Don’t Be ‘Right’... Play What Market Gives

2021-07-08

Bears are chomping at the bit while bulls are “buying the dip,” so take a deep breath and hold on. Action is wild as hell and ripping up traders on the wrong side of the market.

With this wild movement, how do traders safely navigate the wild action?

The answer may not be readily obvious and traders may need to wait out this possibly sharp pullback.

As this market unfolds, Simpler’s traders revert to core training — the market doesn’t bend to emotional reactions or news pundits’ expectations.

The market makes its own way and traders need to follow the opportunity the market gives. The rough part is the market may not reveal its “intentions” until dust settles from the current rough ride.

A combined 200+ years of trading experience — with failures and successes — has shown Simpler’s traders that attempting to impose personal expectations on the market is a losing proposition.

We understand that traders are generally very independent operators and this can make it difficult to let the market act without expectations.

Our team works hard to not let personal expectations create added stress when they don’t match the reality of market moves. This can also cause doubt and confusion which leads to losing trade decisions.

Focus on what it takes to make money any way the market moves, rather than “being right” about how this pullback plays out. Our traders never want to attempt imposing their will on the market.

Work your trading plan in a way that allows participation in the momentum and direction the market is willing to give. Leave personal expectations aside.

Move as the market moves, and target higher probability plays or enjoy sitting on the sidelines watching the action — and other people risking their money.

Stepping away from your computer mouse and waiting for the market to “reveal intentions” with stronger technicals on the charts isn’t a bad play.

We Saw: Sharp market pullback during ‘flight to safety’ —

  • Market sentiment reacting to FOMC meeting info
  • Is this setting up more selling?
  • Pullback as possible sign of global economic fears

We’re Watching: Playing it cool with caution —

  • Waiting out extend of pullback
  • How bad the “other side” of market gets hit
  • Setups that don’t risk the account balance