"There are known knowns - there are things we know we know. We also know there are known unknowns - that is to say, we know there are some things we do not know. But there are also unknown unknowns, the ones we don't know we don't know."
Donald Rumsfeld famously spoke those lines to reporters in February 2002.
This statement perfectly applies to the current market where there are so many unknowns, either known by us or unknown by us. In other words, we will see a lot of surprises in either direction. Needless to say, it is a very challenging market to trade. So what's the best way to trade in such a market? I found a perfect strategy to trade with very limited risk but quite good return potential, often in the order of several times. Here is one example I shared with my DW Family this morning when the market opened high. This trade will allow us to risk each dollar for a $5 potential return for a wide range of margin for errors. I cannot think of a better way to trade in this very volatile market!
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