Wow, what a day yesterday!!
On news of Trump’s China tariff rollback, stocks surged, and the NASDAQ entered a new bull market!
And who knows what things will look like tomorrow…
It’s been a volatile few months…
And guess what! We love it!
As day traders, we thrive on volatility and price action. We’re not here to marry a long-term investment. We’re here to spot the great setups, get in, make gains, and get out.
These kinds of trades can be game changers for traders with small accounts.
And speaking of game-changing, Nvidia’s CEO, Jensen Huang, is about to trigger an event that could be just that…
Everything could be different after this.
Fortunately, my colleague and legendary trader, Tim Sykes, has a handle on it and knows exactly what you need to do BEFORE this happens.
Find out in his video below…
Volatility gets a bad rap in the mainstream media, but it’s pure gold for short-term traders like us.
If you’re here to really make money in the stock market, you need volatility.
Without it, there’s no movement, opportunity, or edge.
Table of Contents
Volatility = Trading Opportunity
Volatility gives us room to trade both sides, long and short. We trade breakouts, breakdowns, crypto, ETFs…
The bigger the moves, the bigger the potential gains.
Study the Cycles: Fear vs. Greed
I’ve been doing this long enough to have seen both extremes:
Between 2006 and 2015, we were in a fear-driven market.
Stocks would pop, then immediately sell off.
Because of that, I was 90% short-biased. I’d short the parabolic candle, when the stock topped out, and then ride the fade.
And between 2016 and now?
Green, green, green. We’ve been in a long bull cycle where everyone’s buying, and it was straight upside.
And right now, I think we’re heading into one of the most volatile stretches I’ve seen in over a decade.
Adapt or Get Left Behind
So what’s next?
About a year after Trump’s election, so fall of 2025, I expect a final euphoric surge…
Then, sentiment shifts and the market turns cautious again.
I see short selling trending again like it did between 2006 and 2015.
My advice: you’d better be ready for it.
Understanding where we are in the cycle and adapting your trading to it is how you win.
One of the biggest mistakes I see is traders stuck in old habits.
They’re skating to where the puck was, not where it’s going.
Don’t be that trader.
Study the past. Understand the patterns.
Become fluent in the language of price momentum, VWAP holds, float rotation, all of it.
And know all the consistent, high-probability day trade setups I teach.
I recently found a setup that only appears during one part of the week…
I’ve discovered that Monday mornings present a unique pattern that doesn’t exist at any other time.
This Monday setup has brought 100%+ gains…in just one day!*
I’ve studied and perfected this trade, and now I want to share it with you.
Learn it for yourself in my video tutorial below:
Wrapping It Up…
As day traders, we should never run from volatility…
Instead, we should embrace it and learn to use it to our benefit.
Study the cycles. Fear and greed both create setups for long and short sellers.
Put in the time. Learn all the patterns and setups, study them, and practice them.
This is how to get ahead of the action so you can react and take advantage of it.
Volatility is never a problem. It’s an opportunity.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
This Thursday, May 15th, I’m going live for a special emergency market briefing with trading genius Jack Kellogg…
Why now?
Because Treasury Secretary Scott Bessent just dropped a warning that trade negotiations could drag on into June…
And with Trump’s tariff pause ending in July, uncertainty is building fast.
Jack knows we’re staring down the barrel of a new wave of volatility, and he’s not backing off…
In fact, he sees a once-in-a-lifetime opportunity….
That’s why, during Thursday’s live event, Jack will show you how you can take advantage, too.
Plus, he’s giving away a FREE trade idea he believes has the potential to double by 2025, regardless of what happens with tariffs.
Reserve your Thursday spot now for the Trade War Lifeline Summit.
P.P.S.
- How much do you know about options? Learn more right here.
- Why you should size down your trading position when the market’s down.
- Find out why I love 2 PM for trading.