Traders are yearning to get into the stock markets but are "terrified" and crowd the sidelines, when a winning strategy may be to just cut out the negative noise and jump in, financial guru Clem Chambers, CEO at ADVFN, told CNBC.
"All the traders I speak to say: 'I wake up every morning and I want to buy, but I'm not going to. I am itching to buy, I just want to buy this stuff, but I'm not going to do it'," said Chambers. "The problems in the financials are going into the general corporate world and everyone is terrified."
Contrary to market trends, the only thing that Chambers is currently holding in a short position is the yen. Everything else in his portfolio is long term. "I'm a bull and I'm almost all in," he explained.
"At some point you have to say, 'I'm going long,' put your fingers in your ears, and hope you've hit the bottom. That's the trade that I've made," Chambers added.
But the trend can go either way, he warned. Markets are currently at levels that, historically, are trigger points for meaningful turnaround trades, with the S&P off more than 50 percent from its high in 2007.
"The next point is 75 percent, and it looks like we are heading there. If we are kicking off into that next leg, it is a Wall Street crash event and we will see it in the next 2-3 weeks," Chambers warned.
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But shorting stocks is not an option either, he said, "Because when it turns, it turns very, very fast. The ideal trade would be to buy options, but they are way too expensive because everyone is trying to insure their portfolio."