Navigating market volatility can be tough…
One minute you think you’ve got the market figured out and the next it does something completely unexpected.
Wild moves can stop you out of your positions or turn winners into losers FAST.
Market volatility can also scare people from trading, creating less volume and potential setups.
So what can you do to protect yourself during these times?
I share my four tips with you below!
Time’s running out before the 11-day surge comes! Are you ready? Prepare for it here!
Four Ways to Thrive in Volatile Markets
When the market sells off a lot of traders get nervous. They wonder if they should still trade or even bother showing up…
But you don’t have to fear the volatility. Especially if you’re prepared to take it on…
Tip #1: Learn Repeatable Setups
Penny stock patterns often repeat.
Use a stock’s past chart history and tools like the Oracle algorithm to help you spot those repeatable setups…
I know that may seem like a massive oversimplification. But I’m a fan of the keep-it-simple, stupid (K.I.S.S.) method…
Right now what’s working is dip and rips and short squeezes in true penny stocks.
Traders never used to short such low-priced stocks. But some of the big runners we’ve seen lately prove to me that they’ve started to.
Many of these true penny stocks are on Oracle every morning. And my top pattern for sketchy, trashy, low-float penny stocks is the dip and rip…
Pay attention to what worked yesterday and it might work today.
If nothing is working for you right now and you don’t see any of YOUR setups — you still have to show up…
Tip #2: The Importance of Showing Up
On down market days, there might not be a ton of great trade setups. But that doesn’t mean you can take the day off…
Even if you can’t trade every day, show up and track the top gainers.
When I was starting out I had a lot going on — I was running a business, and I had a wife and young kids.
So, some days, I couldn’t trade during market hours, but I still made it a point to show up and track the market’s top gainers.
I’d jot down important information about these stocks, including news, key levels on the charts, and so on.
I’ve now been trading for over 15 years and still show up every day. If I can do it in up and down markets, so can you.
Early bird gets the profits! Kickstart your day by running scans, staying updated on market news, and taking notes. The early morning hours are your secret weapon for success in trading.
— StocksToTrade (@StocksToTrade) October 20, 2023
Tip #3: Position Size and Liquidity Matter
In down markets position size and liquidity are even more important.
You might need to adapt your position sizes to be smaller if you find you’re getting stopped out of trades more often.
You might also be more limited in the trades you can take…
During volatile times in the market, there can be more fear. Which means there won’t be as much volume in as many stocks.
You may have to focus on the most liquid big percent gainers when making your trading plans.
Tip #4: Ignore the Fear-Mongering
When the markets have a red day, it’s essential to ignore all the fear-mongering about market crashes.
Yes, the market can be shaky at times … You’ve probably heard all the doom and gloom on social media and in the mainstream media…
But let me tell you something important: most of this is pure sensationalism.
These folks want to scare you away from the markets so that you won’t trade the best setups.
They want you to fail.
But I’m here to tell you that I genuinely believe in you and want you to succeed.
That’s why I spend so much of my time mentoring new traders — including giving free live training sessions daily.
Click here to join our next one completely free of charge.
See how you can learn to trade in any market. Remember, my focus isn’t to create fear or spread panic … I’m here to provide you with the tools and knowledge to spot the best opportunities in the market.
So, don’t get caught up in all the negative hype.
Instead, keep your eyes on the prize, learn from the past, and keep trading smarter every day.
That’s how you thrive in any market conditions.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade