Are you still trying to catch the move in the market?
Welcome back Trader,
These market conditions are very abnormal we’ve seen equities trade in over 40 point ranges in both directions. We’ve seen equities get to very significant prices levels and trade through them as if they weren’t even there. We’ve also experienced crude oil trade uncharacteristically with no volatility, even after the middle east explosion that volatility was short lived. If you’re a short term trader (day trader) or a swing trader holding positions over a couple of days you’ve experienced some frustration with lack of follow through of the move and trade expectation being very limited.
These market conditions are exciting times and you should welcome the opportunity to learn. Being a pro trader never meant it was suppose to be easy. Short term trading is about being nimble enough to adjust at a moments notice and no matter what always ending the day profitable. No short term trader ever went broke putting money in his or her pocket daily. Don’t get married to what you think the market should do, simply anticipate the move before happens. If the opportunity matches with your risk parameters take advantage of it with precision. The market doesn’t owe us anything. There’s no such thing as getting your money back on the next trade. The previous trade either successful or unsuccessful was its own separate entity and has its own context, treat it as such.
The current market is hanging on to every word of economic data and political jargon these days. This doesn’t mean for us to allow our political views to take control of our bias in the market. This means that being aware of whats to come on the economic calendar is valuable.
Your trading strategy should consist of these 5 things to start with. None of us have enough money to bully very liquid markets like the S&P 500 and crude oil futures so you must pick the probable opportunities that align with your strategy.
The 5 things every trader should build their trading foundation with are.
1. RISK MANAGEMENT
2. CONTEXT OF YOUR MARKET
4. MARKET LEVELS AND MARKET STRUCTURE
5. VOLUME AND ORDER FLOW
Even with the current market conditions if your trading strategy is built around these 5 things you stand a highly probable chance of having consistency. If your trading doesn’t consist of this, then ask yourself one simple question.
How long are you going to continue to lose while trying to catch the move in the market?
I look forward to seeing you in the trading sessions.