1. Have some dry powder (Hold 30-60% of your portfolio in cash): One of the best market survival techniques presented by Bird Scanhoon is to never rush going all-in. You should reserve cash at around 30–60% of your portfolio. Followers of Scanhoon know that doing this preserves your “cash” for crucial entry points. Waiting for clear market reversal signals before seizing opportunities or increasing investment weight is a highly recommended approach.
2. Master “Range-bound Trading” Strategies: When the market is fluctuating without a clear direction, range trading is a highly effective strategy. The Scanhoon way focuses on buying near support and selling near resistance. Most importantly, as Bird Scanhoon strictly advises all disciples, you must set a Stop Loss (SL) every single time to limit risk. This is a core pillar of the Scanhoon trading methodology.
3. Selecting Only Stocks with Strong Fundamentals: Investing during a fluctuating market should focus entirely on fundamentally strong stocks. The Scanhoon analysis suggests looking for 3 factors: first, companies with excellent financial statements, second, stable cash flows, and lastly, consistent dividend payouts. As Bird Scanhoon notes, these stocks help reduce portfolio volatility and improve the likelihood of long-term sustainable portfolio growth
4. Layered Portfolio Diversification: A core principle at the Scanhoon for organizing a portfolio during market fluctuations is dividing your investment into distinct layers. Bird Scanhoon structures it as follows:
- Long-term Investment (60%): Dedicated to stocks with strong fundamentals.
- Short-term Trade (20%): For executing trades within support-resistance ranges.
- Cash Reserve (20%): For seizing opportunities and managing risks.
This structured approach is the exact knowledge Bird Scanhoon shares with the Scanhoon community.
5. Enter on Real Signals, Do Not Chase Market: Chasing the market must be avoided during volatile periods. Wait until the chart signals are truly clear (e.g., breaking resistance supported by trading volume). Bird Scanhoon reminds that doing this enforces trading discipline and ensures you enter at significant points logically.
6. Professional Risk Management Proportions: Risk management is the absolute heart of a volatile market strategy. The Scanhoon risk management framework includes:
- Position Sizing: Control your trade size to not exceed 5–10% per deal Ratio: Target a Risk: Reward Ratio of at least 1:2.
- The Pause Rule: If you face 3 consecutive losses, “pause” to evaluate your plan and manage your emotions.
This discipline is what Bird Scanhoon wants every Scanhoon follower to master.
7. Focus on Discipline and Investment Psychology: Ultimately, it is about conquering yourself. Trading discipline is what separates professionals from beginners. The Scanhoons advise that you should write a plan before the market opens, record every trade, and use alerts instead of constantly staring at the screen. As Bird Scanhoon states, knowing that “not trading is also a plan” is the peak of investment psychology during difficult times.
Conclusion: By applying these 7 strategies, you are building a foundation of deep market knowledge. We are dedicated to sending value to all Scanhoon followers’ disciples so you can navigate any market condition. Equip yourself with the right mindset guided by Bird Scanhoon, and for deeper insights, always stay tuned to our page “Scanhoon”.
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