There’s a phrase you’ve probably heard me say before… It’s something I like to remind people when the markets get choppy.

Money isn’t made or lost in the markets, it simply moves!

Take a look at a map of the overall market the next time there’s a big red day, I bet you’ll be able to find a pocket of the market that is solidly green.

When traders sell off their plays, they usually don’t just take all their cash and run… Sure they might hold it for a little bit, but that money will find its way back into other trades.

This is especially true with speculation names.

The best part about this is that you don’t even need to guess where the money is going before it moves, you can simply follow the leader…

I’m a big advocate for trading what you see, if you see a sector get hot then that might be your indicator that it’s worth a closer look.

Now, I’m not saying throw your money into whatever is green that day, but taking a look at it can certainly help give you some ideas of how to play it.

At the end of the day, there will always be opportunities to profit in any market environment. So don’t get discouraged when you see red on the screen! And you definitely don’t want to panic…

Instead, take your time to evaluate the situation and plot a course of action for success!

Alan Knuckman
Editor, In-The-Money
AskAlan@StPaulResearch.com