As a trader, having an effective strategy is not enough; you must also execute that strategy properly. This is trade management 101.
The best trading idea in the world won’t make you money if you cannot execute it. To succeed as a trader, you must be proficient in planning AND executing.
Here are five actionable trade management tips to help you improve your trading that you can implement immediately to improve your results in the 2023 market conditions:
Size Down During Market Volatility
Every novice day trader thought they would become a millionaire when banks started failing a few weeks ago and volatility started hitting the markets. More range means more profits, right?
Wrong. During volatility, you can win big if the trade swings in your favor, but you will also LOSE big if the trade goes against you. As traders, we always respect risk. Any trade can turn into a loser.
Here are more reasons why you should size down during volatility:
Taking Partial Profits
As traders, our job is to take profits. We do NOT marry positions. Especially when the market is volatile and choppy like it has been recently, must take profits quickly.
Kunal, myself, and many other traders here at Bulls on Wall Street use a concept called scaling out of positions. This is where you take a partial profit on a position, and move your stop loss to breakeven to make a free trade.
If you are up $200 on a trade, sell half to lock in $100. Then moving your stop loss up to your buy price, or a higher level of support/resistance, allows you to lower your trade risk, while realizing a profit.
AVOID YOLO Options
The stock market is a place for traders not gamblers. On social media the phenomenon of turning $100 into $100,000 with options has become prevalent. It is less than 1% trading strategy. There is no edge to it.
You need strategies that can extract you consistent profits from the market to trade for part-time or full-time living.
Kunal shares with you a more sustainable options strategy in this video here:
Learn more about our new options trading service and our veteran options trading instructor Levi in this free training here.
Use Proven Trading Strategies
One of the worst things you can do for your trade management is to take trades with strategies you don’t know well. If you don’t know the probability of a trade playing out, your emotions will ruin your trade management.
Here are 3 powerful trading strategies you should look for every day in your watch list:
If you want to learn 15 more day trading and swing trading strategies and how to use them, join our next LIVE Trading Boot Camp starting in just a couple weeks!
Some of our boot camp students have been having their best trading years ever!
These students have been trading and studying for years with us to make these kinds of days happen. If you want to learn the strategies that allow you to capitalize in these market conditions, apply for our LIVE Trading Boot Camp below!
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