How unusual is the current market environment? The chart below shows one way of answering that question. It’s a chart of the SPDR Dow Jones Industrial Average ETF (NYSE: DIA), which tracks the Dow.

At last week’s close, DIA was 3.38 standard deviations below its 20-week moving average (MA).

In a normal market environment, prices will be within two standard deviations about 90% of the time. In theory, two standard deviations should contain about 97.7250% of the price action. However, market prices are not constrained by the mathematics of the normal distribution… and actual price changes move a little more than expected.

If real life obeyed the laws of mathematics, we could expect to see a major deviation like last week’s close about once every 500 years or so. Definitely a once-in-a-lifetime event.

However, this “once-in-a-lifetime” event has actually happened 33 times since 1900! That’s a significant difference. (Statistically, it’s 0.5% of all weeks versus the 0.003% probability we’d expect to see.)

I used DIA in the chart so I can test using the Dow Jones Industrial Average, which offers history back to 1900, about 30 years longer than the history of the S&P 500 Index.

Although the signals are rare, there is a better-than-average probability of a gain one month from now. However, that is based on math… and the market, just like real life, doesn’t always follow the laws of mathematics.

How ‘Rare’ Events Can Be Life-Changing

In my own life, there have been many more once-in-a-lifetime experiences than I expected. Many are incredibly rewarding in the long run, even though there are often challenges in the short run.

As one example, I was fortunate to adopt a beautiful boy from Bulgaria. The trips to his orphanage were heartbreaking. I really felt like I wasn’t strong enough to make the final trip where I would be awarded custody. It was hard because I wanted to take all of those children. But I couldn’t. I did what I could. And, as all children are, my son has been challenging at times, but the rewards have been immeasurable.

After adopting him, I was certain I could never endure that process again. But, I did. And I only had the opportunity because I had recently adopted my son.

In other words, my personal once-in-a-lifetime event actually led to my second once-in-a-lifetime event.

That one started with a late-night phone call from Child Protective Services (CPS). There was an emergency, and a child needed immediate placement. Remember, I live in Wyoming, which is a fairly small state. I was the last person to have received current training, and they asked if I could foster the child for a few weeks. I agreed — and today that little baby is my son.

Once again, there were challenges along the way. But even though the first adoption taught me to expect the unexpected, I was genuinely surprised by just how different the twists and turns would be this time around.

The one thing I know I know is that there will be challenges in the future. But the benefits outweigh the challenges. My sons are proof of that.

All of this is proof that “once-in-a-lifetime events” can — and do — happen much more often than the math would have us believe. It’s true of my story, and it’s certainly true of big market events. However, that doesn’t mean we can — or should — live our lives as if the rare event will be common.

After that late-night call from CPS, I had my name removed from their list. It was a tough decision — one I spent a great deal thinking about before making that change. I still wish I could help every child who needs assistance, but I can’t. For now, I want to focus on my three little guys. I can always consider doing more when they are older.

And who knows what other “once-in-a-lifetime events” will pop up along the way?

Bringing This Back To The Market

Okay, back to the market. Could we have planned for this crash? No. Preparing for an event that happens about 0.5% of the time means missing out on many events that happen more often. It’s the equivalent of living in a bomb shelter and leaving just once a month. Imagine all of the good times you’d miss.

Sometimes, a rare event even leads to wonderful opportunities. I’m glad I made that trip to Bulgaria. I’m glad I answered my phone in the middle of that night. Those once-in-a-lifetime events opened doors I’d never imagined existed. This market crash might do the same.

That’s why my subscribers and I will be looking to make opportunistic trades in this market, using our proven trading strategy. I’ve been using the same award-winning indicator in Income Trader since 2013, and more than 91% of our trades have been winners.

If you’ve been trading options on your own, then I want you to know that I am here for guidance if you need it. My subscribers and I have built a wonderful community over the years, and I’m making it a priority to continue our unmatched track record and identify more trading opportunities as safely as possible. To learn how you can join us, go here now.