When Run Is Over… What’s Next?

2020-12-03

Every trader needs a little time and “space” to review, refresh, and plan ahead every now and then.

This break is certainly needed after a bad run, but it may be more needed after a good run.

Several of Simpler’s traders have put together some incredible runs in the past few weeks. There’s no denying the euphoria of multiple six-figure days and the latest multi-million dollar trade.

As with bad runs, if you’re trading within your limits even good runs must come to an end.

You don’t want to lose any big gains. You can become overly cautious with serious doubt creeping in. This is not a time to take big risks.

Then what do you do?

Here are some ideas when you need to refresh:

  • Realize that the market isn’t obligated to protect your gains
  • Pocket any gains and move them away from the trading account
  • Break up with any hot tickers on your terms — move on quickly
  • Know that veteran, profitable traders are just fine with missing moves
  • Start sizing up the next opportunity, but don’t rush into anything

Many of Simpler’s traders have experienced the best year ever in trading and have far exceeded any previous expectations.

To avoid any “big win hangover” through the end of the year they plan to reflect, re-energize, and develop next steps that carry them into the first quarter of next year.

No pressure, no rush. The goal is to be ready when the market presents another opportunity.

We Saw: Touchy news pulling back market run up — 

  • Dow spiked above 30,000 then retreated
  • News of Covid-19 vaccine deliveries stalling market run
  • Technology sector steadying, bolstering market

We’re Watching: Time to reflect, refresh, refocus —

  • Bullish trend strength into new year
  • Key sectors with red flags, i.e. transportation
  • Setups in: FB, AMZN, TSLA, MRVL, APPS