How I Trade Tough Markets

by | Sep 1, 2022 | Trading Lessons

Howdy, traders. It’s Bryce here.

Market volatility and uncertainty came back with a vengeance these past few days. Ever since Fed Chairman Jerome Powell made it clear that he intends to tank the economy to cool inflation down.   

Naturally, investors are nervous as heck as they see their 401(k)s plunging once again. But day traders have been feasting off of the volatility. 

And we’re out here patting each other’s backs when we nail the opportunities that come up because winning isn’t easy, but it is possible. 

You don’t have to figure out the whole economy or the whole stock market to execute a great trade. Here’s what you should focus on to trade in crazy markets and sleep well at night…

Three Strategies I Use to Nail the Markets

In volatile markets like these you have to keep your risk small. And the best way to do that is to minimize your exposure to the markets, while still extracting the most value. 

Here are my strategies for making effective trades during uncertain market conditions.  

#1 Day Trade, Don’t Swing Trade

Day trading can give you the most control over your returns. If you trade correctly, you should be able to get in and out quickly, according to your trading plan.

My O.G. mentor, Tim Sykes, loves to turn into a sniper scalper during times like these. He’s in and out as quickly as possible, as soon as a stock hits a target price or starts to fail.

Join The SteadyTrade Team and Start Trading Like A Pro

Finding trade opportunities doesn’t have to be difficult. Join two experienced traders, Tim Bohen and Bryce Tuohey as they help you navigate the markets, learn strategies, and understand how to spot trades with potential to spike.

Either he comes away with a decent profit or a very small loss. And that’s because he follows his own advice and cuts losses quickly. 

He doesn’t spend time wishing or imagining that the conditions were any different than they are. And that makes all the difference

#2 Look for Resistance and Support Levels in the Indexes

Look, the great thing about day trading is that our opportunities pop up no matter what the market is doing. 

Wonky indexes yesterday? Yup. Did we still get a ticker that ran well over 100% and held its gains throughout the day? Yup. Cheers to you, Nuwellis Inc. (NASDAQ: NUWE). Great PR will do it almost every time. 

That being said, when the indexes are green, stocks do tend to run even further than they might’ve otherwise. So, look at the S&P chart and the Nasdaq chart, just like you would look at a stock chart. 

Where do you see support and resistance levels? If you’re a long-biased trader like me, look at the support levels for possible bounce days that could support your trades in running even further. 

#3 Use Strategies That Make Tickers Prove Themselves

One of my favorite plays for these kind of market environment is the dip and rip pattern. I explained it in-depth recently here. 

This is a strategy that works for stocks that are gapping up for the first time. This generally happens with small caps that dropped PR before the market open. 

What’s the difference between you and millionaire trader, Matt Monaco?

Every morning, Matt has access to a powerful suite of features to quickly find actionable trades- without spending hours researching.

In fact, using these tools he is even able to find & make trades in under 1 minute! 

Smart companies tend to drop PR during premarket hours exactly so this can happen. The stock then dips at the official market open before ripping above its opening price. 

I use the bottom of that dip as my risk level, and I jump in once it breaks that high of the day. I personally like to see it break the premarket highs as well. 

Conclusion

When the markets turn crazy, I love being a trader. It helps me sleep better at night knowing that my hard-earned gains are all sitting in cash. 

I want you to have this peace of mind too. No one should have to lose sleep over things they can’t control. 

I know our teacher Tim Bohen feels the same way. That’s why he created a special new scanner for traders to jump in and out of today’s hottest trades. They’re happening in a corner of the green energy sector: Discover it here! 

Recent Articles

It’s Big Spiker Season

Howdy, traders. It’s Matt here. September is a historically slow month for stocks. But with most...

Recent Tweets: