When Markets Turn Ugly, Most People Are Told To Do…..Nothing

When markets turn ugly, most people are told to do… nothing.

But Hold....Wait....and Hope.

That approach has a nasty habit of turning temporary drops into permanent damage. There is a way to stay ahead of the panic and it has nothing to do with predicting bottoms or riding out 40% drawdowns. It’s about knowing when to move early and when to stay protected.  

And the best part? This strategy keep losses below –5.96% when most Investors lose 30% or more in drawdown

Learn more about it here just how here....When Markets Turn Ugly

What To Do In Noisy Markets

You’ve probably noticed how noisy the market feels right now. Headlines pull you one way. Prices move another. ​ Most investors are tempted to react instead of think. ​

This is exactly the kind of environment where discipline and capital protection matter more than excitement. Not guessing where prices go next. 

But following an approach that responds to what the market is actually doing. ​That’s why smart investors use a method called Asset Revesting, which removes guesswork and protects your capital. 

Want to see how it works? Take a Look Here

The High Cost Of Timing The Markets Or Buy And Hold

 Protecting Capital Should Come Before Growing Wealth 

In the world of investing, three distinct styles of trading dominate: active trading (ex., timing the markets), passive investing (ex., buy and hold investing), and asset revesting (ex., tactical position management). Each has its own logic, approach, emotional response, and result. But as history shows time and again, only one of these paths consistently protects your hard earned capital and gives you the ability to grow wealth without being at the mercy of market chaos. 

Understanding the implications of each, especially during volatile periods, is crucial for investors aiming to protect and grow their wealth. Let’s break down the dangers, behaviors, and long term projections of each and show why tactical technical strategies like Asset Revesting offer a smarter, safer, and more empowering way to invest. 

Timing The Markets: “This Has to Be the Bottom… Right?” 

Bottom pickers, for example, try to time market reversals by “buying the dip,” believing they’re entering at rock-bottom prices. The idea seems seductive: buy low, sell high. But more often than not, bottom picking becomes bottom guessing — and the cost is staggering. 

The Emotional Rollercoaster: 

• Fear when the market keeps dropping after they buy. 
• Hope as they convince themselves it will bounce back. 
• Desperation when losses grow and they freeze, unsure whether to sell or double down. 
• Shame and regret when they realize they’ve been trying to catch a falling knife. 

Real World Consequences: 

• Portfolio drawdowns of 30%, 40%, and even 60% are common. 
• Capital destruction makes recovery extremely hard. A 50% loss requires a 100% gain to break even. 
• Lost confidence as investors exit at the worst possible time — locking in losses. 

If They Don’t Change: 

They’ll remain stuck in a boom-bust cycle, chasing bottoms, constantly fighting uphill battles to recover. Their wealth shrinks, and emotionally, investing becomes painful and discouraging. Is this you? 

The Buy and Hold Investor: “I’m In It for the Long Run” 

Buy and hold investors ride out every wave. They buy broad market indexes or quality stocks and hold through thick and thin, trusting markets to recover over time. 

The Emotional Drain: 

• Anxiety during market crashes as account values plummet. 
• Frustration during long sideways markets where little to no growth happens. 
• FOMO when other strategies seem to outperform in short bursts. 
• Resignation as they accept the market will “eventually” recover — even if it takes years. 

Long-Term Risks: 

• Endure bear markets and corrections with no protection. 
• Time becomes the biggest variable. Many investors can’t emotionally (or financially) afford to wait 5–10 years to recover losses. 
• Risk retiring at the wrong time — right after a major market drop, locking in losses forever. 

If They Don’t Change: 

They’ll likely achieve average returns with above-average stress. The strategy works mathematically, but emotionally and practically, many investors bail out before the benefits materialize — especially after watching their portfolios drop 30–50%. Is this you? 

The Technical Strategy Follower: “Protect First, Grow Second” 

Strategies like Asset Revesting are based on reading the market’s behavior using price, volume, and trend indicators. This tactical approach doesn’t predict tops or bottoms or blindly hold through crashes. Instead, it dynamically adjusts, moving to defensive assets or cash during danger zones and re-entering only when conditions are favorable. 

