My 10 Pieces of Advice For Any Weary Traders in This Market Environment

My 10 Pieces of Advice For Any Weary Traders in This Market Environment


My 10 Pieces of Advice For Any Weary Traders in This Market Environment

  1. This is not the time to be a hero, the volatility and whip saws can cause major losses, trade small or not at all.

  2. In a market like this you have to be fast and take your entry points if you get them, if you wait the market will pass you by.

  3. Getting good entries at key levels will be the only way for long term holders to make money, if the market gets away from your entry this is not the market to chase anything, you have to be patient and the set up may come around again in this volatility.

  4. Trade only the things that you know best, this is not the time for taking hot stock picks or trading opinions on markets you are not very familiar with. 

  5. This is a dangerous market to try to buy into weakness or bottom fish, the odds are not with you here. A market like this will keep making lower lows instead of bouncing off support but will hit resistance like a brick wall.

  6. Adding to losers and waiting for the bounce in this market could end very badly for you.

  7. This is not a stock pickers market, if you trade primarily from the long side with stocks this is a great time to go fishing and check in at the close only to wait for the market to firm up.

  8. This is primarily a day traders market if you are a longer term trader and watch the market all day you will use up valuable stomach lining and put unnecessary wear and tear on your nervous system watching all the intra-day noise. It is best in this type of market to trade the open and close primarily and avoid much of the daily noise in the choppy price action.

  9. There is a time to be long, a time to be short, & a time to be out. Knowing the difference is the key to trading a winning method. If this market price action is not a conducive environment for your trading style to be profitable take a vacation from trading, the market will be here when you get back. 

  10. If you are a bull still trading against a pack of bears your account is going to get hurt quickly. Do not give back your profits this year.