Avoiding Capital Losses During Market Downturns

September 15, 2011
4:00 pmto5:00 pm

Protecting Against Market Decline

The last several years have been difficult for investors, as they typically seek capital appreciation through stock ownership.  Owning, or “getting long” stock, carries with it inherent risks.

One such risk is that of a market-wide decline in stock prices.  The vast majority of stocks tend to follow the overall trend of the market.  What this means for investors is that equity diversification alone will not protect against broad market declines, since a diversified equity portfolio inherently resembles the broader market.

Fortunately, there are methods and techniques that can be used by investors to protect themselves against capital losses due to broad market downturns and on Thursday, September 15, 2011, I will be demonstrating one such technique.

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In this presentation I will be demonstrating one of the analytic tools that I have used for many years and share with you how it can provide insight into the market, warning of potential market downturns so that you can proactively take steps to protect your investment capital.  The tool is MetaStock and the Rahul Mohindar Oscillator (RMO).

The Rahul Mohindar Oscillator (RMO) is a trend-following system that is a standard feature of both the End-of-Day and Real-Time versions of MetaStock. The disciplined use of the RMO can not only put you into a trade on the right side of the market, but it can also be useful in helping to avoid the worst of a market correction.  On September 15th I will discuss the basic function of the RMO and demonstrate how it was effective in anticipating the market downturn in August of this year.

I look forward to seeing you on-line.

Christopher Smith
TheOptionClub, LLC

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