a material change to this sentiment now.
But investors can still take advantage of such a situation. This was where Netpicks advises making use of a proactive strategy. There are several such strategies that have been designed to profit from such kind of a shaky market environment. One of them is the “Lock and Walk”. Netpicks states that it has been profitable in the past in similar conditions. But past performance cannot guarantee future results.
The rules here are that in case of support is tested by QLD, there must be target resistance to sell. And in case of the support breaks, the aim must be to sell QLD. And if resistance is being tested by QID, then target support must be to sell. In case of the resistance breaks, the aim must be to sell QID. Watch and learn from this informative link
These are not fancy rules. Indeed, these would be very familiar to anyone who is using technical analysis. It means buying near support, selling near resistance, and in case of support breaks, it means to stop out. Related article on investing.com.
Netpicks talks about another important rule that is associated with this Lock and Walk strategy. In case this strategy has gained 67 basis points, it has been designed to shut down and wait. It will start operating when the next trading session begins operations once again. There are no long-term positions of any kind over here. That is the reason why it will do well in a shaky market environment. Learn additional tips from this useful link.
There is a lot more about the history of the Lock and Walk strategy and additional details. All these can be accessed on the site of Stock Traders Daily. In this way, Netpicks recommends this strategy to investors in such times. Check on netpicks.com for more details about trading.