How to Trade in Volatile Markets

by | Jun 21, 2022 | Trading Lessons

Happy Tuesday, traders. It’s Bryce here.

I hope you enjoyed your holiday weekend and spent some quality time with your loved ones. Today, it’s time to start a new trading week. 

If you’ve been paying any attention at all lately, you know the markets have been rough. We’ve dipped in and out of bear market territory probably at least a couple of times now. 

This makes it hard to know what kind of trading day you’ll face tomorrow. Heck, sometimes you can sit down to watch the markets in the morning and see them turn in the complete opposite direction by the afternoon. 

So what’s a trader to do? Here are my top three tips for staying on top of your trading game in a volatile market…

Develop Versatile Trading Skills

I know that getting out of your comfort zone can be scary. But it can also be what makes or breaks you as a trader. 

You have to be willing to take calculated risks. One of the ways I’ve switched up my trading style during market drawdowns is by taking short positions.

Learn the secret Tim used to turn a small investment into a fortune

30 days..

That’s all you need to get started on your journey to financial freedom.

And it all starts with Tim Sykes’ #1 pattern for beginners.

HINT: This is the same pattern Sykes used to make more money in one day than what his parents made in an entire year…. All while he was in high school.

I’d rather go long, but when those opportunities dry up, I still want to keep my trading skills fresh. And hey, a trader friend of mine just saw amazing results when he traded against the market.

When many stocks and sectors are in a downtrend, it’s easier to identify strong downside setups. But even then, more stubborn longs will come through and help prop the stock up — that’s when you need to be quick and scalpy.

Stocks that have run up too much — overextended stocks — also make good short plays. Ultimately, when volume dries up, stocks tend to come back down to earth. And the cycle continues. 

There’s always a trade to make. You just have to decide if it’s worth it for you. If you want to stay active, you might have to learn a new strategy. You can always paper trade first. Practice first, then get out there with small position size.

Remember That It’s Okay to Not Trade

Getting stuck in a trade you can’t safely get out of is ROUGH. It can cause you to doubt your skills as a trader. You can get down on yourself that zaps away at your mental energy and focus. 

In a volatile market, you must become pickier about what you trade. Otherwise, you could set yourself up for preventable failure. 

Want to be alerted to hot trade ideas before anywhere else?

Breaking News Chat is the alert service that traders can’t get enough of. Two former financial analysts scour the Stock Market and news for stocks that could potentially spike and alert the room allowing you the chance to get in on the action.

Check out the alert for DWAC on October 21st: 

This is a tool you’ll want in your trading toolbox. 

Why put this mental strain on yourself if you don’t have to? And you don’t have to…

Forcing trades won’t make you a professional trader. You don’t have to trade 10 times a day — or even a week — to call yourself a trader. The most important thing is to preserve your capital

We all want to trade. But dragging your mind through the mud for mediocre setups is an easy way to burn out. Trading doesn’t have to be difficult.

Save your mental capital for the hot plays with setups so good you’d feel guilty not trading them. Study the charts of previously successful tickers instead, if there isn’t a setup you absolutely love.

Keep Your Eyes Peeled for Tickers Trading Against the Trend

In January, we were hoping for “The January Effect” to help traders out. Much like people who start going to the gym again as a New Year’s resolution, more traders seem to come out and trade in the first month of the year. 

But in 2022, the first couple of trading days of the year were good, and then … things got rough. A lot of traders saw their accounts turn red. 

But even then, stocks like G Medical Innovations Holdings Ltd (NASDAQ: GMVD) decided to run.

There wasn’t any news behind the stock but it only had three red days in January. GMVD showed strength despite the overall market weakness.

When markets get rough, I get more scalp-oriented than usual. I’m looking to get in and out for a quick profit. 

But there’s almost always gonna be something in play because traders want to trade! You just have to keep your eyes open and maintain some patience.

Conclusion

Even when the markets are choppy, you can implement strategies to make your life easier as a trader. Your emotions don’t have to follow the volatile path of the markets. 

If you’re open to discovering new skills and taking concrete steps to develop them, I invite you to join us in Small Cap Rockets

I created the program to help newer traders understand the ins and outs of trading. When is the best time to size up or size down? How can I risk enough money to get ahead without blowing up my account? How do I know which strategy I should apply in THIS market? These are the questions I love to help my students answer. Come ride with us to the moon? 

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