The Emotional Experience: 

• Confidence from knowing risk is actively managed. 
• Calm from avoiding steep drawdowns during bear markets. 
• Discipline replacing emotion-driven decisions. 
• Empowerment because the strategy adapts to what the market is doing, not what someone hopes it will do. 

Real World Benefits: 

• Smaller drawdowns mean faster recoveries and less emotional damage. 
• More consistent growth, without the deep valleys of traditional approaches.
• Cash isn’t seen as dead weight — it’s a protective asset that buys opportunity later.

If They Stick With It: 

They’ll avoid major bear market pain, grow wealth steadily, and maintain peace of mind. Over time, compounding consistent gains with minimal drawdowns outperforms both bottom pickers and most buy-and-hold portfolios — especially when the next bear market inevitably hits. Or is this you? 

Projecting the Future: Choose Your Path 

If you answered yes to either of the top two strategies, consider the following strategic adjustments: 

• Market Timers: Shifting to a more disciplined strategy, such as asset revesting, can mitigate emotional decision-making and enhance capital preservation.   

• Buy-and-Hold Investors: Incorporating tactical adjustments based on technical analysis may improve risk management without abandoning the core long-term perspective. 

Strategy	Emotional Toll	Typical Outcome	If Continued	If Switched to Technical
Timing the Market	High stress, regret	Repeated losses	Wealth erosion	Recovery + protection
Buy-and-Hold	Moderate to high stress	Average returns	Long recoveries	Smoother ride, better growth
Tactical Strategy	Low stress, high clarity	Above-average returns	Compounded growth, calm	Stay the course

The Bottom Line 

You can’t grow your wealth if you’re constantly repairing damage. And you can’t stay confident in your plan if every market pop or drop sends your emotions spiraling. 

Timing the markets is gambling. Buy and hold is passive faith. Tactical technical revesting is intelligent action. 

If you want to not only survive the market but thrive in it — through all conditions — then it’s time to prioritize capital protection over blind growth. Wealth builds faster when it’s not constantly being repaired. 

👉 Change your strategy. Change your future. Click Here.

Chris Vermeulen 
Chief Investment Officer 
TheTechnicalTraders.com 

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We are an independent, tactical ETF investment signal alert newsletter that aims to provide you with a proven investment strategy for retirement.

We invest differently. Our unique asset revesting approach is a significant departure from traditional investing. Our consistently profitable Asset Revesting Signals generate reliable, above average returns with a fraction of the portfolio volatility and risk compared to active trading, the buy and hold, and dividend income strategies.

Imagine being able to sell your investments near their peak and then reinvest the money into a different, rising asset. You’d never have to experience bear markets and long periods without returns. Instead, your account generates compound growth leveraging market rallies and declines. That’s what we help you do.

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Finding Winning Trades Just Got Easier

"The trend is your friend" is the most coveted renet among pro traders. Our friends at INO have introduced a great free tool that allows the average main street traders access to professional level trend analysis reports. Giving you the strength to rate any stock, future, or forex pair. Visit Here for a FREE instant trend analysis. 

How Much Upward Momentum Is Left In The Stock Market and Economy?

 What Danny and Chris talk about in this free video....

• How I went from a high school investing project to where I am today.

• What my high level view of the market is right now.

• Of the eleven key sectors in the market, which are outperforming the SP500?

• Any insights on timing for a trader?

• What should be on the radar screen for investors and traders?

• Do I short-sell at all? If not, what do you do instead when the stock market enters a stage 4 decline?

• How deep do I see the impending correction going?

• What do I see for precious metals and commodities?

• What ratios do I look at for money flow?

• What I use as criteria for entering and exiting trades.

• A question from Danny’s previous guest – “What asset would you buy today that you plan to hold for 100 years?”

• What question do I want to ask Danny’s next guest – “Is Tesla a buy at this stage for insane growth?”

• What I want to leave the audience with.

Watch The Free Interview Here

The Trumpinator Bobblehead Is Back In Stock....Get It Here

The A.I. and Stock Market Tops Are In Final Blow Off Stage

The Fibonacci extension on the SP500 chart shows that it has reached the 618 halfway move and then blasted past the 100% measured move. So what will happen next? When hot terms like A.I. are used to advertise, say, toothbrushes, have we finally hit the peak? Is this a sign of exhaustion, or are we just getting started?

