Resist Risk To Navigate Fast-Shifting Market


Simpler Trading Team

Aug 09th 2021  .  2 min read

The team at Simpler Trading continuously watches for specific market patterns and trend setups as part of an established trading plan.

This is an important part of learning to navigate uncertainty and volatility of this market. No matter the skill of the trader, the environment can suddenly change and send the market into disarray.

So how do you trade in a volatile market that continuously breaks records in a cycle of pullback and rally?

Simpler’s traders search for technical signals that more clearly determine bullish or bearish movement. Signals can change by the minute or extend into hours, days, or weeks.

No matter the signals or the time frame, Simpler’s traders work to identify the path of least risk and resistance.

If the market is bullish across a particular time frame, traders want to determine if a possible setup fits an established risk plan, and what’s the path to profit?

When a sudden shift hits, Simpler’s traders let the market lead and find the path of least resistance to plays during the pullback or rally.

This requires a trading plan that can adapt in a volatile market.

Recent expectations, especially for bears, have been challenged by record-setting gains followed by a sharp pullback. This makes trading difficult even for bullish-leaning traders.

This stock market appears determined to continually set records and never let go of its hard-charging run to the upside. But, as history shows, all bull runs get corralled.

Traders must work to adjust trading plans and identify tickers showing strength and solid signals.

We Saw: Market slow to fire up after record-setting sessions last week –

  • Cryptocurrency rebounding after rough phase
  • Covid-19 Delta variant forcing sweeping corporate changes
  • Oil heading down slippery slope as demand slows again

We’re Watching: Big non farm payroll Friday, what’s next? –

  • Bonds, money flow through the week
  • Recovery, or not, of commodity prices
  • Sector patterns that lead to ticker setups