The idea of a recession is usually a scary thought. I mean all the market prices start dropping. Investments are losing there value.
It's especially painful, if you just started investing, you don't have any gains to give back. You're giving back you actual starting capital. Yuck!
But here's the thing, it doesn't have to be that way. It really doesn't. You don't have to be a slave of the market.
Now it helps if you've really invested well. That can guide and hold your portfolio well. But let's say that you haven't invested well.
And as the prices start to drop, you're feeling it.
What do you do?
I'd recommend seeing if the stocks you are in are optionable. If they are, then great. This will be easy for you.
If you sell a put on your stocks that is at-the-money and about 6 six months out, you've just eliminated all your downside risk for six months. If at any time in the next six months, you want to sell, just do it. You've got full protection.
But there is a catch. The put costs money, and you don't want to spend money, right?
So, sell calls against your stocks. By selling calls against your stocks, you're collecting premium that can pay for the put.
Of course, it will take several months to pay off the put, but it is worth it.
Oh, and if you get called out of your stock, you can just buy back in. If you only sell out-of-the-money calls, you minimize that risk, plus you will make good money if you are called out as well.
Do you want to learn more about how I do it? I have just recorded a 25 minute CD called "How To Pick Winning Stocks - The Secret Formula"
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Source: www.isnare.com