Watch Chris’ Video Analysis Here

Will a Massive Correction Follow The Recent Stock Market Rally Toward New All Time Highs?

Tune into the January installment as David and Chris talk about the stock market, investor sentiment, the likelihood of a prolonged rally or impending correction, and real estate on The David Lin Report.

Watch The Free Interview Here

Key questions and topics David asked me include:

1. Is the momentum for the S&P 500 still on the upswing or is a major correction imminent?
2. How is the stock market so good at enticing people to bet on the wrong side?
3. What technical analysis indicators are the best to use to gain insight into investor sentiment and where the markets may go next?
4. What does it mean to be a technical analyst? Why aren’t you an event-driven trader?
5. Do you have open trades with your Technical Investor (TTI), Consistent Growth (CGS), and Best Asset Now (BAN) strategies at the moment?
6. Are we still in the Stage Three topping complacency phase? How long could this last?
7. How are you long in the market but with a bearish outlook? Is there any upside to jumping into the market now?
8. Why do you think the US dollar will do well this year? When the dollar moves, what other assets will be affected?
9. Is gold trading in an aligned fashion with the stock market? Will there be much volatility in the gold or gold miners this year?
10. Has your outlook on investing in residential or commercial real estate changed? Why or why not?

                                                    Watch The Free Interview Here

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Capital Preservation Is Far More Important Than Making A Quick Buck

On Guide 2 The Grind, Geoff Edie, Jonathan Tillger, and Chris discuss why building wealth slowly is a steadier path than chasing after the adrenaline boost given by the all mighty news based pop and drop trade.

Watch The Free Interview Here  

Sign Up for Chris' Free Investing Newsletter Here

Questions that Geoff and Jonathan asked me include:

• What is Asset Revesting, and where does it sit between passive investing and active trading?
• How do you identify when a trend is starting or changing direction? What indicators and signals do you use for trend confirmation?
• How long is the lag time between retail money and big money?
• How did you become the trader/investor that you are now, and what else do you pursue to earn income?
• Why is it so important to have realistic expectations of how to make money from the stock market?
• Never put all your eggs in one basket! Learn why by listening to Chris’ story.
• How is poker similar to trading in the stock market?
• Building a supportive community is key to learning how to enjoy growing your wealth fully.
• The importance of having systems in place and an exit strategy.
• Is cash a good position to be in?
• Why being stopped out of a trade is not a bad thing. Yeah, it sucks taking a loss, but it also clears the deck for the next trade to the upside.
• Learn about your personality and how this can affect your trading/investing.
• How do I get started with your strategy today?

Watch The Free Interview Here  

Financial Reset In 2024: ‘Everything Will Sell Off’ Except This

Here is the December installment of Chris and David talking all things stock market on The David Lin Report!

Also, stay tuned to learn more about an exciting project that Chris is working on that involves climate science and how this information can be shared via entertainment learning.

Watch The Free Interview Here

Key Questions Asked:

1. The S&P 500 looks like it may end 2023 at a year to date high. Do you think a Santa Claus rally will continue to push the S&P 500 higher?
2. As a chartist, how do you trade with regard to seasonality?
3. Why are whole number prices important to trading?
4. Was there anything surprising over the past year?
5. Is the Russell 2000 heading toward a double top along with the S&P 500?
6. Is hedging a good idea when there is conflicting data concerning short and long-term views/projections/opinions?
7. What is the difference between small and large-cap stocks?
8. If someone handed you a billion dollars, interest-free, and due back in five years, would you take it?
9. How has gold been moving within the trading day and what does this indicate for future direction? Why are miners and silver struggling to break out to the upside? Is silver overdue for a rocketship-style move?
10. Will oil recover from the highs earlier in the year?
11. What are the technicals of the US dollar showing may happen? Will it rip higher and head toward the highs of 2000? What would this mean for precious metals?
12. What are your least and favourite assets for 2024?
13. What is Asset Revesting?
14. Tell us about the Goldilocks Mission you are working on!

Watch The Free Interview Here

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