Days Of Slow Trending Markets Are History

2020-06-15 | Simpler Trading Team

Everyone is looking at how to “trade the opportunity” in this wild market that falls apart one day and leaps upward the next.

Often, like today, the big swings happen on the same day.

So what is the formula?

Start with resetting your mind. This is an entirely different trading environment than the start of the new year. It is critical to acknowledge this drastic change.

Key traders here at Simpler trading have been full-time in the markets since the dot.com crash in 200 and the real estate and financial crisis of 2008. They’ve learned from “in the fire” experience how to take advantage of opportunities in a volatile market.

Some have met their trading goals for 2020 in the last few months. Volatility has proven to present profitable opportunities.

Again, what worked in trading to start the year isn’t the best plan now as traders have been forced to add trading skills. Once they reset their mind, they moved to adapting with different skills.

How does that translate to today?

As an example, what used to be a three-week move off a daily chart is now a one-hour move off a five-minute chart.

Digging deeper in the example, a strong tech stock might have moved $10 over the course of three weeks. A solid plan would have been to get into a trade off a daily signal and stay in the trade for week after week until that “steady” stock hit the $10 target.

Traders would get out and be happy.

Now, following the example, that same tech stock can move $10 in less than a day. Moves in this market volatility are bigger and happen in compressed time frames.

This market moves at speeds and with sudden swings that keep the pros on their toes.

Without a mental reset and added skills, trading today can be a scary time.

But you don’t have to trade alone.

Simpler’s traders focus on sharing their experiences, trade, and plans for limiting risk while taking advantage of opportunities.

Not every trade works. Even the best get roughed up by this market.

The focus still remains to maintain a trading plan that can absorb losses and keep pressing toward a positive account balance.

Trading isn’t just about surviving, but actually thriving based on what the market gives — even historic volatility.

We Saw: markets diving early before recovering — 

  • Dow swings 1,000 points before closing positive
  • Fed rally influence: set to buy corporate bonds
  • More major retailers, service provides face bankruptcy

We’re Watching: … how much cash is in the account —

  • Using volatility as an advantage
  • Cautiously, curiously for overnight futures action
  • Setups in: NKLA, NFLX, SPY, TSLA

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