Volatility provides lot of opportunities but it’s not easy to capture. We may see falling prices and think “wow this is a once in a lifetime opportunity”.
Then the market keeps falling and your down a crapload of money and forced to either stomach being down big numbers and riding it out, or cutting the losses at way below a reasonable risk management spot. Then you realized you sold the bottom.
Volatility can be your best friend or worst enemy. With these tips, you will develop an edge trading market volatility:
During these times, trading less is a good idea unless you are truly one of those traders at the peak of their powers. Then it’s ok to step on the gas.
If that’s you, you already probably feel it and it’s your time to really push your limits see what you’re made of.
If your a swing trader it can be hard to make money in this market as there are gaps all over the place. You can either hedge your plays and try to squeak out some gains like Paul does and be protected or you just sit. Build watchlists. spend time making “wishlists” go through tons of charts of some of your favorite names.
Pay Attention to Multiple-Time Frames
Look at them on different timeframes. Weekly charts, monthly charts go back on them. Market out some advantageous spots that are true gifts you will be rewarded for the inactivity in trading but the proactivity in your studies by getting some epic plays that could pay you many months down the line. This video will show you the time frames I use in my trading:
Know and STICK to Your Trading Style
Know who you are as a trader. Know how much heat you can stomach (based on your account size) and your overall skill level and mental mindset is an absolute necessity in this market to know how you should be participating or not participating in this market volatility.
If you have kids or work things that are concentrating on this is also a good time to just sit back and watch and sharpen your knives. It is a common misconception that volatile markets are where people make the most money. In my experience, the best markets are trending markets with almost no volatility as stocks just go up every day, and the bias is obvious!
Those are the markets where you really want to push the pace for 95% of traders even decent ones. Stay safe! Better times are coming!
Killer week in the chatroom the last few days. Everyone did an exceptional job recognizing the shifts in trends and being nimble. It is not easy to be long then short, then long, then short, then long all in 1 day but its what you need to do if you’re going to trade this. Or you just sit and watch and learn.
Watching and learning is not being inactive for some it’s just smart. Stay safe, have patience, and trade well during this historic time in the markets.
12 Seats Left in Our Next Live-Trading Bootcamp!
Our Live Trading Bootcamp will teach you the strategies I have been using for the past two decades to thrive in any market conditions, especially the current conditions. Our next Live-Trading Bootcamp kicks off on April 7th. Only 12 seats remain.