How To Profit In Market Conditions Where Most Traders Lose


The current market conditions are the worst for new, inexperienced traders. The overall market has seen an enormous increase in volatility the past week, as the major indices have been in free-fall mode. Most retail investors panic as they watch their 401Ks plummet. Meanwhile, the smart money actually makes the most amount of money during periods of high volatility.

Day trading is the best way to profit in the current market conditions, as you can capture big moves in a short period of time without exposing yourself to wild swings in your overnight PNL.  The past week has been some of the biggest weeks of the year for most of our students. Here are some tips on how you can survive and profit in the current market conditions:

Avoid Gambling

In the current market conditions, it is very easy to let your trading turn into gambling. In volatile market conditions, it is even more tempting to over trade than usual, with so many stocks moving every day. It is crucial that you stick to your niche in the current market environment, and not fall into gambling and trading random stocks. Another one of our students, Cody, talks about the importance of trading with an edge and gives some great short sellings tips in a recent video of his:

Cash Is A Position

If volatile market conditions scare you and you don’t know what to do, stay on the sidelines. Cash is a position to, and it is a crucial position to be in when you don’t have an edge in the markets. It doesn’t matter if other people are making money in the current market conditions. If it doesn’t fall in the scope of your strategy, there is no reason to get involved and gamble.

We recommend learning how to short sell, but do not try to learn by risking your hard earned money in the current market conditions. Trading for a career is all about knowing when not to trade in order to preserve the capital in your trading account. Instead, paper trade and find a mentor who can teach you proven short selling strategies.  

Find Mentorship

Now is more important than ever to find a trading mentor. Learning how to trade on your own in these market conditions is extremely risky. Volatile market conditions are the easiest time to lose a lot of money. They are also the best time to make money if you know what you are doing. One of our students Abdul made a crucial point in a recent testimonial video: You have to learn strategies to profit in bear markets, not just bull markets. The mentorship we provide will allow you to survive and thrive in all market conditions, not just a bull market where anyone can make money. Check out Abdul’s full testimonial below:

Free Trader Assessment

Are you a current or aspiring trader looking for some feedback? Need a roadmap for what you need to do to get to where you want to be? Schedule a free trader assessment with one of our educational specialists today!